JHEC(SH:600273)2021-03-29 16:00Financial Performance - The company achieved a total operating revenue of 5.568 billion yuan in 2020, with a net profit attributable to shareholders of 1.304 billion yuan, representing a year-on-year increase of 6.26%[55]. - The company's operating revenue for 2020 was CNY 5,567,617,516.91, an increase of 3.70% compared to CNY 5,369,034,304.23 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 1,303,726,787.32, reflecting a growth of 6.26% from CNY 1,226,973,543.86 in 2019[25]. - The net cash flow from operating activities was CNY 1,419,765,298.83, a slight increase of 0.53% compared to CNY 1,412,245,656.12 in 2019[25]. - The total assets at the end of 2020 reached CNY 9,907,118,333.94, marking an increase of 11.43% from CNY 8,890,595,073.64 at the end of 2019[28]. - The net assets attributable to shareholders increased by 11.38% to CNY 7,757,600,147.15 at the end of 2020, up from CNY 6,964,744,453.61 in 2019[28]. - Basic earnings per share for 2020 were CNY 0.91, a 3.41% increase from CNY 0.88 in 2019[29]. - The company reported a total of CNY 1,649,283,220.40 in operating revenue for Q4 2020, contributing significantly to the annual total[30]. - The company achieved a total operating revenue of 5.568 billion RMB in 2020, an increase of 3.70% compared to the previous year[69]. - The net profit attributable to shareholders reached 1.304 billion RMB, up 6.26% year-on-year, while the net profit excluding non-recurring gains and losses was 1.320 billion RMB, an increase of 8.03%[69]. Dividend Distribution - The company plans to distribute a cash dividend of 2.00 CNY per 10 shares (including tax) to all shareholders based on the total share capital as of the dividend record date[7]. - The company will not issue bonus shares or convert capital reserves into share capital in the current profit distribution plan[7]. - The company distributed cash dividends totaling 278,389,041.40 yuan in the third quarter and plans to distribute 280,389,041.40 yuan for the annual dividend, accounting for 42.86% of the net profit attributable to shareholders[54]. - In 2020, the net profit attributable to ordinary shareholders was 1,303,726,787.32 RMB, with a dividend payout ratio of 21.51%[188]. - The cash dividend for the third quarter of 2020 was also set at 2.00 RMB per 10 shares, totaling 278,389,041.40 RMB[188]. Audit and Compliance - The company reported a standard unqualified audit opinion from Lixin Certified Public Accountants[5]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has detailed potential risks in the report, particularly in the section discussing future development strategies[8]. - The company has not engaged in share buybacks during the reporting period[189]. - The company retained the accounting firm Lixin CPA for the 2020 audit, with a fee of ¥1,400,000.00[200]. - Internal control audit was also conducted by Lixin CPA, with a fee of ¥500,000.00[200]. - The audit firm has been engaged for 7 years, indicating a long-term relationship[200]. Research and Development - The company has applied for a total of 91 patents, with 48 patents granted, including 14 invention patents, ensuring a technological advantage in core industries[47]. - The company invested 212.31 million yuan in R&D, implementing 40 research projects, focusing on energy conservation, emission reduction, and new product development[60]. - The company has established three provincial-level innovation platforms, including a provincial enterprise research institute, a provincial R&D center, and a Zhejiang Aromatic Sulfonic Engineering Technology Research Center[47]. - The company has established a key technology innovation team and multiple provincial-level innovation platforms to support ongoing research and development efforts[114]. Market Position and Strategy - The company is engaged in the production and sale of various chemical products, including fatty alcohols and sulfuric acid, and operates in a circular economy model[35]. - The company has established itself as a core enterprise in the China Chemical New Materials (Jiaxing) Park, focusing on efficient energy production through cogeneration[35]. - The company is positioned as the only chlorine-alkali producer in the northern Zhejiang region, benefiting from strong downstream demand in the East China area[109]. - The company is actively involved in the hydrogen energy industry, achieving high-purity hydrogen (5N) standards for its hydrogen products[47]. - The company is focusing on sustainable growth and has initiated the "Jingchu Plan" to recruit graduates from Wuhan, enhancing its talent pool[68]. - The company is advancing the construction of key projects, including the 300,000 tons functional polymer materials project and the 300,000 tons/year dichloroethane and vinyl chloride project, which are expected to be completed in the first half of 2021[67]. Environmental and Sustainability Initiatives - The company is actively pursuing green development initiatives, including the construction of the first hydrogen liquefaction plant in the region, aligning with national policies promoting ecological economic systems[101]. - The company has implemented measures to control emissions and comply with environmental standards, but faces potential increased costs due to stricter environmental regulations[180]. - The company is committed to improving its circular economy model, emphasizing resource and energy utilization across its product lines[168]. Production and Sales - The company’s steam business achieved a sales revenue of 1.304 billion yuan, remaining stable compared to the previous year[58]. - Sales revenue for fatty alcohol (acid) products reached 2.022 billion yuan, an increase of 9.92% year-on-year, driven by stable downstream market demand and effective cost control[58]. - The sulfonated pharmaceutical series products generated sales revenue of 732 million yuan, a decrease of 11.14% year-on-year, due to reduced market demand and sales volume[58]. - Chlor-alkali products reported a sales revenue of 770 million yuan, down 14.24% year-on-year, impacted by delayed resumption of downstream enterprises and decreased consumption in the textile sector[58]. - The company’s liquid chemical terminal, Meifu Terminal, is experiencing steady throughput growth, leveraging its advantageous location and resources[39]. - The company’s cogeneration system significantly reduces production costs by providing self-generated electricity for chlor-alkali production, which is a major cost component[42]. Risks and Challenges - The company is exposed to risks from fluctuations in raw material prices and exchange rates, which could impact operational performance[182]. - The report emphasizes the importance of investment risk awareness due to uncertainties in forward-looking statements[7]. - The company has commitments to avoid competition and conflicts of interest with its controlling shareholders, which have been adhered to since 2013[191].