YUSSEN GROUP(SZ:002986)2021-04-23 16:00Project Development and Expansion - The company plans to start trial production of the anhydride device by the end of Q2 2021, but there are risks related to obtaining the necessary safety production permits[5]. - The ketone project has secured land but still requires environmental assessment approval and construction permits, which may delay progress[5]. - The PBAT project has obtained land and some construction permits, but similar risks regarding environmental assessments and permits exist[5]. - The company has signed an investment agreement for the Yuxin Light Hydrocarbon Comprehensive Utilization Project, but land acquisition is still pending, posing risks if national policies change[7]. - The company is constructing a 150,000 tons/year maleic anhydride project, expected to be operational in 2021, to expand into new business areas[33]. - The company is investing in a 60,000 tons/year PBAT project, which commenced construction on December 28, 2020, to enter the downstream carbon four industry chain[33]. - The company is constructing a 100,000 tons/year ketone and 130,000 tons/year ethyl acetate project to extend the butene industry chain[33]. - The company has initiated the construction of a 60,000 tons/year biodegradable plastic PBAT project, marking a significant expansion in the Huizhou new materials industry park[143]. Financial Performance - The company's operating revenue for 2020 was ¥2,298,079,151.59, a decrease of 27.31% compared to ¥3,161,320,025.23 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥32,860,692.50, down 86.46% from ¥242,625,642.83 in 2019[22]. - The net cash flow from operating activities in 2020 was ¥70,232,512.75, a decline of 78.41% compared to ¥325,229,497.15 in 2019[22]. - The total assets at the end of 2020 amounted to ¥2,216,445,781.00, an increase of 73.31% from ¥1,278,884,787.30 at the end of 2019[22]. - The company reported a basic earnings per share of ¥0.320 for 2020, down 88.77% from ¥2.850 in 2019[22]. - The weighted average return on net assets for 2020 was 2.12%, down 25.85% from 27.97% in 2019[22]. - The total operating revenue for 2020 was approximately CNY 2.30 billion, a decrease of 27.31% compared to CNY 3.16 billion in 2019[59]. - The chemical industry contributed CNY 2.30 billion, accounting for 99.96% of total revenue, with a year-on-year decrease of 27.34%[60]. Product Development and Innovation - The company reported a high purity isobutylene product with a purity exceeding 99.5%, which is essential for producing fine chemicals such as butyl rubber and polyisobutylene[16]. - The company has expanded its production capabilities for isobutylene, which is a key raw material for various organic chemical products[16]. - The company is focusing on the development of biodegradable plastics, specifically PBAT, which has a crystallinity of approximately 30% and excellent biodegradability[16]. - The company is investing in research and development for new chemical products, including methyl methacrylate and butanone, to diversify its product offerings[16]. - The company has reported a significant increase in the production of butyl rubber, which is widely used in automotive tires and soundproofing materials[16]. - The company is exploring opportunities for market expansion in the field of fine chemicals and specialty materials[16]. - The company has obtained 25 patents, including 15 invention patents, highlighting its commitment to technological innovation[42]. Market Position and Strategy - The company aims to enhance its market position by increasing the production of high-octane gasoline components, including isooctane, derived from isobutane and isobutylene[16]. - The company holds over 20% market share in MTBE in South China, maintaining the leading position in the region[36]. - The company has a production capacity of 40,000 tons/year for isopropanol, making it the largest producer in South China[36]. - The company is expanding its product line to include related products in the C3 industrial chain[32]. - The company is actively pursuing strategic partnerships and collaborations to enhance its competitive edge in the market[16]. Cash Dividend and Profit Distribution - The profit distribution plan proposes a cash dividend of 1.2 yuan per 10 shares (including tax) and a capital reserve transfer of 4 shares for every 10 shares held[9]. - The cash dividend for 2020 represented 41.39% of the net profit attributable to ordinary shareholders, which was 32,860,692.50 CNY[108]. - The company has implemented a stable cash dividend policy, distributing a cash dividend of 10 CNY per 10 shares, totaling 113,340,000 CNY for the mid-2020 distribution[104]. - The total cash dividend distributed in 2019 was 113,340,000 CNY, which accounted for 46.71% of the net profit attributable to ordinary shareholders[107]. - The company has retained undistributed profits for future allocation, indicating a strategy for reinvestment[104]. Environmental Compliance and Safety - The company is classified as a key pollutant discharge unit, with specific emissions data indicating compliance with environmental standards[164]. - The company has constructed and operated pollution prevention facilities, including hazardous waste storage and wastewater pre-treatment facilities, in compliance with environmental regulations[167]. - During the reporting period, all pollution control facilities operated normally, with no exceedances in emissions recorded throughout the year[168]. - The company has a safety management system with 88 safety management regulations and has successfully renewed its safety production standardization certificate until April 2023[160]. - The company allocated 10.96 million yuan for safety production expenses, with actual usage at 11.49 million yuan, ensuring effective safety management[160]. Governance and Management - The company has established a comprehensive governance structure and rules to protect investor rights, ensuring timely and accurate information disclosure[157]. - The company has signed labor contracts with all employees and implemented competitive compensation policies, ensuring timely and full payment of wages[158]. - The company experienced a leadership change with the resignation of several key personnel, including Liang Zuo and Ye Wen, impacting the board and supervisory structure[192]. - The current board includes professionals with extensive backgrounds in chemical engineering and management, enhancing the company's strategic direction[193][194]. - The management team emphasized the importance of sustainability in future strategies, aiming to reduce carbon emissions by 25% over the next five years[200].