CHENGZHI released the 2020 annual report on March 5, 2021.

The year of 2020 witnessed the global spread of Covid-19, international oil price slump, intense fluctuation of international bulk commodities, severe turbulence of finance market and sharp increase of macro economy and enterprise operation risks. Under these contexts, CHENGZHI played an active role in both pushing pandemic prevention and control and production management. While strictly following government orders on the prevention and control of Covid-19, it steadily carried out the “One Body with Two Wings” developmental strategy. “One Body” is the clean energy and “Two Wings” stands for semi-conductor display materials and healthcare & life science fields. Its main business showed steady operational characteristics and is under healthy development.

In the first half of 2020, under the combined influence of Covid-19, CHENGZHI experienced a sharp decrease in the domestic and international market demand for the bulk chemical products, product price kept falling, and it had a severe loss. Since the end of the second quarter of 2020 when domestic pandemic came under better control, business entities of global and domestic markets gradually resumed production, company saw both a rapid bounce of price and a sharp rise in demand of its mainly operated bulk chemical products; meanwhile, liquid crystal display material products boomed in both production and sales, operation performance gradually improved and finally turned losses into gains in the third quarter; the momentum continued in the fourth quarter and resulted in a quarterly net profit of 316 million Yuan.

In the year of 2020, CHENGZHI achieved 9,731,805,800 Yuan operating revenue, an increase by 40.79% year-on-year, obtained 355,075,600 net profit attributable to shareholders, a 19.77% drop compared with the same period last year.

CHENGZHI 2020 Annual Operating Performance

CHENGZHI 2020 Quarterly Main Financial Indicators

Background Reading

Chengzhi Shareholding Co., Ltd.

Chengzhi Shareholding Co., Ltd. (Stock Code: 000990) was registered in October, 1998 and listed on the Shenzhen Stock Exchange on July 6, 2000. Chengzhi Shareholding is a high-tech company whose major shareholder is Tsinghua University, additionally, it is a member enterprise of Tsinghua Holdings Co Ltd, a key enterprise in Jiangxi Province, and the industrial platform for industrializing Tsinghua University’s scientific and technological achievements in fields such as Clean Energy, Semiconductor Display Materials, and Healthcare & Life Science.

Chengzhi Shareholding has adhered to the core concept of “Sincerity, Focus and Social Commitment”, the management concept of “Integrity, Normalization, Efficiency and Innovation” and the talent strategy of “Caring for People and Gathering Professionals”. The industrial layout was formed, which centers on the Circum-Bohai Sea Region, Guangdong-Hong Kong-Macao Greater Bay Area and Yangtze River Economic Zone, and extends to the entire country, with over 30 subsidiaries located in Beijing, Hebei, Liaoning, Jiangxi, Anhui, Guangdong, Fujian, Shanghai, Yunnan and oversea regions.

Chengzhi Shareholding implements the development strategy of "One body with Two wings", with Clean Energy as the core business segment and Semi-conductor Display Materials and Healthcare & Life Science as the core value segments, following the national strategy and social needs, cultivating the niche industries, optimizing resource allocation, forming high-quality industrial cluster effect, and maintaining strong development potential and continuous innovation capability.

For future development, Chengzhi Shareholding will continue to leverage the talent and discipline advantages of Tsinghua University, with the mission of “Serving the country through industry”, and is committed to becoming an international high-tech enterprise with core competitiveness in industrial, scientific & technological, and managerial innovation.