ZPEC(603637)2024-03-28 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.3 yuan per 10 shares, totaling 31,029,164.01 yuan, accounting for 30.65% of the net profit attributable to shareholders[4] - The total share capital of the company is 243,678,373 shares, with 4,992,496 shares deducted from the repurchase account, resulting in a base of 238,685,877 shares for dividend calculation[4] - The company's net profit attributable to shareholders for the year is 30.65% of the total cash dividend distribution[4] - The dividend distribution plan is subject to approval at the 2023 annual shareholders' meeting[5] - The company's cash dividend policy requires a minimum cash dividend distribution of 20% of the distributable profit each year, with a cumulative cash dividend distribution of at least 30% of the average annual distributable profit over three consecutive years[171] - For mature companies without significant capital expenditure, the minimum cash dividend ratio is 80% of the profit distribution, while for mature companies with significant capital expenditure, the minimum ratio is 40%[171] - For growth-stage companies with significant capital expenditure, the minimum cash dividend ratio is 20% of the profit distribution[171] - The company's board may propose interim cash dividends based on profitability and capital needs, in addition to the annual cash dividend distribution[170] - The company's board may propose stock dividends if the stock price does not match the company's scale and if it benefits all shareholders, provided that cash dividend conditions are met[169] - The company's cash dividend policy is designed to maintain continuity and stability, with a minimum annual cash dividend distribution of 20% of the distributable profit[168] - The company's board must consider industry characteristics, development stage, business model, profitability, and capital expenditure when determining the cash dividend policy[168] - The company's cash dividend policy includes differentiated ratios based on the company's development stage and capital expenditure plans, with a minimum of 80% for mature companies without significant capital expenditure[168] - Cash dividend amount (including tax) is RMB 31,029,164.01, accounting for 30.65% of the net profit attributable to ordinary shareholders of the listed company in the consolidated financial statements[177] Financial Performance - Revenue in 2023 reached RMB 585,439,268.87, a year-on-year increase of 1.91%[22] - Net profit attributable to shareholders of the listed company in 2023 was RMB 101,252,577.48, a year-on-year decrease of 1.75%[22] - Net cash flow from operating activities in 2023 was RMB 55,782,164.12, a year-on-year decrease of 20.93%[22] - Total assets at the end of 2023 were RMB 1,414,991,138.58, a year-on-year increase of 0.29%[22] - Basic earnings per share in 2023 were RMB 0.42, a year-on-year decrease of 2.33%[23] - Weighted average return on equity in 2023 was 10.96%, a decrease of 1.14 percentage points year-on-year[23] - Revenue in Q4 2023 was RMB 227,429,150.60, the highest among all quarters[25] - Net profit attributable to shareholders of the listed company in Q4 2023 was RMB 44,163,915.03, the highest among all quarters[25] - Revenue for the year reached 585,439,268.87 RMB, a 1.91% increase year-over-year[85] - Operating costs increased by 3.50% to 426,161,489.27 RMB[85] - Sales expenses surged by 87.05% to 4,449,457.36 RMB, driven by market expansion and increased employee compensation[85] - R&D expenses rose by 2.03% to 35,399,872.22 RMB, with 96.66% allocated to R&D personnel costs[92] - Net cash flow from operating activities decreased by 20.93% to 55,782,164.12 RMB due to reduced cash inflows from total contracting projects[97] - Net cash flow from investing activities increased significantly to 120,270,274.76 RMB, primarily due to the redemption of financial products[97] - The gross margin for the petroleum and chemical industry segment decreased by 1.12 percentage points to 27.13%[88] - Top five customers accounted for 73.55% of total sales, with no sales to related parties[91] - R&D investment accounted for 6.05% of total revenue, with no capitalised R&D expenses[94] - The company has 76 R&D personnel, representing 20.00% of the total workforce, with 59 holding bachelor's degrees[96] - Cash and cash equivalents increased by 18.21% to 931,271,721.57 yuan, accounting for 65.81% of total assets[99] - Trading financial assets decreased by 80.00% to 30,000,000.00 yuan, due to the redemption of more financial products[99] - Accounts receivable