Financial Performance - The company reported a half-year financial performance in accordance with Chinese accounting standards, audited by PwC, with a standard unqualified opinion[3]. - The board of directors decided not to distribute interim dividends for the year ending December 31, 2014[5]. - Total assets decreased by 16.8% to RMB 8,839,788,000 compared to RMB 10,629,304,000 at the end of the previous year[19]. - Net loss attributable to shareholders of the parent company was RMB 1,750,279,000, compared to a loss of RMB 491,445,000 in the same period last year[21]. - Operating revenue declined by 9.1% to RMB 7,924,423,000 from RMB 8,717,991,000 year-on-year[21]. - Basic and diluted loss per share was RMB 0.292, compared to RMB 0.081 in the same period last year[23]. - Return on equity decreased by 22.21 percentage points to -28.13% from -5.92% year-on-year[23]. - Total equity attributable to shareholders of the parent company decreased by 24.7% to RMB 5,346,286,000 from RMB 7,096,488,000[21]. - The company reported non-recurring losses totaling RMB -8,643,000, including losses from the disposal of non-current assets[24]. - The company reported a significant loss in the first half of 2014 due to insufficient demand in the polyester market and severe shrinkage in product profitability, expecting continued losses from January to September 2014[96]. Shareholder Information - The number of shareholders as of June 30, 2014, was 36,740, with 36,234 being domestic A-share shareholders[30]. - The top ten shareholders hold a total of 2,415,000,000 shares (40.25%) by Sinopec, and 2,079,401,507 shares (34.66%) by Hong Kong Clearing[33]. - The total number of restricted shares held by major shareholders is 3,450,000 shares, with specific release dates starting from August 20, 2014[36]. - Sinopec's shareholding includes 2,415,000,000 shares under lock-up conditions, with a release schedule over three years[36]. - The company did not buy, sell, or repurchase any of its listed shares during the reporting period[40]. - There were no changes in the controlling shareholder or actual controller during the reporting period[39]. - The company reported no changes in the shareholdings of directors, supervisors, and senior management during the reporting period[41]. - The top ten shareholders include both state-owned and foreign entities, indicating a diverse ownership structure[33]. Operational Performance - In the first half of 2014, the company's revenue was RMB 7,924,423 thousand, a decrease of 9.1% compared to RMB 8,717,991 thousand in the same period last year[50]. - The company produced 1,194,683 tons of polyester products in the first half of 2014, a slight decrease of 0.3% from 1,198,717 tons in the same period last year[53]. - The average selling price of polyester products decreased by 13.3%, from RMB 9,112 per ton in the previous year to RMB 7,904 per ton in 2014[58]. - The company achieved a sales volume of 967,152 tons of polyester products, an increase of 5.3% compared to 918,620 tons in the previous year[53]. - The company's comprehensive energy consumption for main products decreased by 3.2% year-on-year, reflecting ongoing efforts in energy conservation[55]. - The company’s total revenue from polyester products accounted for 100% of the total revenue, with the highest contribution from polyester chips at 35.2%[58]. Financial Position - The company's total liabilities were RMB 3,525,110 thousand, a slight decrease of RMB 40,730 thousand compared to the end of 2013[69]. - The company's equity attributable to shareholders decreased by RMB 1,748,786 thousand due to losses incurred in the first half of 2014[69]. - The company's bank borrowings as of June 30, 2014, were RMB 1,865,000 thousand, an increase from RMB 1,602,907 thousand at the end of 2013[73]. - The company's cash flow from operating activities showed a net outflow of RMB 294,082 thousand, a reduction of RMB 451,962 thousand compared to the same period last year[72]. - The company's cash and cash equivalents decreased to RMB 62,995 thousand from RMB 105,797 thousand, a decline of approximately 40.4%[123]. Corporate Governance - The company has a total of 4 independent directors, one of whom has accounting qualifications and financial management experience[45]. - The board of directors has established an audit committee that meets the requirements of the Hong Kong Stock Exchange listing rules[46]. - The company has maintained compliance with corporate governance regulations and has established a sound governance structure[111]. - The company confirmed that there were no major defects in internal controls related to financial reporting as of December 31, 2013[112]. - The company has not established a nomination committee as of the reporting period, which is a deviation from the corporate governance code[115]. Future Outlook - The company plans to produce 1,193,000 tons of polyester products in the second half of 2014, with an expected annual output of 2,388,000 tons, a year-on-year decrease of 0.9%[78]. - The company aims to sell 989,000 tons of polyester products in the second half of 2014, achieving a sales rate of 100.0%, with an expected annual sales volume of 1,956,000 tons, a year-on-year increase of 1.9%[79]. - The company plans to invest RMB 225,780,000 in capital expenditures in the second half of 2014, focusing on various projects including energy-saving and emission-reduction initiatives[94]. - The company plans to enhance product competitiveness through a differentiated strategy, aiming to increase the contribution of differentiated products[80]. Asset Management - The company reported a significant impairment provision of RMB 1,160,027,000 for fixed and intangible assets due to market deterioration in 1,4-butanediol products[87]. - The company incurred an asset impairment loss of RMB 1,024,524 thousand in the first half of 2014, compared to a minimal loss of RMB 15 thousand in the same period of 2013[125]. - The company recognizes impairment losses for available-for-sale financial assets when there is a significant or prolonged decline in fair value, defined as a drop exceeding 20% or lasting over six months[153]. - The company recognizes bad debt provisions based on the present value of expected future cash flows for significant individual receivables[159]. Related Party Transactions - Major related party transactions included purchasing raw materials from Sinopec and its subsidiaries amounting to RMB 6,557,316 thousand, representing 91.2% of similar transactions[101]. - The company has significant judgments and estimates in assessing the recoverable amount of long-term assets, which may lead to impairment losses if future cash flow assumptions change unfavorably[194]. - The company has a significant amount of related party deposits amounting to RMB 19,163 million as of June 30, 2014, down from RMB 23,996 million as of December 31, 2013[197].

