HY Energy(SH:600387)2021-04-29 16:00Financial Performance - In 2020, the company's operating revenue was CNY 4,931,276,209.72, a decrease of 58.77% compared to CNY 11,959,630,452.70 in 2019[22]. - The net profit attributable to shareholders was CNY 59,127,692.98, representing a 20.91% increase from CNY 48,904,221.67 in the previous year[23]. - The company's total assets decreased by 9.48% to CNY 4,115,055,598.50 from CNY 4,546,177,182.09 in 2019[23]. - The net cash flow from operating activities was negative at CNY -398,547,576.74, compared to a positive CNY 167,729,071.54 in 2019[23]. - Basic earnings per share decreased by 85.15% to CNY 0.15 in 2020 from CNY 1.01 in 2019[24]. - The weighted average return on equity dropped by 14.52 percentage points to 2.29% in 2020 from 16.81% in 2019[24]. - The company reported a significant decline in revenue from its main business, with a net income of CNY 70,888,159.19, down 85.17% from CNY 477,883,450.79 in 2019[22]. - The company achieved a total sales revenue of 4.93 billion RMB in 2020, a decrease of 58.77% compared to the previous year[46]. - The net profit attributable to the parent company was 71 million RMB, down 85.17% year-on-year[49]. - The company reported a significant drop in oil prices, with WTI reaching a historic low of -40 USD per barrel in April 2020 due to the pandemic[73]. Cash Flow and Investments - The net cash flow from operating activities decreased by 337.61% to -CNY 398,547,576.74[60]. - The net cash flow from investing activities decreased by 98.85% to CNY 5,012,085.97[60]. - The net cash flow from financing activities increased by 179.35% to CNY 1,576,043,212.32[60]. - The company reported a cash repayment of 648.1 million RMB during the reporting period, with a total of 799 million RMB occupied at the beginning of the period[99]. - The company has completed cash repayments of 348 million RMB, with the remaining amount to be resolved through capital replenishment commitments[99]. - The company’s investment income dropped by 93.68% to 25.84 million RMB, mainly due to the previous year's gains from the disposal of a subsidiary[48]. Operational Performance - The company operates a storage and wholesale business for gasoline and liquefied gas, with a storage capacity of 52,000 tons for finished oil and 2,200 cubic meters for liquefied gas[34]. - The company has established long-term strategic partnerships with upstream suppliers, enhancing its supply chain capabilities[34]. - The company holds various operational licenses, making it one of the most qualified companies in the North China region for oil product operations[35]. - The company has developed stable supply and procurement relationships with numerous refining and petrochemical enterprises in North and South China[36]. - The company maintained a stable performance in property leasing and other businesses, with ongoing projects progressing according to the annual operational plan[43]. Risk Management and Compliance - The company has outlined potential risks in its future development and operational plans, advising investors to be cautious[8]. - The company will comply with all regulatory requirements to adapt to regional policy changes and ensure safety and environmental standards are met[81]. - The company has identified potential policy risks due to tightening safety regulations in the Tianjin Port area, which may impact its logistics operations[81]. - The company will ensure compliance with information disclosure obligations and related approval procedures for any related party transactions[89]. - The company will actively fulfill its obligation to avoid conflicts of interest as the largest shareholder of Hainan Energy[89]. Shareholder and Governance Matters - The company proposed a cash dividend of CNY 0.54 per share, totaling CNY 25,279,801.05 based on a total share capital of 468,144,464 shares[5]. - The company guarantees that commitments made regarding related party transactions will remain effective and irrevocable after the completion of the transaction[89]. - The company has established a complete independent labor, personnel, and compensation management system[90]. - The company has a structured governance framework to maintain independence from its parent company and related enterprises[91]. - The company emphasizes the importance of independent asset management, ensuring that all assets are under its control[90]. Employee and Community Engagement - The company created over 600 jobs and contributed more than 90 million in taxes during the reporting period[117]. - The company conducted 282 safety training sessions, with 5,509 participants in offline training and 18,300 in online training[45]. - The company emphasizes employee training, focusing on onboarding, safety, professional skills, and management capabilities[153]. Future Strategies and Market Outlook - The company plans to leverage resources from Tianjin storage area to develop trade business, enhancing its competitive advantage[66]. - The company plans to enhance customer retention and expand external market reach to mitigate risks associated with high customer and supplier concentration[82]. - The company plans to enhance its property leasing business by increasing rental rates and occupancy levels to boost rental income[78]. - The company is exploring partnerships with local firms to strengthen its supply chain, aiming for a 15% reduction in logistics costs[141]. - The company plans to implement new operational strategies aimed at reducing costs by 5% in the upcoming fiscal year[141].