YAXING CHEMICAL(SH:600319)2021-04-28 16:00Financial Performance - In 2020, the company's operating revenue was CNY 49.29 million, a decrease of 97.02% compared to CNY 1.66 billion in 2019[23]. - The net profit attributable to shareholders was a loss of CNY 25.67 million, representing a decline of 187.88% from a profit of CNY 29.22 million in 2019[23]. - The net cash flow from operating activities was a negative CNY 35.54 million, down 118.91% from CNY 188.00 million in 2019[23]. - Basic earnings per share were -CNY 0.08, a decrease of 188.89% from CNY 0.09 in 2019[24]. - The weighted average return on net assets was -49.62%, a decrease of 106.48 percentage points from 56.86% in 2019[25]. - The company reported a cumulative loss of 1.18 billion RMB and a net cash flow from operating activities of -35.54 million RMB for the year 2020[96]. - The total comprehensive income for 2020 was a loss of RMB 25,752,518.32, compared to a total comprehensive income of RMB 29,191,010.90 in 2019[186]. - The company reported a significant increase in credit impairment losses of RMB 8,264,085.38 in 2020, compared to a gain of RMB 10,825,447.42 in 2019[185]. Assets and Liabilities - The total assets increased by 49.26% to CNY 1.94 billion at the end of 2020, compared to CNY 1.30 billion at the end of 2019[23]. - The company's net assets attributable to shareholders decreased by 39.88% to CNY 38.83 million at the end of 2020, down from CNY 64.58 million at the end of 2019[23]. - As of December 31, 2020, the company's current liabilities exceeded current assets by CNY 1,086.50 million, indicating significant liquidity concerns[168]. - The company's total liabilities reached CNY 1,903,301,446.60, compared to CNY 1,236,548,793.69 in 2019, reflecting a growth of around 54%[178]. - Owner's equity decreased to CNY 38,830,388.79 from CNY 64,582,907.11, a decline of approximately 39.9%[178]. Production and Operations - The company is currently in a shutdown and relocation phase, which has significantly impacted its financial performance[23]. - The company remained in a state of production halt throughout 2020, relying solely on sales of existing inventory[54]. - The company is in the process of relocating its production facilities, with new projects including a 50,000 tons/year CPE facility and a 120,000 tons/year ion-exchange membrane caustic soda facility under construction[35]. - The construction of the new plant is progressing, with the 50,000 tons/year CPE facility completed and in testing phase[66]. - The company has fully suspended production and is in the process of relocation since October 31, 2019, with ongoing construction of new facilities for 50,000 tons/year CPE, 120,000 tons/year caustic soda, and 12,000 tons/year hydrazine[75]. Market Conditions - The CPE market faced slow demand recovery in 2020, with prices declining in the first half and a significant increase in liquid chlorine prices in the second half[35]. - The caustic soda market remained oversupplied, leading to intense competition, but prices for by-product liquid chlorine increased, providing some profit stability[35]. - The hydrazine hydrate market saw slow demand recovery due to the pandemic, with prices remaining low until late 2020 when some companies limited production, leading to a price increase[36]. Corporate Governance - The company has a sound corporate governance structure, complying with relevant laws and regulations[154]. - Independent directors have actively participated in meetings and provided independent opinions on significant matters, ensuring the protection of minority shareholders' rights[161]. - The company has implemented measures to reduce and standardize related party transactions, with a significant decrease in transaction amounts due to the suspension of operations[157]. Future Plans and Investments - The company plans to invest in a new 50,000 tons/year CPE unit and a 150,000 tons/year hydrogen utilization project, pending shareholder approval[42]. - The company plans to implement a second 50,000 tons/year CPE facility and a 150,000 tons/year hydrogen utilization project in the new plant[66]. - In 2021, the company aims to ensure the 50,000 tons/year CPE unit starts operation and stabilizes production to quickly capture market share and increase sales revenue[91]. - The company plans to issue A-shares to raise up to 300 million RMB to supplement working capital and alleviate financial pressure[98]. Environmental and Safety Management - The company has established a comprehensive wastewater collection system, ensuring that wastewater is treated and meets standards before being discharged into the Yuhe sewage treatment plant[114]. - The company has implemented a self-monitoring plan for environmental emissions, including wastewater and noise, with real-time data displayed at the factory entrance[119]. - Safety and environmental management will be prioritized, with comprehensive training and responsibility agreements established to prevent accidents during construction and operation[86]. Employee and Shareholder Relations - The company has maintained its commitment to employee welfare, providing a comprehensive salary and benefits system to ensure employee rights[118]. - The number of ordinary shareholders increased from 11,821 to 12,111 during the reporting period[123]. - Total remuneration for all directors, supervisors, and senior management reached CNY 4.4985 million[143]. Legal and Compliance Issues - The company is facing significant litigation, including a case where it is required to pay RMB 2,656,684.44 for unfulfilled energy-saving payments[105]. - The company has faced regulatory penalties for inaccurate disclosures in the past, leading to improved compliance measures[145][146].