decreased by 18.78% to 199,656,935.22 yuan, accounting for 14.11% of total assets[100] - Prepayments increased by 241.74% to 5,797,847.34 yuan, mainly due to increased prepayments to suppliers[100] - Inventory decreased by 78.74% to 957,738.37 yuan, due to materials used in ongoing EPC projects[100] - Contract assets increased by 26.20% to 153,359,589.42 yuan, accounting for 10.84% of total assets[100] - Total equity investment reached 8 million yuan, primarily for a 26.667% stake in Ningbo Huaxiao New Materials Technology Co., Ltd[103] - The company has 2 subsidiaries and 1 equity investment company, with total assets of 1,034.07 million yuan and 3,233.97 million yuan respectively for the subsidiaries[105] Industry Trends and Market Analysis - Revenue of the petroleum and chemical industry reached 15.95 trillion yuan in 2023, a year-on-year decrease of 1.1%, with a profit of 873.36 billion yuan, down 20.7%[47] - Domestic crude oil and natural gas extraction investment increased by 15.2% in 2023, while chemical raw materials and chemical products manufacturing investment grew by 13.4%[47] - Total apparent consumption of crude oil and natural gas reached 1.123 billion tons (oil equivalent) in 2023, up 8.2% year-on-year[48] - Domestic gasoline consumption in 2023 was 168 million tons, an increase of 14 million tons year-on-year, while diesel consumption was 221 million tons, up 8 million tons[48] - Crude oil processing volume in 2023 was 735 million tons, a year-on-year increase of 9.3%, with refined oil production reaching 428 million tons, up 16.5%[49] - International crude oil price averaged $82.6 in 2023, down 18.4% year-on-year, with a "low first, then high" trend[50] - Domestic refinery capacity utilization rate rose to 72.59% in 2023, with large refineries (≥10 million tons) achieving 78.9% utilization[51] - China's GDP grew by 5.2% in 2023, with final consumption expenditure contributing 82.5% to GDP growth[55] - Resident savings rate dropped to 31.7% in 2023, indicating significant potential for consumption growth[55] - Refined oil production capacity is oversupplied, with structural adjustments and export optimization becoming key strategies[49] - Total import and export volume of the petrochemical industry reached $952.27 billion, a decrease of 9.0% year-on-year, accounting for 16.0% of the national total[57] - Export volume was $316.53 billion, down 11.2%, while import volume was $635.75 billion, down 7.9%, resulting in a trade deficit of $319.22 billion, a decrease of 4.3%[57] - China's motor vehicle ownership reached 435 million units by the end of 2023, with 336 million cars, including 20.41 million new energy vehicles and 316 million fuel vehicles[60] - In 2023, China's refined oil product exports reached 41.9055 million tons, a year-on-year increase of 21.51%, with gasoline exports at 12.285 million tons (down 2.90%), diesel at 13.7727 million tons (up 17.31%), and kerosene at 15.8478 million tons (up 56.99%)[60] - The petrochemical industry is shifting focus from meeting refined oil demand to producing chemical new materials, chemical products, and cleaner energy[57] - Digital transformation in the petrochemical industry is focusing on technology, business, and organizational elements to enhance integrated operations, innovation, and value creation[58] - The green development of the petrochemical industry is emphasized, with a focus on environmentally friendly products and sustainable practices[59] - The petrochemical industry in China is undergoing transformation towards high-end development, with a focus on "reducing oil and increasing chemicals," refining and chemical integration, and digital transformation[72] - The global manufacturing PMI index averaged 48.5% in 2023, a decrease of 3.3% from 2022, indicating increased economic recession risks[117] Corporate Governance and Management - The company has no significant risks affecting future development strategies or continuous operations[7] - The company's registered and office address is at No. 36 Xinghai South Road, Ningbo High-tech Zone[18] - The company's annual report is disclosed on the Shanghai Securities News and Securities Times websites, and is available on the Shanghai Stock Exchange website[19] - The company's stock is listed on the Shanghai Stock Exchange with the stock code 603637[20] - The company's financial report is audited by Tianjian Certified Public Accountants, with signatory accountants Pan Jingjing and Fang Fang[21] - The company strictly adheres to corporate governance regulations, ensuring independent operations in