FLDT(SH:600228)2017-03-10 16:00Financial Performance - The net profit attributable to shareholders for 2016 was -37,090,757.78 RMB, resulting in a total distributable profit of -582,869,734.57 RMB, leading to no profit distribution for the year [2]. - Operating revenue for 2016 decreased by 20.04% to 433,696,422.78 RMB compared to 542,376,142.13 RMB in 2015 [18]. - The net cash flow from operating activities was 9,197,994.55 RMB, a significant decline of 90.41% from 95,940,276.07 RMB in the previous year [18]. - The total assets as of the end of 2016 were 457,648,199.26 RMB, down 10.78% from 512,960,994.77 RMB at the end of 2015 [18]. - The net assets attributable to shareholders decreased by 57.31% to 24,994,819.03 RMB from 58,544,761.16 RMB in 2015 [18]. - Basic earnings per share for 2016 were -0.15 RMB, compared to -0.10 RMB in 2015 [19]. - The weighted average return on net assets was -88.80% for 2016, a decline from -35.27% in 2015 [19]. - The company reported a net profit of -27,134,602.55 RMB after deducting non-recurring gains and losses [18]. - The company reported a net profit of -37,090,757.78 RMB for 2016, marking a continued loss from -24,596,514.95 RMB in 2015 and a profit of 34,988,394.25 RMB in 2014 [90]. - The company has not proposed any cash dividend distribution for the years 2014, 2015, and 2016 due to negative net profits [90]. - The company faces the risk of delisting if the net profit remains negative in the 2017 annual report [87]. Revenue and Sales - In 2016, the company achieved operating revenue of 433.6964 million RMB, a significant decrease compared to the previous year [30]. - The operating revenue from the subsidiary Changjiu Agricultural Science was 432.6933 million RMB, a decrease of 18.77% year-on-year [31]. - The production volume of acrylamide products was 46,891.05 tons, a decline of 15.59% year-on-year [31]. - The sales volume of acrylamide products was 46,953.40 tons, down 16.12% from the previous year [31]. - The company faced significant market challenges, including raw material price fluctuations and oversupply in the market, leading to compressed profit margins [31]. - The company's revenue from retail sales decreased by 28.18%, while wholesale revenue declined by 20.37% compared to the previous year [76]. Costs and Expenses - The company's operating costs also fell by 17.37% to about CNY 395.19 million, reflecting a decrease in raw material prices [37]. - The company incurred asset depreciation and impairment losses amounting to 19.4723 million RMB due to idle assets [30]. - The gross profit margin for the acrylic amide product was reported at 9.57%, a decrease of 2.64% compared to the previous year [40]. - The financial expenses decreased by 42.77% to CNY 9.39 million, attributed to reduced bank borrowings and interest expenses [37]. - The total cost for the chemical industry decreased by 20.86% to ¥352,657,834.27 from ¥445,585,846.60 in the previous year [44]. Assets and Liabilities - Accounts receivable increased by 84.48% to 21,604,562.99, attributed to unsettled payments [57]. - Inventory rose by 30.31% to 28,104,342.78, due to the transfer of prepaid materials to inventory [57]. - Prepayments decreased by 35.16% to 16,052,823.07, resulting from the transfer of prepaid material payments [57]. - Deferred income tax assets increased by 83.02% to 3,139,775.70, due to losses from a subsidiary [57]. - Tax payable decreased by 62.33% to 2,665,275.45, due to reduced profits from subsidiaries [57]. - Current liabilities exceeded current assets by RMB 173.95 million, indicating liquidity issues [156]. - Total liabilities decreased from RMB 371.02 million to RMB 353.91 million, a reduction of about 4.6% [160]. Production and Capacity - The capacity utilization rate for the Nanchang base was only 65% due to production halts, while the Rudong base was at 90% [31]. - The company has a production capacity of 30,000 tons at the Nanchang production base, with a utilization rate of 65% [67]. - The Jiangsu Rudong production base has a capacity of 30,000 tons, with a utilization rate of 90% [67]. - The company initiated the expansion of its acrylic amide crystal production capacity at the Jiangsu Rudong base, increasing capacity from 17,000 tons/year to 27,000 tons/year, expected to be completed by June 2017 [33]. - The company aims to achieve a total production and sales volume of 45,000 tons of acrylamide products in 2017, with a target of 50,000 tons [85]. Research and Development - Research and development expenses surged by 605.74% to CNY 13.26 million, up from CNY 1.88 million in the previous year [37]. - The company completed several R&D projects aimed at reducing production costs and improving product quality, with total project costs amounting to ¥13,261,044.29 [51][52]. - The company invested 13,261,044.29 in R&D for five projects related to the production of acrylamide [64]. Corporate Governance and Management - The company has established a cash dividend policy that prioritizes shareholder returns, with a plan for the next three years (2014-2016) outlined [89]. - The company’s independent directors have provided opinions on profit distribution policies to protect minority investors' rights [89]. - The company has implemented internal control measures to enhance governance and risk prevention [140]. - The board of directors held 9 meetings during the year, with 3 conducted in person and 6 via communication methods [142]. - The company maintains a stable management structure with no significant changes in personnel during the reporting period [131]. Shareholder Structure - The total number of common stock shareholders at the end of the reporting period is 32,996, an increase from 27,496 at the end of the previous month [118]. - The largest shareholder, Jiangxi Changjiu Chemical Group Co., Ltd., holds 43,980,000 shares, representing 18.22% of the total shares [120]. - The company has no other significant changes in shareholder structure or control relationships during the reporting period [122]. - The controlling shareholder is Jiangxi Changjiu Chemical Group Co., Ltd., with no other significant shareholders or changes reported [122]. Audit and Compliance - The audit report from Dahua Accounting Firm reflects the company's financial status accurately, confirming compliance with accounting standards [93]. - The company is under a non-standard audit opinion due to ongoing financial difficulties and operational challenges [92]. - The company’s accounting policies comply with the enterprise accounting standards, ensuring a true and complete reflection of its financial status [191].