SHANGFENG CEMENT(SZ:000672)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 6,432,292,239.10, a decrease of 13.22% compared to CNY 7,412,062,639.19 in 2019 [21]. - The net profit attributable to shareholders for 2020 was CNY 2,025,845,134.58, down 13.11% from CNY 2,331,476,345.52 in 2019 [21]. - The net cash flow from operating activities decreased by 35.55% to CNY 2,014,156,628.37 in 2020 from CNY 3,124,977,972.35 in 2019 [21]. - The total assets at the end of 2020 increased by 14.19% to CNY 11,303,732,426.10 from CNY 9,899,462,608.91 at the end of 2019 [21]. - The net assets attributable to shareholders rose by 24.79% to CNY 6,775,844,428.67 at the end of 2020 compared to CNY 5,429,856,317.06 at the end of 2019 [21]. - The basic earnings per share for 2020 were CNY 2.54, a decrease of 13.31% from CNY 2.93 in 2019 [21]. - The weighted average return on equity for 2020 was 33.55%, down from 53.27% in 2019, indicating a significant decline in profitability [21]. - The company reported a total of CNY 172,532,169.96 in non-recurring gains and losses for 2020, compared to CNY 156,367,589.14 in 2019 [25]. - In 2020, the company's total revenue was CNY 643,229.22 million, a decrease of 13.22% year-on-year [55]. - The company's gross profit margin was 48.6%, net profit margin was 31.82%, return on total assets was 26.28%, and return on equity was 33.55%, maintaining industry-leading operational efficiency indicators [56]. Business Operations - The company has a cement production capacity of approximately 14.75 million tons of clinker and 17.5 million tons of cement, ranking 16th in the national cement capacity [33]. - The company's main business, cement and related products, accounts for over 90% of its revenue, with no significant changes in its operational model [35]. - The company has established over 40 subsidiaries across 10 provinces and countries, including Kyrgyzstan, enhancing its market presence [33]. - The company is expanding its business into environmental services through cement kiln collaborative disposal, which has become an important new business [28]. - The company is also upgrading its operations towards smart logistics related to the infrastructure and building materials industry [28]. - The company has implemented a multi-channel sales network, primarily through a distribution model, supplemented by direct sales and an e-commerce platform [30]. - The company has a stable supply chain for raw materials, including coal, limestone, and sandstone, ensuring production efficiency [30]. - The company has advanced technology and experience in cement production, maintaining high operational efficiency and environmental standards [41]. Market and Industry Trends - In 2020, the national cement production reached 2.377 billion tons, with a year-on-year growth of 1.6%, indicating a stable demand in the industry [32]. - The cement industry is experiencing a stable phase with supply-side reforms and structural adjustments to control excess capacity [32]. - The overall cement industry in China saw a production increase of 1.6% to 2.38 billion tons in 2020, while industry revenue decreased by 2.2% to CNY 996 billion [54]. - The company is focusing on the innovative environmental business of hazardous waste disposal using cement kilns, aligning with national carbon neutrality goals [34]. Investments and Projects - The company completed significant projects, including a new 4,500 T/D dry-process cement clinker production line in Zhejiang and a 4,000-ton intelligent cement clinker production line in Guizhou [47]. - The company expanded its hazardous waste disposal business, achieving an annual capacity of approximately 500,000 tons through various projects in Ningxia and Anhui [49]. - The company plans to increase its cement production capacity to approximately 1,750 million tons with new projects in Guangxi, Guizhou, and Zhejiang [64]. - The company is actively implementing low-emission technology upgrades and enhancing environmental protection investments to improve competitiveness and ensure sustainable development [59]. - The company is investing in new technologies and products, including biomass energy and waste heat power generation [98]. Financial Management and Shareholder Relations - The company reported a cash dividend of 8.50 RMB per 10 shares, based on a total of 802,063,924 shares [7]. - The cash dividend amount for 2020 was CNY 681,754,350.70, representing 33.65% of the net profit attributable to ordinary shareholders [135]. - The company has maintained a consistent dividend policy over the past three years, reflecting its commitment to returning value to shareholders [134]. - The company plans to maintain a minimum cash dividend ratio of 20% during profit distribution, given its growth stage and significant capital expenditure arrangements [137]. - The company has committed to distributing no less than 10% of the annual realized distributable profit to shareholders in cash dividends [140]. Environmental Compliance and Social Responsibility - The company has implemented environmental protection measures in compliance with national standards, including air pollution control [190]. - The company has been actively involved in peak-shifting production policies to alleviate overcapacity and reduce air pollution during heating periods [193]. - The company has reported a total of 736.59 tons of nitrogen oxide emissions for Guizhou Jinxing Industrial Investment Co., Ltd. in the reporting year [200]. - The company engaged in various social responsibility initiatives, contributing a total of 2.27 million CNY for poverty alleviation efforts [184]. - The company plans to continue its poverty alleviation efforts in 2021, focusing on infrastructure improvements and educational support [186]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management [6]. - The company has not faced any bankruptcy reorganization matters during the reporting period [151]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties [142]. - The company has not experienced any penalties or rectification issues during the reporting period [154]. - The company has engaged the accounting firm Zhihong for annual audit services, with a fee of RMB 1.7 million for the reporting period [150].