PRCO(SZ:002225)2020-03-24 16:00Financial Performance - The company's operating revenue for 2019 was approximately CNY 4.14 billion, representing a year-on-year increase of 6.48% compared to CNY 3.86 billion in 2018[20]. - The net profit attributable to shareholders for 2019 was approximately CNY 252.27 million, reflecting a growth of 13.88% from CNY 225.39 million in 2018[20]. - The net profit after deducting non-recurring gains and losses was approximately CNY 241.29 million, an increase of 4.54% compared to CNY 234.66 million in 2018[20]. - The net cash flow from operating activities for 2019 was approximately CNY 574.38 million, up 21.94% from CNY 490.92 million in 2018[20]. - The basic earnings per share for 2019 was CNY 0.27, an increase of 8.00% from CNY 0.25 in 2018[21]. - The total assets at the end of 2019 were approximately CNY 5.72 billion, an increase of 8.17% from CNY 5.13 billion at the end of 2018[21]. - The net assets attributable to shareholders at the end of 2019 were approximately CNY 2.83 billion, reflecting a growth of 7.42% from CNY 2.59 billion at the end of 2018[21]. - The company reported a government subsidy of approximately CNY 21.29 million in 2019, compared to CNY 8.58 million in 2018[27]. - The company's total operating revenue for 2019 was CNY 4,140,123,441.85, representing a year-on-year increase of 6.48% from CNY 3,888,063,435.66 in 2018[49]. - The company’s total operating costs were CNY 2,918,964,714.14, with direct materials accounting for 79.46% of total costs[55]. Dividend Policy - The company plans to distribute a cash dividend of 0.7 yuan per 10 shares (including tax) to all shareholders, with no bonus shares issued[8]. - The company has set a cash dividend of 0.70 yuan per 10 shares for 2019, maintaining a consistent dividend policy[102]. - In 2019, the cash dividend amounted to 72,363,114.53 yuan, representing 28.68% of the net profit attributable to shareholders[105]. - The company reported a cash dividend of 0.70 yuan per 10 shares (including tax), with a total cash dividend amounting to 72,363,114.53 yuan, representing 100% of the distributable profit[106]. - The total distributable profit for the period was 778,498,701.09 yuan, indicating a strong profitability position[106]. Environmental Initiatives - The company has implemented various environmental protection measures, including the installation of dust collection and purification systems, to mitigate pollution during production[5]. - The company is focusing on developing high-efficiency and eco-friendly refractory materials to enhance product value and reduce environmental impact[5]. - The company is actively responding to national environmental policies and has invested in technology improvements to lower emissions[5]. - The company has implemented various pollution control measures, including dust collectors and oil fume purifiers, to comply with strict environmental regulations[96]. - The company achieved a reduction in sulfur dioxide emissions to 0.842 tons/year, significantly below the regulatory limit of 200 mg/m3[171]. - The company has set a target to further decrease emissions in the upcoming fiscal year, focusing on sustainable production practices[171]. - The company installed automatic online monitoring systems for major pollutants, ensuring real-time data transmission to local environmental monitoring centers[174]. - The company has established a long-term environmental management mechanism, including regular data comparisons and self-monitoring of pollutants[173]. - The company conducted quarterly monitoring of key pollutants, including COD and ammonia nitrogen in wastewater, and particulate matter, SO2, and NOx in air emissions[174]. - The company has implemented measures to ensure that nitrogen oxide emissions do not exceed 240 mg/m3, with a total emission of 6.35 tons/year[171]. Market and Business Strategy - The overseas business accounts for approximately 20% of total revenue, with significant exposure to exchange rate fluctuations, particularly with the USD[6]. - The company is facing risks related to international trade tensions and the COVID-19 pandemic, which may lead to a decrease in foreign trade orders[7]. - The company has committed to structural adjustments and upgrades to improve competitiveness and mitigate currency exchange risks[7]. - The company has maintained a stable revenue stream despite external challenges, emphasizing the importance of exploring new markets and customers[7]. - The company plans to adjust its market structure to focus on high-end refractory materials for cement kilns and non-ferrous metal smelting furnaces[45]. - The company aims to maintain its leadership in the refractory materials industry and achieve a comprehensive strength increase through twelve strategic initiatives, including automation upgrades and international development[92]. Research and Development - The company continues to focus on technological innovation, with significant investments in R&D and the establishment of multiple research and development platforms[32]. - Research and development expenses increased by 13.97% to CNY 192,801,496.36, reflecting the company's commitment to new product development[60]. - The company has a strong R&D capability with two technology research centers and has provided quality products and services to over 70 of the world's top 100 steel companies[41]. - The company successfully developed a new generation of steel ladle pouring materials, which improved the performance and reduced the water requirement for the materials[63]. - The company developed a new type of magnesium-aluminum carbon slide plate, which has a longer lifespan and stronger erosion resistance, enhancing market competitiveness[63]. Corporate Governance and Compliance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no significant omissions or misleading statements[3]. - The company has made a commitment to avoid and minimize related party transactions, adhering to market fairness and transparency principles[111]. - The company has established a framework for ensuring compliance with relevant laws and regulations regarding related party transactions[111]. - The company has reiterated its commitment to uphold shareholder rights and avoid any actions that could harm the interests of shareholders[111]. - The company confirmed that all signatures and seals on documents are genuine and valid during their effective period[113]. Shareholder Information - The company’s stock was suspended from trading on August 16, 2019, while planning to acquire 60% of Tangshan Guoliang Special Refractory Materials Co., Ltd. through a combination of cash and stock[179]. - The company issued 145,862,881 new shares in a private placement on July 24, 2019, listed on the Shenzhen Stock Exchange[115]. - The company’s total share count increased to 1,033,758,779 after the issuance of new shares[186]. - The largest shareholder, Liu Baikuan, holds 13.88% of the shares, amounting to 143,495,093 shares, with 35,873,773 shares pledged[197]. - The company has a total of 10 major shareholders, with the top three holding a combined 32.65% of the shares[198]. Social Responsibility - The company has actively engaged in social responsibility, donating a total of CNY 475 million for poverty alleviation initiatives[160][161]. - The company has invested a total of 4.75 million yuan in poverty alleviation efforts, helping 4,600 registered impoverished individuals to escape poverty[165]. - The company plans to continue actively fulfilling its social responsibilities to promote social harmony and stability[166]. Legal Matters - The company is involved in a lawsuit against AMK Steel Plant for a payment of 29.27 million RMB, with a favorable ruling received[131]. - The company has ongoing litigation with various parties, including a claim against Sichuan Dazhou Steel for unpaid debts totaling 3.8474 million yuan, with partial payments agreed upon[132]. - The company successfully won a case against Shennong Technology Group for unpaid debts of 6.9083 million yuan, with execution currently in progress[132]. - The company has received a court ruling in its favor against Izhevsk Steel for debts amounting to 6.1707 million yuan, with the case concluded[132].