SHCI(SH:601225)2020-04-29 16:00Financial Performance - In 2019, the company achieved a net profit attributable to shareholders of CNY 11.6439 billion, representing a 5.92% increase compared to 2018[5]. - The company's operating revenue for 2019 was CNY 73.4034 billion, an increase of 28.27% from CNY 57.2237 billion in 2018[20]. - The total assets of the company at the end of 2019 were CNY 126.6835 billion, a 5.11% increase from CNY 120.5296 billion at the end of 2018[20]. - The company's net assets attributable to shareholders increased by 14.98% to CNY 58.2538 billion at the end of 2019[20]. - Basic earnings per share increased by 7.27% to CNY 1.18 compared to the same period last year[21]. - The company reported a net profit attributable to shareholders of 11.64 billion RMB, reflecting a year-on-year increase of 5.92%[56]. - The company's total operating revenue for 2019 was 7,340,344.31 million, with a gross profit margin of 40.93%, a decrease of 7.76 percentage points compared to the previous year[61]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 3.60 per share, totaling CNY 3.4902 billion, which is 30% of the net profit attributable to shareholders[5]. - The total dividend payout ratio for 2019, including share repurchase, was 40.50% of the distributable profit[5]. - Cumulative cash dividends from 2016 to 2019 amounted to 11.97 billion RMB, representing an average payout ratio of 33% of net profit attributable to shareholders[109]. - In 2019, the cash dividend per 10 shares was 3.60 RMB, with a total cash dividend of 349.02 million RMB[111]. Operational Highlights - The company's coal production reached 115 million tons, a year-on-year increase of 6.3%[31]. - Coal sales volume was 178 million tons, representing a growth of approximately 24.9% year-on-year[32]. - The company achieved a coal production of 114.94 million tons, an increase of 6.34% year-on-year, with a sales volume of 178.49 million tons, up 24.88% year-on-year[55]. - The average selling price of coal was 383.47 RMB/ton, an increase of 2.82% year-on-year, while the total operating revenue reached 73.40 billion RMB, a growth of 28.27% year-on-year[56][59]. Cost and Expenses - The company’s operating costs increased by 47.67% year-on-year, amounting to 43.36 billion RMB, primarily driven by coal business costs[59]. - The gross profit margin for the coal mining industry was 41.28%, a decrease of 8.17 percentage points compared to the previous year[61]. - Total operating costs increased by 47.67% to 4,335,664.81 million yuan, primarily due to a rise in purchased coal costs and geological restoration fund implementation[70]. - Sales expenses rose by 26.14% to 2,768 million yuan, mainly due to increased railway freight from higher trade coal settlement volumes[72]. Innovation and Development - The company is focusing on high-quality coal development and aims to build a "smart mine" and "intelligent mining area"[31]. - The company applied for 193 patents in 2019, with 113 granted, including 4 invention patents and 103 utility model patents[36]. - The company is focusing on technological innovation, establishing a smart mining platform and promoting the use of 5G, big data, and AI in production processes[50]. - The company has established a budget management model that enhances efficiency and reduces production costs, while controlling non-production expenses[35]. Environmental and Safety Initiatives - The company has established a comprehensive disaster prevention and control system to enhance safety and risk management capabilities[47]. - The company is committed to green development and clean utilization of coal resources, promoting low-carbon development and green transformation[143]. - The company has implemented a comprehensive wastewater pollution prevention and control system, achieving compliance with all pollutant discharge standards[144]. - The company has constructed wastewater treatment facilities with a total capacity of 1,850 m³/h for mine water and upgraded its living wastewater treatment process to MBR technology, enhancing treatment efficiency[150]. Market and Economic Outlook - The company faces uncertainties in its 2020 operational goals due to macroeconomic fluctuations and changes in coal industry policies[6]. - The macroeconomic environment in 2019 showed a GDP growth of 6.1%, with a total GDP reaching 99 trillion RMB, indicating a stable economic backdrop for the coal industry[93]. - The company anticipates that coal consumption will remain stable with slight growth, driven by the transition to high-quality development in the energy sector[95]. - The company expects coal consumption in 2020 to remain stable, with domestic coal supply capabilities increasing due to accelerated release of advantageous production capacity and enhanced railway transport capacity[97]. Corporate Governance and Compliance - The company has established a comprehensive internal control system covering various management aspects to mitigate operational risks[186]. - The company ensures independence from its controlling shareholder in business, personnel, assets, and financial aspects[193]. - The company has a performance evaluation mechanism for senior management, linking assessment results to compensation distribution[195]. - The company has appointed Sigma Accounting Firm for the 2019 financial audit, with a remuneration of RMB 2.6 million[119]. Shareholder Information - The largest shareholder, Shaanxi Coal and Chemical Industry Group Co., Ltd., holds 6,313,825,200 shares, accounting for 63.14% of total shares[166]. - The second-largest shareholder, Shaanxi Coal Industry Co., Ltd. Repurchase Special Securities Account, holds 305,000,000 shares, representing 3.05%[166]. - The actual controller of the company is the Shaanxi Provincial People's Government State-owned Assets Supervision and Administration Commission[169]. - There are no changes in the actual controller during the reporting period[169].