Zhejiang Longsheng(SH:600352)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 15.61 billion, a decrease of 26.96% compared to CNY 21.36 billion in 2019[16]. - Net profit attributable to shareholders for 2020 was CNY 4.18 billion, down 16.86% from CNY 5.02 billion in 2019[16]. - The net profit after deducting non-recurring gains and losses was CNY 2.44 billion, a decline of 42.70% from CNY 4.26 billion in 2019[16]. - The net cash flow from operating activities was CNY 2.78 billion, a significant drop of 57.80% compared to CNY 6.59 billion in 2019[16]. - The company's total assets increased by 9.17% to CNY 56.31 billion at the end of 2020, up from CNY 51.58 billion at the end of 2019[16]. - Basic earnings per share for 2020 were CNY 1.3052, a decrease of 17.21% from CNY 1.5766 in 2019[17]. - The weighted average return on equity decreased by 6.49 percentage points to 16.03% in 2020 from 22.52% in 2019[17]. - The company reported a total of CNY 1.60 billion in non-recurring gains for 2020, compared to CNY 411.31 million in 2019[20]. - The company's net assets attributable to shareholders increased by 13.00% to CNY 27.73 billion at the end of 2020, up from CNY 24.54 billion at the end of 2019[16]. Dividend Distribution - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares (including tax) based on the total share capital after deducting the shares held in the repurchase account, with a total undistributed profit of 1,677,302,927.44 RMB as of December 31, 2020[4]. - In 2020, the cash dividend amount was 501,767,932.61 CNY, accounting for 38.42% of the net profit attributable to shareholders, which was 1,306,142,726.36 CNY[97]. - The company has maintained a consistent cash dividend policy, distributing 2.50 CNY per 10 shares for the past three years[96]. 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[3]. - The company has maintained its commitment to transparency and compliance with regulatory requirements throughout the reporting process[2]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the annual report's accuracy[3]. - The company has not faced any issues with more than half of the board members being unable to guarantee the authenticity of the annual report[5]. - The company has not violated any decision-making procedures regarding external guarantees[5]. Risk Management - The company has detailed potential risks in its report, particularly in the section discussing future development and risk factors[6]. - The company faces potential risks from currency fluctuations due to its global operations, but it employs natural hedging strategies to manage this risk[92]. Research and Development - The company holds nearly 1,900 domestic and international patents, enhancing its R&D capabilities[26]. - The company is actively expanding its R&D capabilities, with a focus on high-end, green, and intelligent innovations to enhance competitiveness and value addition[53]. - The company has not capitalized any R&D expenses, indicating a focus on immediate R&D investments[40]. Environmental Responsibility - In 2020, the company’s eight key pollutant discharge units emitted nitrogen oxides at concentrations ranging from 139 to 151 mg/m³, and sulfuric mist at concentrations between 0.78 and 4.17 mg/m³[126]. - The total wastewater discharged by the eight key pollutant discharge units in 2020 was 2,724,418 tons, with a cumulative COD discharge of 143.46 tons and ammonia nitrogen discharge of 2.22 tons, all within permitted limits[126]. - The company’s wastewater treatment facilities include a 15,000 tons/day wastewater treatment facility and a 3,000 tons/day facility, among others, ensuring compliance with environmental standards[127]. - The company received multiple environmental impact assessment approvals for projects, including a 30,000 tons/year high-performance disperse dye upgrade project and a 25,350 tons/year aniline derivative project[128]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 190,053, an increase from 182,729 at the end of the previous month[136]. - The largest shareholder, Ruan Shuilong, holds 389,653,992 shares, representing 11.98% of the total shares[137]. - The second-largest shareholder, Ruan Weixiang, holds 346,321,538 shares, accounting for 10.65% of the total shares[137]. - The controlling shareholders and actual controllers of the company are Ruan Shuilong and Ruan Weixiang, with a total shareholding of 735,975,530 shares, accounting for 22.6222% of the total share capital after the reduction of shares by Xiang Zhifeng[141]. Employee and Management - The total number of employees in the parent company is 223, while the total number of employees in major subsidiaries is 8,061, resulting in a combined total of 8,284 employees[149]. - The total pre-tax compensation for all directors and senior management amounted to ¥1,931.39 million for the reporting period[145]. - The company emphasizes targeted employee training to enhance skills and management capabilities, aligning with overall business development needs[151]. Financial Position - The company's total liabilities increased to approximately ¥38.17 billion, up from ¥34.76 billion, reflecting a growth of about 9.3%[189]. - The company maintained a strong liquidity position with a current ratio improvement due to increased cash reserves[189]. - The company's credit rating was upgraded from AA+ to AAA by Shanghai New Century Credit Rating Agency, with a stable outlook[170]. Corporate Governance - The company has established a comprehensive governance structure, including a board of directors, supervisory board, and management team, ensuring independence from controlling shareholders[160]. - The company has implemented a robust internal control system and published the 2020 internal control evaluation report[7]. - The company maintained a complete and independent operational capability, ensuring no interference from the controlling shareholder in decision-making[159].