SCC(600740)2021-04-19 16:00Financial Performance - In 2020, the company achieved operating revenue of ¥7,100,829,071.41, representing a 6.91% increase compared to ¥6,641,782,259.38 in 2019[20] - The net profit attributable to shareholders of the listed company reached ¥1,097,286,217.12, a significant increase of 131.40% from ¥474,199,911.46 in the previous year[20] - The net cash flow from operating activities was ¥486,466,252.89, showing a remarkable increase of 432.77% compared to ¥91,308,445.07 in 2019[20] - The company's total assets as of the end of 2020 were ¥21,407,133,467.31, reflecting a 5.13% increase from ¥20,362,074,997.85 at the end of 2019[20] - The net assets attributable to shareholders of the listed company increased by 9.36% to ¥11,161,655,348.86 from ¥10,206,028,360.84 in 2019[20] - Basic earnings per share for 2020 was CNY 0.5568, an increase of 130.37% compared to CNY 0.2417 in 2019[22] - The weighted average return on equity increased by 5.09 percentage points to 9.77% in 2020 from 4.68% in 2019[22] - The net profit attributable to shareholders for Q4 2020 was CNY 169,117,179.96, with a total revenue of CNY 2,088,069,667.16[22] Dividend and Share Capital - The proposed cash dividend for 2020 is ¥2 per 10 shares, totaling approximately ¥394,172,485.20, which represents a cash dividend payout ratio of 35.92% of the net profit attributable to shareholders[5] - The company plans to increase its total share capital by 591,258,728 shares through a capital reserve conversion, resulting in a new total share capital of 2,562,121,154 shares[5] Operational Highlights - The company produced 3,335,400 tons of coke, a year-on-year increase of 14.03%, and processed 288,000 tons of coal tar, a decrease of 9.61%[39] - The company achieved total assets of CNY 21,407.13 million and net assets of CNY 11,617.35 million during the reporting period[38] - Operating revenue increased by 6.91% year-on-year to CNY 7,100.83 million, while operating profit rose by 124.12% to CNY 1,015.28 million[42] - The company maintained a strong marketing strategy, focusing on customer satisfaction and optimizing product structure to enhance profitability[38] - The company successfully implemented a cash flow management strategy, achieving a net cash flow from operating activities of CNY 486.47 million, a 432.77% increase year-on-year[42] Market and Industry Trends - The domestic coke market showed a recovery trend in 2020, with prices increasing in the second half of the year due to supply constraints and rising demand from steel mills[32] - The company’s coal procurement strategy focused on quality and cost reduction, ensuring stable production needs while lowering procurement costs[38] - The overall coal production in China remained stable above 430 million tons, providing sufficient raw material supply for the coking industry[90] Environmental and Safety Management - The company emphasized safety and environmental management, achieving a 100% completion rate for environmental governance projects[38] - The company has constructed a total of 6 dust removal stations for coal loading, pushing coke, and dry quenching, all of which are operating normally[180] - The company’s wastewater treatment facilities operate normally, with treated water being reused in the production system[180] - The company conducted emergency drills for environmental incidents, including a leak drill at the ammonia station in June and a methanol leak drill in November[182] Research and Development - The company reduced research and development expenses by 77.61% to CNY 8.67 million, indicating a strategic shift in resource allocation[42] - The company has been awarded 4 national invention patents and 5 utility model patents in 2020, reflecting its commitment to R&D and innovation[74] Related Party Transactions and Governance - The company has committed to ensuring fair and compliant related party transactions, avoiding any illegal transfer of funds or profits from Shanxi Jiao Hua[108] - The company guarantees the independence of Shanxi Jiao Hua, ensuring its independent operation, decision-making, and asset integrity[108] - The company has committed to not transferring shares obtained from the transaction for 36 months following the issuance completion, ensuring stability during the restructuring process[114] Future Plans and Commitments - The company plans to produce 3.3 million tons of coke, process 300,000 tons of tar, 100,000 tons of crude benzene, 220,000 tons of methanol, and 75,000 tons of carbon black in 2021[95] - The company plans to extend its product range into fine chemical processing to increase product value and diversify risks[99] - The company will actively respond to stricter environmental protection policies, which may lead to increased costs and capital expenditures[96] Compliance and Legal Matters - The company has not encountered any major litigation or arbitration matters during the reporting period[146] - The company has ensured the independence of its operations from Shanxi Coking Coal Group, maintaining operational autonomy in financial matters[140] - There have been no administrative or criminal penalties against the company or its executives in the last five years, ensuring compliance with regulatory standards[120]