SLSVC(SH:600123)2020-04-27 16:00Financial Performance - The company achieved a net profit attributable to the parent company of CNY 662,849,027.57 in 2019[4]. - The net profit attributable to shareholders was CNY 662,849,027.57, down 38.66% from the previous year[14]. - The company's EBITDA for 2019 was approximately ¥2.27 billion, a decrease of 16.41% compared to 2018[168]. - The total profit for the period was approximately ¥853 million, a decline of 34.66% from ¥1.30 billion in the previous year, mainly due to significant price drops in key products[56]. - The total comprehensive income for 2019 was approximately ¥529.34 million, down 42.6% from ¥922.03 million in 2018[191]. - The company reported a total of CNY 1,080,691,887.68 in other comprehensive income for the year, contributing to overall equity[197]. Revenue and Sales - In 2019, the company's operating revenue was CNY 7,946,898,714.31, a decrease of 6.83% compared to 2018[14]. - The company achieved a total sales revenue of 7.947 billion yuan, a decrease of 6.83% year-on-year[32]. - The coal business generated revenue of 5,166,863,939.21 RMB, down 5.02% compared to the previous year, with an increase in sales volume by 827,900 tons[43]. - The methanol chemical sector's revenue was 3,890,339,068.35 RMB, a decline of 12.58%, primarily due to a decrease in the price of dimethyl ether by 768.45 RMB/ton[43]. Dividends and Shareholder Returns - A cash dividend of CNY 2 per 10 shares (including tax) is proposed, totaling CNY 228,480,000, which accounts for 34.47% of the net profit[4]. - The cash dividend for 2018 was 3.00 CNY per 10 shares, amounting to 342,720,000 CNY, which accounted for 31.71% of the net profit attributable to ordinary shareholders[84]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[85]. Production and Operations - The company produced 8,618,900 tons of coal in 2019, representing a year-on-year increase of 14.09%[19]. - The company’s fertilizer production reached 857,700 tons in 2019, an increase of 8.97% year-on-year[19]. - The company produced a total of 8.6189 million tons of coal and sold 8.4085 million tons in 2019[32]. - The company produced 256,300 tons of dimethyl ether and sold 252,200 tons, resulting in a sales revenue of 71.454 million yuan[28]. Financial Position - The total assets at the end of 2019 were CNY 25,559,929,633.02, an increase of 9.66% compared to the end of 2018[14]. - The company's total liabilities reached ¥14,695,770,589.97 in 2019, up from ¥12,683,654,676.39 in 2018, reflecting a growth of approximately 15.87%[187]. - Total equity attributable to shareholders rose to ¥10,497,907,861.46 in 2019, compared to ¥10,204,865,620.54 in 2018, an increase of about 2.87%[187]. - Cash and cash equivalents increased significantly to ¥2,258,490,647.25 in 2019 from ¥1,328,873,384.45 in 2018, representing a growth of approximately 70%[186]. Risks and Challenges - The company faces potential risks related to safety production, environmental protection, market changes, and significant capital expenditures[5]. - The company is facing increased market pressure due to economic downturns, energy structure adjustments, and insufficient downstream demand, particularly in the coal and coal chemical industries[70]. - Market risks are present due to the cyclical nature of coal and chemical product prices, which may be affected by economic uncertainties and demand fluctuations[82]. Governance and Compliance - The company has received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[3]. - The company held one shareholders' meeting, six board meetings, and three supervisory meetings throughout the year, enhancing governance and compliance[33]. - The company has maintained a consistent relationship with its auditor, with a four-year engagement period confirmed[92]. Environmental Management - The company operates seven major pollution discharge units, all of which have obtained discharge permits and meet environmental standards[109]. - The company has implemented zero wastewater discharge, with all mine water reused for underground production and domestic water recycled[115]. - The company has successfully maintained all emissions within the regulatory limits, demonstrating effective environmental management practices[114][115]. Research and Development - The company applied for 18 patents during the year, reflecting ongoing innovation in coal-based new materials and technologies[35]. - The total R&D investment was approximately ¥13.84 million, which is 0.17% of total revenue, with 862 R&D personnel making up 4.62% of the total workforce[53]. Future Outlook - The company plans to produce and sell 8.92 million tons of coal, 870,000 tons of urea, 170,000 tons of dimethyl ether, and 135,000 tons of caprolactam in 2020, aiming for a sales revenue of 7.6 billion yuan and a profit of 560 million yuan[74]. - The company anticipates a gradual recovery in domestic economic development starting from the second quarter of 2020, supported by favorable government policies[70]. - The company is actively pursuing market expansion through strategic partnerships and joint ventures in the coal chemical sector[65].