Financial Performance - The company reported a net profit of negative value for the year 2013, marking two consecutive years of losses, which may lead to a delisting risk warning after the annual report disclosure[13]. - The company reported a net loss attributable to shareholders of RMB 1,454,217 thousand in 2013, compared to a loss of RMB 361,367 thousand in 2012[24]. - The basic and diluted earnings per share for 2013 were RMB -0.242, compared to RMB -0.060 in 2012[25]. - The weighted average return on equity decreased to -18.59% in 2013 from -4.11% in 2012, a decline of 14.48 percentage points[25]. - The company reported a net cash flow from operating activities of RMB -1,073,285 thousand in 2013, compared to RMB -967,719 thousand in 2012[24]. - The company's equity attributable to shareholders decreased by 17.0% to RMB 7,063,464 thousand in 2013 from RMB 8,513,483 thousand in 2012[25]. - The company's total liabilities increased by 36.5% to RMB 3,565,840 thousand in 2013 from RMB 2,624,721 thousand in 2012[25]. - The company's asset-liability ratio increased to 33.24% in 2013 from 23.24% in 2012, an increase of 10 percentage points[25]. - The company reported a net loss of RMB 1,454,217 thousand for 2013, leading to a retained loss of RMB 252,136 thousand at year-end[94]. - The company's cost of sales rose by 7.3% to RMB 18,099,885 thousand, leading to a gross loss of RMB 422,714 thousand compared to a gross profit of RMB 119,245 thousand in 2012[57]. Production Capacity and Operations - As of the end of 2013, the company had a polyester polymerization capacity of 2.18 million tons per year, making it the eighth largest polyester producer in the world[15]. - The company has a production capacity of 1 million tons per year for PTA oxidation and refining, along with 455,000 tons per year for bottle-grade chip solid-state polymerization[16]. - The total polyester production in 2013 was 2,410,760 tons, a 9.7% increase from 2,197,022 tons in 2012, with a capacity utilization rate of 88.8%[37]. - In 2013, the company's polyester product output reached 2,410,760 tons, an increase of 9.7% from 2,197,022 tons in 2012, with a capacity utilization rate of 88.8%[52]. - The company aims to produce 257,100 tons of polyester products in 2014, including 102,900 tons of PTA and 5,700 tons of 1,4-butanediol series products[45]. - The company plans to sell 2,101,000 tons of polyester products and achieve a sales-to-production ratio of 100% in 2014[44]. Research and Development - The company completed the development of 12 new products and industrialized 13 new products in 2013, with 27 patent applications filed and 14 patents granted[39]. - The company's R&D expenditure in 2013 was RMB 37,258 thousand, a decrease of 23.0% from RMB 48,406 thousand in 2012, representing 0.2% of operating revenue[88]. - The company plans to develop 17 new products in 2014, with 15 of them to be industrialized, and aims to produce 642,000 tons of differentiated fibers[47]. Market and Sales - The average selling price of polyester products decreased by 5.1% in 2013, from RMB 9,350 per ton to RMB 8,872 per ton[55]. - Revenue from mainland China increased by 5.7% to RMB 16,666,460 thousand, while revenue from Hong Kong, Macau, Taiwan, and overseas decreased by 5.0% to RMB 610,342 thousand[91]. - The company’s products have achieved ISO9001 and ISO14001 international standard certifications, indicating a leading position in product quality within the industry[16]. Strategic Initiatives - The company plans to reduce overall energy consumption by 3.0% in 2014 and control industrial water intake within 24.1 million tons[48]. - The company will focus on safety and environmental protection, ensuring stable production and minimizing operational disruptions[45]. - The company aims to enhance product quality and service levels to achieve higher customer satisfaction[44]. - The company plans to optimize the production of high-value-added products and improve the structure of its product offerings[49]. - The company will continue to strengthen technological innovation to drive transformation and upgrade its product lines[46]. Governance and Compliance - The company held its annual shareholder meetings and other relevant meetings in 2013, ensuring compliance with governance standards[124][125]. - The company has adhered to regulatory requirements and has not found any violations regarding related party transactions or insider trading during the reporting period[193]. - The company will strengthen the decision-making process for related party transactions to ensure fairness and compliance[193]. Shareholder Information - The total number of shares increased from 4 billion to 6 billion, representing a 50% increase in share capital[148]. - The largest shareholder, China Petroleum, holds 2,415,000,000 shares, representing 40.25% of the total shares[151]. - The number of shareholders increased from 43,724 to 46,698 during the reporting period[150]. - The company’s shareholding structure has changed due to a share reform plan, affecting the distribution of shares among shareholders[148]. Employee Information - The company had a total of 8,010 employees as of December 31, 2013, with 2,695 retirees[187]. - The educational background of employees includes 77 with master's degrees, 1,043 with bachelor's degrees, and 5,769 with high school or lower education[188]. - The company has 6,234 production personnel, 118 sales personnel, and 599 technical and research personnel[187].

