SINOCHEM INTERNATIONAL(SH:600500)2017-04-28 16:00Financial Performance - In 2016, Sinochem International achieved a total revenue of CNY 40.66 billion, a decrease of 7.06% compared to CNY 43.75 billion in 2015[18]. - The net profit attributable to shareholders was CNY 57.25 million, down 87.90% from CNY 473.04 million in the previous year[18]. - The basic earnings per share decreased to CNY 0.03, representing an 86.96% decline from CNY 0.23 in 2015[20]. - The cash flow from operating activities was CNY 1.92 billion, a decrease of 18.22% from CNY 2.35 billion in 2015[18]. - The weighted average return on net assets decreased to 0.51%, down 3.68 percentage points from 4.19% in 2015[20]. - The net profit after deducting non-recurring gains and losses increased by 150.12% to CNY 176.78 million[18]. - The company reported a significant increase in fair value changes of financial assets, with a total change of ¥981.02 million during the reporting period[27]. - The company achieved a net profit of 0.57 million yuan attributable to shareholders in 2016, despite facing a challenging external environment[49]. - The company reported a loss of 374 million from the natural rubber specialty business in 2016, which is not sustainable[76]. - The company achieved a net profit of RMB 27,422,563.43, with a total distributable profit of RMB 857,666,815.82 after accounting for dividends and reserves[155]. Assets and Liabilities - The total assets of the company increased by 23.61% to CNY 50.01 billion, compared to CNY 40.46 billion at the end of 2015[19]. - The company's total assets as of December 31, 2016, were CNY 50.011 billion, an increase of 23.61% compared to the previous year[35]. - Overseas assets accounted for CNY 23.404 billion, representing 46.80% of total assets[35]. - The goodwill increased by 71.34% to 4,446,756,224.48, primarily due to the acquisition of a subsidiary[77]. - The total amount of funds provided to related parties was 6,467.26 million CNY, with a year-end balance of 649.17 million CNY[177]. - The total amount of guarantees provided by the company to subsidiaries during the reporting period was CNY 286,585.84 million, with a total guarantee balance at the end of the period amounting to CNY 492,095.60 million[180]. Dividends and Profit Distribution - The company proposed a cash dividend of CNY 0.9 per 10 shares, totaling CNY 187.47 million, which accounts for 21.86% of the distributable profit[4]. - The cash dividend for 2016 decreased from RMB 1.10 in 2015 and RMB 1.30 in 2014, reflecting a trend of reduced cash distributions[158]. - The company’s cash dividends in 2016 accounted for 327.48% of the net profit attributable to ordinary shareholders[158]. - The profit distribution plan complies with the cash dividend policy requirements set by the Shanghai Stock Exchange[155]. Business Operations and Segments - The company has a total production capacity of approximately 170,000 tons in its agricultural chemicals segment, with over 40 product varieties and exports to more than 100 countries[31]. - The natural rubber business achieved a processing capacity of 1.4 million tons and a sales volume of 2 million tons, representing 11% of the global total processing capacity[32]. - The company’s logistics segment ranks fifth globally in chemical transportation fleet size and third in container fleet size, indicating strong logistics capabilities[33]. - The agricultural chemicals segment has established a leading position in the domestic high-end pesticide market through exclusive distribution agreements with global suppliers[31]. - The company has successfully transformed its agricultural chemical business to cover key pesticide markets in the Asia-Pacific region, with exclusive distribution rights for the "Roundup" brand in China[39]. Research and Development - Research and development expenses rose by 12.35% to CNY 318.19 million, compared to CNY 283.23 million in the previous year[60]. - The company invested CNY 318 million in R&D throughout 2016, resulting in new product sales revenue of CNY 2.587 billion[96]. - A total of 63 new patents were applied for in 2016, including 53 domestic invention patents and 10 foreign invention patents[96]. - The company has established a market-oriented R&D system and implemented a "gate" management model to enhance project management efficiency[97]. Market Position and Strategy - The company holds a leading position in the domestic pesticide raw materials market, with a strong engineering capability and a diverse product portfolio[88]. - The company is a global leader in the production of dichlorobenzene and other products, with a significant market share in the chlorobenzene and epoxy chloropropane segments[89]. - The company is the largest producer of rubber antioxidants and intermediates, holding the number one market share for 6PPD globally[91]. - The company is positioned to benefit from the ongoing consolidation in the pesticide industry, driven by stricter environmental regulations and market competition[83]. Challenges and Risks - The company faced challenges in the fine chemical sector due to macroeconomic downturns and price fluctuations in raw materials, impacting product pricing stability[30]. - The company is committed to improving production efficiency and safety standards in response to increasing industry regulations[49]. - The company has implemented a comprehensive risk management and internal control system, ensuring 100% coverage of key units and processes[46]. Corporate Governance and Compliance - China National Chemical Corporation (Sinochem) committed to maintaining the independence of Sinochem International, ensuring independent operations and financial integrity[5]. - The company has made commitments to avoid illegal occupation of funds and assets from related parties, ensuring fair market practices[5]. - The audit firm Ernst & Young Huaming has been retained with a remuneration of CNY 6.935 million for a six-year term[169]. - The company has no major litigation or arbitration matters reported during the year[170].