HDXY(SZ:002002)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 5,393,922,727.29, an increase of 1.78% compared to CNY 5,299,650,818.13 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 813,788,514.21, representing a growth of 29.18% from CNY 629,948,190.80 in 2019[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 791,354,353.65, up 31.64% from CNY 601,154,893.79 in 2019[19]. - The net cash flow from operating activities increased by 39.89% to CNY 637,226,347.23 from CNY 455,514,795.37 in 2019[19]. - Basic earnings per share for 2020 were CNY 0.3142, a rise of 29.14% compared to CNY 0.2433 in 2019[19]. - The diluted earnings per share increased by 6.17% to CNY 0.2583 from CNY 0.2433 in 2019[19]. - The weighted average return on equity was 11.14%, up from 9.84% in 2019[19]. - Total assets at the end of 2020 were CNY 17,906,726,515.69, reflecting a 6.54% increase from CNY 16,807,642,292.60 at the end of 2019[19]. - The company achieved a revenue of 5.394 billion yuan, operating profit of 1.013 billion yuan, and net profit attributable to shareholders of 814 million yuan[175]. Cash Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.11 per 10 shares, totaling CNY 282,591,147.76 based on the adjusted share capital[7]. - The company reported a cash dividend of ¥28,259,147.58 for the year 2020, which represents 3.47% of the net profit attributable to ordinary shareholders[197]. - The cash dividend amount for 2019 was ¥154,019,295.39, accounting for 24.45% of the net profit attributable to ordinary shareholders[197]. - The cash dividend for 2018 was ¥154,566,547.67, which was 25.30% of the net profit attributable to ordinary shareholders[197]. - The total cash dividend (including other methods) for 2020 was 100% of the profit distribution total[199]. - The company has a policy that cash dividends should account for at least 20% of profit distribution during significant capital expenditures[199]. Hydrogen Energy Development - The company is actively developing its hydrogen energy business, with plans to increase hydrogen production capacity to 50,000 tons annually through new projects[33]. - The company has established partnerships with international firms for hydrogen energy applications, enhancing its technological capabilities in hydrogen production and storage[32]. - The company has successfully launched China's first civilian liquid hydrogen plant, improving hydrogen transport efficiency and reducing costs[33]. - The company has signed a hydrogen supply service agreement with a local public transport company to support fuel cell vehicles[34]. - Hydrogen energy is highlighted as a clean, efficient, and sustainable energy source, with a high energy density of 143 MJ/Kg, significantly surpassing that of oil and natural gas[51]. - The company is positioned to benefit from the global shift towards low-carbon energy solutions, with hydrogen energy being a key focus area[55]. - The company is actively entering the hydrogen energy sector, leveraging its strengths to participate in the growing market[55]. - The company has established the first domestic civil hydrogen liquefaction plant in April 2020, with existing products including liquid hydrogen and high-purity hydrogen[117]. - The company is expanding its hydrogen energy applications and has signed a hydrogen supply service agreement with a local public transport company to support hydrogen fuel cell vehicles[109]. PVC and Chemical Production - The company has a PVC production capacity of 1.1 million tons per year and a total capacity for various products including hydrogen energy and environmental products[30]. - The production capacity utilization rate and sales rate of basic chemical products remain high, contributing to stable output and profitability[35]. - The company actively expanded its PVC new materials product line, including medical packaging materials and protective masks, in response to market demand during the pandemic[36]. - The sales volume of PVC was 601,980.31 tons, with a revenue of approximately ¥3.78 billion, reflecting an increase in average selling price by 16.15% compared to the previous year[129]. - The average PVC production scale among the 70 PVC manufacturers in China was approximately 380,000 tons per year in 2020, an increase of 40,000 tons from the previous year[62]. - The company maintains a high operating rate and profitability in its chlor-alkali products, with a focus on developing high-value-added products like modified PVC[108]. Soil Remediation and Environmental Initiatives - The company is committed to soil remediation, aligning with national policies to combat land pollution and ensure food security, and has developed a complete soil remediation industrial chain[38]. - The company’s soil conditioner product "丰收延" has received high market recognition, significantly improving agricultural productivity in various regions[39]. - The Guangdong Earth Soil Research Institute has conducted over 20,000 soil sample tests, supporting the development of soil remediation products and technologies[40]. - The company has developed a series of soil conditioners and innovative planting models, successfully participating in government procurement projects for soil remediation in multiple provinces[110]. - The company has established a dedicated soil research institute to advance soil remediation technologies and provide consulting services to farmers and agricultural enterprises[177]. Research and Development - The company has a strong R&D team with 278 technical personnel, holding 5 invention patents and 55 utility model patents related to its core products[116]. - Research and development expenses rose by 49.76% to ¥156,325,234.09, reflecting increased investment in hydrogen energy and soil remediation technologies[141]. - The number of R&D personnel increased by 7.42% to 521, with R&D expenses constituting 2.90% of total revenue[143]. - The company is focusing on R&D projects related to hydrogen storage, soil remediation, and new materials, collaborating with several research institutions[143]. Market and Industry Trends - The hydrogen energy industry is projected to become a significant economic growth point for China by 2030, contributing over 10 trillion yuan in economic output[58]. - The PVC industry is experiencing a shift towards high-quality development, focusing on cost control and management improvements[75]. - The demand for PVC products is anticipated to grow due to the expansion of traditional applications and the development of new innovative fields[74]. - The company faces market environment risks due to the cyclical nature of the chemical industry, which can impact profitability during economic downturns[181]. Financial Management and Risks - The company is facing financial risks due to its capital-intensive nature and increasing debt levels from new business developments, including hydrogen energy and soil remediation[184]. - The company plans to enhance profitability through technological innovation and operational management while optimizing its financial structure[184]. - The company is actively adapting to new environmental regulations to ensure compliance and reduce costs associated with environmental protection[182]. Corporate Governance and Compliance - The company has achieved renewal conditions for various licenses, including the hazardous chemicals registration certificate and the production safety license[122]. - The company has a valid water extraction permit until May 2025, ensuring compliance with local regulations[122]. - The company is committed to improving its safety management practices to prevent potential accidents that could impact operations and reputation[183].