SPC(SH:600688)2020-03-25 16:00Financial Performance - The net profit attributable to shareholders for 2019 was RMB 2,213,716 thousand according to Chinese accounting standards, and RMB 2,215,728 thousand according to International Financial Reporting Standards[4]. - The total profit for 2019 was RMB 2,654 million, down 60.67% from the previous year[13]. - The net profit attributable to shareholders was RMB 2,214 million, reflecting a decline of 58.05% year-on-year[13]. - The company's operating revenue for the year ended December 31, 2019, was RMB 100,346,048, a decrease of 6.88% compared to RMB 107,764,908 in 2018[67]. - The company's net sales for 2019 were RMB 88.0557 billion, a decrease of 7.90% compared to RMB 95.6135 billion in 2018[39]. - The company's operating profit for 2019 was RMB 1,320.5 million, representing 1.5% of net sales[38]. - The profit attributable to shareholders for the year was RMB 2,215.7 million, a decrease from RMB 5,336.3 million in the previous year[38]. - The company's net cash inflow from operating activities for 2019 was RMB 5.058 billion, down RMB 1.601 billion from RMB 6.659 billion in the previous year[55]. Dividends and Shareholder Information - The proposed dividend for 2019 is RMB 0.12 per share (including tax), pending approval at the annual general meeting[4]. - The company distributed cash dividends of RMB 1,298,857.62 thousand in 2019, representing 58.67% of the net profit attributable to shareholders[115]. - The company has maintained a cash dividend policy that requires at least 30% of the net profit to be distributed as cash dividends when conditions are met[113]. Operational Highlights - The total crude oil processing volume increased, resulting in a total product output of 13.91 million tons, an increase of 4.60% year-on-year[24]. - The total crude oil processed by the company in 2019 was 15.1994 million tons, an increase of 5.71% or 820,400 tons compared to the previous year[27]. - The company achieved a total revenue of RMB 52,640,259 thousand from direct sales, marking a 1.06% increase year-over-year[110]. - The company sold 696 million kWh of electricity externally, generating revenue of RMB 420 million in 2019[111]. - The company sold 462,000 GJ of steam externally, resulting in revenue of RMB 41.21 million[111]. Market Conditions and Challenges - The company faced significant challenges due to the COVID-19 pandemic, leading to a decrease in crude oil processing volume and a decline in sales of refined oil and chemical products[21]. - The global oil market is expected to face significant downward pressure in 2020 due to geopolitical events and the impact of COVID-19[85]. - The company is facing risks related to the cyclical nature of the oil and petrochemical markets, which can significantly impact revenue and pricing due to macroeconomic conditions[91]. Environmental and Safety Compliance - The company achieved a 100% compliance rate for wastewater discharge and hazardous waste disposal in 2019[133]. - Emissions of sulfur dioxide, nitrogen oxides, and volatile organic compounds decreased by 7.14%, 12.70%, and 7.21% respectively compared to the previous year[133]. - The total environmental investment during the reporting period was RMB 6.59 billion, accounting for 0.66% of operating revenue[112]. - The company has not experienced any major safety production accidents during the reporting period[112]. Research and Development - Research and development expenses for 2019 amounted to RMB 0.930 billion, an increase from RMB 0.373 billion in 2018, mainly due to increased investment in safety hazard management projects[58]. - New product development initiatives are underway, focusing on advanced petrochemical products, with an investment of 1 billion RMB allocated for R&D in 2020[182]. - The company completed 65 patent applications in 2019, with 26 patents granted, focusing on carbon fiber and clean oil products[30]. Corporate Governance and Shareholding Structure - The company has a controlling shareholder, Sinopec Corp., which holds 50.44% of the shares, potentially influencing the company's operational and financial decisions[94]. - The largest shareholder, Sinopec Limited, holds 50.44% of the shares, with no changes in shareholding during the reporting period[148]. - The company has a diversified ownership structure with over 10% stakes held by multiple institutional investors[156]. Future Outlook and Strategic Initiatives - The company provided a positive outlook for 2020, projecting a revenue growth of 8% to 12% based on market expansion strategies[182]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share within the next three years[182]. - Strategic acquisitions are on the agenda, with a budget of 10 billion RMB set aside for potential mergers and acquisitions in the energy sector[176]. - The company aims to enhance safety and environmental standards, implementing a comprehensive HSSE management system[87].