BNMC(SH:601011)2020-04-27 16:00Financial Performance - In 2019, the company's operating revenue decreased by 23.46% to approximately CNY 2.73 billion compared to 2018, primarily due to reduced sales volume and prices of main products like coke and methanol[21]. - The net profit attributable to shareholders dropped by 79.32% to approximately CNY 70.41 million in 2019, influenced by cyclical industry impacts and increased costs due to coal procurement policies[21]. - The basic earnings per share fell by 80.95% to CNY 0.04 in 2019, reflecting the significant decline in net profit[22]. - The cash flow from operating activities decreased by 49.16% to approximately CNY 218.35 million in 2019, attributed to reduced sales revenue and prepayments[22]. - The weighted average return on equity decreased by 4.64 percentage points to 1.15% in 2019, indicating a decline in profitability[21]. - The total assets at the end of 2019 were approximately CNY 10.83 billion, a slight decrease of 0.82% from 2018[21]. - The net profit after deducting non-recurring gains and losses decreased by 83.72% to approximately CNY 60.60 million in 2019[22]. - The company reported a total revenue of ¥2,725,523,206.67, a decrease of 23.46% year-on-year[64]. - The net profit attributable to shareholders was ¥70,410,524.49, down 79.32% compared to the previous year[64]. Operational Highlights - The company produced 1,332,500 tons of coke, achieving the annual production plan[62]. - The company produced 173,300 tons of methanol, with sales of 154,700 tons, achieving a near balance between production and sales[62]. - The company’s electricity production reached 419 million kWh, a year-on-year increase of 28.13%[62]. - The company sold 1,133,700 tons of coke, with a sales revenue of ¥1.23 billion, representing a year-on-year growth of 14.14%[62]. - The company completed 28 key technological transformation projects in 2019, supporting its transition to new materials[45]. - The company’s production of needle coke is gradually increasing its share in the main business compared to previous years[45]. Market and Industry Context - The Northeast region's coke market showed a weak trend in 2019, with prices fluctuating due to changes in downstream demand[46]. - Since 2019, the coal market has been operating at a high level due to tight supply, with coal prices in Northeast China continuing to rise[47]. - In 2019, the steel industry saw a reduction in overall capacity, leading to stable prices and increased profits for existing steel enterprises[48]. - The company is a leading independent coking enterprise in Northeast China, ranked among the top 500 chemical companies in the country and the top 10 private enterprises in Heilongjiang Province[53]. Research and Development - The company increased its research and development expenses by 148.64% to ¥13,402,725.63[66]. - The company holds 157 patents, including 30 invention patents and 127 utility model patents, as of December 31, 2019[60]. - The company is actively advancing the industrialization of graphene technology, having launched production lines for graphene conductive ink and high-concentration graphene dispersion[53]. - The company aims to enhance the quality of needle coke by increasing electricity consumption in the pre-treatment workshop[86]. Environmental and Social Responsibility - The company planted 336,000 trees as part of its environmental protection efforts[62]. - The company has invested in pollution control facilities, ensuring that emissions of dust, nitrogen oxides, and sulfur dioxide meet national standards, with no exceedances reported[193]. - The company has committed 1,000,000 RMB to sponsor the first Lantern Festival in Qitaihe City and donated 200,000 RMB to the China Light and Color Foundation[189]. - The company has implemented a wastewater treatment system that operates normally, with treated water being reused and not discharged[194]. - No environmental pollution incidents occurred during the reporting period, and all emergency response plans have been filed with local environmental authorities[196]. Financial Management and Governance - The company has a cash dividend policy that emphasizes reasonable returns to investors, with a minimum of 30% of the average distributable profit over the last three years to be distributed in cash[154]. - The company did not distribute dividends in 2019, 2018, and 2017, with the net profit attributable to ordinary shareholders being 70.41 million RMB, 342.58 million RMB, and 161.70 million RMB respectively[156]. - The company plans to use undistributed profits to supplement working capital due to tight raw coal supply and rising prices, as well as to enhance safety and environmental spending[157]. - The company has faced risks including price volatility, industry competition, production safety, policy changes, transformation challenges, and COVID-19 impacts since 2019[151]. Compliance and Audit - The company received a standard unqualified audit report from Zhongshen Zhonghuan Accounting Firm[4]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - The company has not provided guarantees in violation of regulatory decision-making procedures[7]. - The company has appointed Zhongshun Zhonghuan Accounting Firm as its auditor for a fee of CNY 400,000 for the audit period[171].