I. Overview

Against the background of the global spread of COVID-19 epidemic, the sharp drop in international market demand and the increasing downward pressure on trade, the growth rate of China's foreign trade import and export slowed down in the first half of 2020, but the decline has narrowed since March. At present, the spread of overseas epidemic has not been effectively controlled, and there is great uncertainty in the global epidemic and economic and trade situation. In the short to medium term, China's foreign trade will continue to develop under pressure. Faced with the grim situation, the company actively adjusted its business strategy, strengthened communication with core suppliers and customers, guaranteed customers, markets, factories and jobs, and adhered to the key customer strategy to ensure the mainstream market share and stable supply channels of production plants. During the reporting period, the company achieved operating income.

65,438+02,550,260,928.77 yuan, a year-on-year decrease of 29.72%. The net profit attributable to shareholders of listed companies was 328,349,702.55 yuan, a year-on-year decrease of 28.64%. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses is 303,872,765,438+08.

1, supply chain services

In recent years, with the strengthening of domestic labor supply and resource and environmental constraints, the cost of various factors of enterprises has risen, and the trade friction between China and the United States has been full of twists and turns. Especially since textiles and clothing were included in the tax scope in September 20 19, the trend of customer orders shifting overseas has become increasingly obvious. However, COVID-19 broke out at the end of 20 19, which brought great impact to textile and garment export trade. Faced with the above unfavorable factors, the company insists on the main business of import and export, actively adjusts its business strategy, strives to improve supply chain management, accelerates the implementation of overseas distribution strategy, and seizes the opportunity of globalization to gradually change from "supply chain integration in China" to "supply chain integration in the world".

2. Chemical new energy business

As one of the company's main businesses, the company attaches great importance to the development of new chemical energy. In recent years, the state has successively issued a series of support policies for strategic emerging industries such as new energy, new materials and new energy automobile industry. The company seized the great opportunity of the new round of scientific and technological revolution and industrial transformation, integrated into the global industrial division of labor, and constantly moved forward to the industry leaders at the forefront of technology. Ruitai New Energy, a wholly-owned subsidiary of the company, is the development platform of the company's new chemical materials and new energy business. Huarong Chemical, a holding subsidiary, is a key high-tech enterprise in the National Torch Program, mainly producing electrolyte and silane coupling agent for lithium ion batteries. During the reporting period, the operating income was 598,028,565.85 yuan, down 65,438+06.13% year-on-year. Wei Chao New Materials, a holding subsidiary, is a high-tech enterprise with an operating income of 67,000 yuan.

Three. Analysis of core competitiveness 1. Supply chain service as a supply chain organization service provider, the company takes the supply chain as the core carrier, bases itself on domestic and international markets, strives for breakthroughs through pioneering and innovation, and constantly makes excellent supply chain management. The company's light asset management covers the whole industrial chain such as design, proofing, production, storage and transportation, customs clearance, insurance, distribution and financial services, and pursues the overall competitiveness and profitability of the supply chain. Based on factors such as cost, tariff preference of importing countries, customer demand and scattered production, many holding subsidiaries of the company have established clothing supply bases in Myanmar, Cambodia, Vietnam and other places through self-construction and cooperation, continuously enhancing their ability to take orders and gradually realizing global procurement. With the implementation of the company's international strategic layout, it will greatly improve the company's core competitiveness and help the company grow into a first-class international comprehensive trading company. 2. Chemical new energy business During the reporting period, the company mainly carried out the production, sales and research and development of lithium-ion battery electrolyte, silane coupling agent and electronic chemicals, optimized the process and technology, improved the output and quality, developed new products, increased the reserve of new formulas, increased the reserve of products, and strengthened the construction of customer team, so as to enhance the company's market competitiveness and improve the company's sustainable development ability. Huarong Chemical is mainly engaged in the research, development, production and sales of electrolyte and silane coupling agent for lithium ion batteries. We have a steadily growing talent team and established a consulting team composed of well-known experts, including academicians of the Academy of Engineering, which has provided sufficient guarantee for meeting market demand, developing marketable products, continuous process improvement and good technical services. With the mutual trust, good reputation and excellent product quality accumulated by years of cooperation, Huarong Chemical has established good cooperative relations with upstream suppliers and downstream customers, laying a solid foundation for the long-term and steady development of the enterprise. Wei Chaoxin Materials is committed to the research, development and production of electronic chemicals, including lithium-ion battery electrolytes and additives, supercapacitor electrolytes, lithium-ion capacitor electrolytes, aluminum electrolytic capacitor electrolytes and electrolytes, antistatic agents, ionic liquids and special fluorine chemicals, and participated in the formulation of industry standards for supercapacitor electrolytes as the main drafting unit. Up to now, the company's holding subsidiaries have 74 invention patents, 3 utility model patents and 0 design patents.