ZPEC(SH:603637)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was RMB 1,096,207,910.35, representing a 6.12% increase compared to RMB 1,033,013,799.97 in 2019[21]. - The net profit attributable to shareholders of the listed company was RMB 65,124,147.05, an increase of 13.26% from RMB 57,502,068.91 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 51,986,108.38, showing a slight decrease of 0.37% compared to RMB 52,177,051.34 in 2019[21]. - The net cash flow from operating activities was negative at RMB -135,675,481.34, a significant decline of 131.18% from RMB 435,192,262.98 in 2019[21]. - The total assets at the end of 2020 were RMB 1,384,887,186.43, reflecting a 3.46% increase from RMB 1,338,509,416.28 at the end of 2019[21]. - The net assets attributable to shareholders of the listed company were RMB 809,887,552.49, which is a 4.40% increase from RMB 775,755,085.47 in 2019[21]. - Basic earnings per share increased by 12.50% to CNY 0.27 from CNY 0.24 in the previous year[22]. - The weighted average return on equity rose to 8.25%, an increase of 0.70 percentage points from 7.55% in the previous year[22]. - The main business revenue was ¥1,094,078,028.77, with a cost of ¥982,532,787.49, resulting in a gross margin of 10.20%, which decreased by 0.28 percentage points compared to the previous year[58]. Dividend Policy - The company proposed a cash dividend of RMB 1.50 per 10 shares, totaling RMB 35,806,430.55, which accounts for 54.98% of the net profit attributable to shareholders for the year[5]. - The cash dividend payout ratio for 2019 was 60.52%, while the ratio for 2020 was 54.98%[129]. - The company has a cash dividend policy that mandates a minimum of 20% of the distributable profits to be distributed as cash dividends annually, ensuring stable returns for investors[120]. - The company plans to maintain a continuous and stable profit distribution policy, with cash dividends constituting at least 80% of profits during mature phases without major capital expenditures[121]. - The company has outlined a three-year shareholder return plan (2020-2022) that prioritizes cash dividends, with a commitment to distribute at least 30% of the average annual distributable profits over three years[123]. Investment and Capital Structure - The company plans to increase its total share capital by 69,629,152 shares through a capital reserve transfer, resulting in a total share capital of 243,702,033 shares[24]. - The company’s capital reserve was converted to share capital, resulting in a 39.96% increase in share capital to 243,702,033.00[69]. - The company completed the repurchase and cancellation of part of the restricted stock, reducing the number of restricted shares from 904,020 to 848,900[172]. - The total number of unrestricted circulating shares increased from 43,552,327 to 243,028,269, marking an increase of about 456.56%[174]. - The company’s stock incentive plan led to a reduction in restricted shares from 1,188,460 to 673,764 after the second unlocking period[174]. Market and Industry Position - The company focuses on providing comprehensive engineering services in the petrochemical industry, including EPC services[31]. - The petrochemical industry is a crucial pillar of the national economy, with significant impacts from macroeconomic development and international oil price fluctuations[35]. - The company is positioned in the second tier of domestic petrochemical engineering companies, focusing on serving large petrochemical enterprises and leveraging its technical expertise[82]. - The demand for high-end petrochemical products in China is expected to grow faster than traditional industries, driven by national strategies and supply-side structural reforms[82]. - The company is actively seeking to expand its market presence, particularly in the petrochemical sector, to enhance its competitive edge against both domestic and international rivals[109]. Research and Development - The company has a strong focus on R&D, with significant advancements in low-sulfur fuel oil production processes and high-efficiency energy-saving designs[42]. - The company is committed to a talent-driven strategy, emphasizing flexible recruitment policies and performance-based compensation to attract and retain skilled employees[96]. - The company is focused on advancing its technological capabilities, particularly in sulfur recovery and clean production technologies, to maintain a competitive edge[93]. - The company intends to deepen collaborations with research institutions and universities to develop key technologies in the petrochemical industry[93]. - The company is investing in research and development, allocating resources to innovate and improve existing product lines[181]. Risk Management and Compliance - The report includes a risk statement regarding forward-looking statements, indicating potential risks in future development strategies[6]. - The company plans to strengthen its risk management framework to prevent and mitigate potential risks in economic activities[91]. - The company has implemented a robust internal control management system to protect shareholder rights and ensure compliance with legal requirements[163]. - The company has not reported any strategic investors or general corporations becoming top ten shareholders through new share placements[190]. - The company has committed to not transferring or repurchasing shares held by directors and senior management for 36 months post-IPO[134]. Corporate Governance - The company emphasizes transparency in its high dividend policy to align with investor expectations and operational needs[127]. - The board must provide reasons if cash dividends are not proposed despite positive profits available for distribution[130]. - The independent directors have expressed their agreement with the profit distribution plan for 2019, ensuring oversight and compliance with company policies[126]. - The company has established a commitment to ensure that any share reductions after the lock-up period will not exceed 25% of their holdings[133]. - The company has maintained a long-term relationship with the accounting firm for 8 years[136]. Social Responsibility - The company donated ¥1,000,000 to support COVID-19 prevention efforts and contributed ¥300,000 for poverty alleviation projects[54]. - The company has actively participated in public welfare activities, including a donation of 300,000 yuan for the restoration of a solar power station in Anhui Province[164]. - The company has adhered to environmental regulations and does not fall under the category of key pollutant discharge units as per the local environmental authority[166]. - The company has established a comprehensive employee training system to enhance skill development and ensure quality training outcomes[163]. - The company has maintained zero quality and safety incidents in ongoing projects, reflecting improved employee safety awareness[163].