Financial Performance - For the year ended December 31, 2019, the net cash outflow from operating activities after interest payments was approximately RMB 37.4 million, a decrease of about RMB 161 million compared to a net cash inflow of RMB 123.6 million in 2018[7]. - The loss attributable to shareholders for the year was approximately RMB 732 million, an increase of RMB 384 million compared to a loss of RMB 348 million in 2018[7]. - The basic loss per share for the year was approximately RMB 0.1598[7]. - The total sales revenue for the year was approximately RMB 1,964 million, a decrease of about 36.7% compared to 2018[7]. - The company recorded a revenue of approximately RMB 1,964,000,000 for the year ended December 31, 2019, a decrease of 36.7% compared to the previous year[28]. - The net loss attributable to shareholders increased to approximately RMB 732,000,000, compared to a loss of RMB 384,000,000 in the previous year[28]. - The company's sales cost was approximately RMB 1,958,000,000, a decrease of 31.9% from 2018, primarily due to a reduction in trade volume[29]. - The gross profit margin fell from approximately 7.2% in 2018 to 0.3% in 2019, attributed to declining product sales prices and rising natural gas prices[29]. - The distribution costs decreased by about 20.6% compared to the previous year, with a distribution cost to sales ratio of 1.35%, an increase of 0.27% from 2018[29]. Production and Sales - The sales volume of urea increased by 37% to 325,170 tons, with sales revenue of RMB 554 million, a 17% increase[7]. - The average price of urea in 2019 was RMB 1,842 per ton, down RMB 131 per ton from RMB 1,973 per ton in 2018[10]. - In the first half of 2020, the average daily production of urea is expected to exceed 160,000 tons, with production showing a stable upward trend[12]. - The company faced challenges due to significant price declines in products and rising natural gas raw material costs[9]. - The company anticipates that the urea market prices will rise during the spring planting season, followed by a gradual decline after June due to reduced agricultural demand[12]. Dividends and Reserves - The company did not recommend any final dividend for the year ended December 31, 2019, consistent with no dividends declared in 2018[9]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2019, consistent with the previous year[66]. - The company's available distributable reserves as of December 31, 2019, were approximately RMB 243,056,000, indicating a healthy reserve position for potential future distributions[69]. Future Plans and Investments - The company plans to continue optimizing its sales model and increasing direct sales ratios to improve operational efficiency[9]. - The company plans to develop fine chemical industries, utilizing existing equipment to minimize investment and construction time, which will provide new profit growth points[22]. - A new materials factory project with a capacity of 20,000 tons per year is planned, which will enhance the company's product value and risk resistance[23]. - The company will actively seek cooperative funding to promote the approval, construction, and operation of new projects[20]. - The company is developing a 500,000 tons/year polyether polyol project, which is expected to have lower energy consumption and better environmental effects compared to similar projects in the industry[26]. Financial Health and Debt - As of December 31, 2019, the total borrowings and notes payable of the group amounted to approximately RMB 2,113,032,000[41]. - The capital-to-debt ratio as of December 31, 2019, was approximately 90%, compared to 78% as of December 31, 2018[42]. - As of December 31, 2019, the group had no significant contingent liabilities[43]. - The total net value of mortgaged assets as of December 31, 2019, was approximately RMB 1,538,018,000, an increase from RMB 1,130,436,000 in 2018[49]. - The group has a total of approximately RMB 30,116,000 in bank deposits as of December 31, 2019, up from RMB 24,339,000 in 2018[49]. Environmental and Social Responsibility - The company is committed to managing and monitoring environmental and social performance, ensuring compliance with applicable regulations[51]. - The total greenhouse gas emissions amounted to 1,660,607.70 tons of CO2 equivalent, with a density of 56.33 tons per square meter of total production area[158]. - The emissions of nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) were recorded at 95,346.09 kg, 474.65 kg, and 8.07 kg, respectively[157]. - The company adheres to various environmental regulations, including the Air Pollution Prevention and Control Law of China and the Environmental Protection Law of the People's Republic of China[155]. - The company has implemented three management systems: ISO 9001 for quality management, ISO 14001 for environmental management, and ISO 50001 for energy management[153]. Employee and Management - The number of employees as of December 31, 2019, was 696, a decrease from 725 in 2018[50]. - The total number of employees increased by 4% to 631, all of whom are full-time staff in China[181]. - The employee turnover rate for the reporting period was 10%, with 65 full-time employees from China leaving the company[191]. - The company has increased disease allowances and ensures compensation aligns with market levels to attract and retain talent[196]. - The company promotes equal opportunities in employment policies, with a slight increase of 2% in the proportion of female employees over the year[198]. Corporate Governance - The company has undergone a restructuring to prepare for its shares to be listed on the GEM of the Hong Kong Stock Exchange, which was completed in June 2003[63]. - The company has experienced changes in its board of directors, with several members resigning and new appointments being made, ensuring continuity in governance[73]. - The audit committee, established in June 2003, reviews the company's financial reporting procedures and internal control systems[107]. - The company has no management contracts related to significant parts of its business during the year[106]. - There are no competitive business interests held by the company's directors or management shareholders[104].
玖源集团(00827) - 2019 - 年度财报