Zhongtai Chemical(SZ:002092)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was ¥83,119,888,254.27, an increase of 18.37% compared to ¥70,222,629,869.87 in 2018[34]. - The net profit attributable to shareholders for 2019 was ¥343,103,874.22, a decrease of 85.87% from ¥2,428,013,752.65 in 2018[34]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥307,789,805.90, down 87.12% from ¥2,389,436,961.00 in 2018[34]. - The basic earnings per share for 2019 was ¥0.1598, a decline of 85.24% compared to ¥1.0826 in 2018[34]. - Total revenue for 2019 reached ¥83.12 billion, an increase of 18.37% compared to ¥70.22 billion in 2018[78]. - The total profit for 2019 was 41.35 million yuan, completing 13.48% of the planned target[164]. - The net profit for 2019 was 19.14 million yuan, achieving 7.38% of the planned target, with the net profit attributable to the parent company at 34.31 million yuan, completing 14.46% of the target[164]. Dividend Distribution - The company plans to distribute a cash dividend of 0.16 CNY per 10 shares, totaling 34,343,193.57 CNY for the year 2019[197]. - The cash dividend represents 10.01% of the net profit attributable to ordinary shareholders, which is 343,103,874.22 CNY for 2019[194]. - The total number of shares for the dividend calculation is 2,146,449,598[197]. - The company did not issue any bonus shares or increase capital from the capital reserve in 2019[197]. - The cash dividend policy complies with the company's articles of association and shareholder resolutions[188]. - The total distributable profit for 2019 is 3,608,902,061.61 CNY, with the cash dividend accounting for 100% of the profit distribution[195]. Business Operations and Strategy - The company has expanded its main business to include the production and sales of viscose fiber and viscose yarn, in addition to its core products of PVC resin and ion membrane caustic soda[25]. - The company has established a complete industrial chain in the chlor-alkali chemical industry, integrating coal, electricity, and chemical production, enhancing its core competitiveness[59]. - The company is focusing on expanding its PVC applications in home decoration, construction, and medical fields, promoting the use of plastic over steel and wood[52]. - The company has developed a smart supply chain information platform utilizing big data, AI, and IoT technologies to enhance operational efficiency[60]. - The company is committed to building green, eco-friendly industrial parks in Xinjiang, aligning with national resource transformation policies[61]. - The company is expanding its chlor-alkali production capacity through a joint investment in a 1 million ton PVC circular economy project[71]. Risk Management - The company emphasizes the importance of risk awareness regarding market environment, environmental protection, human resources, and financial risks in its operations[9]. - The company’s future development strategies and operational plans are subject to risks and do not constitute a commitment to investors[8]. - The company faces risks from the chlor-alkali market due to potential trade tensions and increased competition, necessitating a focus on internal control and cost management[174]. - The company is addressing environmental policy changes by increasing energy-saving investments and ensuring compliance with stricter regulations[178]. - Financial management risks are being mitigated by optimizing capital structure and enhancing operational management to improve profitability[180]. Research and Development - Research and development expenses increased by 66.79% to ¥58,899,444.28 in 2019, reflecting a commitment to enhancing R&D investment[93]. - The company successfully developed a new technology for the green synthesis of VCM, with 20 projects initiated in 2019 focusing on technical challenges in chlor-alkali and textile sectors[96]. - The company achieved a successful trial production of high-impact PVC composite resin, which is now ready for market application[101]. - The company has established an industrial research department to enhance market research and analysis capabilities, focusing on new product sales and customer engagement[72]. Financial Health and Investments - The company has a registered capital of 1.5 billion RMB, reflecting its strong financial foundation[21]. - The company has engaged Lixin Certified Public Accountants for its auditing services, ensuring compliance and transparency in financial reporting[28]. - The company has maintained a stable financial reporting process, ensuring the accuracy and completeness of its financial statements[6]. - The company reported a net increase in cash and cash equivalents of approximately ¥436.6 million, a significant turnaround from a decrease of ¥728.6 million in 2018[107]. - The company experienced a decrease in financial liabilities, with short-term borrowings reduced from approximately ¥11.5 billion in 2018 to ¥9.1 billion in 2019[113]. Market Conditions - The chlor-alkali sector maintained stable demand with PVC prices remaining flat year-on-year, while the caustic soda prices declined due to environmental policies and raw material shortages[73]. - The textile sector faced challenges from the US-China trade war, leading to a significant drop in prices for viscose staple fiber and yarn, impacting overall performance[73]. - The company’s inventory of viscose fiber increased by 202.54% year-on-year, indicating a significant buildup due to reduced orders[83]. Compliance and Governance - The company has not reported any significant internal control deficiencies during the reporting period[8]. - The company does not have any discrepancies between domestic and international accounting standards for the reporting period[37]. - The independent directors have fulfilled their responsibilities in the dividend policy formulation process[188]. - The company has ensured that minority shareholders have adequate opportunities to express their opinions and protect their legal rights[188].