SLSVC(SH:600123)2021-04-26 16:00Financial Performance - The company achieved a net profit attributable to the parent company of CNY 374,703,489.61 in 2020, with a net profit of CNY 678,942,952.32 for the parent company[3]. - The total distributable profit for the year is CNY 611,048,657.09 after deducting the legal surplus reserve[3]. - In 2020, the company's operating revenue was approximately CNY 6.63 billion, a decrease of 16.62% compared to 2019[13]. - The net profit attributable to shareholders was approximately CNY 374.70 million, down 43.47% from the previous year[13]. - The net profit after deducting non-recurring gains and losses was approximately CNY 330.37 million, a decline of 50.77% year-on-year[13]. - The company's cash flow from operating activities was approximately CNY 684.39 million, down 17.76% from 2019[13]. - The total sales revenue for the year was 6.626 billion yuan, a decrease of 16.62% compared to the previous year, while net profit attributable to the parent company was 375 million yuan, down 43.47%[37]. - The company reported a total profit of 502 million yuan, a decrease of 351 million yuan or 41.20% compared to the previous year[59]. Dividends and Shareholder Returns - The proposed cash dividend is CNY 1 per 10 shares, totaling CNY 114,240,000, which accounts for 30.49% of the net profit attributable to the parent company for 2020[3]. - The company has established a cash dividend policy, committing to distribute at least 30% of net profit to shareholders annually, with a recent cash dividend of 0.2 yuan per share totaling 228.48 million yuan[86]. - In 2020, the company distributed cash dividends totaling 114,240,000 RMB, which accounted for 30.49% of the net profit attributable to ordinary shareholders[87]. - The cash dividend per 10 shares was 1.00 RMB in 2020, down from 2.00 RMB in 2019 and 3.00 RMB in 2018[87]. Operational Highlights - The company produced 9.06 million tons of coal in 2020, representing a year-on-year increase of 5.07%[18]. - The company sold 8.93 million tons of coal in 2020, which is a 6.2% increase compared to the previous year[18]. - The company’s urea production was 848,300 tons in 2020, a decrease of 1.1% year-on-year[19]. - The company’s sales of dimethyl ether fell to 77,600 tons in 2020, a decline of 69.79% compared to the previous year[19]. - The company completed the construction of a new coal mine with an annual production capacity of 2.4 million tons and a washing plant by the end of November 2020[38]. - The company reported a total urea production of 5.6228 million tons in 2020, with a year-on-year increase of 2.6%[26]. Risk Management - The company has detailed potential risks in its operational discussion, including safety production, environmental protection, market changes, and significant capital expenditures[4]. - The company has established a robust internal control system to enhance risk management and improve operational efficiency, maintaining advanced cost control in the coal industry[35]. - The company faces safety risks due to the hazardous nature of its coal and chemical industries, and it is enhancing its safety management systems to mitigate these risks[83]. - Environmental risks are a concern, with increasing regulatory pressures on pollution control; the company is investing in environmental protection projects to ensure compliance[84]. - Market risks are present due to the cyclical nature of coal demand and potential economic downturns affecting product prices, which could impact future profitability[84]. Environmental Initiatives - The company has implemented a comprehensive environmental management plan, investing 1.79 billion yuan in over 110 environmental projects[41]. - The company has achieved stable compliance with wastewater and air pollutant discharge standards through continuous investment in environmental protection facilities[124]. - The company has implemented upgrades to wastewater treatment facilities, ensuring that all discharged water meets the Class III surface water quality standards[124]. - The company has made significant investments in pollution control technologies, including the installation of desulfurization, denitrification, and dust removal systems[125]. - The company has transitioned to cleaner energy sources, with several coal mines adopting air-source heat pumps and gas boilers[131]. Corporate Governance - The audit report issued by Xinyong Zhonghe CPA is a standard unqualified opinion[2]. - The company has maintained its auditor, Xin Yong Zhong He Accounting Firm, for the 2020 audit, with a fee of 850,000 RMB[94]. - The company completed the re-election of the seventh board of directors and supervisory board in September 2020, forming a new executive team[160]. - The company has established a performance evaluation mechanism for senior management, linking their assessments to target completion and compensation management[167]. - The company has revised its articles of association and shareholder return plan for 2020-2022, enhancing governance structures and internal control systems[160]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year[197]. - The company aims to enhance its technological innovation ecosystem by promoting advanced coal production capacity and new technologies, aiming to improve profitability in the fertilizer and chemical sectors[78]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[144]. - The company is focused on improving operational efficiency and reducing losses in its subsidiaries, particularly in the coal mining sector[70][71]. - The company plans to complete all integrated coal mine projects by the end of the "14th Five-Year Plan" period, focusing on intelligent coal production and green mining methods[74].