SPC(SH:600688)2021-03-24 16:00Financial Performance - The net profit attributable to the parent company's shareholders for 2020 was RMB 628,110 thousand, while the net profit according to International Financial Reporting Standards was RMB 645,072 thousand[4]. - The total profit for 2020 was RMB 573,816,000, a decline of 78.38% from RMB 2,654,116,000 in 2019[13]. - The net profit attributable to shareholders of the parent company was RMB 628,110,000, down 71.63% from RMB 2,213,716,000 in the previous year[13]. - The company's total sales revenue for 2020 was RMB 61,560.9 million, a decrease of 30.09% compared to RMB 88,055.7 million in 2019[39]. - The company's net profit for the year was RMB 656.4 million, a decrease from RMB 2,227.1 million in 2019[40]. - The net profit after tax for 2020 was RMB 0.656 billion, down from RMB 2.2271 billion in the previous year, reflecting a decrease of RMB 1.5707 billion[56]. - The company's total revenue for the year 2020 was 1,029.78 million, reflecting a year-on-year increase of 65.74%[167]. - The company reported a net profit margin of 88.19% for the fiscal year 2020[167]. Dividends and Shareholder Returns - The proposed final dividend for 2020 is RMB 0.1 per share (including tax), pending approval at the annual general meeting[4]. - The cash dividend payout ratio for 2020 was 172.32% of the net profit attributable to shareholders[120]. - The company plans to maintain a cash dividend of no less than 30% of the net profit for the year under normal operating conditions[118]. - The board of directors has approved a dividend payout of 2 billion RMB, reflecting the company's strong financial performance and commitment to returning value to shareholders[180]. Revenue and Sales - In 2020, the company's operating revenue decreased by 25.55% to RMB 74,705,183,000 compared to RMB 100,346,048,000 in 2019[13]. - The total operating revenue for Q4 2020 was RMB 19,751,215 thousand, with a total annual revenue of RMB 746.24 billion, a decrease of 25.58% compared to the previous year[17][24]. - The sales revenue for synthetic fibers in 2020 was RMB 1,472.4 million, down 31.80% from RMB 2,158.9 million in 2019, with a sales volume decrease of 14.91%[40]. - The sales revenue for resins and plastics was RMB 9,419.7 million, a decline of 5.61% from RMB 9,979.9 million in 2019, while sales volume increased by 5.65%[40]. - The sales revenue for intermediate petrochemical products was RMB 8,205.8 million, down from RMB 10,313.6 million in 2019, reflecting a significant market downturn[38]. - The petroleum products segment generated sales revenue of RMB 30,139.6 million, accounting for 49.0% of total sales, with a loss of RMB 2,198.7 million in this segment[38]. Operating Costs and Expenses - The total sales cost and expenses for 2020 were RMB 62.0271 billion, a decrease of 28.49% from RMB 86.7352 billion in 2019, driven by a significant drop in crude oil prices[42]. - The total operating cost for 2020 was RMB 590,891 million, a reduction of 29.47% from RMB 837,810 million in 2019, primarily due to lower international oil prices and reduced procurement[72]. - The company's financial expenses decreased by 3.08% to RMB -337.459 million in 2020, compared to RMB -348.181 million in 2019[68]. Cash Flow - The net cash flow from operating activities decreased by 65.80% to RMB 1,751,217,000 from RMB 5,121,209,000 in 2019[13]. - The company's cash flow from operating activities decreased by 65.80% to RMB 1.751 billion in 2020, down from RMB 5.121 billion in 2019[68]. - The company's investment activities resulted in a net cash outflow of RMB 3.888 billion in 2020, a decrease of 15.91% from RMB 4.623 billion in 2019[68]. Assets and Liabilities - The company's total assets at the end of 2020 were RMB 44,749,173,000, a decrease of 1.94% from RMB 45,636,128,000 at the end of 2019[13]. - The net asset attributable to shareholders of the parent company was RMB 29,218,033,000, down 2.23% from RMB 29,885,341,000 at the end of 2019[13]. - The asset-liability ratio increased to 34.401% from 34.228% in the previous year[13]. - The total borrowings at the end of 2020 increased slightly to RMB 1.548 billion, reflecting a minor increase of RMB 0.0004 billion from the previous year[58]. - The debt-to-asset ratio as of December 31, 2020, was 34.25%, compared to 34.07% in 2019, indicating a slight increase in leverage[59]. Operational Efficiency - The company processed 14,671,500 tons of crude oil in 2020, a decrease of 3.47% year-on-year, while the production of refined oil was 8,379,500 tons, down 8.84% year-on-year[24]. - The overall equipment operation rate for the company was 98% in 2020, an increase of 0.36 percentage points from the previous year[24]. - The average thermal efficiency of heating furnaces was 92.46%, remaining stable compared to the previous year[29]. - The company achieved a product sales rate of 100.11% and a receivables turnover rate of 100% in 2020, maintaining stable product quality[24]. Research and Development - The company's R&D expenses increased to RMB 110.625 million in 2020, up 19% from RMB 92.964 million in 2019, primarily due to increased investment in carbon fiber projects[60]. - Research and development expenses totaled RMB 395,292 million, accounting for 0.53% of operating revenue, with 72.01% of R&D expenditures capitalized[76]. - The company is focused on research and development innovations to enhance its product offerings and production processes[105]. Market Position and Strategy - The company is strategically positioned in the rapidly developing East China region, which is a key market for petrochemical products[19][20]. - The company aims to optimize its product structure and improve production technology to enhance resource utilization and efficiency[20]. - The company plans to focus on market expansion and new product development to recover from the downturn in sales[39]. - The company is actively pursuing the development of high-value-added products in the new materials industry, particularly focusing on carbon fiber and related materials[92]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 2 billion RMB allocated for potential mergers and acquisitions[175]. Environmental and Regulatory Compliance - The company has implemented effective pandemic prevention measures, ensuring production continuity while supporting national efforts against COVID-19[23]. - The company achieved a 100% compliance rate for wastewater discharge and a 100% compliance rate for controlled waste gas emissions[137]. - The company successfully maintained its "Green Enterprise" title and completed 27 grassroots green initiatives in 2020[136]. - The company is adapting to stricter environmental regulations and policies aimed at reducing plastic pollution and enhancing safety in chemical production[100]. Shareholder Structure and Governance - The company's majority shareholder, Sinopec Corp., holds 50.44% of the shares, which may influence the company’s operational and financial decisions[98]. - The report indicates that the total number of shares held by Wellington Management Singapore Pte. Ltd. amounts to 275,543,182 shares of H shares (long position) and 404 shares of H shares (short position)[163]. - The report highlights the complexity of ownership structures among major shareholders, particularly for BlackRock and Citigroup[162]. Employee and Management Information - The total number of employees in the group is 8,466, with 5,094 in production, 2,136 in technology, and 1,066 in administration[193]. - Total employee compensation for the group during the reporting period was RMB 3,143.22 million[194]. - The total pre-tax remuneration for the chairman, Wu Haijun, is reported at RMB 120.22 million for the period[166].