CPEC(SH:600339)2016-05-20 16:00Financial Performance - In 2015, the company reported a net profit of -1,034,056,357.48 CNY, leading to a recommendation not to distribute profits for the year[3]. - The company's operating revenue for 2015 was 1,929,280,697.51 CNY, a decrease of 26.54% compared to 2,626,402,493.49 CNY in 2014[18]. - The net profit attributable to shareholders was negative CNY 646,973,019.51 in Q4, primarily due to the impairment provision for the adipic acid facility[23]. - The total profit amounted to -977 million RMB, representing a decline of 454.44% year-on-year[36]. - The net profit for 2014 and 2015 was negative, amounting to RMB -169.32 million and RMB -947.62 million respectively, which triggers a delisting risk warning according to the Shanghai Stock Exchange regulations[85]. - The company reported a cumulative loss of approximately RMB 1.076 billion as of December 31, 2015, with current liabilities exceeding current assets by approximately RMB 2.235 billion, raising concerns about its ability to continue as a going concern[88]. - The total comprehensive loss for the year was CNY 994,121,747.61, compared to CNY 195,951,603.89 in the previous year, marking an increase in comprehensive losses of 406.5%[168]. Assets and Liabilities - The total assets of the company decreased by 17.50%, from 3,933,850,489.70 CNY in 2014 to 3,245,392,483.61 CNY in 2015[18]. - The net assets attributable to shareholders decreased by 94.36%, from 1,003,916,344.02 CNY in 2014 to 56,572,132.09 CNY in 2015[18]. - The company's total liabilities reached CNY 2,575,041,210.85, an increase of 14.3% from CNY 2,252,769,161.22 in the previous year[165]. - The total equity decreased significantly to CNY 64,079,827.37 from CNY 1,097,865,219.29, indicating a decline of 94.2%[165]. - The company's total liabilities and asset conditions are under review, with specific details pending in the financial report[60]. - The total current liabilities exceed current assets by approximately RMB 2.235 billion, which may impact the company's ability to continue as a going concern[200]. Cash Flow - The cash flow from operating activities was 117,218,526.72 CNY, an increase of 33.76% from 87,635,259.83 CNY in 2014[18]. - The net cash flow from operating activities for 2015 was CNY 117,218,526.72, an increase from CNY 87,635,259.83 in the previous year, reflecting a growth of approximately 33.5%[172]. - The net cash flow from investing activities was -CNY 30,231,843.41, a significant improvement from -CNY 193,526,871.87 in the previous year, indicating a reduction in cash outflow by approximately 84.4%[173]. - The company reported a net increase in cash and cash equivalents of CNY 120,217,129.10 for the year, compared to a decrease of CNY 47,384,239.48 in the previous year[173]. Production and Operations - The company has a production capacity of 70,000 tons of adipic acid and 50,000 tons of polybutadiene rubber, among other products, highlighting its operational scale[26]. - The company faced a significant decline in product prices due to oversupply in the market, particularly for adipic acid and acetone, leading to continuous losses[28]. - The production of styrene-butadiene rubber decreased by 20.85%, while the production of MTBE increased by 61.57% due to the commissioning of a new project[42]. - The average operating rate for domestic adipic acid production was below 40%, with product prices decreasing by 36% compared to the previous year[63]. Research and Development - Research and development expenses were 75.75 million RMB, down 16.87% from the previous year[38]. - The company has 15 ongoing R&D projects, including significant advancements in narrow molecular weight nickel-based butadiene rubber and new TPR materials[54]. - The company aims to initiate and validate reserve projects, focusing on product development and enhancing R&D capabilities to improve product quality and competitiveness[89]. Governance and Management - The company has a diverse board with independent directors holding various roles, ensuring governance and oversight[126]. - The board consists of eight members, including four independent directors, ensuring compliance with legal requirements[140]. - The company has established a management system for insider information, ensuring compliance with disclosure regulations[141]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 2.61351 million yuan[130]. Market and Competition - The company is facing challenges from overcapacity in the petrochemical industry and declining product prices due to falling oil prices[72]. - The company recognizes the risk of intensified competition and plans to strengthen its production capabilities and customer service to enhance market competitiveness[79]. - The company is focusing on high-margin products like MTBE and butadiene rubber while limiting production of adipic acid due to low profitability[76]. Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance product offerings[63]. - The company plans to sell 414,500 tons of products in 2016, aiming for a sales revenue of 2.117 billion yuan, with specific targets for various products including 184,500 tons of acetone, expected to generate 757 million yuan[75]. - A major asset restructuring is being planned, involving the issuance of shares to acquire quality assets from its controlling shareholder, which is expected to fundamentally enhance the company's profitability and sustainable development[90].