Financial Performance - The company reported a revenue of RMB 1,186,824,000 for the fiscal year 2020, a decrease of 9.1% compared to RMB 1,305,152,000 in 2019[10]. - The company incurred a loss attributable to owners of RMB 27,697,000 in 2020, compared to a profit of RMB 133,838,000 in 2019, marking a significant decline[10]. - The total revenue for the reporting period was approximately RMB 1,186.82 million, a decrease of about 9.07% compared to RMB 1,305.15 million in 2019[22]. - The gross profit for 2020 was approximately RMB 269.01 million, down about 4.7% from RMB 282.23 million in 2019, with a gross margin of approximately 22.67%[22]. - The revenue from the supply of industrial gases was approximately RMB 877.51 million, a decrease of about 5.81% from RMB 931.64 million in 2019[23]. - The revenue from the supply of liquefied industrial gases was approximately RMB 214.98 million, down about 15.76% from RMB 255.20 million in 2019[23]. - The company reported a loss attributable to equity shareholders of approximately RMB 25.16 million, a decrease of about 119% compared to a profit of RMB 132.89 million in 2019[22]. - Other income for the reporting period was approximately RMB 1.79 million, a decrease of about 20.27% from RMB 2.25 million in 2019[24]. Assets and Liabilities - Total assets increased to RMB 2,524,718,000 in 2020, up from RMB 2,052,539,000 in 2019, reflecting a growth of 23%[10]. - The total liabilities of the company stood at RMB 1,206,225,000 in 2020, an increase from RMB 748,505,000 in 2019[10]. - Current assets increased by approximately 51.31% to RMB 930.47 million, while current liabilities rose to RMB 920.53 million, resulting in a current ratio of approximately 1.01[32]. - As of December 31, 2020, the total cash and bank balances amounted to approximately RMB 511.83 million, with a debt-to-equity ratio of 46% compared to 29% in 2019[31]. Strategic Initiatives - The company has established a strategic partnership with Hebei Iron and Steel Group, aiming to explore more business development and equity cooperation opportunities[8]. - The company plans to leverage its listing in Hong Kong to enhance its future development and expand its market presence[8]. - The company is actively seeking acquisition opportunities for high-quality industrial gas assets from the Hebei Steel Group, which is a key strategic development for future growth[19]. - The company aims to develop high-value specialty gases, including electronic gases and medical gases, to diversify its product offerings and enhance profitability[19]. - The company plans to increase oxygen production capacity by 67,000 standard cubic meters per hour, representing a 30.7% increase from the capacity as of June 30, 2020[18]. Operational Performance - In 2020, the company produced 1.47 billion cubic meters of oxygen, 1.77 billion cubic meters of nitrogen, and 5.67 million cubic meters of hydrogen, achieving a sales revenue of RMB 877 million[16]. - Sales and distribution expenses decreased by approximately 17% to RMB 1.36 million due to reduced travel costs amid the COVID-19 pandemic[26]. - Administrative expenses increased by approximately 34.26% to RMB 53.96 million, primarily due to relocation costs and increased capital expenditures related to new properties and equipment[27]. - The company recognized an impairment provision of RMB 118 million for receivables due to long-term overdue loans that are unlikely to be recovered[28]. - Financing costs increased by approximately 17.3% to RMB 22.73 million, attributed to an increase in bank borrowings[29]. Corporate Governance - The company has established a robust governance structure with various committees, including the Nomination Committee and the Audit Committee, to ensure effective oversight[69]. - The board of directors is committed to maintaining high standards of corporate governance to protect shareholders' interests[93]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with high standards of corporate governance[93]. - The audit committee has reviewed the company's governance policies and compliance with legal and regulatory requirements since the listing date[127]. - The company has implemented a whistleblowing policy to encourage reporting of fraud or misconduct within the group[136]. Management and Personnel - The company has a strong management team with diverse backgrounds in engineering, finance, and operations, enhancing its strategic capabilities[69]. - The group employed 370 employees as of December 31, 2020, down from 400 employees in 2019, with total employee costs approximately RMB 40.04 million, a decrease from RMB 46.74 million in the previous year[45]. - The company plans to continue attracting and retaining high-skilled personnel to strengthen its corporate culture and support employee development[44]. - The management team includes members with advanced degrees in relevant fields, such as Mr. Yao's PhD in Metallurgical Engineering and Ms. Gao's MBA[66]. Risks and Challenges - The company faces significant risks related to its relationship with the Hebei Steel Group, which is crucial for its operations; any changes in this relationship could adversely affect its financial performance[164]. - The company faces operational risks related to relationships with subsidiaries, production control, and customer service, as well as regulatory and financial risks[129]. - The company’s financial performance may be impacted by the construction of its only in-progress production facility, which is expected to incur substantial depreciation expenses[164]. Shareholder Relations - The company emphasizes effective communication with shareholders to enhance understanding of its business performance and strategies[153]. - The company does not recommend the distribution of a final dividend for the reporting period, considering the long-term interests of shareholders[157]. - The company’s dividend payments are contingent upon the availability of profits from its subsidiaries, as per Chinese accounting standards[157]. Market Position - The company operates as an industrial gas supplier in Hebei Province, China, focusing on pipeline industrial gases and liquefied gases, with products including oxygen, nitrogen, argon, hydrogen, and carbon dioxide[162]. - The company’s industrial gas products are essential raw materials in steel production, indicating a strong link to the steel industry’s market conditions[162]. - The largest customer contributed approximately 88% to the total revenue during the reporting period, while the top five customers accounted for about 91% of total revenue[171]. - The largest supplier accounted for approximately 78% of total procurement costs, with the top five suppliers collectively representing about 82%[172].
CGII HLDGS(01940) - 2021 - 年度财报