zhenhua chemical(SH:603067)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.28 billion, a decrease of 10.01% compared to ¥1.42 billion in 2019[22]. - Net profit attributable to shareholders increased by 9.91% to approximately ¥149.84 million in 2020 from ¥136.32 million in 2019[22]. - The basic earnings per share rose to ¥0.35 in 2020, reflecting a 9.38% increase from ¥0.32 in 2019[23]. - The total assets of the company reached approximately ¥2.01 billion at the end of 2020, marking a 34.40% increase from ¥1.49 billion at the end of 2019[22]. - The cash flow from operating activities saw a significant decline of 96.78%, dropping to approximately ¥6.55 million in 2020 from ¥203.36 million in 2019[22]. - The company achieved an annual revenue of 1.278 billion RMB, a decrease of 10.01% year-on-year, while net profit attributable to shareholders increased by 9.91% to 150 million RMB[50]. - The total assets of the company reached 2.006 billion RMB, reflecting a year-on-year growth of 34.40%[50]. - The company's total revenue for 2020 was approximately CNY 1.28 billion, a decrease of 10.08% year-on-year, with a gross margin of 30.24%, an increase of 1.71 percentage points[54]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 0.92 RMB per 10 shares, totaling approximately 45.91 million RMB based on a total share capital of 499,036,166 shares[5]. - The company established a cash dividend policy to ensure stable returns for shareholders, with a cash dividend of RMB 0.92 per share in 2020, representing 30.64% of net profit[126]. Audit and Compliance - 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 not faced any violations of decision-making procedures regarding external guarantees[7]. - The company has not disclosed any major events that could impact its financial performance in the report[7]. - The company has not reported any major deficiencies in internal control during the reporting period[193]. - The internal control audit report received a standard unqualified opinion[199]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[7]. - The company has a comprehensive risk management strategy in place to address potential future challenges[7]. - The company acknowledges potential risks from changes in industry regulations and environmental policies that could impact operations and profitability[121][122]. - The company faces operational risks due to fluctuations in chromium ore prices, which are primarily imported and subject to global supply dynamics[115]. Innovation and Technology Development - The company is focused on developing digital calcium-free roasting technology for producing sodium chromate, which is a key innovation[11]. - The company has developed a unique "full-process circular economy and resource comprehensive utilization system" in the chromium salt industry[31]. - The company has achieved significant advancements in resource comprehensive utilization, reaching international leading levels in the recycling of chromium-containing solid waste[40]. - The company has established a strong R&D platform, recognized as a provincial engineering research center and a national postdoctoral research station, enhancing its innovation capabilities[84]. - The company has implemented several core technologies for clean production, including digital calcium-free roasting technology and integrated pollution reduction technology[83]. Market Position and Strategy - The company is positioned to become the largest producer of Vitamin K3 globally following the completion of the merger with Minfeng Chemical[31]. - The company is actively pursuing mergers and acquisitions in the domestic chromium salt industry, aiming to become the world's largest chromium salt enterprise[49]. - The company is focusing on expanding its market presence in the chemical raw materials sector, particularly in the production of inorganic salts[77]. - The company is investing in high-value products such as high-end chromium tanning agents and chromium-based target materials, targeting significant market share in these segments[105]. - The company aims to enhance its global competitiveness by adjusting product structure, production processes, and marketing networks in the chromium salt industry[103]. Environmental and Social Responsibility - The company donated masks worth CNY 50,000 and over 6,000 masks to local communities during the COVID-19 pandemic[153]. - The company purchased over CNY 600,000 in poverty alleviation agricultural products and donated CNY 100,000 for community environmental improvement projects[153]. - The company has implemented a pollution prevention and control plan, with facilities operating normally and meeting design capacities[158]. - The company’s SO2 emissions were recorded at 55.73 tons, well below the regulatory limit of 130.075 tons[154]. - The company’s NOx emissions were recorded at 184.05 tons, also compliant with the standard of 812.760 tons[154]. Governance and Management - The company has maintained a consistent governance structure with all board members present at the board meeting[8]. - The company has established a series of core technologies for internal circular economy in chromium salt production, achieving a balance of industrial solid waste production and consumption[40]. - The company’s management team consists of individuals with diverse educational backgrounds, including engineers and economists, enhancing its operational capabilities[175]. - The company has established various governance rules and regulations to enhance corporate governance structure[188]. - The company has not experienced any changes in its actual controller or significant shareholders during the reporting period, indicating stability in governance[171].