NNCI(SH:600301)2017-03-29 16:00Financial Performance - In 2016, Nanning Chemical Industry Co., Ltd. reported a total revenue of 84.86 million RMB and a net profit of 33.48 million RMB, indicating ongoing operational losses in its main business[2]. - The company achieved operating revenue of CNY 71,742,117.67 in 2016, representing a year-on-year increase of 12.20%[19]. - The net profit attributable to shareholders was CNY 6,014,231.40, a significant recovery from a loss of CNY 41,835,182.39 in the previous year[19]. - The net cash flow from operating activities was negative CNY 74,237,942.88, an improvement from negative CNY 85,435,567.58 in 2015[19]. - The company's net assets increased by 5.38% to CNY 263,846,725.94 compared to the previous year[19]. - The basic earnings per share for 2016 was CNY 0.0256, recovering from a loss of CNY 0.1779 in 2015[20]. - The company reported a total debt of CNY 735,321,500, with a debt-to-asset ratio of 76.09%[31]. - The company reported a comprehensive income total of CNY -19,559,606.14, improving from CNY -61,147,913.75 in the prior year[125]. - The total liabilities at the end of the period amount to CNY 1,135,548,436.41, indicating a significant financial obligation[141]. - The company reported a total comprehensive income loss of RMB 72,734,176.29 for the year[145]. Operational Challenges - The company has faced significant uncertainties regarding its future production and operational conditions due to delays in land delivery for construction projects[2]. - The company has no production operating assets, and the slow progress of its subsidiary's construction poses operational risks[5]. - The company has been under continuous delisting risk warning since April 23, 2015, due to consecutive losses in 2014 and 2015[5]. - The company has faced significant uncertainty regarding its future operations due to delays in land delivery for the Nanning Oasis Chemical project, impacting its construction progress[50]. - The company has no operating assets and faces operational risks due to the failure of its subsidiary, Nanning Oasis Chemical Co., Ltd., to commence production on schedule[105]. - The company has faced significant uncertainties regarding its future operational capabilities due to asset disposals and construction delays[115]. Shareholder and Equity Information - The total number of ordinary shareholders at the end of the reporting period was 13,103, an increase from 12,481 at the end of the previous month[75]. - The largest shareholder, Nanning Chemical Group Co., Ltd., holds 75,248,058 shares, accounting for 32.00% of the total shares[77]. - The second-largest shareholder, Fu Ruichang, holds 9,301,810 shares, representing 3.96% of the total shares[77]. - The actual controller of the company is Guangxi Beibu Gulf International Port Group Co., Ltd., holding 89.89% of the shares[80]. - The total owner's equity at the end of the period is CNY 298,758,982.50, showing a decrease from CNY 268,217,915.79 in the previous year[144]. Management and Governance - The company has appointed new directors and supervisors as part of the board restructuring, including the appointment of Wei Tao as Chairman[92]. - The company has a remuneration policy for directors and senior management, which is reviewed annually by the compensation and assessment committee[89]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounts to 117.42 million yuan[86]. - The company has maintained a stable management team with no significant changes in personnel during the reporting period[86]. - The company has completed the election of the board of directors and supervisory board, as well as the appointment of senior management during the reporting period[99]. Financial Reporting and Audit - The company's financial report for 2016 received a non-standard unqualified audit opinion due to ongoing uncertainties regarding its operational viability[56]. - The company received an unqualified audit report with emphasis on matters from Ruihua Certified Public Accountants, indicating ongoing business risks[57]. - The financial statements for the year ended December 31, 2016, were audited and found to fairly present the financial position and results of operations[114]. - The financial statements were prepared based on the assumption of going concern, despite uncertainties regarding the company's ability to continue operations[152]. Future Plans and Strategies - The company plans to apply for the removal of the delisting risk warning from the Shanghai Stock Exchange, contingent on approval[5]. - The company plans to enhance its receivables management and effectively utilize unused funds through various financial management methods[49]. - The company aims to leverage the resources of its controlling shareholder to expand trade scale and increase profitability[48]. - The company plans to focus on market expansion and new product development to drive future growth[123]. Asset Management - The total assets of the subsidiary Nanning Oasis Chemical Co., Ltd. at the end of 2016 amounted to 413.30 million RMB, with total liabilities of 480.09 million RMB, resulting in a negative net asset of 66.80 million RMB[2]. - The company's cash and cash equivalents decreased to CNY 284.97 million from CNY 415.18 million, indicating liquidity challenges[117]. - The company's inventory surged to CNY 174.24 million from CNY 2.52 million, suggesting potential overstocking or production issues[117]. - The company has fully suspended production during the reporting period and has not experienced any major safety or environmental accidents[70]. Cost Management - The company reported a significant reduction in management expenses, down 86.33% to RMB 26,184,664.43 from RMB 191,543,783.52[37]. - The company implemented effective cost control measures, resulting in reduced operating costs during the reporting period[63]. - Total operating costs decreased significantly to CNY 101,681,928.61 from CNY 312,571,644.48, indicating a reduction in expenses[124]. Compliance and Regulatory Matters - The company has not reported any penalties from securities regulatory agencies in the past three years[93]. - The company has not disclosed any major contracts or significant changes in its financial obligations during the reporting period[70]. - The company has not engaged in any major external investments or derivative investments during the reporting period[70].