CRCH(SH:600636)2016-03-24 16:00Financial Performance - The company's operating revenue for 2015 was approximately ¥3.57 billion, a decrease of 9.36% compared to ¥3.94 billion in 2014[16]. - The net profit attributable to shareholders was a loss of approximately ¥311 million, compared to a profit of ¥6.47 million in 2014[16]. - The net cash flow from operating activities was negative at approximately ¥74.34 million, a significant decline from ¥294.81 million in 2014[16]. - The basic earnings per share for 2015 was -¥0.696, compared to ¥0.017 in 2014[18]. - The weighted average return on equity was -14.09%, a decrease of 14.48 percentage points from 0.39% in 2014[18]. - The company reported a quarterly revenue of ¥688.16 million in Q4 2015, down from ¥1.10 billion in Q1 2015[18]. - The company reported a comprehensive loss of CNY 310,522,033.34 for the year, contrasting with a comprehensive income of CNY 45,497,586.17 in 2014[148]. - The total liabilities amounted to CNY 285,507,608.39, while total equity was CNY 1,857,533,811.84[145]. Assets and Liabilities - The total assets at the end of 2015 were approximately ¥4.57 billion, an increase of 17.74% from ¥3.88 billion in 2014[17]. - The total equity increased from CNY 608,793,032.00 to CNY 1,857,533,811.84, indicating a significant growth in shareholder equity[145]. - Total current assets increased to ¥2,363,091,891.78 from ¥1,883,052,865.03, representing a growth of approximately 25.5%[140]. - Total non-current assets grew to ¥2,206,880,872.21 from ¥1,998,249,748.47, reflecting an increase of around 10.4%[140]. - Total liabilities decreased to ¥1,249,465,262.32 from ¥1,771,763,684.75, a reduction of approximately 29.5%[141]. Market and Competition - The company faced a significant decline in market demand for fluorochemical products due to the slowdown in domestic and international economic growth, leading to record low product prices and intensified market competition[28]. - The company maintains a high market share in fluorochemical products, particularly in CFC substitutes and PTFE emulsions, which dominate their respective markets[26]. - The competitive landscape of the fluorochemical industry is intensifying, with ongoing mergers and acquisitions among major players[60]. Strategic Initiatives - The company plans to focus on high-end development, cross-market development, innovation, and integrated development, with a strategic shift towards the Changshu production base and a reorientation of product structure across Shanghai, Inner Mongolia, and Changshu[28]. - The company aims to enhance its HSE system and lean management to ensure safe and efficient production, with a focus on safety production responsibility and environmental compliance[29]. - The company is actively seeking market breakthroughs and expanding its product offerings, particularly in the F141b market[53]. - The company plans to establish a leading domestic fluorochemical enterprise by 2020, focusing on a reasonable and competitive structure with independent intellectual property rights[31]. Research and Development - Research and development expenditure increased by 34.44% to approximately ¥105.59 million, compared to ¥78.54 million in the previous year[33]. - The company has a strong technical competitive ability, with a national recognized enterprise technology center and provincial fluorochemical engineering center, and is increasing investment in technology to develop new products[25]. - The company is increasing its R&D efforts for HCFC alternatives to meet environmental regulations, with a goal to scale production of eco-friendly ODS substitutes by 2030[63]. Environmental and Safety Compliance - The company invested 3,142 million RMB in environmental protection facilities and waste treatment in 2015[83]. - The company achieved a 99% absorption efficiency for hydrogen fluoride in upgraded waste incineration facilities, significantly reducing alkali usage and wastewater generation[83]. - The company has fully passed ISO14001 and ISO18001 certifications for environmental management and occupational health and safety[83]. Shareholder and Equity Information - The total number of ordinary shares increased from 381,950,571 to 446,941,905 due to a private placement, raising funds of approximately ¥1,499,999,988.72[94]. - The largest shareholder, Shanghai Huayi (Group) Co., Ltd., holds 141,233,786 shares, representing 31.60% of total shares[96]. - The company distributed a cash dividend of 0.10 RMB per 10 shares in 2015, totaling approximately 3.82 million RMB[66]. Employee and Management Information - The total number of employees in the parent company is 624, while the total number of employees in major subsidiaries is 2,135, resulting in a combined total of 2,759 employees[119]. - The company trained 2,122 employees, accumulating approximately 28,137.5 hours of training in 2015[79]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 5.5168 million yuan[114]. Financial Management and Governance - The company has a clear governance structure with independent directors and a supervisory board in place[113]. - The company’s financial statements have been audited and are deemed to fairly reflect its financial position as of December 31, 2015[137]. - The company has not reported any significant deficiencies in internal control during the reporting period[131].