Liuguo Chemical(SH:600470)2021-03-19 16:00Financial Performance - In 2020, the company's operating revenue reached CNY 4,823,232,214.48, an increase of 10.78% compared to CNY 4,353,688,120.21 in 2019[20] - The net profit attributable to shareholders was CNY 167,983,321.71, a significant recovery from a net loss of CNY 262,016,273.76 in 2019[20] - The net cash flow from operating activities was CNY 143,113,139.37, down 54.58% from CNY 315,099,368.12 in the previous year[20] - The company's total assets at the end of 2020 were CNY 1,374,018,365.63, reflecting a 16.85% increase from CNY 1,175,906,881.21 at the end of 2019[20] - Basic earnings per share improved to CNY 0.32 from a loss of CNY 0.50 in 2019[22] - The weighted average return on equity increased to 13.33%, up 33.41 percentage points from -20.08% in the previous year[22] - The company reported a total distributable profit of CNY -622,137,784.43 for 2020, leading to no profit distribution proposed for the year[5] - The company achieved a total sales revenue of 4,823,232,214.48 RMB, representing a year-on-year increase of 10.78%[46] - The net profit for the period was 182,861,700 RMB, an increase of 44,019,610 RMB compared to the previous year, with a net profit attributable to the parent company of 167,983,300 RMB, up by 42,999,960 RMB[43] Operational Highlights - The company’s main business remains unchanged, focusing on the production and sale of fertilizers and chemical products, with a strong brand presence in the East China region[31] - The company produced 2.358 million tons of fertilizers and 531,700 tons of chemical products in the reporting period[41] - The company achieved an industrial total output value of CNY 4.738 billion and main business revenue of CNY 4.440 billion during the reporting period[41] - The production volume of compound fertilizers was 926,422.82 tons, an increase of 44.22% year-on-year, while sales volume was 899,306.46 tons, up by 24.28%[50] - The company’s ammonia-based granulation facility has a designed annual capacity of 400,000 tons, making it the largest of its kind in China[40] Research and Development - The company invested 130,858,516.70 RMB in research and development, reflecting an increase of 11.84% year-on-year[46] - The company has developed over 100 new products across 10 major series, including water-soluble fertilizers and organic fertilizers, achieving record sales[38] - The company’s new NPK-ZnB fertilizer production technology has shown a 20% reduction in nutrient application while increasing crop yield by over 3% compared to traditional fertilizers[40] - The company is actively involved in research and development, with a focus on innovative fertilizer products and smart manufacturing to meet evolving market needs[75] Market Strategy - The company is adapting its sales model to increase direct sales to large-scale farmers and terminal outlets, enhancing market service awareness[32] - The company has implemented a comprehensive marketing strategy, including direct sales and promotional events, to strengthen its market position[35] - The company plans to enhance its marketing strategy by integrating online services with offline sales channels[101] - The company has a diverse sales model, including regional distribution and direct sales to large farming operations, supported by internet-based marketing initiatives[73] Environmental and Safety Compliance - In 2020, the company reported no instances of exceeding pollution discharge limits, adhering to national standards for wastewater and air emissions[140] - The company operates six wastewater discharge outlets and 27 air emission outlets, all compliant with relevant environmental regulations[140] - The company has established emission standards for various pollutants, including particulate matter at 150 mg/m³ and fluorides at 11 mg/m³ for specific discharge points[142] - The company is committed to reducing its environmental impact by adhering to stringent emission standards across its facilities[142] - The company has established a comprehensive environmental emergency response system and has filed the emergency response plan with the local environmental protection bureau[148] Corporate Governance - The company has established a comprehensive corporate governance structure that complies with relevant laws and regulations, ensuring clear responsibilities and effective operation of its governance bodies[178] - The total remuneration for the board members and senior management during the reporting period amounted to 7.2856 million yuan[165] - The company has a structured process for determining the remuneration of its board members, requiring approval from the shareholders' meeting[169] - The company’s governance structure includes independent directors and a remuneration committee to oversee compensation matters[169] Social Responsibility and Community Engagement - The company invested a total of 14.03 million RMB in poverty alleviation efforts, with 4.78 million RMB specifically allocated to industry development projects[135] - A total of 48 registered impoverished individuals were helped to escape poverty, with 5 individuals benefiting from industry development projects[135] - The company donated 10,000 yuan for epidemic prevention and 100,000 yuan for infrastructure construction in Jinshan Village[134] - The company plans to enhance poverty alleviation through the expansion of ginger and gourd planting projects, aiming for significant economic benefits[137]