XINSAI CO.,LTD(SH:600540)2016-04-28 16:00Financial Performance - In 2015, XinSai Co., Ltd. reported a consolidated net profit of -153,669,151.10 CNY, with a net profit attributable to the parent company of -109,737,881.93 CNY[2]. - The company's operating revenue for 2015 was 1,192,420,710.73 CNY, representing an increase of 8.08% compared to 2014[16]. - The basic earnings per share for 2015 was -0.2330 CNY, a decrease of 741.87% from 0.0363 CNY in 2014[17]. - The net profit attributable to shareholders for Q4 2015 was -8,867.43 thousand CNY, with a total annual net profit of -12,973.79 thousand CNY[21]. - The company reported a net cash flow from operating activities of -19,817,689.83 CNY, a decline of 136.23% from 54,694,882.21 CNY in 2014[16]. - The company's total equity attributable to shareholders decreased by 9.17% to 1,087,830,935.89 CNY at the end of 2015[16]. - The diluted earnings per share for 2015 was -0.2330 CNY, a decrease of 741.87% compared to the previous year[18]. - The company reported a significant decrease in investment cash flow, down 104.35 million CNY, a decline of 156.91% due to reduced repayments from subsidiaries[70]. - The company reported a net loss of CNY 228,935,758.10 for the year, compared to a loss of CNY 119,197,876.17 in the previous year[180]. Assets and Liabilities - The total assets of the company decreased by 13.18% to 2,917,947,154.37 CNY at the end of 2015 compared to 3,360,953,506.09 CNY at the end of 2014[16]. - Total liabilities decreased from CNY 1,956,963,736.11 to CNY 1,667,657,336.96, reflecting a decline of about 14.7%[179]. - The company's equity attributable to shareholders decreased from CNY 1,197,599,619.29 to CNY 1,087,830,935.89, a drop of approximately 9.2%[180]. - Cash and cash equivalents decreased by 31.09% to ¥577.21 million from ¥837.61 million[73]. - Inventory decreased by 37.87% to ¥247.28 million from ¥398.02 million, reflecting a strategy to reduce stock levels[73]. - The company's short-term borrowings decreased from CNY 902,600,000.00 to CNY 750,565,000.00, a decline of approximately 16.8%[179]. - The company’s long-term borrowings decreased significantly from CNY 106,400,000.00 to CNY 26,000,000.00, a reduction of about 75.6%[179]. Operational Highlights - The company achieved operating revenue of 1,192.42 million yuan, an increase of 8.08% compared to the same period last year[35]. - Operating costs rose to 1,235,540,720.90 CNY, an increase of 11.95% from 1,103,641,548.36 CNY, which outpaced revenue growth[56]. - The company completed the technical transformation project of the cotton processing plant and several environmental protection projects, focusing on short-cycle, low-investment projects[36]. - The company trained 2,605 employees across 29 units, achieving a 96% certification rate for frontline workers by the end of 2015[38]. - The company reported a total revenue of 12,550.55 million yuan and a net profit of 4,160.34 million yuan from cotton yarn and cotton sales in 2015[81]. Strategic Focus and Future Plans - The cotton industry remains a strategic focus, with Xinjiang accounting for approximately 50-70% of cotton income for local farmers[28]. - The company plans to expand its market share in cotton trading within Xinjiang, aiming for greater scale in cotton processing and acquisition[28]. - The company aims to optimize its internal structure and enhance economic efficiency through mergers and acquisitions, as part of its strategic focus for 2016[50]. - The company plans to invest RMB 779.75 million in the Shawan Siyuan cotton processing plant renovation project, which aims to improve the processing efficiency of machine-harvested cotton[43]. - The company aims to enhance its main business profitability by exploring innovative cotton marketing models and forming strategic partnerships with large cotton processing enterprises[86]. Risk Management - The company has outlined potential risks and countermeasures in its annual report, emphasizing the importance of investor awareness regarding investment risks[3]. - The company faces significant risks including macroeconomic fluctuations, investment uncertainties, high fixed asset ratios, and management challenges as it expands[89]. - The company has a high proportion of fixed assets, which may lead to increased depreciation costs and potential asset impairment if market conditions change drastically[89]. Corporate Governance - The company emphasized the establishment of a sound corporate governance structure to ensure sustainable and healthy development[40]. - The board of directors and supervisory board operated independently, ensuring fair and reasonable transactions with the controlling shareholder[2]. - The company maintained compliance with corporate governance standards as per the Company Law and relevant regulations, with no significant discrepancies noted[163]. - The independent directors did not raise any objections to the matters discussed during the board meetings, indicating a consensus on decisions made[166]. Shareholder Information - The total number of ordinary shares increased from 362,248,703 to 470,923,313 after a capital reserve conversion plan was implemented, resulting in an increase of 108,674,610 shares[116]. - The largest shareholder, Xinjiang Aibi Lake Agricultural and Industrial Union Company, held 193,635,763 shares, representing 41.11% of the total shares[125]. - The company had 31,514 ordinary shareholders at the end of the reporting period, down from 34,948 at the end of the previous month[123]. Social Responsibility - The company has committed to social responsibility initiatives, spending 162,600 RMB on poverty alleviation and 1,117,600 RMB on employee welfare during the year[111]. - The company paid a total of 13.0862 million RMB in taxes in 2015, including 8.99 million RMB in value-added tax[111].