Ye Chiu Resources(SH:601388)2021-04-12 16:00Financial Performance - The company's net profit attributable to shareholders for 2020 was CNY 461,772,133.68, representing a 301.74% increase compared to CNY 114,943,444.20 in 2019[5]. - Total revenue for 2020 reached CNY 5,627,025,863.19, a 3.28% increase from CNY 5,448,473,369.40 in 2019[23]. - The basic earnings per share for 2020 was CNY 0.2200, up 287.32% from CNY 0.0568 in 2019[24]. - The company reported a net profit of CNY 442,178,392.46 after deducting non-recurring gains and losses, which is a 270.59% increase from CNY 119,317,800.21 in 2019[23]. - The net profit attributable to the parent company for 2020 was ¥461,772,133.68, a year-on-year increase of 301.74% compared to ¥114,943,444.20 in the previous year, primarily due to increased sales of aluminum alloy ingots and improved gross margins[63]. - Operating revenue for the year was ¥5,627,025,863.19, reflecting a 3.28% increase from ¥5,448,473,369.40 in the previous year[65]. Cash Flow and Dividends - The company's net cash flow from operating activities for 2020 was CNY 480,899,407.01, a decrease of 42.80% compared to CNY 840,700,605.56 in 2019[23]. - The retained earnings at the end of 2020 were CNY 979,322,962.70, with a proposed cash dividend of CNY 0.65 per 10 shares, totaling CNY 143,112,195.59[5]. - In 2020, the company proposed a cash dividend of 0.65 RMB per 10 shares, with a payout ratio of 30.99% of the net profit attributable to ordinary shareholders[128]. - The cash dividend for 2019 was 0.16 RMB per 10 shares, with a payout ratio of 30.44% of the net profit attributable to ordinary shareholders[128]. - The cash dividend for 2018 was 0.1 RMB per 10 shares, with a payout ratio of 20.62% of the net profit attributable to ordinary shareholders[128]. Assets and Liabilities - The company's total assets as of the end of 2020 were CNY 5,151,561,108.02, reflecting a 3.83% increase from CNY 4,961,432,849.98 at the end of 2019[23]. - The net assets attributable to shareholders at the end of 2020 were CNY 3,286,288,080.31, a 19.91% increase from CNY 2,740,656,239.16 at the end of 2019[23]. - The company's total liabilities decreased by 16.01% from 2,220,783,664.62 RMB to 1,865,280,270.68 RMB[166]. - Current liabilities decreased by 11.20% from 1,815,254,109.82 RMB to 1,611,930,772.69 RMB[166]. - Non-current liabilities decreased significantly by 37.53% from 405,529,554.80 RMB to 253,349,497.99 RMB[166]. Operational Highlights - The company has established a global procurement network for aluminum scrap, with procurement operations in China, the US, Europe, and Southeast Asia[34]. - The production model is based on "sales-driven production," aligning production schedules with customer orders[35]. - The company is a leading player in the recycled aluminum industry, focusing on energy-efficient and environmentally friendly production methods[33]. - The company aims to maximize group benefits by choosing to sell non-ferrous metals to third parties or supplying its factories in China and Malaysia, while black metals are primarily consumed locally in the U.S.[42]. - The company has established a strong international procurement network for scrap aluminum, sourcing from regions including the U.S., South America, Europe, and Southeast Asia, which is crucial for its operations[52]. Market and Industry Trends - The recycling aluminum industry is supported by national policies, with a target for recycled aluminum to account for over 30% of total aluminum production during the 13th Five-Year Plan, indicating a favorable regulatory environment for growth[42]. - The domestic recycling aluminum market is expected to grow significantly due to increasing waste aluminum supply from discarded vehicles and appliances, supported by government policies[44]. - The automotive sector accounts for the highest revenue share among the company's aluminum alloy ingot customers, with plans to expand into furniture, hardware, and machinery sectors[108]. Research and Development - Research and development expenses increased by 16.38% to ¥2,694,214.02 from ¥2,315,023.14, indicating a commitment to innovation[65]. - The total R&D expenditure amounted to ¥2.31 million, representing 0.04% of total revenue, with no capitalized R&D costs[78]. Governance and Compliance - The company has implemented a structured management system to ensure efficient operations and compliance with regulations, enhancing its overall governance[56]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective decision-making and accountability[191]. - The company has a diverse board with members from various backgrounds, including experience in the aluminum recycling industry and environmental engineering[181]. - The company has established internal audit and major information reporting systems, complying with relevant laws and regulations[193]. Environmental Responsibility - The company has implemented effective pollution control measures, including 3 sets of bag dust collectors and 1 set of electrostatic precipitators for waste gas treatment[148]. - The company has a total of 4 emission outlets for particulate matter and sulfur dioxide, with emissions not exceeding the standards[147]. - The company actively participates in community governance and has organized volunteer activities for environmental awareness[144]. Employee and Executive Compensation - The total number of employees in the parent company is 476, while the total number of employees in major subsidiaries is 1,270, resulting in a combined total of 1,746 employees[187]. - The company has implemented a performance bonus system to incentivize employees, aiming to enhance overall company efficiency[188]. - The total pre-tax remuneration for the chairman was reported at 477.33 million CNY for the year[180]. - The total shares held by the general manager remained unchanged at 297,900 shares, with a pre-tax remuneration of 50.52 million CNY[180]. Legal and Regulatory Issues - As of May 6, 2020, 51 investors have filed lawsuits against the company for alleged false statements, creating uncertainty regarding potential impacts on the company[123]. - The company faced a fine of 300,000 yuan from the China Securities Regulatory Commission for violations related to information disclosure[185].