ELION(SH:600277)2021-04-16 16:00Financial Performance - The company's operating revenue for 2020 was CNY 12,915,201,031.88, an increase of 1.72% compared to CNY 12,696,461,861.70 in 2019[26]. - The net profit attributable to shareholders decreased by 48.73% to CNY 518,380,913.84 from CNY 1,011,106,133.05 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 55.49% to CNY 409,207,612.88, compared to CNY 263,164,759.18 in 2019[26]. - The net cash flow from operating activities increased by 53.38% to CNY 1,774,595,322.17 from CNY 1,157,013,714.10 in 2019[27]. - Basic earnings per share decreased by 48.65% to CNY 0.19 from CNY 0.37 in 2019[28]. - The weighted average return on equity decreased by 2.73 percentage points to 3.20% from 5.93% in 2019[28]. - The company reported a total profit of 109,173,300.96 RMB for the current period, a significant increase compared to 747,941,373.87 RMB in the previous period[34]. - The company achieved a total revenue of RMB 12.91 billion in 2020, representing a year-on-year growth of 1.72%[77]. - The net profit attributable to the parent company was RMB 518 million, a decrease of 48.73% compared to the previous year[77]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.57 per 10 shares, totaling RMB 156,119,588.49, which represents 30.12% of the net profit attributable to ordinary shareholders of RMB 518,380,913.84 for the year 2020[5]. - The company plans to distribute cash dividends of 1 RMB per 10 shares, totaling 273,894,014.90 RMB for the 2019 fiscal year[159]. - The company has established a three-year shareholder return plan, which will be reviewed at least every three years[159]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[4]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[3]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company has a structured decision-making process for cash dividend distribution, ensuring transparency and adherence to regulations[162]. Risk Management - The company has outlined significant risk factors that may adversely affect its future development and operational goals in the annual report[8]. - The company acknowledges risks related to market competition and industry policy changes, particularly under the "14th Five-Year Plan" and "dual carbon goals"[154]. - The company aims to mitigate safety production risks through regular training and safety education for employees[156]. Operational Developments - The company intends to increase its total share capital by 821,682,045 shares through a capital reserve conversion, resulting in a new total share capital of 3,560,622,194 shares[5]. - The company is focusing on new materials and new energy industries, aligning with national policies on green development and energy conservation[40]. - The company has established an integrated circular economy industry chain, primarily in the chlor-alkali and polyester sectors, with key products including PVC, caustic soda, and methanol[41]. - The company has launched 15 thermal projects with a total boiler capacity of 1750t/h, securing 20-30 years of exclusive operating rights in the respective industrial parks[45]. - The company has implemented seven technical transformation projects, contributing positively to cost control and efficiency[75]. Investments and Acquisitions - The company acquired 60% equity in Zhangjiakou Yingbin Corridor and 100% equity in Yiyuan New Energy, completing the registration in December 2020[49]. - The company plans to acquire 100% equity of Yili Ecology from Yili Group and related parties through a combination of issuing shares and cash payments[184]. - The company approved the acquisition of 60% equity of Yingbin Corridor and 100% equity of Yiyuan New Energy in a board meeting on February 27, 2020[190]. Environmental and Sustainability Initiatives - The company is committed to expanding its clean energy systems through partnerships with local governments and industrial parks[54]. - The company’s ecological photovoltaic project integrates power generation, planting, and livestock farming, contributing to poverty alleviation and ecological benefits[55]. - The company has established a comprehensive circular economy industrial chain, significantly improving waste utilization rates and achieving zero emissions of waste gas, wastewater, and waste residue[66]. - The company is positioned to benefit from the national "dual carbon" goals, aiming for peak carbon emissions by 2030 and carbon neutrality by 2060[62]. Research and Development - Research and development expenses increased by 56.57% to RMB 214 million, reflecting the company's commitment to innovation[78]. - The company holds 400 authorized patents and has 73 additional patents pending, emphasizing its commitment to continuous technological innovation[68]. - The company has established long-term partnerships with various research institutions and universities to enhance technological support and innovation[112]. Supply Chain and Logistics - The company’s supply chain services are enhanced through its subsidiary, providing comprehensive solutions including logistics and supply chain finance[44]. - The company has established a logistics network for low-cost transportation of bulk commodities from the northwest to consumption areas[53]. - The supply chain business focuses on trading polyolefin products and providing logistics services, indicating a strategic expansion in the commodity trading sector[58]. Market Trends and Industry Insights - The overall market for PVC showed a significant rebound in the second half of 2020, indicating a positive outlook for future growth[142]. - The chlor-alkali industry is transitioning from a high-speed development phase to a high-quality development phase, indicating a healthier and more rational growth trajectory[142]. - The clean heating market is valued at over one trillion, with combined heat and power accounting for 62.90% of the market share[145]. - The hydrogen energy industry is projected to reach a demand of 35 million tons by 2030, representing 5% of terminal energy consumption[148].