XCEC(SH:600777)2021-04-29 16:00Financial Performance - The company reported a consolidated net profit of -2,656,256,623.80 RMB for the year 2020, with the net profit attributable to the parent company also being -2,656,256,623.80 RMB[4]. - The company's operating revenue for 2020 was approximately ¥4.14 billion, a decrease of 31.74% compared to ¥6.07 billion in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately -¥2.66 billion, representing a decline of 346.50% from a profit of ¥1.08 billion in 2019[16]. - The net cash flow from operating activities decreased by 35.65% to approximately ¥2.68 billion in 2020, down from ¥4.16 billion in 2019[16]. - The total assets at the end of 2020 were approximately ¥22.73 billion, a decrease of 20.09% from ¥28.45 billion at the end of 2019[16]. - The basic earnings per share for 2020 were -¥0.3906, a decline of 346.44% compared to ¥0.1585 in 2019[17]. - The weighted average return on equity for 2020 was -17.958%, a decrease of 24.974 percentage points from 7.016% in 2019[17]. - The company reported a total of ¥15.75 million in non-recurring losses for 2020, compared to ¥4.11 million in 2019[20]. - The company reported a significant decrease in net profit in 2020 compared to previous years, indicating potential financial challenges[55]. - The company reported a net loss of CNY 2,656,256,623.80 for the year 2020, compared to a net profit of CNY 1,077,569,509.20 in 2019, indicating a significant decline in profitability[148]. - Total comprehensive income for the year was CNY -3,691,304,304.76, down from CNY 1,298,503,988.98 in the previous year, reflecting a substantial decrease in overall financial performance[149]. Dividends and Profit Distribution - The board proposed no cash dividends or bonus shares for the 2020 fiscal year[4]. - The company did not distribute any cash dividends or stock bonuses in 2020, 2019, or 2018, with net profits of -2,656,256,623.80 RMB, 1,077,569,509.20 RMB, and 600,746,057.36 RMB respectively[55]. - The company's profit distribution policy was approved by the board and shareholders, ensuring compliance with regulations regarding cash dividends[54]. Assets and Liabilities - The total assets as of December 31, 2020, were CNY 12,380,460,575.88, slightly down from CNY 12,394,902,008.85 in 2019[145]. - Total liabilities reached CNY 29,945,412.15, a significant increase from CNY 15,674,985.79 in the previous year[146]. - The company's equity attributable to shareholders totaled CNY 12,350,515,163.73, a decrease from CNY 12,379,227,023.06 in 2019[146]. - The total owner's equity at the end of 2020 was CNY 12,428,067,036.28, indicating a decline from the previous year's total[160]. Operational Performance - The company has focused on oil and gas exploration and production, primarily in the Permian Basin in Texas, USA[23]. - The company's oil and gas assets decreased by 21.54% due to an impairment provision of $450 million[25]. - The company adjusted its oil and gas development plans significantly, reducing capital expenditures and operating costs to protect financial and cash flow status[27]. - The company closed some production wells and reduced planned drilling operations to mitigate risks during the low oil price environment[29]. - The company’s oil production in the U.S. is nearly equal to its sales, resulting in negligible inventory levels[26]. - The company reported a significant increase in financial expenses, totaling CNY 603,486,512.20, compared to CNY 184,659,961.07 in 2019[147]. Legal and Compliance Issues - The company is under investigation by the China Securities Regulatory Commission for alleged violations of information disclosure laws, which may impact its operations[77]. - The company is involved in multiple significant lawsuits, including disputes with Zhejiang Beze Group and issues related to the debts of Heshengyuan Company, with various announcements made on the Shanghai Stock Exchange[75]. - The company has not reported any significant impact on its financial position, operating results, or cash flows due to the accounting policy changes[71]. Corporate Governance - The board of directors was re-elected, with Liu Ke appointed as chairman and general manager, ensuring continuity in leadership[67]. - The company has committed to maintaining a minimum of three non-independent directors to safeguard shareholder interests[66]. - The company has established a comprehensive corporate governance structure, complying with relevant laws and regulations[120]. - The company has no actual controller following changes in board composition, with decisions made within the framework of the company's articles of association and relevant laws[67]. Future Outlook and Strategy - The company aims to enhance profitability by focusing on innovative technology solutions and cost-reduction measures while maintaining cash flow balance[51]. - The company plans to focus on new product development and market expansion strategies in the upcoming year[147]. - The company is actively considering expansion through mergers and acquisitions, focusing on acquiring quality low-cost oil and gas assets to enhance resource reserve economics[27]. - The company will explore strategic projects in the green economy and related information technology sectors to enhance sustainable development capabilities[51]. Environmental and Social Responsibility - The company has complied with local environmental regulations and has not experienced any major environmental incidents during the reporting period[86]. - The company published its 2020 Social Responsibility Report, which is available on the Shanghai Stock Exchange website[85]. - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[109]. Financial Reporting and Audit - The report includes a standard unqualified audit opinion from Zhonghua Accounting Firm[3]. - The independent auditor issued a standard unqualified opinion on the company's financial statements for the year ended December 31, 2020[131]. - The company maintained effective internal controls over financial reporting, with no significant deficiencies identified as of December 31, 2020[128].