HY Energy(SH:600387)2020-04-29 16:00Financial Performance - In 2019, the company achieved a net profit of ¥48,747,304.79, with a legal surplus reserve of ¥4,874,730.48 extracted[4]. - The total distributable profit for 2019 was ¥716,424,564.15, which includes retained earnings and adjustments from new financial instrument standards[4]. - The company's operating revenue for 2019 was CNY 11.96 billion, a decrease of 44.15% compared to CNY 21.41 billion in 2018[22]. - Net profit attributable to shareholders increased by 55.60% to CNY 477.88 million from CNY 307.13 million in the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 48.90 million, down 71.73% from CNY 172.96 million in 2018[22]. - Cash flow from operating activities was CNY 167.73 million, a decline of 78.80% compared to CNY 791.36 million in 2018[23]. - Total assets decreased by 53.18% to CNY 4.55 billion from CNY 9.71 billion at the end of 2018[23]. - Basic earnings per share rose to CNY 1.01, an increase of 53.03% from CNY 0.66 in 2018[24]. - The weighted average return on equity increased to 16.81%, up 4.04 percentage points from 12.77% in 2018[24]. - The company achieved a total sales revenue of RMB 11.96 billion in 2019, with a net profit attributable to the parent company of RMB 478 million[39]. Dividend Policy - The company decided not to distribute cash dividends or issue bonus shares for 2019 due to uncertainties from the COVID-19 pandemic and fluctuations in international oil prices[4]. - The company emphasizes the continuity and stability of its profit distribution policy, despite the challenging market conditions[4]. - The company plans to implement a cash dividend policy, proposing no cash dividends for 2019 due to uncertainties from the COVID-19 pandemic and fluctuations in international oil prices[115]. Risk Management - The company has acknowledged potential risks in its future development and operational plans, urging investors to be cautious[5]. - The report includes a detailed description of potential risks that the company may face in the future[7]. - The company recognizes risks from industry volatility, with potential impacts from macroeconomic policies and international oil price fluctuations affecting operational performance[107]. - The company faces risks from high customer and supplier concentration, which could impact operations if key clients' demands change[109]. - The company will closely monitor industry policy changes and adapt its strategies to mitigate potential risks from regulatory reforms[108]. Operational Strategy - The company is focused on sustainable development planning and operational strategies amidst market volatility[4]. - The company has outlined its commitment to maintaining normal operations and long-term growth despite external challenges[4]. - The company aims to enhance its operational performance by optimizing production structures and expanding core businesses such as petroleum trade and storage, with a focus on improving overall profitability[105]. - The company plans to enhance trade business through collaboration with Northern Petroleum and resources from Tianjin storage area, aiming to strengthen its competitive advantage in the industry[92]. Audit and Compliance - The company has received an unqualified audit report from Zhongshun Zhonghuan Accounting Firm, with emphasis on certain matters[6]. - The audit report issued by the registered accountant included an emphasis on matters regarding the uncertainty of future transactions that may significantly impact the company[128]. - The company has committed to complying with regulations regarding external guarantees and will not misuse company funds in related transactions[119]. Shareholder Relations - The company committed to maintaining independence from related parties and ensuring fair pricing in transactions, adhering to market economic rules and legal procedures[119]. - The company will ensure that related transactions do not harm the interests of minority shareholders, particularly small shareholders[119]. - The company has confirmed that there are currently no substantial competitive situations with its controlled entities[120]. - The company is committed to protecting the interests of minority shareholders during related party transactions[122]. Employee and Management - The company conducted 328 safety training sessions, totaling 512 hours, with 7,396 participants in 2019[46]. - The company has implemented a training program focusing on onboarding, safety production, professional skills, and management capabilities for its employees[191]. - The total remuneration for directors, supervisors, and senior management in 2019 amounted to 3.5714 million yuan[188]. - The company employed a total of 609 staff members, with 304 in the parent company and 305 in major subsidiaries[189]. Environmental and Social Responsibility - The company has implemented pollution prevention facilities, including a 10,000m³ vertical rubber-sealed dry gas cabinet and six ground flares, all of which are operational[148]. - The company has been conducting LDAR leak detection services twice a year since 2018[151]. - The company created over 600 job positions and contributed more than 200 million in taxes[146]. Corporate Governance - The company has established a complete governance structure and complies with relevant laws and regulations, ensuring equal rights for all shareholders[194]. - The board of directors consists of 9 members, with 3 independent directors, meeting the requirement of having more than one-third independent members[195]. - The supervisory board has 3 members, including 2 employee representatives, ensuring independent oversight of the company's operations[196].