XSS(SH:600117)2016-04-28 16:00Financial Performance - The company reported a consolidated net profit attributable to the parent company of -1,618,941,004.72 RMB for 2015, a significant decrease compared to a profit of 41,581,451.08 RMB in 2014, representing a decline of 3,993.42%[3]. - Operating revenue for 2015 was 6,053,347,639.08 RMB, down 17.24% from 7,314,387,547.30 RMB in 2014[17]. - The total profit for the year 2015 was -1,740,941,664.41 RMB, a decrease of 912.07% compared to 214,383,684.63 RMB in 2014[20]. - The net profit for 2015 was -1,675,499,679.61 RMB, representing a decline of 2,421.42% from 72,175,668.50 RMB in 2014[20]. - The company's operating cash flow for 2015 was -1,195,867,945.04 RMB, a decrease of 1,035.25% compared to -105,339,884.93 RMB in 2014[20]. - The basic earnings per share for 2015 was -2.18 RMB, a decrease of 3,733.33% from 0.06 RMB in 2014[18]. - The weighted average return on net assets was -85.94% in 2015, a decrease of 87.41 percentage points from 1.47% in 2014[18]. Assets and Liabilities - The company's total assets increased by 11.87% to 25,380,159,042.46 RMB at the end of 2015, compared to 22,687,253,671.84 RMB at the end of 2014[17]. - The company’s net assets attributable to shareholders decreased by 60.24% to 1,071,867,460.77 RMB at the end of 2015, compared to 2,695,918,904.63 RMB at the end of 2014[17]. - The company reported a significant increase in long-term payables, rising by 122.05% to 1,705,210,455.37 RMB, primarily due to new sale-leaseback transactions of 1.25 billion RMB[19]. - The company’s accounts payable rose by 42.56% to 4,506,543,769.77 RMB, reflecting the scale of notes payable processed during the period[19]. - The company’s prepayments increased by 50.29% to 464,968,006.54 RMB, mainly due to advance payments for steel and housing[19]. - The company reported a 200.25% increase in current portion of non-current liabilities, amounting to 1,342,132,482.69 RMB, due to reclassification of bonds payable[19]. Revenue and Sales - The company experienced a 35.23% decrease in other business income, totaling 189,934,732.99 RMB, mainly due to reduced sales volume and prices in the commercial concrete sector[19]. - The production of steel decreased by 16.45% to 1.21 million tons in 2015, down from 1.44 million tons in 2014[34]. - The company faced a 100% drop in coal production, with no output reported in 2015 compared to 105,400 tons in 2014[34]. - The real estate development segment saw a dramatic revenue decline of 88.43%, with income dropping to CNY 139 million from CNY 1.2 billion in 2014[39]. - Sales revenue from housing decreased by 89.35% to ¥127,119,694.00, with a gross margin of 31.45%[40]. - The revenue from carbon steel decreased by 13.89% to ¥282,980,672.35, with a gross margin decline of 22.24%[40]. - The revenue from iron ore increased by 51.30% to ¥4,033,128.72, despite a significant decrease in sales volume[41]. - The export revenue increased by 42.85% to ¥9,736,167.36, with a gross margin of 17.50%[41]. Costs and Expenses - The total operating costs decreased by 16.49% to ¥5,996,630,391.35 compared to the previous year[41]. - Direct materials cost decreased by 8.51% to CNY 2,611,835,613.27, accounting for 70.94% of total costs, compared to 68.57% in the previous year[44]. - The total cost of the steel industry segment was CNY 4,815,202,765.72, reflecting a 15.65% increase from the previous year[45]. - The company experienced a decrease in direct labor costs by 28.02% to CNY 224,739,333.85, which accounted for 6.10% of total costs[44]. - The company reported an asset impairment loss of CNY 435,219,010.24, a significant increase of 286.97% year-over-year, primarily due to inventory write-downs[47]. Cash Flow - The net cash flow from financing activities increased by 143.41% to 1,807,927,852.61 RMB, driven by an increase in the company's financing scale[20]. - The net cash flow from operating activities decreased by 1,035.25% compared to the previous period, primarily due to an increase in procurement payments[49]. - The company reported a net cash flow from operating activities of -703,778,962.51 RMB, a decrease from 151,709,007.14 RMB in the previous period, indicating a significant decline in operational performance[168]. - The total cash inflow from financing activities reached 9,166,700,000.00 RMB, up from 7,617,347,471.16 RMB, reflecting an increase of approximately 20.3%[168]. Strategic Initiatives - The company plans not to distribute profits or increase capital reserves for the year 2015, pending approval at the annual shareholders' meeting[3]. - The company aims to enhance its core competitiveness by focusing on high-tech, high-value-added products in the future[64]. - The company plans to develop new economic growth points and enhance competitive advantages through mixed-ownership economic development[65]. - The company is committed to sustainable development and innovation as part of its strategic direction[65]. Governance and Compliance - The company has established a three-level control system to enhance management and operational efficiency[35]. - The company’s governance structure complies with the Company Law and relevant regulations, with effective operation of the shareholders' meeting, board of directors, and supervisory board[113]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission in the past three years[106]. - The company engaged in effective communication with shareholders through various channels, addressing 56 investor inquiries and hosting 4 institutional and individual investor meetings[114]. Shareholder Information - The largest shareholder, Xining Special Steel Group Co., Ltd., holds 369,669,184 shares, representing 49.87% of total shares[90]. - The number of ordinary shareholders at the end of the reporting period is 67,429, an increase from 64,268 at the end of the previous month[88]. - The company has established a cash dividend policy to maximize shareholder returns, but no dividends will be distributed for 2015 due to losses[70].