management, business, personnel, assets, and finance, with no improper interference from controlling shareholders[128] - The company has established a performance evaluation and incentive mechanism, linking employee income to work performance, with the board responsible for senior management performance evaluation[129] - The company maintains strict internal control and information disclosure practices, ensuring transparency and protecting shareholder rights[130] - The company ensures asset independence, with complete control over production facilities, trademarks, and patents, and no reliance on controlling shareholders for assets[131] - The company has an independent financial department with a complete financial accounting system, capable of making independent financial decisions and maintaining separate bank accounts[132] - The company's main business includes engineering general contracting, design, management, supervision, and cost consulting, operating independently from its controlling shareholders[132] - There is no competition or unfair related-party transactions between the company and its controlling shareholders or their controlled entities[133] - The 2022 annual shareholders' meeting was held on May 18, 2023, with 15 shareholders or proxies attending, representing 29.4769% of the company's total shares[136] - The 2023 first interim shareholders' meeting was held on October 16, 2023, with 14 shareholders or proxies attending, representing 31.5203% of the company's total shares[137] - The company's board of directors and senior management received a total of 6.76 million yuan in pre-tax compensation for the reporting period[138] - Zhang Jing has been serving as the company's CFO since June 2020 and became the Party Secretary in August 2023[143] - Qi Yuanqing has been serving as the company's Deputy General Manager since May 2022[143] - Jin Chang has been serving as the company's Deputy General Manager since May 2022[143] - Shi Dan has been serving as the company's Board Secretary since May 2019[143] - Yao Guofeng served as the company's Chairman from May 2022 to September 2023[143] - Fan Qihai served as the company's Vice Chairman from May 2022 to September 2023[143] - Shen Keyu served as a company director from May 2020 to September 2023[144] - Xie Qingqing served as a company director from May 2022 to September 2023[144] - Zheng Zhen has been serving as Chairman, General Manager, and Party Secretary of Ningbo Shuntong Group Co., Ltd. since July 2023[146] - Luo Baihuan has been serving as Director and Deputy General Manager of Ningbo Shunjian Group Co., Ltd. since July 2023[146] - Total remuneration for directors, supervisors, and senior management in 2023 amounted to 6.76 million yuan[148] - Board of Directors held 9 meetings in 2023, with key resolutions including approval of the 2022 annual report, financial statements, and 2023 R&D budget[150][151] - Key personnel changes in 2023 included the election of 4 new board members and the resignation of 4 senior executives[149] - Board members maintained high attendance rates, with all members attending at least 2 meetings and no consecutive absences[152] - The company's compensation system for executives was deemed fair and reasonable by the Remuneration and Assessment Committee[148] - The 2023 Q3 report was approved during the 9th Board meeting held on October 18, 2023[151] - The company has a total of 380 employees, with 310 being technical personnel, 8 sales personnel, 7 financial personnel, 16 administrative personnel, and 39 other personnel[163] - The company's employee education level includes 46 with a master's degree, 292 with a bachelor's degree, 36 with a college degree, and 6 with a technical school degree or below[163] - The company conducted training for over 1,400 employees through various methods such as expert lectures, internal exchanges, professional qualification exams, online teaching, and mentorship[166] - The company's profit distribution policy includes cash dividends, stock dividends, or a combination of both, provided that the company has no major investment plans or cash expenditures, has positive distributable profits, and receives an unqualified audit report[167] - The company's salary system is based on a "basic salary + performance salary" model, linked to the growth rate of output value, and includes a performance evaluation method that ties the total salary of business departments and senior management to the company's output value[164][165] - The company has established a performance evaluation and compensation system for senior