SCC(SH:600740)2020-04-13 16:00Financial Performance - The company's operating revenue for 2019 was CNY 6,641,782,259.38, a decrease of 8.12% compared to CNY 7,228,974,381.41 in 2018[21] - The net profit attributable to shareholders of the listed company was CNY 474,199,911.46, down 69.06% from CNY 1,532,650,585.11 in 2018[21] - The net cash flow from operating activities was CNY 91,308,445.07, a decrease of 84.61% compared to CNY 593,156,802.89 in 2018[23] - Basic earnings per share decreased by 74.06% to CNY 0.3142 from CNY 1.2111 in 2018[24] - The weighted average return on equity dropped by 16.91 percentage points to 4.68% from 21.59% in 2018[24] - The company reported a net profit attributable to shareholders of CNY 454,433,611.40 for 2019, compared to a loss of CNY 458,339,645.70 in 2018[28] - The total operating income for the fourth quarter was CNY 1,391,939,242.04, showing a decline compared to previous quarters[25] - The company's total revenue from coking reached ¥6,604,424,827.44, a decrease of 8.22% compared to the previous year[49] - The gross profit margin for coking products decreased by 13.68 percentage points, resulting in a margin of -2.44%[49] - The revenue from coke was ¥5,068,389,004.97, down 4.84% year-on-year, with a gross profit margin of 4.14%, which decreased by 9.04 percentage points[49] Assets and Liabilities - The total assets at the end of 2019 were CNY 20,362,074,997.85, an increase of 0.83% from CNY 20,195,352,776.12 at the end of 2018[23] - The net assets attributable to shareholders of the listed company increased by 10.52% to CNY 10,206,028,360.84 from CNY 9,234,591,651.40 in 2018[23] - The company reported total assets of CNY 2,036,207.50 million and total liabilities of CNY 961,071.77 million, with a net asset attributable to the parent company of CNY 1,020,602.84 million[39] Dividends and Capital Structure - The company plans to distribute a cash dividend of CNY 1 per 10 shares, totaling CNY 151,604,802 (including tax), which represents 31.97% of the net profit for 2019[5] - The company will also increase its capital reserve by issuing 3 additional shares for every 10 shares held, resulting in approximately 454,814,406 new shares being issued[5] - The company issued a total of 83,879,420 shares to several steel groups, increasing the total share capital to 1,516,048,020 shares[42] Research and Development - In 2019, the company undertook 19 R&D projects, with an 83.33% completion rate for major technical projects[34] - Research and development expenses decreased to CNY 38.73 million, down 38.94% from the previous year due to a reduction in R&D projects[44] - Total R&D expenditure was 38,729,708.12 yuan, representing 0.58% of operating revenue, with 277 R&D personnel making up 4.44% of the total workforce[64] - The company holds 10 patents, including 6 invention patents, reflecting its commitment to innovation and technology advancement[34] Operational Performance - The company produced 292.51 million tons of coke, achieving 97.5% of the annual plan, and processed 31.42 million tons of anhydrous tar, completing 104.73% of the annual plan[43] - The company maintained a focus on safety and environmental management, with no major accidents reported during the period[39] - The company actively adjusted its coal procurement structure to stabilize prices and ensure quality, while maintaining reasonable inventory levels[39] - The company emphasized market expansion and customer communication to enhance sales of coke and other chemical products[39] Environmental Compliance - The company incurred environmental penalties totaling 60,000 RMB for various violations in January and March 2019[161] - The company faced multiple administrative penalties for exceeding SO2 emissions, with 55 hours of violations recorded for the 1 coke oven in Q3 and Q4 of 2018 and January 1 to February 13, 2019[8] - The company has committed to rectifying the issues as required by regulatory authorities[172] - The company has implemented a "medium-low temperature SCR method for denitrification" along with heat recovery and semi-dry desulfurization, with facilities operating normally[200] Strategic Focus and Future Plans - The company plans to focus on expanding its market presence and enhancing product offerings in response to the declining margins and revenues[49] - The company is committed to optimizing its industrial structure and promoting high-quality development in the coking industry, in line with local government policies[76] - The company plans to produce 2.95 million tons of coke, 300,000 tons of tar, 100,000 tons of crude benzene, 200,000 tons of methanol, and 72,000 tons of carbon black in 2020, indicating a focus on increasing production capacity[108] - The company is committed to ongoing technological advancements to reduce production costs and improve market competitiveness[109] Related Party Transactions and Governance - The company has committed to avoiding or minimizing related party transactions with Shanxi Coking Coal Group and will ensure fairness and compliance in any unavoidable transactions[116] - The company has established a long-term commitment to uphold the independence of Shanxi Coking Coal, ensuring no interference in its management activities[116] - The company will ensure that any related party transactions are conducted at fair market prices to protect the interests of Shanxi Coking Coal and its shareholders[116] Legal and Regulatory Compliance - The company has not faced any administrative penalties or major civil lawsuits in the past five years[131] - The company has not made any significant changes to accounting estimates during the reporting period[160] - The company has not been involved in any bankruptcy reorganization matters[162] - The company has appointed the domestic accounting firm Zhihong as its auditor, with a remuneration of 1,000,000 RMB for the audit[161]