JINZHOU JIXIANG MOLYBDENUM(SH:603399)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,290,284,503.84, a decrease of 19.78% compared to CNY 2,854,919,439.39 in 2019[20]. - The net profit attributable to shareholders for 2020 was a loss of CNY 262,791,599.88, compared to a loss of CNY 225,614,784.75 in 2019[20]. - The net cash flow from operating activities was negative CNY 439,740,525.75, a significant decline from positive CNY 505,568,578.13 in the previous year[20]. - Total assets decreased by 10.99% to CNY 2,963,790,283.45 at the end of 2020, down from CNY 3,329,694,918.80 in 2019[21]. - The company's net assets attributable to shareholders decreased by 11.69% to CNY 1,904,539,569.60 at the end of 2020[21]. - The basic earnings per share for 2020 was -CNY 0.48, compared to -CNY 0.41 in 2019[22]. - The weighted average return on equity was -12.98% for 2020, a decrease of 2.97 percentage points from -10.01% in 2019[22]. - The net profit attributable to shareholders for the entire year of 2020 was negative CNY 263 million, with the highest quarterly loss recorded in Q2 at approximately CNY 97 million[24]. - The company reported a total operating cost of CNY 2,186.63 million, a decrease of 19.00% compared to the previous year[57]. - The total comprehensive loss for 2020 was CNY 263,846,289.13, compared to a loss of CNY 228,430,351.71 in 2019[198]. Revenue Breakdown - The molybdenum business generated revenue of 2,210.44 million yuan, an increase of 4.41% year-on-year[40]. - The film and television business reported revenue of 79.85 million yuan, a significant decrease of 88.98% year-on-year[41]. - The main business revenue from molybdenum products for the year 2020 was CNY 2,198,638,454.91, while the revenue from the film segment was CNY 79,845,990.71[179]. Operational Strategies - The company primarily operates in the molybdenum products sector, focusing on production, processing, and sales, with applications in stainless steel and special steel manufacturing[30]. - The company employs an "order-based production" model in its molybdenum business, ensuring production aligns with sales orders[32]. - The sales strategy combines direct sales to end-users and distribution through agents, primarily targeting large domestic steel enterprises[32]. - The company has diversified its operations to include domestic and export trade, enhancing its market presence and customer relationships[32]. Cost Management - The company is focusing on cost reduction and efficiency improvements to maintain its competitive edge in the molybdenum market[41]. - Selling expenses decreased by 32.48% to CNY 142.58 million, primarily due to the disposal of a film subsidiary[63]. - Management expenses decreased by 28.95% to CNY 789.25 million, also due to the disposal of a controlling subsidiary[63]. Research and Development - The company's research and development expenses increased by 49.67% to CNY 1,549,389.68[46]. - The total R&D expenditure was CNY 15.49 million, accounting for 0.07% of operating revenue, with 16 R&D personnel making up 5.86% of the total workforce[64]. Environmental Compliance - The company emphasizes compliance with safety and environmental regulations, maintaining a high-pressure stance on safety management[84]. - The company has implemented strict environmental protection measures, including the installation of electric bag dust collectors and other facilities to prevent air pollution during production[123]. - The company has obtained the necessary environmental impact assessment and pollution discharge permits for its construction projects, complying with relevant regulations[124]. Shareholder Relations - The company has a cash dividend policy that prioritizes cash dividends when conditions are met, ensuring a stable and sustainable return to shareholders[93]. - The company did not declare any cash dividends for the years 2018, 2019, and 2020, maintaining a dividend payout ratio of 0%[96]. - The company plans to review its shareholder dividend plan at least every three years, considering the opinions of public investors, especially minority shareholders[93]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder interests[166]. - The company has made recent appointments, including a new chairman and general manager, as well as independent directors[158]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 4.91 million CNY[153]. Market Risks - The company has outlined potential risks in its future development plans, which investors should be aware of[6]. - The company faces risks related to raw material price fluctuations, but its sales-based production model helps mitigate these risks[87]. Future Outlook - The company plans to enhance production efficiency and product quality in the molybdenum sector while continuing to develop its television business in 2021[83]. - The company aims to improve project risk management and stabilize the quality of its television productions[83]. - The company is actively seeking new profit growth points while maintaining its focus on the molybdenum and television sectors[83].