NNCI(SH:600301)2016-03-23 16:00Financial Performance - The company's operating revenue for 2015 was ¥63,939,529.48, a decrease of 90.05% compared to ¥642,906,631.72 in 2014[17] - The net profit attributable to shareholders for 2015 was -¥41,835,182.39, showing an improvement from -¥241,811,859.27 in 2014[17] - The total assets at the end of 2015 were ¥906,406,989.22, a decline of 35.95% from ¥1,415,164,668.36 in 2014[17] - The net cash flow from operating activities for 2015 was -¥85,435,567.58, an improvement from -¥126,618,328.44 in 2014[17] - The company reported a significant decline in operating revenue, totaling CNY 63.94 million, a decrease of 90.05% compared to CNY 642.91 million in the previous year[32] - The net profit attributable to shareholders was a loss of CNY 41.84 million, reflecting ongoing challenges in the market[30] - The company achieved a net cash inflow from financing activities of CNY 354.59 million, a substantial increase from CNY 3.13 million in the prior year, indicating strong financing support[33] - The company reported a significant increase in cash received from tax refunds, up 164.47% to ¥4,493,246.99, due to refunds of property and land use taxes from previous years[42] - The company reported a net loss of CNY 241,811,859.27 for the current period, which is a significant decline compared to the previous year[148] Assets and Liabilities - The total share capital remained unchanged at 235,148,140 shares as of the end of 2015[17] - The company completed the transfer of assets related to its relocation project to its controlling shareholder, improving its asset quality and turning its net assets positive[29] - The company's fixed assets decreased by 90.23% to ¥69,567,577.19 due to the disposal of assets related to relocation[45] - The total liabilities amounted to CNY 673,152,173.92, compared to CNY 1,630,988,070.76 at the start of the year[126] - The company's total current liabilities were CNY 587,318,273.92, compared to CNY 548,456,671.11 at the beginning of the year[126] Management and Governance - The company has acknowledged significant risks in its annual report, urging investors to pay attention to these risks[5] - The company received an unqualified audit report with emphasis on certain matters from Ruihua Certified Public Accountants[5] - The company has retained a core management team of 170 employees, including 68 technical staff, to support future development[27] - The board acknowledged the significant uncertainties regarding the company's ability to continue as a going concern due to ongoing losses[62] - The company has engaged Ruihua Certified Public Accountants to audit its financial reports, with an audit fee of CNY 260,000 for the year[64] Operational Changes - The company has ceased its relocation project, resulting in a 100% reduction in special payables, which were transferred to capital reserves[45] - The company has no operational assets remaining after completing the disposal of production-related assets and is currently formulating its future development strategy[53] - The company has implemented personnel restructuring, successfully completing the transfer and placement of 622 employees, including 452 in retirement[27] - The company has fully ceased production and has not experienced any major safety or environmental accidents during the reporting period[71] Shareholder Information - The total number of ordinary shares remains unchanged at 235,148,140 shares during the reporting period[75] - The total number of ordinary shareholders at the end of the reporting period was 11,754, an increase from 11,153 at the end of the previous month[79] - The largest shareholder, Nanning Chemical Group Co., Ltd., held 75,248,058 shares, representing 32.00% of total shares[81] - The second-largest shareholder, Fu Ruichang, increased his holdings by 9,854,990 shares, bringing his total to 9,854,990 shares, or 4.19%[81] Future Outlook - The company plans to accelerate the construction of the Nanning Oasis Chemical project and improve its operational capabilities[60] - The company aims to maintain its main business income through cooperative trade by procuring chemical products before project completion[61] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 100 million allocated for potential deals[94] - The management team emphasized a focus on sustainability initiatives, aiming to reduce carbon emissions by 25% by 2025[94] Financial Strategy - The company will not distribute profits for the 2015 fiscal year as it reported a negative profit available for distribution[56] - The company has implemented measures to manage receivables and utilize idle funds effectively[61] - The company has transferred certain rights and obligations related to land use contracts to its controlling shareholder, Nanhua Group, to mitigate risks[60] Employee Information - The number of employees in the parent company is 599, while the total number of employees including major subsidiaries is 622[98] - The company has 980 retired employees for whom it bears expenses[98] - The company conducted training for 37 employees during 2015, focusing on skills for employees remaining during the production relocation[101] Compliance and Reporting - The financial statements for the year were approved by the board of directors on March 21, 2016, ensuring compliance with regulatory requirements[160] - The company has adopted the going concern basis for preparing its financial statements, believing it can secure sufficient working capital to support its operations for the next twelve months[164] - The financial statements comply with the requirements of the Chinese Accounting Standards and reflect the company's financial position as of December 31, 2015, and its operating results for the year[165]