SPC(SH:600688)2014-10-29 16:00Financial Performance - Revenue for the first nine months of 2014 was CNY 76,718,822,000, a decrease of 11.16% year-on-year[5]. - Net profit attributable to shareholders of the parent company was a loss of CNY 152,106,000, a decline of 115.15% compared to a profit of CNY 1,004,210,000 in the same period last year[5]. - The company reported a net loss of RMB 145,477,000 for Q3 2014, a decrease of 114.36% compared to a net profit of RMB 1,013,274,000 in Q3 2013[14]. - Operating profit turned negative at RMB -251,916,000, a decline of 118.06% from RMB 1,394,936,000 in the previous year, attributed to decreased processing volume and lower refining profitability[14]. - Total revenue for Q3 2014 was CNY 25,344,545, a decrease of 13.0% compared to CNY 29,245,524 in Q3 2013[26]. - Net profit attributable to shareholders of the parent company was CNY 12,805, a significant decline from CNY 566,190 in the same period last year[27]. - Operating revenue for Q3 2014 was 20,758,829 thousand RMB, a decrease of 19.5% compared to 25,694,155 thousand RMB in Q3 2013[30]. - Net profit for Q3 2014 was 5,152 thousand RMB, down 99.1% from 570,325 thousand RMB in Q3 2013[31]. - The company’s investment income for Q3 2014 was 29,013 thousand RMB, down 41.5% from 49,455 thousand RMB in Q3 2013[31]. Cash Flow and Liquidity - Net cash flow from operating activities dropped by 64.99% to CNY 1,710,637,000 compared to the same period last year[5]. - Cash flow from operating activities for the first nine months of 2014 was 1,710,637 thousand RMB, a decline of 65.0% from 4,886,124 thousand RMB in the same period of 2013[34]. - Total cash inflow from operating activities for the first nine months of 2014 was 90,549,425 thousand RMB, down 8.8% from 98,991,947 thousand RMB in 2013[33]. - Cash and cash equivalents at the end of Q3 2014 were 282,291 thousand RMB, a decrease of 12.1% from 321,035 thousand RMB at the end of Q3 2013[35]. - The company’s cash and cash equivalents increased to CNY 282,291 from CNY 133,256, showing a growth of 112.5%[22]. Assets and Liabilities - Total assets decreased by 9.65% from the end of the previous year to CNY 33,352,071,000[5]. - Total assets as of September 30, 2014, were CNY 33,352,071, down from CNY 36,915,933 at the end of 2013[22]. - Current liabilities decreased to CNY 15,097,555 from CNY 18,017,454 year-over-year, reflecting a reduction of 16.5%[22]. - The company reported a total liability of CNY 15,917,681, down from CNY 18,825,254, a decrease of 15.8%[22]. - The company’s total liabilities increased to 40,718,148 thousand RMB in the first nine months of 2014, compared to 47,273,247 thousand RMB in the same period of 2013[38]. Shareholder Information - The total number of shareholders as of the report date was 123,309[9]. - The largest shareholder, Sinopec Limited, held 50.56% of the shares, totaling 5,460,000,000 shares[9]. Operational Highlights - The company received government subsidies closely related to its main business amounting to CNY 126,985,000 during the reporting period[7]. - Non-current asset disposal losses amounted to CNY 12,396,000 in the third quarter[7]. - Accounts receivable decreased by 38.97% to RMB 1,821,527,000 due to a decline in sales revenue[12]. - Prepayments increased significantly by 11,225.75% to RMB 671,617,000, indicating a rise in advance payments for procurement[12]. - The company’s financial expenses increased by 337.82% to RMB 355,419,000, primarily due to the depreciation of the RMB against the USD[14]. - The company’s retained earnings decreased by 29.35% to RMB 1,665,925,000, reflecting the losses incurred during the period[12]. Future Outlook - The company expects a significant decrease in annual performance compared to the previous year due to continued low demand in the petrochemical industry and falling product prices[18]. - The company plans to propose a stock option incentive plan in compliance with relevant regulations, as part of its commitment to support future development[16]. - The company has begun implementing new accounting standards as of July 1, 2014, with no significant impact on financial statements expected[19].