zhenhua chemical(SH:603067)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was ¥1,395,221,720.56, a decrease of 0.69% compared to ¥1,404,863,524.28 in 2018[22]. - Net profit attributable to shareholders was ¥136,970,439.44, down 6.29% from ¥146,165,013.63 in the previous year[22]. - Basic earnings per share decreased by 31.91% to ¥0.32 from ¥0.47 in 2018[23]. - The weighted average return on equity fell to 10.62%, a decrease of 1.84 percentage points from 12.46% in 2018[23]. - Cash flow from operating activities increased significantly by 146.98% to ¥200,928,227.30 from ¥81,352,826.87 in 2018[22]. - Total assets rose to ¥1,484,508,767.85, reflecting a 9.75% increase from ¥1,352,574,839.67 at the end of 2018[22]. - The company reported a net profit of ¥25,279,289.83 in Q1 2019, with total revenue of ¥323,156,429.48 for the same quarter[24]. - Non-recurring gains and losses totaled ¥6,792,935.05 for 2019, compared to ¥1,441,891.18 in 2018[26]. - In 2019, the company achieved operating revenue of CNY 1.395 billion, a decrease of 0.69% year-on-year[41]. - The net profit attributable to shareholders was CNY 137 million, down 6.29% year-on-year, primarily due to increased environmental protection investments[42]. - The total assets at the end of 2019 amounted to CNY 1.485 billion, an increase of 9.75% year-on-year[41]. - The company maintained a weighted average return on equity of 10.62%, a decrease of 1.84 percentage points year-on-year[42]. Research and Development - The company applied for a total of 11 patents in 2019, including 5 invention patents, 4 utility model patents, and 2 design patents[36]. - The company has established five provincial-level innovation platforms to enhance its technological capabilities[36]. - The company is focused on developing digital calcium-free roasting technology for producing sodium chromate, which combines digital measurement and control technology[11]. - Research and development expenses were CNY 49.84 million, a slight decrease of 2.05% compared to the previous year[44]. - The company has applied for a total of 46 patents, with 21 granted, including 13 invention patents and 7 utility model patents[70]. - The company has established a strong R&D platform recognized as a provincial technology center and has collaborated with several research institutions and universities[70]. Environmental Compliance - The company has implemented a series of environmental protection measures, achieving zero discharge of process wastewater and ultra-low emissions of exhaust gas[39]. - The company has implemented measures to ensure zero discharge of process wastewater, indicating a commitment to environmental sustainability[149]. - Environmental compliance was highlighted, with SO2 emissions recorded at 33.416 tons, well within the regulatory limit of 400 mg/m3[149]. - The company achieved a noise level compliance, with daytime measurements at various boundaries not exceeding the standard of 65 dB[150]. - The company has a wastewater treatment station capable of processing 1,200 tons per day, operational since 2007, with 6,570 hours logged[153]. - The company has a dry detoxification facility for hazardous waste with an annual capacity of 50,000 tons, operational since 2006, with 7,498 hours logged[153]. - The company has received a pollution discharge permit in January 2018, indicating compliance with environmental regulations[156]. - The company has established an emergency response plan for environmental incidents, filed in March 2019[157]. - The company has successfully implemented a waste gas treatment project for its no-calcium roasting kiln, receiving approval in July 2019[156]. - The company has implemented a monitoring plan for pollutants, including chromium and nitrogen oxides, with specific emission limits such as 0.07 for chromium compounds and 30 for smoke dust[159]. Corporate Governance - The company received a standard unqualified audit report from Da Xin Accounting Firm, ensuring the financial report's authenticity and completeness[4]. - The company has a commitment to transparency, with all board members present at the board meeting to ensure the accuracy of the annual report[8]. - The board of directors consists of 9 members, including 3 independent directors, and has established several committees for governance[191]. - The company conducted 7 board meetings during the year, with a mix of in-person and communication methods[193]. - The internal control self-assessment report for 2019 was approved by the board and published on the Shanghai Stock Exchange website[196]. - The company disclosed an internal control audit report, confirming compliance with auditing standards[196]. - The management team has extensive experience in the industry, with several members holding advanced degrees and professional qualifications[180]. - The total remuneration for directors, supervisors, and senior management amounted to 8.2116 million yuan at the end of the reporting period[183]. Market Strategy - The company is actively expanding into the vitamin K3 product market, leveraging its raw material advantages[37]. - The company plans to continue expanding its international market presence, with expectations for increasing overseas sales in the coming years[48]. - The company aims to enhance industry concentration through market competition, mergers and acquisitions, and policy guidance[66]. - The company aims to become a strategic hub in the global chromium salt market by improving its product offerings and customer service networks[93]. - The company plans to enhance its global competitiveness in the chromium salt industry through product structure optimization and technological innovation[93]. - The company intends to strengthen its global presence by integrating resources for overseas raw material supply, technology cooperation, and sales networks[97]. Shareholder Information - The company plans to distribute a cash dividend of 0.10 CNY per share, totaling 43,120,000 CNY based on a total share capital of 431,200,000 shares[5]. - The company has implemented a cash dividend policy, distributing 1.00 CNY per share in 2019, with a payout ratio of 31.48% of net profit attributable to shareholders[125]. - The actual controller and shareholders committed to not transferring their shares for 36 months from the date of the company's initial public offering, which started in 2016[127]. - Shareholders are restricted from transferring more than 25% of their total shares held in the company during the first two years after the lock-up period ends[128]. - The company has committed to using at least 20% of the previous year's cash dividend for stock repurchase within 12 months[128]. - The company will disclose the implementation status of its stock repurchase plan within 2 working days after the plan is executed or terminated[128]. - The total number of shareholders increased from 22,206 to 24,096, indicating a growth in shareholder base[168]. - The top ten shareholders hold a combined 49.48% of the total shares, with Cai Zaihua holding 213,346,980 shares[171]. Operational Risks - There are no significant risks that could materially affect the company's operations during the reporting period[7]. - The company faces operational risks due to potential price fluctuations in chrome ore, which is primarily imported and subject to global supply dynamics[113]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures in providing guarantees to external parties[7]. Employee Information - The number of employees in the parent company was 1,208, with a total of 1,259 employees across the parent and major subsidiaries[186]. - The company has 563 retired employees for whom it bears costs[186]. - The total hours of outsourced labor amounted to 58,212 hours, with total payments for outsourced labor reaching 583,103.30 yuan[189]. - The company has implemented training programs for all employees, focusing on safety and technical skills[188]. Future Outlook - The company aims for a revenue of 1.46 billion yuan and a net profit exceeding 176 million yuan in 2020[102]. - The company will focus on the chromium salt industry, emphasizing clean production and resource recycling to enhance competitiveness[95]. - The company plans to develop high-value-added products such as high-purity metallic chromium and high-end chromium tanning agents to meet market demand[96]. - The company will prioritize safety management and environmental protection, ensuring compliance with high standards[103][104]. - The company aims to enhance product quality and brand building, transitioning from a product provider to a product + service provider, while expanding both upstream and downstream in the supply chain[110].