management, with annual performance bonuses determined based on the achievement of economic benefits and work objectives[179] - The company's internal control system operated well in 2023, with continuous improvements in risk assessment and monitoring mechanisms[180] - The company's 2023 internal control audit report received a standard unqualified opinion from Tianjian Certified Public Accountants[182] - The company is not listed as a key pollutant discharge unit by the Zhejiang Provincial Department of Ecology and Environment, and its main pollutant emissions meet national standards[186] - The company ranked 52nd in the 2023 Zhejiang Province Top 100 Listed Companies for Social Responsibility Performance[188] - The company actively protects employee rights, provides competitive compensation, and offers low-interest housing loans for outstanding young employees[188] - The company maintains good relationships with suppliers, ensuring timely payments and no outstanding debts to small and medium-sized enterprises[189] - The company actively participates in public welfare activities, including disaster relief, blood donation, and educational support[190] - The company has fulfilled its commitments regarding avoiding and managing related-party transactions and preventing competition with its subsidiaries, as promised by Shuntong Group, Shunjian Group, and other stakeholders since February 10, 2020[192] - The company has maintained its independence in business, assets, finance, personnel, and organizational structure, ensuring effective corporate governance as per commitments made on February 10, 2020[194] - The company has renewed its contract with Tianjian Accounting Firm (Special General Partnership) for the 2023 financial statements and internal control audits, with a fee of 600,000 RMB for financial audits and 150,000 RMB for internal control audits[197] - The company has not faced any delisting risks, bankruptcy restructuring, or significant litigation or arbitration issues during the reporting period[199] - The company and its controlling shareholders have maintained good credit standing, with no instances of debt default, regulatory penalties, or required rectifications during the reporting period[199] - No significant related party transactions were disclosed in the annual report[200] - No progress or changes were reported for previously disclosed related party transactions[200] - No new related party transactions were reported that were not previously disclosed[200] - No asset or equity acquisition/sale-related transactions were reported[200] - No performance commitments related to asset or equity transactions were disclosed[200] - No significant joint investment-related transactions were reported[200] - No progress or changes were reported for previously disclosed joint investments[200] - No new joint investment-related transactions were reported that were not previously disclosed[200] - No significant related party debt or credit transactions were reported[200] - No progress or changes were reported for previously disclosed related party debt or credit transactions[200] EPC Projects and Technical Achievements - The company successfully completed the BEPC project for the Huizhou Petrochemical Atmospheric and Vacuum Distillation (I) Unit, which significantly improved the quality and efficiency of the facility[32] - The Tianjin Nangang 1.2 million tons/year ethylene and downstream high-end new materials industrial cluster EPC project (Section 9) was among the first to achieve mechanical completion in the Nangang ethylene project[32] - The Fujian Fuhai Chuang Petrochemical Industrial Hexane Optimization EPC project set a record for the fastest construction time among the company's EPC projects[32] - The Zhenli Chemical Molybdenum Recovery EPC facility successfully produced sodium molybdate, marking the transformation of new technology R&D achievements[32] - The company secured EPC contracts for Fuhai Chuang's sulfur recovery unit and industrial hexane optimization project, as well as Zhenli Chemical's molybdenum recovery facility[38] - The company signed technical service framework agreements with key clients including Sinopec Zhenhai Refining & Chemical Co., Ltd. and CNOOC Ningbo Daxie Petrochemical Co., Ltd.[39] - The company collaborated with the Chinese Academy of Sciences Ningbo Institute of Materials Technology and Engineering to establish a joint R&D center for bio-based materials[40] - The company's EPC project for the Sinochem Quanzhou 1 million tons/year ethylene and oil refining expansion project won the