LZCIC(SH:600423)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥107.12 million, a decrease of 71.35% compared to ¥373.96 million in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥12.72 million, a significant recovery from a loss of ¥1.87 billion in 2019[24]. - Basic earnings per share for 2020 were ¥0.02, a recovery from -¥2.34 in 2019[25]. - The weighted average return on net assets improved to 3.30% in 2020, up from -148.70% in 2019, marking an increase of 152.00 percentage points[25]. - The company achieved total operating revenue of RMB 106,120,775.91, with a net profit attributable to shareholders of RMB 14,312,184.97 in Q4, marking a significant recovery from a loss in Q2[27]. - Operating profit was 8.98 million yuan, and net profit was 12.72 million yuan, with net profit attributable to shareholders also at 12.72 million yuan[39]. - The total comprehensive income for 2020 was CNY 12,716,412.44, recovering from a loss of CNY 1,806,172,978.55 in 2019[181]. - The company reported a net loss of CNY 2,217,053,456.27 in 2020, an improvement from a loss of CNY 2,443,622,847.38 in 2019[171]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥130.31 million, indicating a continued cash flow challenge despite a reduction in losses compared to -¥274.34 million in 2019[24]. - The operating cash flow for Q4 was RMB 10,660,583.18, indicating improved cash generation capabilities[27]. - The cash flow from operating activities showed a net outflow of 130.31 million yuan, compared to an outflow of 274.34 million yuan in the previous year[42]. - The cash dividend policy stipulates that at least 10% of the distributable profits will be allocated for cash dividends, provided certain conditions are met[83]. - The company reported a year-end cash balance of 354.19 million yuan, representing 75% of total assets, highlighting concerns about asset quality[157]. - The company's operating cash flow for 2020 was -130.31 million yuan, with employee settlement costs amounting to 121.62 million yuan, indicating a significant cash flow challenge[156]. - The total cash inflow from operating activities was 81,758,610.16 RMB, down from 282,805,733.00 RMB in 2019, reflecting a decline of approximately 71%[187]. Assets and Liabilities - The total assets decreased by 20.84% to ¥469.37 million at the end of 2020, down from ¥592.93 million at the end of 2019[24]. - The total liabilities decreased by 64.21% to ¥76,448,135.13, primarily due to the repayment of related debts in the previous year[54]. - The company's total assets decreased to CNY 469,370,097.96 in 2020 from CNY 592,928,065.20 in 2019, reflecting a decline of approximately 20.9%[171]. - Current liabilities totaled CNY 76,448,135.13 in 2020, a decrease from CNY 213,600,161.17 in 2019, showing a reduction of about 64.2%[174]. - The company's equity attributable to shareholders increased to CNY 392,921,962.83 in 2020 from CNY 379,327,904.03 in 2019, representing an increase of approximately 3.6%[175]. Operational Adjustments and Strategy - The company implemented adjustments to its business scope and organizational structure following judicial restructuring, focusing on safety and environmental management[37]. - The company adjusted its product offerings to focus on the production and sales of hydrogen peroxide solutions, reflecting a strategic shift in operations[33]. - The company plans to achieve a revenue target of 130 million RMB in 2021, focusing on enhancing operational efficiency and expanding trade activities[75]. - The company is committed to safety and environmental protection while expanding its business scope and scale[94]. - The company plans not to distribute profits or increase capital reserves due to the ongoing operational risks and negative cash flow situation[6]. Market and Competitive Landscape - The competitive landscape in the chemical industry remained challenging, with price fluctuations driven by supply and demand dynamics[35]. - The domestic hydrogen peroxide production capacity reached 15.47 million tons by the end of 2020, with an additional 990,000 tons expected to come online in 2021, intensifying market competition[73]. - The sales price of 27.5% hydrogen peroxide decreased by nearly 30% in Q2 compared to Q1, leading to operating losses in the first half of 2020[38]. Governance and Compliance - The company has a governance structure that complies with the requirements of the China Securities Regulatory Commission, ensuring independence from the controlling shareholder[141]. - The internal control audit report issued by DaXin Accounting Firm provided a standard unqualified opinion, affirming the effectiveness of the company's internal controls[150]. - The company has maintained strict compliance with information disclosure regulations, ensuring timely and accurate reporting of significant events[145]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 18,705, an increase from 18,157 at the end of the previous month[114]. - The largest shareholder, Liuzhou Yuantong Investment Development Co., Ltd., holds 201,452,434 shares, representing 25.22% of the total shares[116]. - The company has not proposed any cash dividend distribution for 2020, as it did not meet the required conditions[91]. Employee and Management - The total number of employees in the parent company is 84, with 45 in production, 3 in sales, 8 in technology, 5 in finance, and 23 in administration[136]. - The company has implemented a fixed plus performance-based salary incentive policy for its employees[137]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 2.93 million yuan[125].