FLDT(SH:600228)2021-03-19 16:00Financial Performance - The net profit attributable to shareholders for the year 2020 was -27,796,755.86 RMB, resulting in a total distributable profit of -582,184,201.45 RMB[5] - The company plans not to distribute profits or increase capital reserves for the year 2020 due to the negative profit situation[5] - The company's operating revenue for 2020 was ¥365,594,840.85, a decrease of 15.63% compared to ¥433,314,419.26 in 2019[23] - The net profit attributable to shareholders for 2020 was -¥27,796,755.86, compared to -¥5,662,465.28 in 2019, indicating a significant decline in profitability[23] - The basic earnings per share for 2020 was -¥0.12, compared to -¥0.02 in 2019, reflecting a worsening financial position[24] - The weighted average return on net assets for 2020 was -67.98%, a decrease of 58.25 percentage points from -9.73% in 2019[24] - The company reported a net loss of -¥23,976,103.76 in the fourth quarter of 2020, contributing to the overall annual loss[27] - Non-recurring gains and losses for 2020 totaled ¥80,543.90, significantly lower than ¥815,256.22 in 2019[28] Asset Restructuring - A major asset restructuring has been initiated, which is still ongoing, with further details available in the report[8] - The company established a wholly-owned subsidiary, Hangzhou Changyi Commercial Consulting Co., Ltd., in July 2020 as part of a major asset restructuring[85] - The company completed the asset delivery for the major asset restructuring as of the report date[117] - Following the asset restructuring, the company will transition to an internet third-party online shopping guide, aligning market strategies with demand[121] - The company is in the process of acquiring 100% equity of Zhongyan Technology, valued at RMB 3.61 billion, to facilitate its transformation and upgrade[114] - The net asset book value of the assets to be disposed of in the major asset restructuring was reported at -RMB 20.60 million, with an assessed value of RMB 70.72 million, resulting in an appraisal increment of RMB 91.32 million[116] Operational Efficiency - The company has implemented a comprehensive information platform and automated production processes to enhance operational efficiency and safety[53] - The company achieved a reduction in energy consumption metrics, with fermentation liquid consumption down by 3.26%, water resource consumption down by 2.17%, and steam consumption down by 2.62% compared to 2019[165] - The company has established an automatic online monitoring system for wastewater discharge, ensuring real-time monitoring of key environmental indicators[168] - The company is actively investing in enhancing environmental protection standards and smart management systems, including remote monitoring for rainwater discharge and wastewater treatment[168] Market and Competition - The demand for acrylamide remains relatively stable, with strong market demand in sectors such as oil extraction, water treatment, and papermaking, particularly in the water treatment market driven by national environmental policies[39] - The domestic production capacity for acrylamide exceeds 1 million tons, with increasing competition from foreign companies like BASF and SNF expanding their market share in China[39] - The company is facing increased competition in the domestic acrylamide market as international chemical companies invest in China[96] Research and Development - The company has eight ongoing R&D projects, with a focus on improving production efficiency and reducing costs[77] - The company holds 30 patents in the field of acrylamide, including 5 invention patents and 25 utility model patents[47] - Jiangxi Changjiu Agricultural Science is the first domestic institution to use biological methods for the production of acrylamide, achieving high conversion rates and product purity[45] - The company is actively exploring applications of acrylamide in water treatment and soil remediation, expanding its market space[44] Governance and Management - The company has established a strong governance structure with a mix of experienced directors and independent supervisors[198] - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 6.27 million CNY[194] - The company emphasizes transparency in its compensation practices, ensuring alignment with shareholder interests[194] - The company held its fourth extraordinary general meeting on November 20, 2020, to elect the eighth board of directors and the eighth supervisory board[198] Environmental Compliance - The company has received new pollutant discharge permits and has ensured that environmental protection facilities operate normally and meet standards[93] - Third-party monitoring results showed that the wastewater discharge met the standards, with COD levels consistently below the 500 mg/L limit, and ammonia nitrogen levels below the 45 mg/L limit[170] - Industrial waste gas emissions were also compliant, with particulate matter emissions below 20 mg/m³ and acrylamide emissions not detected[171] - The company is actively investing in enhancing environmental protection standards and smart management systems, including remote monitoring for rainwater discharge and wastewater treatment[168] Financial Management - The company reported a total of 48,944,538.67 RMB in bank wealth management products, with an annualized return rate of 3.36%[159] - The company has a maximum cash management authorization of 50 million RMB for its cash management activities[161] - The company’s financial expenses rose by 59.71% due to reclassification of financial products, impacting net income[74] Shareholder Information - The total number of ordinary shareholders decreased from 13,643 to 13,325 during the reporting period[179] - The largest shareholder, Jiangxi Changjiu Group Co., Ltd., holds 61,733,394 shares, accounting for 25.58% of total shares, with 48,769,381 shares pledged[181] - The report indicates that there are no other shareholders holding more than 10% of shares[188] Risk Management - The company recognizes risks related to safety production, environmental compliance, and market volatility, particularly due to reliance on acrylamide products and the Chinese market[122] - The company will strengthen process management and safety supervision while increasing environmental protection investments to mitigate risks[123]