ZDG(000906)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 73.46 billion, representing a 16.07% increase from CNY 63.29 billion in 2018[18]. - Net profit attributable to shareholders increased by 75.30% to CNY 536.27 million in 2019, up from CNY 305.92 million in 2018[18]. - The net profit after deducting non-recurring gains and losses was CNY 408.95 million, a 43.51% increase compared to CNY 284.96 million in 2018[18]. - The company's total assets reached CNY 14.71 billion at the end of 2019, a 26.40% increase from CNY 11.64 billion at the end of 2018[18]. - The net assets attributable to shareholders increased by 14.39% to CNY 3.20 billion in 2019, compared to CNY 2.80 billion in 2018[18]. - The basic earnings per share rose by 89.74% to CNY 0.74 in 2019, compared to CNY 0.39 in 2018[18]. - The company reported a significant decline in net cash flow from operating activities, which was CNY 66.78 million, down 92.73% from CNY 919.18 million in 2018[18]. - The total operating revenue for 2019 reached ¥73.46 billion, representing a year-on-year increase of 16.07% compared to ¥63.29 billion in 2018[54]. - The supply chain integration services segment generated ¥71.32 billion, accounting for 97.08% of total revenue, with a growth of 16.67% year-on-year[54]. - The revenue from the industrial materials segment increased by 21.78% to ¥23.53 billion, while the revenue from the building materials segment decreased by 11.63% to ¥19.66 billion[55]. Dividend Distribution - The company plans to distribute a cash dividend of 2.5 RMB per 10 shares to all shareholders, based on a total of 674,657,975 shares[4]. - The cash dividend represents 31.45% of the net profit attributable to ordinary shareholders for the year 2019[130]. - The total distributable profit for the year is 575,334,904.12 CNY, with the cash dividend accounting for 100% of the profit distribution[131]. - The company did not propose any capital reserve transfer to increase share capital for the year 2019[132]. - The company aims to maintain a sustainable profit distribution policy, targeting a cumulative cash distribution of at least 30% of the average distributable profit over three years[125]. - The cash dividend for 2018 was 101,330,214.73 CNY, representing 33.12% of the net profit attributable to ordinary shareholders[130]. - The cash dividend for 2017 was 51,081,246.90 CNY, representing 29.48% of the net profit attributable to ordinary shareholders[130]. Business Operations and Strategy - The company has undergone a change in its business scope, expanding to include sales of various materials and services, including non-hazardous chemicals and logistics services[16]. - The company has made significant changes to its operational scope, including investments in various sectors such as transportation and e-commerce[16]. - The core business of the company is supply chain integration services, focusing on infrastructure and manufacturing clients, providing end-to-end management and one-stop services across various industries including black metals, coal, and energy chemicals[29]. - The company aims to enhance its supply chain management capabilities and has been recognized as a leading service provider in the production materials supply chain sector[28]. - The company is actively pursuing industrial chain investments and external expansions through mergers and acquisitions, aiming to enhance overall competitiveness[30]. - The company is leveraging both domestic and international markets to build a strong international operational capability, utilizing its advantages in supply chain integration services[32]. - The company is committed to integrating technology into its operations, focusing on blockchain and artificial intelligence to support new business models[33]. - The company aims to enhance its processing and value-added service capabilities to meet the strong demand from upstream and downstream clients in the bulk commodity sector[31]. - The company is focusing on expanding its service offerings in new infrastructure projects, including underground pipelines and ultra-high voltage power grids[112]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[4]. - The company has established a risk management mechanism that includes annual risk control meetings and a dynamic management chain for its "Four New" business[50]. - The company is focused on monitoring national policies and industry trends to adapt to macroeconomic changes and mitigate operational risks[119]. - The company is enhancing credit risk management by conducting thorough credit assessments of its partners and utilizing collateral to reduce risks[120]. - The company has implemented strict approval processes for trading instructions and fund management to mitigate operational risks[93]. - The company has established a risk control group to oversee futures management and ensure compliance with internal control requirements[93]. Corporate Governance - The financial report confirms the accuracy and completeness of the financial data presented, with the responsible parties assuming legal liability for any misstatements[3]. - The company has not experienced any changes in its controlling shareholders during the reporting period[16]. - The company has engaged Da Hua Accounting Firm for auditing services during the reporting period[17]. - The company has implemented measures to ensure the accuracy and reliability of its financial reporting[100]. - The company is committed to ensuring compliance with financial regulations and maintaining operational integrity[102]. - The company has not disclosed any significant litigation issues during the reporting period[92]. Environmental and Social Responsibility - The company has implemented a wastewater treatment system that reuses 70% of its production wastewater, with a total annual discharge of 146,580 tons[199]. - The company achieved compliance with the "Urban Wastewater Treatment Plant Pollutant Discharge Standards" (GB18918-2002) Class A standard after upgrading its wastewater treatment facilities[199]. - The company has established a 500 cubic meter emergency pool for wastewater, exceeding the daily discharge capacity[199]. - The company actively participated in social responsibility activities, including a blood donation campaign where 20 employees donated a total of 6,800cc of blood[187]. - The company has engaged in social welfare activities, including donations to support cultural projects in underdeveloped areas, totaling 50,000 RMB for the construction of a cultural corridor[191]. - The company has a commitment to environmental protection, being classified as a key pollutant discharge unit by environmental authorities[197]. - The company emphasizes the importance of social responsibility and actively mobilizes employees for community service initiatives[188]. Employee and Community Engagement - The company hired 318 new employees with a bachelor's degree or above in 2019, increasing the total number of employees to 1,788[185]. - The company has established a good communication mechanism with customers, enhancing customer satisfaction through various interaction methods[186]. - The company plans to continue its poverty alleviation efforts in 2020, committing to a minimum of 200,000 RMB in aid to support economic development in the partnered village[195]. - The company actively participated in the "消薄" action and East-West poverty alleviation collaboration, establishing partnerships with two villages in Zhejiang and Sichuan[190]. Investments and Acquisitions - The company completed a significant equity investment in Jiangxi Zhongtuo Recycled Metal Co., Ltd., acquiring a 95% stake for ¥57,000,000.00[85]. - The company is exploring investment and acquisition opportunities to expand its market presence[122]. - The company is focused on expanding its market presence through strategic investments and technology development[89]. - The company is committed to improving its gross margin in the commodity integration service sector through strategic initiatives[122]. Financial Position and Liabilities - As of the end of 2019, cash and cash equivalents amounted to ¥2,514,192,975.44, representing 17.09% of total assets, a decrease of 0.57% from the beginning of the year[77]. - Accounts receivable increased to ¥3,030,285,102.93, accounting for 20.60% of total assets, down 2.93% compared to the start of the year[77]. - Short-term borrowings rose significantly to ¥3,477,334,559.12, which is 23.63% of total assets, an increase of 8.10% due to growing financing needs for business operations[78]. - Long-term equity investments increased to ¥447,562,812.72, representing 3.04% of total assets, attributed to the conversion of investment accounting methods following capital increase in a subsidiary[77]. - The total investment amount for the reporting period was ¥659,472,006.33, a decrease of 22.16% compared to the previous year[84]. - The company has pledged various assets, including cash and accounts receivable, to secure short-term borrowings totaling approximately ¥1,353,960,091.08[82]. - The company has a structured approach to monitoring and reporting on its guarantee obligations[174]. - The financial data indicates a significant reliance on guarantees, highlighting potential risks in the company's financial structure[174].