ZJJH(600160)2021-03-22 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 16.05 billion, a slight decrease of 0.09% compared to 2019 [25]. - The net profit attributable to shareholders for 2020 was CNY 95.38 million, representing a significant decline of 89.39% year-over-year [25]. - The net cash flow from operating activities decreased by 47.48% to CNY 988.69 million in 2020 [25]. - Basic earnings per share for 2020 were CNY 0.04, down 87.88% from CNY 0.33 in 2019 [26]. - The total assets at the end of 2020 were approximately CNY 15.69 billion, an increase of 0.46% compared to the previous year [25]. - The company reported a net asset attributable to shareholders of CNY 12.49 billion, down 3.21% from 2019 [25]. - The company experienced a significant drop in the weighted average return on net assets, which fell to 0.75%, a decrease of 6.30 percentage points from the previous year [26]. - The company reported a quarterly operating revenue of CNY 5.14 billion in Q4 2020, the highest among the four quarters [27]. - The net profit attributable to shareholders in Q4 2020 was CNY 56.88 million, showing recovery compared to previous quarters [27]. - The company reported a total profit of 208,169,637.90 RMB for the year, with a significant increase in non-operating income amounting to 22,854,151.87 RMB [29]. Dividend Distribution - The company plans to distribute a cash dividend of 1.0 yuan (including tax) for every 10 shares, totaling 269,974,608.10 yuan based on the total share capital of 2,699,746,081 shares as of the end of 2020 [3]. - The company does not plan to issue stock dividends or increase capital reserves into share capital for this distribution [3]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report [2]. - The board of directors and senior management have confirmed the authenticity and completeness of the annual report [2]. - The company has not violated decision-making procedures in providing guarantees to external parties [4]. - There are no non-operating fund occupations by controlling shareholders or related parties reported [4]. Risk Management and Future Outlook - The company has outlined potential risks that may affect its future development strategies and operational goals in the report [5]. - The report includes a detailed discussion of the company's future development and associated risks [5]. - Future outlook includes a commitment to research and development of new technologies to improve product efficiency and reduce environmental impact [11]. Environmental Initiatives - The company is involved in greenhouse gas reduction projects in developing countries [9]. - The company is committed to complying with international regulations regarding the reduction of ozone-depleting substances [9]. - The company has established a strategy for the gradual phase-out of HCFCs and HFCs in line with global environmental agreements [9]. - The company is focused on developing new technologies to replace traditional refrigerants with more environmentally friendly options [9]. - The focus on low global warming potential (GWP) refrigerants aligns with global regulatory trends, positioning the company favorably in the market [11]. Research and Development - The company is committed to research and development in new technologies to improve product efficiency and reduce environmental impact [10]. - The company has applied for 106 technology patents during the reporting period, with 62 patents granted, including 2 in the USA and 4 in Japan [40]. - The company invested CNY 459 million in R&D, implementing 117 projects focused on new product trials, industrialization, and process improvements [122]. Market Position and Product Development - The company operates in the fluorochemical and chlor-alkali chemical industries, focusing on the research, production, and sales of basic chemical raw materials and fluorochemical products [32]. - The company has established a complete fluorochemical industry chain, positioning itself as a domestic leader in the sector, particularly in fluorinated refrigerants, where it holds a global leading position [34]. - The company is actively pursuing market expansion in the medical and agricultural sectors, leveraging its expertise in aerosol and foam agents [11]. - The company is focusing on high-performance fluoropolymers and specialized products to meet the growing demand and replace imports in the market [103]. Challenges and Industry Trends - The company faced challenges from the COVID-19 pandemic, global economic downturn, and intense competition, impacting production and operational stability [46]. - The chemical industry is currently facing weak market demand and intensified competition, leading to a notable decline in product prices and industry profits [76]. - The industry is expected to shift towards high-quality development, focusing on innovation and effective supply to meet market demands [92]. - The fluorochemical industry has become a crucial part of China's strategic emerging industries, significantly contributing to the upgrade of traditional industries and the development of new energy sectors [94].