Financial Performance - Net profit attributable to shareholders was a loss of RMB 327,861,000, worsening from a loss of RMB 284,529,000 in the same period last year[13]. - Operating revenue fell by 10.0% to RMB 3,701,693,000, primarily due to a 16.1% decrease in average selling prices of polyester products[13]. - Total revenue for Q1 2014 was RMB 3,701,693 thousand, a decrease of 10.0% compared to RMB 4,113,880 thousand in Q1 2013[14]. - The company reported a net loss of RMB 327,861 thousand in Q1 2014, compared to a net loss of RMB 284,529 thousand in Q1 2013, reflecting a decline in profitability[23]. - The basic and diluted earnings per share for Q1 2014 were both RMB -0.055, compared to RMB -0.047 in Q1 2013[23]. Asset Management - Total assets decreased by 4.6% to RMB 10,135,871,000 compared to the previous year[6]. - The total assets decreased to RMB 10,135,871 thousand as of March 31, 2014, down from RMB 10,629,304 thousand at the beginning of the year[21]. - The company’s inventory increased to RMB 1,531,522 thousand from RMB 1,320,644 thousand, indicating a rise in stock levels[21]. - Accounts receivable increased by 40.9% to RMB 197,966 thousand from RMB 140,540 thousand at the end of 2013, attributed to longer settlement periods for some products[15]. Production and Sales - The company produced 581,834 tons of polyester products, a 1.2% increase from 574,723 tons in the previous year[10]. - Sales volume of polyester products increased by 7.3% to 447,137 tons compared to 416,749 tons in the same period last year[12]. - The company produced 266,241 tons of PTA, a 1.2% decrease from 269,421 tons in the previous year[10]. - The revenue from polyester products accounted for 100% of total revenue, with polyester chips contributing RMB 1,327,774 thousand (35.9%) and bottle-grade chips contributing RMB 797,091 thousand (21.5%) in Q1 2014[14]. Cash Flow and Financing - The cash flow from operating activities improved significantly to RMB 159,567,000 from a negative RMB 500,786,000 in the previous year[6]. - Operating cash flow for the period was RMB 159,567 thousand, a significant improvement from a net outflow of RMB 500,786 thousand in the previous period[24]. - Total cash inflow from operating activities was RMB 4,138,760 thousand, compared to RMB 4,229,440 thousand in the prior period, indicating a decrease of approximately 2.14%[24]. - Cash outflow from operating activities decreased to RMB 3,979,193 thousand from RMB 4,730,226 thousand, reflecting a reduction of about 15.86%[24]. - Net cash flow from investing activities was RMB 20,314 thousand, a recovery from a net outflow of RMB 121,772 thousand in the previous period[25]. - Cash inflow from financing activities totaled RMB 1,245,411 thousand, up from RMB 656,370 thousand, representing an increase of approximately 89.73%[25]. - Cash outflow from financing activities increased to RMB 1,432,464 thousand from RMB 57,637 thousand, indicating a significant rise[25]. - The net decrease in cash and cash equivalents for the period was RMB 5,737 thousand, compared to a decrease of RMB 23,825 thousand in the prior period[25]. - The ending balance of cash and cash equivalents was RMB 80,060 thousand, down from RMB 138,202 thousand at the end of the previous period[25]. - The company received RMB 800,000 thousand from other financing activities, which was not present in the previous period[25]. - The company reported a cash inflow of RMB 616 thousand from the disposal of fixed assets, slightly down from RMB 813 thousand in the prior period[24]. Shareholder Information - The number of shareholders totaled 46,305, with the top ten shareholders holding 92.2% of the shares[8]. - The weighted average return on equity decreased to -4.73%, down from -3.38% in the previous year[7]. Operating Expenses - Operating expenses, including sales and management expenses, showed mixed results with sales expenses increasing to RMB 56,644 thousand from RMB 51,660 thousand, while management expenses decreased to RMB 179,364 thousand from RMB 192,189 thousand[22].