SCMF(SZ:000731)2020-04-23 16:00Financial Performance - The company's operating revenue for 2019 was CNY 2,929,130,915.91, representing a 10.96% increase compared to CNY 2,639,919,528.80 in 2018[16]. - The net profit attributable to shareholders for 2019 was CNY 86,358,201.81, a decrease of 60.67% from CNY 219,596,981.88 in 2018[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 78,864,718.23, down 63.96% from CNY 218,796,816.00 in the previous year[16]. - The basic earnings per share for 2019 was CNY 0.1460, a decline of 60.68% compared to CNY 0.3713 in 2018[17]. - The total assets at the end of 2019 were CNY 3,821,582,729.04, a decrease of 7.89% from CNY 4,149,081,899.51 at the end of 2018[17]. - The net assets attributable to shareholders at the end of 2019 were CNY 2,801,320,354.37, showing a slight increase of 0.07% from CNY 2,799,287,599.03 at the end of 2018[17]. - The net cash flow from operating activities for 2019 was CNY 373,969,067.48, down 15.83% from CNY 444,282,625.54 in 2018[16]. - The weighted average return on net assets for 2019 was 3.04%, a decrease of 4.99% from 8.03% in 2018[17]. - The company reported a total profit of CNY 100,903,845.33 for 2019, with a net profit attributable to shareholders of CNY 86,358,201.81[120]. Dividend Policy - The company plans to distribute a cash dividend of CNY 0.50 per 10 shares to all shareholders[6]. - The cash dividend amount for 2019 was CNY 29,574,217.60, which accounted for 34.25% of the net profit attributable to the parent company[120]. - In 2018, the cash dividend was CNY 1.50 per 10 shares, totaling CNY 88,722,652.80, representing 40.40% of the net profit attributable to the parent company[120]. - The cash dividend for 2017 was CNY 0.80 per 10 shares, amounting to CNY 47,318,748.16, which was 30.41% of the net profit attributable to the parent company[120]. - The company implemented a cash dividend policy, distributing 1.50 CNY per 10 shares based on a total share count of 591,484,352 shares for the 2018 fiscal year[116]. Market and Industry Trends - The compound fertilizer industry in China is undergoing a transformation, with a focus on ecological and green development, as well as product innovation to meet new agricultural modernization requirements[31]. - The market concentration in the fertilizer industry is expected to increase, with a significant number of outdated production capacities being eliminated, leading to a trend towards larger-scale operations and mergers[32]. - The demand for new types of fertilizers suitable for vegetables and fruits is rising, with controlled-release fertilizers, water-soluble fertilizers, and organic fertilizers expected to gain market share over time[31]. - The domestic melamine market has seen a significant increase in production capacity, exceeding 200,000 tons annually, while actual consumption remains at 900,000 tons, leading to a supply-demand imbalance[35]. - The price of melamine has dropped significantly, with market prices falling below 6,000 yuan, indicating a weak market environment[36]. - The car urea market is experiencing growth, with consumption increasing by 27.3% from 155.3 thousand tons in 2018 to 197.7 thousand tons in 2019, driven by stricter emission standards[39]. - The implementation of the National VI emission standards is expected to further boost the demand for car urea, enhancing environmental protection efforts[39]. - The fertilizer industry is facing challenges due to high production costs and environmental regulations, leading to a shift towards high-efficiency ecological fertilizers with soil restoration capabilities[34]. Production and Sales - The company produced 41.49 thousand tons of urea and 30.01 thousand tons of compound fertilizer, selling 37.87 thousand tons of urea and 28.80 thousand tons of compound fertilizer during the reporting period[26]. - The company produced 11.17 thousand tons of automotive urea and sold 11.20 thousand tons, focusing on expanding the market and enhancing brand development[27]. - The company has an annual production capacity of 50 thousand tons of melamine, 180 thousand tons of dilute nitric acid, and 225 thousand tons of ammonium nitrate, with production figures of 52.20 thousand tons of melamine and 25.05 thousand tons of liquid ammonium nitrate reported[28]. - The company produced and sold 17.81 thousand tons and 17.96 thousand tons of liquefied natural gas (LNG) respectively during the reporting period[29]. - The company sold 66.67 million tons of chemical fertilizers, an increase of 11.92% compared to the previous year[67]. Research and Development - The company has developed a proprietary spray granulation process for compound fertilizer, achieving a high granulation rate and low energy consumption, which won the Sichuan Provincial Science and Technology Progress Award[51]. - The company has created a high tower granulation process for large particle urea, recognized with the Sichuan Provincial Science and Technology Progress Award, featuring low investment and high automation[52]. - The company has established a circular economy industrial chain process, maximizing resource utilization and demonstrating a model for industry structure adjustment[53]. - The company has developed a vehicle urea solution production technology, achieving multiple international and domestic certifications, with an annual production capacity of 600,000 tons[54]. - The company has introduced a new formula for heavy-duty membrane bags, filling a domestic gap and achieving industry-leading performance metrics[55]. - The company has collaborated with China Five Ring Engineering Company to develop a low-energy urea synthesis technology, which won the Nitrogen Fertilizer and Methanol Industry Technology Progress Award[56]. - The company has completed the trial production of high-efficiency stable urea and slow-release urea-sulfur-based compound fertilizers, successfully launching several new products[57]. - The company has invested CNY 100 million in research and development for new energy technologies, aiming to enhance its product offerings and sustainability[96]. Risk Management - The company has identified several risk factors, including safety and environmental risks, product price fluctuations, cost increases, and natural gas supply imbalances[5]. - The company faces risks related to safety and environmental issues, product price fluctuations, rising costs, and natural gas supply imbalances[111]. - The company plans to optimize its production cost management to ensure efficient and safe operations while enhancing profitability through innovation[112]. Corporate Social Responsibility - The company actively engaged in social responsibility initiatives, donating fertilizers to impoverished areas and supporting local schools[60]. - The company is committed to corporate social responsibility, actively engaging in poverty alleviation and educational support initiatives[110]. Environmental Compliance - The company has established a comprehensive environmental monitoring plan, including both manual and online monitoring methods, to ensure compliance with discharge permits[179]. - The company has maintained its pollutant discharge license, which is valid until December 20, 2020, and has adhered to all regulatory requirements[179]. - The company has reported zero exceedances in its pollutant discharge limits, demonstrating effective compliance with environmental regulations[181]. - The company has implemented a series of pollution control measures, including low-nitrogen burners and advanced wastewater treatment technologies[180]. Future Outlook - Future guidance indicates a targeted revenue growth of 10% for 2020, driven by increased sales in both domestic and international markets[96]. - The company aims for a revenue target of over 2.5 billion yuan and a basic profit target of 60 million yuan for 2020, with a striving profit target of 90 million yuan[104]. - The company plans to expand its market presence through new product development and technological advancements in the chemical fertilizer sector[96]. - Future guidance indicates a revenue target of 1.5 billion yuan for 2020, reflecting a growth rate of 25%[144]. - The company anticipates continued growth in revenue driven by increased production capacity and market expansion efforts[148].