DHCT(SH:600844)2020-08-06 16:00Financial Performance - The company's operating revenue for 2019 was approximately RMB 1.23 billion, a decrease of 14.21% compared to RMB 1.43 billion in 2018[21]. - The net profit attributable to shareholders for 2019 was a loss of approximately RMB 432.8 million, compared to a profit of RMB 2.06 million in 2018, marking a significant decline[21]. - The basic earnings per share for 2019 was -0.4258 yuan, compared to 0.0020 yuan in 2018, indicating a substantial decline[23]. - The weighted average return on equity for 2019 was -22.68%, a decrease of 22.78 percentage points from 0.10% in 2018[23]. - The net loss for 2019 was CNY 505,343,740.45, compared to a net profit of CNY 8,672,105.48 in 2018, indicating a significant decline in profitability[189]. - The total comprehensive income for 2019 was -208,348,050.17 RMB, compared to -16,719,609.90 RMB in 2018, highlighting a substantial decline in overall financial health[194]. Assets and Liabilities - The total assets of the company decreased by 11.92% to approximately RMB 2.99 billion at the end of 2019, down from RMB 3.39 billion at the end of 2018[22]. - The company's net asset attributable to shareholders was approximately RMB 1.69 billion, a decrease of 20.37% from RMB 2.12 billion in 2018[22]. - Total liabilities increased from ¥634,927,637.48 in 2018 to ¥734,782,712.13 in 2019, an increase of about 15.69%[182]. - The company's retained earnings showed a significant decline, moving from -¥710,245,097.31 in 2018 to -¥1,143,045,805.41 in 2019[182]. - 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 20.39%[182]. Cash Flow - The company reported a net cash flow from operating activities of approximately RMB 7.22 million, a drastic decrease of 98.05% from RMB 370.23 million in 2018[22]. - The cash flow from operating activities showed a negative trend, with a net cash flow decrease of approximately 1,500% year-over-year[197]. - The net cash flow from operating activities for 2019 was -22,924,965.81, a significant decline compared to -1,440,470.12 in 2018, indicating a worsening operational cash flow situation[197]. - Cash outflow from operating activities in 2019 was 22,927,949.31, significantly higher than 7,694,440.32 in 2018, highlighting increased operational expenses[197]. 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 150,883.68 tons, with a production volume of 150,474.15 tons, showing a year-on-year increase of 7.63% in sales volume[43]. - The average selling price of ethylene glycol dropped by approximately 33.7% compared to the previous year, leading to operational losses[38]. - The company did not complete its annual production plan of 200,000 tons of ethylene glycol and 82,000 tons of oxalic acid due to system stability issues, resulting in a significant production shortfall[91]. Investment and R&D - The company invested a total of RMB 1.7 billion in joint ventures for projects related to synthetic gas and fuel ethanol, which faced significant operational delays[4]. - Total R&D investment was 48.76 million yuan, which is 3.97% of total revenue[51]. - Research and development for the PGA project has made progress, with small batch trial products produced, but large-scale industrial production is still a distance away[38]. - The company has identified the PGA project as a new economic growth point, achieving a breakthrough in core technology processes[91]. Market Conditions - The domestic ethylene glycol market faced pressure with a total production capacity increase of 2.31 million tons in 2019, leading to potential oversupply issues[34]. - The overall industry outlook suggests potential overcapacity in the ethylene glycol market, with a projected demand of only 20.5 million tons against a capacity of 28.81 million tons by 2020[34]. - The average price of ethylene glycol was under pressure throughout 2019, with significant fluctuations impacting profitability[32]. Governance and Compliance - The company faced a qualified audit opinion for its 2019 financial statements due to insufficient audit evidence obtained by the auditing firm[101]. - The audit report indicates that there may be substantial uncertainties regarding the company's ability to continue as a going concern, which could impact future financial reporting[175]. - The company received an unqualified audit report on the effectiveness of its internal control over financial reporting for 2019[161]. Environmental Impact - Total sulfur dioxide emissions for the year were 48.44 tons, nitrogen oxides emissions were 207.779 tons, and particulate matter emissions were 42.088 tons, all below the permitted limits[118]. - The desulfurization project achieved a removal rate of over 95% for sulfur dioxide, with a total investment of 23 million yuan and a building area of 2902 m²[119]. - The company has not experienced any environmental pollution incidents or violations during the reporting period[122].