DHCT(SH:600844)2021-04-14 16:00Financial Performance - The company's operating revenue for 2020 was approximately RMB 1.08 billion, a decrease of 12.54% compared to RMB 1.23 billion in 2019[22]. - The net profit attributable to shareholders of the listed company was approximately -RMB 367.17 million, compared to -RMB 432.80 million in 2019, showing an improvement[22]. - The total assets at the end of 2020 were approximately RMB 2.59 billion, a decrease of 13.16% from RMB 2.99 billion at the end of 2019[23]. - The net assets attributable to shareholders of the listed company decreased by 21.59% to approximately RMB 1.33 billion from RMB 1.69 billion in 2019[23]. - The cash flow from operating activities for 2020 was approximately -RMB 38.28 million, a significant decline compared to RMB 7.22 million in 2019[22]. - The company reported a basic earnings per share of -0.3612 CNY for 2020, an improvement from -0.4258 CNY in 2019[24]. - The weighted average return on equity decreased to -24.33% in 2020, down 1.65 percentage points from -22.68% in 2019[24]. - Total revenue for the fourth quarter reached 469,303,143.55 CNY, while the net profit attributable to shareholders was -140,644,098.89 CNY[26]. - The company reported a total revenue of CNY 1.075 billion for the year, a decrease of 12.54% compared to the previous year[39]. - The net profit attributable to the parent company was a loss of CNY 367 million[39]. - Non-recurring losses totaled -903,863.51 CNY in 2020, compared to -668,088.84 CNY in 2019[28]. - The company reported a net loss of CNY 1,508,257,230.50 for 2020, compared to a net loss of CNY 1,143,045,805.41 in 2019[172]. - The company reported a total comprehensive loss of -9,900,510.96 CNY for 2020, compared to -208,348,050.17 CNY in 2019, showing a significant reduction in overall losses[182]. Production and Sales - The company achieved an annual production capacity of 220,000 tons of ethylene glycol and 80,000 tons of oxalic acid, with a production utilization rate of 75.58%[30][31]. - Domestic ethylene glycol production in 2020 was approximately 906,000 tons, a year-on-year increase of 16.1%[33]. - Ethylene glycol sales reached 147,593.58 tons, while production was 153,178.56 tons, indicating a slight production increase of 1.80%[45]. - The gross margin for ethylene glycol dropped to -56.60%, a decrease of 39.50 percentage points year-on-year[43]. - The company’s ethylene glycol production facility operated for 319 days in the year, with a total of 20 instances of reduced output due to equipment failures[71]. - The company maintains a stable sales network, primarily supplying downstream polyester manufacturers and chemical trading companies[32]. - The company's main products, ethylene glycol and oxalic acid, account for approximately 25% of the domestic market share in their respective categories[64]. Research and Development - Research and development expenses decreased by 14.94% to CNY 41.47 million[41]. - The total R&D investment accounted for 3.86% of operating revenue, with a total of ¥4,147.35 in R&D expenses[52]. - The company plans to accelerate industrialization in the biodegradable plastics sector, having generated CNY 10.58 million in sales from this area in 2020[39]. - The company plans to expand its production capacity in the biodegradable plastics sector, targeting 10,000 tons of biodegradable modified materials and 100 tons of various film products in 2021[87]. Risks and Challenges - The company faced significant risks including policy, market, and operational risks, which are detailed in the report[8]. - The company is currently facing challenges due to a single product line and weak risk resistance, with external investments not yet yielding benefits[39]. - The company faces risks including production instability, market oversupply of ethylene glycol, and rising raw material costs due to fluctuations in international oil prices[88]. - The coal chemical industry is expected to face tighter safety and environmental regulations, impacting future growth in the oxalic acid market[35]. Financial Position and Liabilities - The total amount of cash and cash equivalents increased by 85.42% to ¥147,474,592.27 at the end of the reporting period[55]. - The company reported a significant increase in accounts receivable, which rose by 102.40% to ¥97,758,276.96[56]. - The total inventory decreased by 55.59% to ¥128,349,788.09, indicating improved inventory management[56]. - The company's short-term borrowings increased by 54.03% to ¥400,477,083.37[55]. - The company's total liabilities included a new contract liability of ¥72,025,965.54, reflecting changes in accounting standards[55]. - The company's total equity decreased from CNY 2,253,065,080.83 in 2019 to CNY 1,785,118,830.37 in 2020, a decline of about 20.8%[172]. - Total liabilities increased from CNY 734,782,712.13 in 2019 to CNY 809,428,488.63 in 2020, an increase of approximately 10.1%[171]. Governance and Compliance - The company received an unqualified audit report from Zhongxinghua Accounting Firm, with emphasis on certain matters[7]. - The company has not faced any risks of suspension or termination of listing during the reporting period[96]. - The company has maintained compliance with environmental regulations, with no investigations or penalties reported[116]. - The company has not experienced any environmental pollution incidents or violations during the reporting period[116]. - The board of directors held five meetings during the year, with all members attending at least four meetings[146]. - There were no penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[137]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year[199]. - Future guidance indicates a cautious outlook, with expectations of gradual recovery in performance metrics[199]. - The company is exploring potential mergers and acquisitions to enhance market position and operational capabilities[199]. - Investment in new technologies is prioritized to drive innovation and improve competitive advantage[199].