BHCC(SH:600800)2021-03-17 16:00Financial Performance - The net profit attributable to the parent company for 2020 was ¥186,022,655.03, with an opening retained earnings of -¥374,830,274.19 and a closing retained earnings of -¥599,125,666.14[5] - The company’s board of directors decided not to distribute profits for 2020 due to negative retained earnings, thus no cash dividends will be issued[5] - In 2020, the company's operating revenue was approximately ¥2.73 billion, a decrease of 28.50% compared to ¥3.82 billion in 2019[20] - The net profit attributable to shareholders was approximately ¥186 million, representing a 26.52% increase from ¥147 million in 2019[20] - The basic earnings per share for 2020 was ¥0.19, up 26.67% from ¥0.15 in 2019[23] - The total assets of the company increased by 16.60% to approximately ¥4.72 billion in 2020, compared to ¥4.05 billion in 2019[22] - The company reported a net profit of approximately ¥366 million from operating activities, a 44.81% increase compared to ¥253 million in 2019[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -¥40 million in 2020, compared to ¥10 million in 2019[25] - The company achieved a net profit of RMB 257,619,971 in 2020, exceeding the performance commitment of RMB 230,332,800, with a commitment fulfillment rate of 133.65%[121] Audit and Compliance - The report includes a standard unqualified audit opinion from Da Xin Accounting Firm[4] - The company’s financial report is guaranteed to be true, accurate, and complete by the board of directors and senior management[7] - The company has no significant litigation or arbitration matters during the reporting period[126] - The company has engaged Da Xin Accounting Firm for auditing services, with a fee of RMB 800,000 for the year[126] - The audit report confirms that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2020[196] Risks and Challenges - The company faces financial risks, market competition risks, and fluctuations in material and labor costs, as detailed in the report[7] - The company will not update forward-looking statements, which are subject to known and unknown risks and uncertainties[6] - The company anticipates challenges in maintaining technological leadership due to rapid product updates and insufficient R&D investment[99] - The company faces risks from market dependence on major customers, potential delays in new product launches, and competition from other manufacturers[98] Strategic Initiatives - The company completed the acquisition of 100% equity in Tianjin Bohai Petrochemical Co., Ltd. on January 13, 2020, impacting the consolidated financial statements[23] - The company plans to focus on expanding its market presence in North China and East China, where revenue growth opportunities have been identified[51] - The company plans to increase propylene production capacity from 600,000 tons/year to 1,200,000 tons/year through a propane dehydrogenation technology upgrade project, enhancing core competitiveness[94] - The company aims to optimize its revenue structure and improve profitability by leveraging Bohai Petrochemical's market position, R&D capabilities, and customer resources[94] Environmental and Safety Measures - The company has implemented low NOx burner technology and NH3-SCR systems to control emissions from its facilities[137] - The company has established a comprehensive wastewater collection and treatment system to ensure compliance with environmental standards[136] - The company has committed to environmental protection measures during the construction and operation of its facilities, ensuring continuous and stable operation of pollution control equipment[137] - The total wastewater discharged by the company in 2020 was 118,400 tons, which is within the permitted annual discharge limit of 125,700 tons[136] Shareholder and Governance Structure - The company issued 574 million shares, resulting in a 93.99% increase in share capital to ¥1,185,787,580.00[63] - The company guarantees that after the restructuring, its assets will be strictly separated from those of Bohua Group, ensuring no mixed operations or asset confusion[110] - The company will ensure the independence of its operations, with the ability to conduct business activities without reliance on Bohua Group[110] - The company has established a governance structure that aligns with regulatory requirements, promoting sustainable development and protecting shareholder rights[186] Research and Development - Research and development expenses increased by 62.50% compared to the previous year, driven by new R&D projects[48] - The total amount of R&D investment was 42,008,626.03 yuan, representing 1.54% of total operating revenue[60] - The number of R&D personnel was 130, making up 15.49% of the total workforce[60] - The company plans to invest 100 million RMB in research and development for innovative technologies over the next three years[172] Employee and Management Information - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 268.11 million CNY[170] - The highest individual compensation was received by Zhou Kai, the Chairman, totaling 54.72 million CNY[168] - The company has established a compensation policy based on job positions and performance, linking employee income to company performance to enhance motivation[182] - The number of employees in the parent company is 716, while the total number of employees in the parent company and major subsidiaries is 920[181]