DHCT(SH:600844)2020-06-30 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥1.23 billion, a decrease of 14.21% compared to ¥1.43 billion in 2018[21]. - The net profit attributable to shareholders for 2019 was approximately -¥432.8 million, a significant decline from a profit of ¥2.06 million in 2018, representing a decrease of 21,142.78%[21]. - The basic earnings per share for 2019 was -¥0.4258, compared to ¥0.0020 in 2018, indicating a substantial decline[23]. - The company reported a net cash flow from operating activities of approximately ¥7.22 million, a decrease of 98.05% from ¥370.23 million in 2018[22]. - The company reported a net loss of approximately 269.43 million RMB for the year 2019, compared to a profit of 2.06 million RMB in 2018[98]. - The net profit for 2019 was -208,348,050.17 RMB, compared to a net profit of -16,719,609.90 RMB in 2018, indicating a significant increase in losses[195]. - The total comprehensive income for 2019 was -208,348,050.17 RMB, compared to -16,719,609.90 RMB in 2018, showing a worsening financial position[195]. Assets and Liabilities - The total assets of the company as of December 31, 2019, were approximately ¥2.99 billion, down 11.92% from ¥3.39 billion in 2018[22]. - The total liabilities increased from ¥634,927,637.48 in 2018 to ¥734,782,712.13 in 2019, an increase of about 15.7%[183]. - The total equity attributable to shareholders decreased from ¥2,124,361,619.44 in 2018 to ¥1,691,531,186.76 in 2019, a decline of approximately 20.4%[183]. - The company's cash and cash equivalents decreased significantly from ¥219,205,204.47 in 2018 to ¥79,533,531.89 in 2019, a drop of about 64.5%[181]. - The inventory increased from ¥157,127,002.89 in 2018 to ¥289,043,126.69 in 2019, an increase of about 83.8%[181]. Production and Sales - The company produced 22,000 tons of ethylene glycol and 8,000 tons of oxalic acid, but did not meet its production targets due to operational stability issues[31]. - Ethylene glycol sales volume was 150,884 tons, with a production volume of 150,474 tons, showing a slight increase of 7.63% in sales volume year-over-year[43]. - The average selling price of ethylene glycol dropped approximately 33.7% compared to the previous year, leading to operational losses[38]. - The gross margin for ethylene glycol was -17.1%, reflecting a decrease of 184.67 percentage points year-over-year[42]. Investment and R&D - The company invested a total of ¥1.7 billion in joint ventures for projects including a 200,000 tons/year synthetic gas to ethylene glycol project and a 100,000 tons/year fuel ethanol project[4]. - The company's research and development expenses increased by 21.36% to CNY 48.76 million[42]. - The total R&D investment was 48.76 million yuan, which is 3.97% of the total operating revenue[51]. Market Conditions and Risks - The domestic ethylene glycol market faced pressure with a total production capacity increase of 2.31 million tons in 2019, leading to potential oversupply in 2020[34]. - The company faced significant risks including policy, market, and operational risks, which could impact future performance[7]. - The company anticipates that the ethylene glycol price volatility will impact production decisions in 2020, with potential adjustments based on market conditions[34]. - The demand for oxalic acid was significantly affected by strict safety and environmental regulations, leading to a low price environment in 2019[77]. Corporate Governance and Compliance - The company has not faced any risks of suspension or termination of its listing during the reporting period[107]. - The company has not reported any significant accounting errors that would require correction during the reporting period[105]. - The company has no significant litigation or arbitration matters pending or disclosed during the reporting period[108]. - The company has engaged Zhongxinghua Accounting Firm to audit the effectiveness of its internal control over financial reporting, receiving an unqualified opinion[162]. Shareholder Information - The company reported a total of 44,441 common stock shareholders at the end of the reporting period, an increase from 43,902 at the end of the previous month[126]. - Jiangsu Danhua Group Co., Ltd. holds 180,050,050 shares, accounting for 17.71% of total shares, with 44,000,000 shares pledged[129]. - The actual controller of the company is the Jiangsu Province Danyang Municipal Government[133]. Employee and Management - The company employed a total of 1,269 staff, with 949 in production, 19 in sales, 158 in technical roles, 19 in finance, and 124 in administration[147]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.2125 million yuan[143]. - The company has established a complete salary system, implementing a "position-based salary" policy and enhancing performance assessments across subsidiaries[148].