YAXING CHEMICAL(SH:600319)2016-03-25 16:00Financial Performance - The company's operating revenue for 2015 was approximately RMB 1.31 billion, a decrease of 11.92% compared to RMB 1.49 billion in 2014[18]. - The net profit attributable to shareholders was a loss of approximately RMB 331.75 million, compared to a loss of RMB 179.18 million in the previous year[18]. - The net cash flow from operating activities was RMB 29.39 million, down 64.07% from RMB 81.80 million in 2014[18]. - Total assets at the end of 2015 were approximately RMB 2.02 billion, a decrease of 11.64% from RMB 2.29 billion at the end of 2014[18]. - The company's net assets attributable to shareholders were negative RMB 155.53 million at the end of 2015, compared to positive RMB 176.90 million at the end of 2014[18]. - Basic earnings per share for 2015 were -RMB 1.05, compared to -RMB 0.57 in 2014[19]. - The weighted average return on equity was -3,010.76%, a significant decrease from -67.22% in the previous year[19]. - The company reported a significant loss in the third quarter due to exchange losses from the depreciation of the RMB and inventory impairment provisions[21]. - The company reported a non-operating loss of approximately RMB 7.91 million from the disposal of non-current assets in 2015, compared to a gain of RMB 996,813.31 in 2014[23]. - Government subsidies closely related to the company's normal operations amounted to RMB 6.25 million in 2015, significantly lower than RMB 156.05 million in 2014[23]. - The company achieved a total revenue of RMB 4.36 million from other operating income in 2015, a decrease from RMB 44.66 million in 2014[24]. - The company reported a significant increase in asset impairment losses, totaling 93,885,974.00 RMB, compared to 2,373,934.98 RMB in the previous period, marking a 3854.87% increase[54]. - The company reported a net loss of 18,616.82 million yuan for its subsidiary, Yaxing Hushi, highlighting financial difficulties in the chlorinated polyethylene sector[67]. - The company reported a total comprehensive income for the period decreased by CNY 197,068,736.31, reflecting a significant decline compared to the previous year[165]. Operational Highlights - The main business activities include the production and sales of caustic soda, chlorinated polyethylene, ADC blowing agents, and hydrazine hydrate, with a focus on energy-saving and cost-reduction measures[29][30]. - The company operates the world's largest chlorinated polyethylene (CPE) production facility with an annual capacity of 170,000 tons, maintaining a leading position in the market[33]. - The production of hydrazine hydrate and ADC blowing agents also ranks among the top globally, with high purity levels achieved through advanced production techniques[33]. - The company has implemented a circular economy model, utilizing by-products from production processes to enhance resource efficiency and environmental sustainability[34]. - The company has obtained ISO9000 quality management certification and adheres to international technical standards for its main products, ensuring high quality and compliance with global benchmarks[34]. - The company’s core technology for CPE production is unique globally, providing superior physical and chemical properties that cater to various industries[34]. - The company has invested significantly in safety and environmental protection, ensuring compliance with national regulations and enhancing operational stability[30]. - The company has expanded its product variety from 3 to 35 types, becoming the largest producer and seller of CPE globally[36]. Financial Challenges - The company is facing significant challenges due to a downturn in the domestic economy and increased competition, particularly in the CPE market[64][69]. - The company reported a negative operating capital of -1,352,592,119.13 yuan and cumulative losses of 1,239,121,998.14 yuan as of December 31, 2015, raising concerns about its ongoing viability[79]. - The company is undergoing a significant asset restructuring, planning to acquire 100% equity of New Lake Sunshine from Shandong Guan County Xinlong Building Materials Co., Ltd. through a non-public share issuance[90]. - The company aims to improve its financing structure to reduce costs and ensure normal cash flow, focusing on efficient fund utilization[73]. - The company faces risks from macroeconomic fluctuations, high asset-liability ratios, and increasing environmental pressures[75]. - The company is committed to maintaining a balanced budget and controlling expenditures to alleviate financial pressure[83]. Shareholder and Governance Information - As of the end of the reporting period, the total number of ordinary shareholders was 26,670, a decrease from 33,237 at the end of the previous month[96]. - The largest shareholder, Beijing Guangyao Oriental Commercial Management Co., Ltd., holds 40 million shares, accounting for 12.67% of the total shares, with these shares pledged[98]. - The second-largest shareholder, Weifang Yaxing Group Co., Ltd., holds 15,232,797 shares, representing 4.83% of the total shares[98]. - The company’s stock entered a major asset restructuring suspension on May 18, 2015, and resumed trading on November 12, 2015[91]. - The company has engaged Ruihua Accounting Firm for auditing services, with a remuneration of 350,000 RMB for the audit period[86]. - The company has a clear governance structure, ensuring independent operation of the board and supervisory committee[126]. - The company has established a performance evaluation and incentive mechanism for senior management, promoting accountability and competitiveness[129]. - The company has taken measures to reduce and regulate related party transactions[128]. Future Outlook and Strategies - The company plans to achieve a main business revenue target of 1.27 billion yuan in 2016, excluding the impact of major asset restructuring[70]. - The company aims to enhance product quality and expand the market share of its main product, CPE, through diversified marketing strategies[72]. - The company is focusing on expanding the sales of its main product, CPE, and exploring new market opportunities, particularly in Brazil and India[82]. - The company is committed to increasing new product development to achieve breakthroughs in product structure and foster new economic growth points[73]. - The company recognizes the challenges posed by overcapacity in the industry and intends to adjust its product structure to enhance competitiveness[81]. - The company is actively promoting major asset restructuring to improve financial conditions and enhance profitability, having re-entered the restructuring process on March 25, 2015[83].