SCAC(600618)2015-03-30 16:00Financial Performance - The net profit of Shanghai Chlor-Alkali Chemical Co., Ltd. in 2014 was RMB -586,490,853.47, indicating a significant loss compared to the previous year[2]. - The company's operating income for 2014 was RMB 7,015,409,267.56, a slight increase of 0.59% from RMB 6,974,211,654.53 in 2013[22]. - Basic earnings per share for 2014 were RMB -0.5124, a decrease of 3,658.33% from RMB 0.0144 in 2013[23]. - The return on net assets (weighted average) was -24.4467% in 2014, a decrease of 25.03 percentage points from the previous year[23]. - The company reported a significant loss of RMB 590,000,000 due to adjustments in the Wujing Base, with RMB 520,000,000 attributed to impairment and employee placement costs[29]. - The gross profit for the year was RMB -583,000,000, a decrease of 1961.7% from the previous year[30]. - The company incurred a net loss of RMB 587,590,706.33, a 2420.41% decrease compared to the previous year, largely due to increased asset impairment and dismissal costs[48]. - The company reported a net cash flow from operating activities of RMB -29,059,999.83 in 2014, a decline of 105.01% from RMB 580,026,390.02 in 2013[22]. Assets and Liabilities - Net assets attributable to shareholders decreased by 24.00% to RMB 2,164,655,507.39 at the end of 2014, down from RMB 2,848,201,003.60 in 2013[22]. - The total assets of the company decreased by 3.97% to RMB 5,754,717,626.22 in 2014, compared to RMB 5,992,581,029.65 in 2013[22]. - The company's total liabilities amounted to RMB 3,498,456,005.50, up from RMB 3,050,965,706.34, reflecting an increase of about 14.6%[183]. - Owner's equity attributable to the parent company decreased to RMB 2,164,655,507.39 from RMB 2,848,201,003.60, a decline of approximately 24%[183]. - Accounts receivable increased to RMB 321,902,440.07 from RMB 219,585,380.39, representing a growth of approximately 46.5%[182]. - Inventories rose to RMB 497,804,243.07 from RMB 390,476,527.64, marking an increase of about 27.5%[182]. Revenue and Sales - The total sales amount to the top 5 customers was RMB 3,282,013,865.31, accounting for 46.97% of total sales[36]. - The total purchase amount from the top 5 suppliers was RMB 3,906,600,757.17, representing 54.33% of total purchases[40]. - The sales volume of polyvinyl chloride decreased by 48.22% to 8.01 thousand tons compared to 15.47 thousand tons in 2013[34]. - The company reported a total of RMB 5.78 million in cash dividends for 2013, which represented 34.78% of the net profit attributable to shareholders[92]. Research and Development - Research and development expenditure for the year was RMB 40,756,284.35, a decrease of 3.13% from the previous year[31]. - Total R&D expenditure reached RMB 40,756,284.35, accounting for 1.81% of net assets and 0.58% of operating income[43]. - The company emphasizes the importance of R&D in new materials to support the development of high-tech industries[77]. - The Company will continue to promote the R&D of CPVC hybrid materials to transition from traditional chemicals to new materials[83]. Strategic Initiatives - The company implemented a strategy of "innovation, upgrading and transformation" to adapt to the changing economic environment[28]. - The company is actively pursuing international mergers and acquisitions, having tracked 9 projects in 2014 to enhance market share and profitability[55]. - The company plans to strengthen its financing channels with banks and improve cash flow by reducing inventory and enhancing accounts receivable management[85]. - The company aims to stabilize production operations and enhance contract implementation rates to ensure profit targets[80]. Governance and Management - The company has a structured salary management system for Directors, Supervisors, and Senior Executives, with rewards based on annual performance reviews[140]. - The company maintains a supervisory committee to oversee the performance and rewards of its executives[140]. - The total number of Directors, Supervisors, and Senior Executives has been consistent, ensuring stable governance[140]. - The company has seen changes in its leadership, with several key positions being filled or vacated in late 2014[142]. Financial Reporting and Compliance - The auditor's report issued by BDO China Shu Lun Pan Certified Public Accountants LLP was standard and unqualified, ensuring the accuracy of the financial report[3]. - The implementation of new accounting standards has resulted in a reduction of owner's equity by RMB 164.6 million at the beginning of 2014, with a profit increase of RMB 600,000 for the year[91]. - The company engaged BDO China Shu Lun Pan Certified Public Accountants LLP for the audit of its internal control, ensuring compliance with relevant regulations[169]. - The company maintained effective internal control over financial reporting, with no significant deficiencies identified[166].