SINOCHEM INTERNATIONAL(SH:600500)2015-04-29 16:00Financial Performance - In 2014, Sinochem International achieved a net profit of RMB 701,255,539.87, with a total distributable profit of RMB 887,951,182.20 after accounting for retained earnings and legal reserves[5]. - The company proposed a cash dividend of RMB 1.3 per 10 shares, totaling RMB 270,791,647.23, which represents 30.50% of the distributable profit[5]. - The remaining undistributed profit carried forward to the next year amounts to RMB 617,159,534.97[5]. - The company's operating revenue for 2014 was approximately ¥38.61 billion, a decrease of 20.10% compared to ¥48.31 billion in 2013[27]. - Net profit attributable to shareholders increased by 30.92% to ¥846.29 million from ¥646.41 million in the previous year[27]. - Basic earnings per share decreased by 4.65% to ¥0.41 from ¥0.43 in 2013[28]. - The weighted average return on equity fell to 7.15% from 7.95% in 2013, indicating a decline in profitability[28]. - The company achieved a cash flow from operating activities of approximately ¥956.40 million, an increase of 8.15% from ¥884.36 million in 2013[27]. - Non-operating income surged by 243.94% to ¥406.92 million from ¥118.31 million in the previous year, reflecting improved investment returns[39]. - The company reported a total revenue of RMB 15,996,726,945.20 from domestic operations, a decrease of 20.33% year-on-year, and RMB 22,608,469,728.99 from overseas, down 19.93%[67]. Audit and Compliance - The report includes a standard unqualified audit opinion from Ernst & Young Hua Ming[4]. - The company is committed to ensuring the accuracy and completeness of the financial report as stated by its management[4]. - The company's fundraising and usage of funds have been verified by Ernst & Young, confirming compliance with regulations[147]. - The independent directors have expressed their opinions supporting the dividend distribution plan, ensuring the protection of minority shareholders' rights[148]. - The company has no significant litigation or bankruptcy restructuring matters reported during the fiscal year[150]. - The company’s internal control audit was conducted by Ernst & Young Hua Ming, with a fee of RMB 127.2 million[180]. Business Operations and Strategy - The company has maintained its main business operations without any changes since its listing[20]. - The company successfully expanded its agricultural chemical business, entering the Japanese and European markets, which improved product gross margins[36]. - The company completed the acquisition of Sinochem Agricultural Chemicals and its subsidiaries, which required restatement of previous years' data[29]. - The company is focusing on risk management and optimizing sales and marketing structures to enhance operational efficiency amid a challenging market environment[62]. - The company is advancing strategic projects such as the construction of a new plant in Hainan and strengthening its presence in Africa[61]. - The company has successfully integrated and optimized its business portfolio through strategic investments and acquisitions, including GMG and Jiangsu Shengao[75]. - The company has established a complete strategic management system, enhancing its core competitiveness and profitability in the fine chemicals and rubber industries[76]. Market and Industry Trends - The global fine chemicals market is projected to reach a scale of 580 billion USD by 2017, with an annual growth rate of 3.7%[107]. - China's fine chemical industry is expected to maintain an annual growth rate of 8.4%, with a market size exceeding 137 billion USD by 2017[107]. - The demand for high-efficiency, low-toxicity herbicides and fungicides is expected to rise significantly due to increased pest control pressures in China[109]. - The rubber chemical industry is characterized by high technical barriers, with PPDs dominating the global rubber antioxidant market, where Jiangsu Shengao and America’s Flexsys are leading producers of 6PPD[113]. - The Asia-Pacific market, particularly China, has become a significant growth area for rubber chemical demand, with Asia accounting for nearly half of the global market share[115]. Financial Management - Cash and cash equivalents increased by 42.35% to RMB 3,187,046,552.16 compared to the previous period[69]. - Short-term borrowings rose by 70.47% to RMB 3,659,486,182.49 compared to the previous period[69]. - The company's long-term borrowings increased by 97.10% to approximately ¥3.82 billion from ¥1.94 billion in the previous year[70]. - The accounts payable increased by 35.02% to approximately ¥816.60 million from ¥604.82 million, driven by the rise in domestic rubber business[71]. - The company reported a 90.45% increase in tax payables, rising to approximately ¥216.97 million from ¥113.92 million due to higher taxable income[70]. Risk Management - The company is facing price risks due to market fluctuations in natural rubber and chemical logistics, and is enhancing industry research and market analysis to mitigate these risks[133]. - The company has established a comprehensive customer credit assessment system to manage credit risks associated with domestic and international clients[134]. - The company has implemented the strictest DuPont safety management system to ensure safe and environmentally friendly operations[135]. - The fluctuation of the RMB exchange rate may impact the company's import and export business, which primarily settles in USD[135]. - The company has established a comprehensive foreign exchange risk management system to control exchange rate risks[135]. Shareholder and Corporate Governance - The largest shareholder, China National Chemical Corporation, holds 1,152,988,931 shares, representing 55.35% of the total shares[200]. - The company has maintained a stable shareholder structure with no major fluctuations in shareholding percentages[197]. - Sinochem International's management has committed to maintaining operational independence and avoiding conflicts of interest with its parent company[177]. - Sinochem International's commitment includes ensuring the safety of deposits in Sinochem's financial company[177]. - The company has not reported any overdue guarantees, indicating effective risk management practices[168].