FLDT(SH:600228)2015-03-11 16:00Financial Performance - The net profit attributable to the parent company for 2014 was CNY 34,988,394.25, resulting in a total distributable profit of CNY -521,182,461.84 after accounting for the beginning retained earnings[2]. - The company will not distribute profits for the 2014 fiscal year nor implement capital reserve transfers to increase share capital[2]. - The company has reported a significant retained earnings deficit of CNY 556,170,856.09 at the beginning of the year[2]. - The company's operating revenue for 2014 was CNY 725.82 million, a 0.85% increase from CNY 719.69 million in 2013[24]. - The net profit attributable to shareholders for 2014 was CNY 34.99 million, a significant recovery from a loss of CNY 194.64 million in 2013[24]. - The basic earnings per share for 2014 was CNY 0.14, compared to a loss of CNY 0.81 per share in 2013[25]. - The company reported a positive net profit for 2014, amounting to approximately 34.99 million RMB, a significant improvement from the previous year's loss of approximately 194.64 million RMB[72]. - The total comprehensive income attributable to the parent company was CNY 34,988,394.25, compared to a loss of CNY 194,639,280.72 in the previous year[162]. - The net profit for 2014 was CNY 40,385,342.68, a substantial recovery from a net loss of CNY 205,914,885.32 in the previous year[161]. - The company reported a cumulative unabsorbed loss of RMB 521,182,461.84 as of December 31, 2014[188]. Operational Changes - The company has not changed its main business operations since the last report period, which includes the production and sale of various chemical products[18]. - The company plans to focus on developing the acrylamide industry and improving asset quality to enhance cash flow and sustainable operations in 2015[30]. - The company aims to enhance the operational capacity of the Jiangsu base through production integration and technological upgrades[188]. - The company plans to optimize its asset structure by disposing of idle assets to reduce debt burden and increase cash flow[56]. - The company is committed to developing high value-added products by increasing R&D investment and enhancing its R&D capabilities, targeting the downstream polyacrylamide industry[189]. Financial Management - The company has engaged Dahuacpa as its accounting firm, which provided an unqualified audit opinion with emphasis on certain matters[21]. - The company has implemented new accounting standards effective July 1, 2014, which resulted in adjustments to financial statements, including reclassification of long-term equity investments and deferred income[68]. - The company has maintained effective internal control over financial reporting with no significant deficiencies identified as of the evaluation date[146]. - The financial statements comply with the requirements of enterprise accounting standards, reflecting the company's financial status and operational results accurately[191]. Shareholder Relations - The company has adjusted its cash dividend policy to prioritize shareholder returns, with a clear plan for the next three years (2014-2016) to enhance transparency and protect minority investors' rights[69]. - The company received shareholder contributions amounting to CNY 52,008,400.72 during the year, indicating ongoing support from investors[179]. - The company has established a management system for investor relations to enhance communication with shareholders[138]. Governance and Compliance - The board of directors has emphasized the importance of accurate financial reporting and has taken legal responsibility for the report's content[4]. - The company has not reported any significant litigation or arbitration issues during the reporting period, indicating stable operational conditions[76]. - The company has not faced any penalties or public reprimands from the China Securities Regulatory Commission or stock exchanges during the reporting period[94]. - The company has established a system for managing insider information to maintain disclosure fairness[138]. Market Challenges - The company plans to navigate challenges in the chemical industry due to international trade tensions and stricter environmental regulations, while also seeking opportunities from national development strategies[54]. - The company faces risks related to the cyclical nature of the chemical industry and fluctuations in raw material prices, particularly acrylonitrile[61]. Production and Capacity - The company achieved a revenue of CNY 706.82 million from its main product, acrylamide, in 2014, an increase of CNY 23.66 million from the previous year[30]. - The production capacity of the Jiangsu production base for acrylamide has reached 40,000 tons per year, with plans to increase it to 50,000 tons[57]. - The company aims to enhance production efficiency and capacity at the Nanchang base, focusing on the core strategy of strengthening and refining the production of acrylamide products, with an annual production capacity of 30,000 tons[189]. Employee and Management Structure - The company currently employs a total of 425 staff, with 291 in production, 23 in sales, 15 in technical roles, 20 in finance, and 76 in administration[128]. - The company has only 10 employees with a college degree or above and approximately 20 with intermediate titles, indicating a significant talent shortage[126]. - The company has a structured approach to board and management appointments, ensuring compliance with regulatory requirements[119]. Asset Management - The total assets decreased by 7.38% to CNY 622.06 million at the end of 2014 from CNY 671.59 million at the end of 2013[24]. - The company has classified and disposed of idle assets to optimize its asset structure and improve cash flow, thereby reducing debt burden[65]. - The company’s total liabilities decreased from CNY 713,000,501.91 to CNY 462,396,442.61, indicating a reduction of about 35.1%[156].