SCMF(SZ:000731)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥2.91 billion, a decrease of 0.57% compared to ¥2.93 billion in 2019[17]. - The net profit attributable to shareholders increased by 20.09% to ¥103.71 million from ¥86.36 million in 2019[17]. - The net profit after deducting non-recurring gains and losses was ¥91.18 million, up 15.61% from ¥78.86 million in the previous year[17]. - Basic earnings per share rose to ¥0.1753, reflecting a growth of 20.07% compared to ¥0.1460 in 2019[17]. - The diluted earnings per share for 2020 was CNY 0.1753, an increase of 20.07% compared to CNY 0.1460 in 2019[18]. - The total assets at the end of 2020 were CNY 4,004,158,093.60, representing a growth of 4.78% from CNY 3,821,582,729.04 at the end of 2019[18]. - The net profit attributable to shareholders for Q4 2020 was CNY 33,458,293.87, with a total annual net profit of CNY 103,707,827.00[22]. - The company achieved an operating revenue of 2,912.41 million yuan in 2020, a year-on-year decrease of 0.57%[69]. - The net profit attributable to shareholders was 103.71 million yuan, with a basic earnings per share of 0.1753 yuan[69]. Cash Flow and Investments - The net cash flow from operating activities decreased by 15.06% to ¥317.66 million, down from ¥373.97 million in 2019[17]. - The company reported a net cash flow from operating activities of CNY 206,970,798.26 in Q4 2020[22]. - Operating cash inflow totaled approximately $2.91 billion, an increase of 6.63% compared to $2.73 billion in 2019[105]. - Operating cash outflow increased to approximately $2.59 billion, up 10.08% from $2.35 billion in 2019[105]. - Investment cash inflow surged to approximately $1.18 billion, a dramatic increase of 24,752.41% compared to $4.73 million in 2019[105]. - Net cash flow from investment activities was negative at approximately -$502.18 million, a decline of 4,866.13% from -$10.11 million in 2019[105]. - Financing cash inflow increased by 280.59% to approximately $380.59 million from $100 million in 2019[105]. - The net increase in cash and cash equivalents was approximately -$216.77 million, a decrease of 339.80% from -$49.29 million in 2019[105]. Production and Sales - The company produced 49.11 million tons of urea and 30.63 million tons of compound fertilizer during the reporting period[27]. - The sales volume for self-produced urea was 44.36 million tons, and for compound fertilizer, it was 32.76 million tons[27]. - The company produced 79.74 million tons of fertilizer, a 11.52% increase from 71.5 million tons in 2019[94]. - Inventory of chemical fertilizer products decreased by 58.04% year-on-year, indicating improved sales conditions[94]. - The company produced 49,700 tons of melamine and sold 49,700 tons; produced 252,300 tons of liquid ammonium nitrate and sold 180,100 tons; produced 8,800 tons of packaging plastic products and sold 9,300 tons (including trade)[32]. Market and Industry Trends - The fertilizer industry in China is currently facing overcapacity, with a transition from single product competition to comprehensive service competition[44]. - The demand for fertilizers has rebounded due to heightened global focus on food security during the pandemic, leading to a shift towards green and sustainable development[44]. - The melamine production capacity in China reached approximately 2 million tons, with a total production of about 1.32 million tons in 2020, while domestic consumption was only 1 million tons, indicating a supply-demand imbalance[46]. - The car urea market in China consumed approximately 2.56 million tons in 2020, with a projected saturation point of around 7.5 million tons, indicating significant growth potential[49]. - The implementation of stricter emission standards is expected to drive the demand for high-quality car urea products, as low-quality products are phased out of the market[50]. Research and Development - Research and development expenses increased by 196.02% to ¥6,204,766.92 in 2020, compared to ¥2,096,055.05 in 2019[102]. - The number of R&D personnel rose to 102, a 5.15% increase from 97 in the previous year[103]. - The company has developed several industry-leading technologies, including an energy-efficient natural gas conversion technology and a high-efficiency composite fertilizer production process, both of which have received provincial awards[60][61]. - The company launched new products including "Meifeng Mei" and "Meifeng Gen" series fertilizers, and upgraded the "Net Smooth Pro" urea product for the high-end market[103]. Risk Management - Future development strategies and potential risks are discussed in the report, emphasizing the importance of market conditions and operational efforts[5]. - The company faces risks including safety and environmental risks, product price fluctuations, cost increases, and natural gas supply imbalances[6]. - The company is committed to risk prevention and management enhancement as part of its strategic goals[131]. - The company recognizes potential risks related to safety, product price fluctuations, and cost increases in the chemical industry[139]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities[198]. - The wastewater discharge for ammonia nitrogen was reported at 0.24 mg/L, with a total discharge of 0.16 tons/year, which is compliant with the national standards[198]. - The company actively participates in social responsibility initiatives, contributing to local agricultural recovery and environmental sustainability[197]. - The company donated a total of CNY 580,000 for educational support during the reporting period[193]. - During the pandemic, the company donated CNY 4,000,000 to assist in epidemic prevention efforts[194]. Strategic Initiatives - The company plans to enhance its development confidence and efforts, focusing on quality and efficiency as the core[131]. - The company aims to optimize its industrial structure and enhance efficiency through a "five-in-one" new energy terminal service demonstration project[132]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[165]. - The company is committed to maintaining competitive pricing strategies in the face of changing market dynamics[168].