SCAC(SH:600618)2016-07-19 16:00Financial Performance - In 2015, the net profit of the parent company was RMB 143,024,579.55, while the undistributed profit at the beginning of the year was RMB -757,961,086.06, resulting in a profit available for distribution at the end of the year of RMB -614,936,506.51[2] - The operating income for 2015 was RMB 6,170,874,223.67, a decrease of 12.04% compared to RMB 7,015,409,267.56 in 2014[15] - The net profit attributable to shareholders of the listed company was RMB 95,615,030.34, a significant recovery from a loss of RMB -592,502,499.95 in 2014[15] - The net cash flow from operating activities improved to RMB 305,852,432.45 in 2015, compared to a negative cash flow of RMB -29,059,999.83 in 2014[15] - Total assets decreased by 15.76% to RMB 4,847,854,403.79 at the end of 2015, down from RMB 5,754,717,626.22 in 2014[15] - Basic earnings per share for 2015 was RMB 0.0827, a recovery from a loss of RMB -0.5124 in 2014[17] - The return on net assets, weighted average, increased to 4.313% in 2015, up by 28.76 percentage points from -24.4467% in 2014[17] - The company did not declare any profit distribution for 2015 due to the negative profit available for distribution[2] Production and Capacity - The annual production capacity for sodium hydroxide is 720,000 tons, for ethylene dichloride is 720,000 tons, and for liquid chlorine is 600,000 tons[22] - The capacity of sodium hydroxide decreased by 0.95% compared to the previous year, marking the first instance of negative growth[28] - The production of PVC products decreased by 11.49% year-on-year, while sodium hydroxide production decreased by 5.82%[41] - The production capacity of sodium hydroxide in China decreased by 0.95% to 38,730,000 tons in 2015[53] - The total capacity of PVC in China experienced a net decrease of 410,000 tons due to production capacity optimization and reorganization[53] Research and Development - The R&D expenditure for 2015 was RMB 36,893,630.81, a decrease of 9.48% from the previous year[37] - The company has reformed its R&D platform for chlorinated polyvinyl chloride resin, leading to the development of new products for fire control applications[29] - R&D investment totaled RMB 36,893,630.81, representing 0.60% of operating income[47] - The company has developed a new technique for producing chlorine gas, which is expected to enhance the industrial chain with a circular economy[25] Financial Assets and Investments - The company’s salable financial assets increased from RMB 14,914,742.76 to RMB 50,765,875.23, reflecting a change of RMB 35,851,132.47 in the current period[20] - Long-term equity investment increased by 6.69% year-on-year, primarily due to new investment income from Huntsman[55] - The company reported a significant investment income of RMB 196,816,182.18, compared to RMB 67,674,160.81 in the previous year, marking an increase of 189.36%[159] Cost Management - Total cost for the current period is RMB 3,556,630,124.12, a decrease of 17.05% compared to RMB 4,287,896,726.66 in the same period last year[43] - Direct costs for PVC decreased by 35.48% to RMB 575,229,431.08 from RMB 852,377,334.66 year-on-year[43] - Sodium hydroxide total cost decreased by 3.67% to RMB 940,728,848.52 compared to RMB 976,562,697.94 in the previous year[43] - Management expenses decreased by 36.50% to RMB 402,196,032.57 from RMB 633,388,738.66 year-on-year[45] Shareholder Information - The company has not proposed a cash dividend for ordinary shares in 2015, with a net profit attributable to shareholders of RMB 95,615,030.34[73] - Shanghai Huayi (Group) Company holds 50.29% of the total shares, amounting to 581,592,347 shares[103] - The number of ordinary shareholders decreased from 82,540 to 80,974 during the reporting period[102] - The company has a controlling shareholder, Shanghai Huayi (Group) Company, which was established on January 23, 1997[106] Compliance and Governance - The company has implemented measures to ensure compliance with commitments and maintain operational integrity[74] - The audit opinion confirmed that the financial statements were prepared in accordance with enterprise accounting standards in all significant aspects[146] - The company did not report any significant deficiencies in internal control during the reporting period[136] - The company has a governance structure that complies with the Company Law and Securities Law, ensuring the lawful rights and interests of all shareholders[125] Employee Information - Total number of in-service employees is 1,340, with 1,117 in the parent company and 223 in main subsidiaries[121] - The company provided 5,598 training man-times in 2015, with 4,418 man-times for front-line employees, accounting for 78.92% of total training[123] - The educational status of in-service employees shows 283 hold a Bachelor or higher degree, while 348 have a Junior college education[121] Challenges and Future Plans - The chlor-alkali industry is facing challenges such as negative growth and capacity removal, but there are opportunities for transformation and upgrading[62] - The company plans to optimize the industrial chain through self-developed new technology for chlorine making and enhance technical content with power-saving technology for electrolyzers[63] - The company aims to explore industrial transformation and mergers and acquisitions to build new production bases in cost-advantaged areas[63] - The company will implement strategies to stabilize production, reduce costs, and enhance efficiency amid challenges in the chlor-alkali industry[65]