SHRC(600392)2021-04-22 16:00Financial Performance - In 2020, the company's operating revenue reached ¥8,157,251,595.28, an increase of 17.21% compared to ¥6,959,518,488.42 in 2019[15]. - The net profit attributable to shareholders was ¥323,312,794.72, representing a significant increase of 218.44% from ¥101,531,719.79 in the previous year[15]. - The basic earnings per share for 2020 was ¥0.1845, up 218.65% from ¥0.0579 in 2019[16]. - The weighted average return on equity increased to 5.94% in 2020, up 4 percentage points from 1.94% in 2019[16]. - The company's net cash flow from operating activities was ¥332,725,932.40, a decrease of 48.57% compared to ¥646,944,068.89 in 2019[15]. - The total assets at the end of 2020 were ¥12,106,339,468.78, an increase of 28.12% from ¥9,449,491,978.89 at the end of 2019[15]. - The net assets attributable to shareholders increased by 43.37% to ¥7,567,353,351.18 at the end of 2020, compared to ¥5,278,090,726.83 at the end of 2019[15]. - The company reported non-recurring gains and losses totaling ¥251,641,329.91 in 2020, compared to ¥50,416,980.52 in 2019[19]. Dividend Policy - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to all shareholders, excluding 2,340,497 shares held in the repurchase account[4]. - The proposed cash dividend for 2020 is RMB 0.50 per 10 shares (including tax), totaling RMB 87,641,328.50 (including tax), which represents 27.11% of the net profit attributable to ordinary shareholders in the consolidated financial statements[82]. - The company will not distribute cash dividends for the year 2020 due to significant funding needs for new and technical transformation projects[81]. - The company has not made any adjustments to its profit distribution policy during the reporting period, adhering to its shareholder return plan[80]. - The company's undistributed profits as of December 31, 2020, amounted to -RMB 23,356,318.78[81]. Audit and Compliance - The company has received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[3]. - The board of directors has ensured the accuracy and completeness of the annual report[2]. - The company has confirmed that all directors attended the board meeting[3]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity of the annual report[6]. - The internal control audit report issued by the accounting firm was a standard unqualified opinion, indicating no significant deficiencies in internal controls[192]. Business Operations and Strategy - The company has established a complete industrial chain in the rare earth business, covering mining, smelting, and deep processing[21]. - The company has a dual layout in both domestic and international markets for its rare earth and zirconium-titanium businesses[21]. - The company is constructing a new rare earth smelting and separation production base in Lianyungang, Jiangsu Province, while maintaining existing bases in Sichuan and Jiangxi[22]. - The company has established a diversified raw material supply channel for rare earths, including managing the Dechang Daluo rare earth mine and sales from the Mountain Pass rare earth mine in the U.S.[27]. - The company is actively expanding its zircon-titanium business with a new mineral processing base under construction in Lianyungang, Jiangsu Province[23]. - The company has formed a complete industrial chain from rare earth mining to deep processing, positioning itself among the industry leaders in China[28]. - The company emphasizes continuous innovation in processing technology, having received provincial-level awards for its unique production methods[29]. Market and Revenue Growth - Domestic revenue accounted for CNY 7,293,593,087.86, with a year-on-year increase of 11.63%[40]. - The international revenue reached CNY 391,504,535.07, with a year-on-year increase of 16.63%[40]. - The company plans to achieve an annual revenue target of ¥9 billion in 2021, with significant profit growth expected compared to 2020[70]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $30 million earmarked for potential targets[164]. Environmental and Social Responsibility - The company has committed to pollution prevention and has established necessary environmental protection facilities to comply with national regulations[74]. - The company reported no instances of exceeding pollution discharge limits for waste gas, wastewater, noise, and solid hazardous waste in 2020[125]. - The company donated RMB 220,000 to support COVID-19 prevention efforts and contributed RMB 40,000 to a special education school in Leshan[117]. - The total investment in poverty alleviation funds amounted to RMB 23.06 million, with RMB 10,000 allocated to improving educational resources in impoverished areas[119]. - The company plans to continue its poverty alleviation efforts in accordance with national policies[120]. Governance and Management - The company has established a comprehensive governance structure to protect the rights of all shareholders, particularly minority shareholders[121]. - The company emphasizes the importance of performance-based remuneration linked to job contributions[180]. - The board of directors has established a salary management system linked to performance, with annual salaries composed of base and performance pay[191]. - The company actively promotes compliance with governance regulations, enhancing internal control and governance structures[183]. - The company’s independent directors attended all board meetings, demonstrating active participation in governance[184]. Legal Matters - The company faced significant litigation involving a total amount of RMB 2,008,165.92 related to a worker's compensation case[93]. - The company has a claim of RMB 8,591,525.16 against Henan Luohe Xingmao Titanium Industry, which is currently undergoing bankruptcy proceedings[94]. - The company has initiated legal proceedings against Ningbo Leili for unpaid debts totaling 902.5 million RMB, with a mediation agreement reached for the remaining payments[95]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 71,449, a decrease from 154,823 in the previous month[155]. - The largest shareholder, China Geological Survey Institute, held 246,382,218 shares, representing 14.04% of total shares[155]. - The controlling shareholder is the China Geological Survey Institute, which focuses on the comprehensive utilization of mineral resources[157]. - The actual controller of the company is the Ministry of Finance of the People's Republic of China, with no changes during the reporting period[159].