DCHL(SH:900909)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥28.13 billion, a decrease of 25.05% compared to ¥37.53 billion in 2019[21]. - The net profit attributable to shareholders for 2020 was approximately ¥423.44 million, down 32.25% from ¥624.98 million in 2019[21]. - The basic earnings per share for 2020 was ¥0.20, a decline of 32.15% from ¥0.30 in 2019[21]. - The weighted average return on equity decreased to 2.29% in 2020, down 1.12 percentage points from 3.42% in 2019[21]. - The net cash flow from operating activities for 2020 was approximately ¥1.11 billion, a decrease of 3.09% from ¥1.15 billion in 2019[21]. - The company's total assets at the end of 2020 were approximately ¥45.59 billion, a decrease of 6.40% from ¥48.71 billion at the end of 2019[21]. - The company reported a significant decline in gross profit of ¥21.13 billion, down ¥9.17 billion year-on-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥56.85 million in 2020, a decrease of 79.83% from ¥281.83 million in 2019[21]. - The company achieved a total operating revenue of 27.944 billion yuan and a net profit attributable to the parent company of 423 million yuan for the reporting period[37]. - The total assets of the company reached 45.593 billion yuan, with a net asset value of 18.592 billion yuan, resulting in a return on equity of 2.29%[37]. Dividend Distribution - The company plans to distribute a cash dividend of 0.6 CNY per 10 shares, totaling approximately 127.82 million CNY (including tax) based on a total share capital of 2,130,381,363 shares[5]. - The company distributed a cash dividend of 1.00 RMB per 10 shares, totaling 210,529,676.30 RMB for the 2019 fiscal year[101]. - For the 2020 fiscal year, the company plans to distribute a cash dividend of 0.6 RMB per 10 shares, amounting to 127,822,881.78 RMB[102]. - The company's audited net profit for 2020 was 423,442,095.21 RMB, with a cash dividend payout ratio of 30.19%[103]. - The retained earnings at the end of 2020 were 7,025,902,850.08 RMB, reflecting an increase from the beginning of the year[101]. - The company will adjust the dividend per share if there are changes in total share capital before the dividend distribution date[102]. - The company’s cash dividend distribution policy is aligned with its profit distribution plan approved at the annual shareholders' meeting[101]. - The company’s retained earnings and profit distribution strategies are aimed at enhancing shareholder value while ensuring compliance with legal requirements[105]. Risk Management - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting investment risks[6]. - The company has detailed risk factors in the board report under "Discussion and Analysis of Operating Conditions"[7]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has not faced any violations of decision-making procedures regarding external guarantees[7]. - The company has not reported any occupied funds or progress in debt recovery during the reporting period[107]. - The company is committed to minimizing related party transactions and ensuring fair pricing in unavoidable transactions[106]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[112]. - The company recognizes challenges such as structural overcapacity and rising costs, which necessitate a shift towards high-quality development and digital upgrades[92]. Corporate Governance - The company received a standard unqualified audit report from Lixin Accounting Firm[8]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy[8]. - The company has appointed Haitong Securities as its financial advisor, ensuring ongoing supervision during the reporting period[19]. - The company has retained Lixin Accounting Firm for 19 years, with an audit fee of 5.439 million RMB for the current period[111]. - The company has a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[112]. - The company has a structured decision-making process for the remuneration of its board members[171]. - The company’s governance structure complies with relevant laws and regulations, continuously improving its operational standards[184]. - The company’s independent directors provided independent opinions on the stock incentive plan[166]. Research and Development - The company has invested in R&D capabilities, establishing national and municipal technology centers and a post-doctoral research station to support innovation and product development[31]. - Research and development expenses increased by 21.39% to CNY 500.95 million, reflecting the company's commitment to enhancing technological investment[49]. - The total R&D expenditure for the period was ¥500,948,351.67, accounting for 1.78% of the operating revenue[50]. - The company has 678 R&D personnel, representing 5.39% of the total workforce[50]. - In 2020, the company applied for 78 patents and received 74 authorizations, reflecting its commitment to innovation[69]. - The company has developed new technologies for coal gasification and acetic acid quality improvement, enhancing its core competitiveness[69]. - The company aims to enhance innovation capabilities by establishing an open innovation system and focusing on breakthrough technologies that align with national strategic needs[94]. Environmental Responsibility - The company achieved a 100% harmless disposal rate for general solid waste and hazardous waste[135]. - The company has completed the environmental impact assessments for new projects, including the approval of the environmental assessment for the "Anhui Huayi Chemical Waste Heat Power Generation Project"[138]. - The company has installed online monitoring for pollutants such as CODcr, ammonia nitrogen, and VOCs across key enterprises to ensure compliance with environmental standards[137]. - The company has initiated a VOCs reduction plan, targeting 46 measures to reduce emissions from 2020 to 2022[137]. - The total environmental investment by general pollutant discharge enterprises was CNY 8.08 million during the reporting period[142]. - The total hazardous waste generated was 408 tons, with a harmless disposal rate of 100%[143]. - The company has established a self-monitoring plan for environmental factors, including CODcr, ammonia nitrogen, SO2, nitrogen oxides, VOCs, and smoke dust[141]. Market Position and Strategy - The company is a leading producer of methanol in East China and ranks among the top three in the domestic market for acetic acid, steel tires, and acrylic acid and esters[31]. - The company has established a comprehensive business layout with production bases in multiple regions, including Shanghai, Anhui, Jiangsu, Chongqing, Xinjiang, and Zhejiang, as well as an overseas factory in Thailand[32]. - The company is focusing on market expansion and innovation through the implementation of new sales models and the exploration of new business channels[39]. - The company anticipates a recovery in the chemical market in 2021, driven by global economic growth and supportive fiscal and monetary policies, despite facing challenges such as public health and debt management[87]. - The company expects the methanol product supply and demand to grow in 2021, with increased consumption driven by improvements in the macroeconomic environment and demand from downstream fine chemicals[89]. - The company plans to enhance its competitiveness in the tire industry by focusing on product innovation, digital transformation, and expanding overseas production bases[89]. - The company aims to expand its market presence and improve its product technology levels through continuous innovation and collaboration[51]. Employee and Management - The total number of employees in the parent company is 127, while the main subsidiaries employ 12,453, resulting in a total of 12,580 employees[176]. - The company has established a salary management system based on job value, linked to employee performance and company operating conditions[177]. - The company plans to continue its training programs in 2021, focusing on key positions, talents, tasks, and capabilities to support its strategic goals[178]. - The company’s management team has extensive experience in the chemical industry and corporate governance[165]. - The total hours of outsourced labor amounted to 2,318,375 hours, with total payments for outsourced labor reaching 87.05 million yuan[179]. Shareholder Relations - The number of ordinary shareholders increased from 59,946 to 62,829 during the reporting period[147]. - The top ten shareholders hold a total of 1,474,000,000 shares, representing 72.99% of the total shares[149]. - The controlling shareholder is Shanghai Huayi (Group) Company, which holds a significant stake in the company[151]. - The actual controller is the Shanghai State-owned Assets Supervision and Administration Commission[153]. - The company has no significant changes in controlling shareholders or actual controllers during the reporting period[152]. - The company has undergone changes in its board and supervisory committee members during the reporting period[172].