CECO(603698)2021-04-21 16:00Financial Performance - The company's operating revenue for 2020 was approximately CNY 2.07 billion, representing a 16.55% increase compared to 2019[23]. - Net profit attributable to shareholders for 2020 was approximately CNY 179.33 million, a 15.47% increase from the previous year[23]. - The net cash flow from operating activities improved significantly to approximately CNY 280.50 million, compared to a negative cash flow in 2019[23]. - The total assets at the end of 2020 reached approximately CNY 4.35 billion, reflecting a 10.97% increase from 2019[23]. - Basic earnings per share for 2020 were CNY 0.33, up 13.79% from CNY 0.29 in 2019[23]. - The weighted average return on equity increased to 6.29%, up 0.62 percentage points from the previous year[23]. - The gross profit margin for the reporting period was 21.26%, a decrease of 0.53 percentage points compared to the previous year, attributed to increased project scale and market price stabilization[57]. - The total operating cost for the reporting period was CNY 1,630,411,860.33, an increase of 17.35% compared to the same period last year, driven by a revenue growth of 16.55%[64]. Dividend Distribution - The company plans to distribute a cash dividend of 1.01 RMB per 10 shares, totaling approximately 54.13 million RMB based on a total share capital of 53.599 million shares as of December 31, 2020[5]. - In 2020, the company distributed a cash dividend of 0.87 CNY per 10 shares, amounting to 46,631,130 CNY[105]. - The company’s profit distribution policy mandates a minimum cash dividend of 20% of the distributable profit, provided there are no major investment plans or cash expenditures[104]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its responsible personnel[4]. - The company conducted 10 internal audits during the reporting period, focusing on procurement, sales, and contract management, to enhance internal control systems[50]. - The company has appointed Zhongtianyun Accounting Firm for the 2020 financial audit, with a remuneration of 800,000 RMB[122]. - Internal control audit will also be conducted by Zhongtianyun Accounting Firm, with a fee of 280,000 RMB[122]. - The company has maintained compliance with the requirements of the China Securities Regulatory Commission regarding corporate governance[194]. Risk Management - The company has described risks related to market competition and policy changes in its report, highlighting potential challenges for future development[6]. - The company emphasizes the importance of investment risk awareness for investors regarding forward-looking statements in the report[6]. - The company faces policy risks due to increased approval requirements for coal chemical projects and rising environmental pressures, which may impact market development[98]. - The company is addressing market competition risks as over 40 coal gasification technologies emerge in China, necessitating continuous innovation to maintain its competitive edge[99]. - The company faces risks related to contract performance, including potential delays in payments from owners, which could impact cash flow[101]. - The company is enhancing its project management capabilities to address risks associated with multiple concurrent projects, particularly in design and procurement[102]. Innovation and Technology - The company focuses on gasification technology and aims to be a global leader in clean and efficient coal utilization[29]. - The company has invested in the development of high-pressure pulverized coal gasification technology, with development expenses amounting to CNY 10,757,936.06 during the reporting period[37]. - The company aims to enhance innovation and investment in clean coal technology, focusing on coal-to-hydrogen and hydrogen storage technologies[34]. - The company has successfully reduced carbon dioxide emissions by 0.7 tons per ton of ammonia produced using its gasification technology, contributing to national energy-saving and emission-reduction goals[37]. - The company applied for 41 patents during the year, with 21 granted, including 4 invention patents, demonstrating its commitment to innovation and technology leadership[47]. - The company is committed to innovation and technology development, including the large-scale dry coal powder gasification technology project and intelligent technology research, to maintain its technological advantage[95]. Market Expansion - The company is actively expanding its business into the hydrogen energy sector by establishing Aerospace Hydrogen Energy Co., Ltd., laying a solid foundation for the synergistic development of gas operation and coal gasification businesses[45]. - The company is focusing on market expansion and project reserves, particularly in large modern coal chemical projects, to ensure sustainable high-quality development[94]. - The company is actively expanding its market presence, particularly in North, South, and East China, with several key projects under implementation[59]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[175]. Environmental Responsibility - The company aims to promote clean and efficient utilization of coal, with an emphasis on safety and environmental protection in coal mining operations[80]. - The company is committed to achieving carbon peak and carbon neutrality goals by promoting green development and sustainable practices[79]. - The company achieved 100% compliance in wastewater and waste gas emissions, meeting national standards[141]. - The company reported an annual waste gas emission of approximately 9.1524 million m³ and wastewater discharge of about 35,000 tons[149]. - The company maintains a strong commitment to environmental protection, with regular monitoring by third-party agencies[150]. Corporate Governance - The company emphasizes investor relations, ensuring timely and accurate information disclosure to shareholders[140]. - The company has established a performance evaluation system consisting of five components: organizational performance, project performance, market performance, research and development performance, and overall performance[191]. - The independent directors' remuneration scheme is subject to approval by the shareholders' meeting, ensuring transparency in compensation[185]. - The board of directors held a total of 5 meetings during the year, with 1 in-person meeting and 4 conducted via communication methods[198]. - The strategic committee provided opinions on significant operational matters, including joint investments with related parties to establish subsidiaries[199]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,514, a decrease from 36,893 at the end of the previous month[156]. - The top shareholder, China Academy of Launch Vehicle Technology, held 246,425,829 shares, representing 45.98% of total shares[156]. - The second-largest shareholder, Aerospace Investment Holding Co., Ltd., decreased its holdings by 10,719,700 shares, holding 71,121,675 shares or 13.27%[156]. - The company reported a significant increase in the number of shares held by Guochuang Fund Management Co., Ltd. by 52,778,523 shares, totaling 52,778,523 shares or 9.85%[156].