SPC(SH:600688)2016-03-16 16:00Financial Performance - The net profit attributable to shareholders for 2015 was RMB 3,245,849 thousand according to Chinese accounting standards, and RMB 3,274,308 thousand according to International Financial Reporting Standards[3]. - The company's operating revenue for 2015 was CNY 80,803,422, a decrease of 20.92% compared to CNY 102,182,861 in 2014[19]. - The total profit for 2015 was CNY 4,208,729, a significant recovery from a loss of CNY 914,149 in 2014[19]. - The net profit attributable to shareholders was CNY 3,245,849, compared to a loss of CNY 716,427 in the previous year[19]. - The net cash flow from operating activities increased by 27.31% to CNY 5,143,397 from CNY 4,039,919 in 2014[19]. - The company's total sales revenue for 2015 was RMB 67.0372 billion, a decrease of 27.70% compared to RMB 92.725 billion in 2014[60]. - The operating profit for 2015 was RMB 3.9089 billion, representing 5.8% of total sales revenue, compared to an operating loss of RMB 587.9 million in 2014[58]. - The net profit after tax for 2015 was RMB 3.3104 billion, an increase of RMB 3.9862 billion compared to a net loss of RMB 675.8 million in the previous year[82]. Dividends and Profit Distribution - A cash dividend of RMB 1.00 per 10 shares (including tax) is proposed for all shareholders, based on a total share capital of 10.8 billion shares as of December 31, 2015[3]. - The cash dividend distribution plan for 2015 represents 33.27% of the net profit attributable to shareholders[149]. - The company emphasizes a stable and continuous profit distribution policy, aiming for cash dividends to be no less than 30% of the average distributable profit over the last three years when conditions are met[146]. - The company’s profit distribution policy allows for adjustments in case of significant external changes or internal financial conditions[147]. - The company’s cash flow must support normal operations and sustainable development to qualify for cash dividends[146]. Operational Efficiency - The company achieved a production operation stability rate improvement, with unplanned shutdowns decreasing by 9.09% and unplanned downtime reduced by 44.81%[38]. - The company maintained a product sales rate of 99.91% and a cash collection rate of 100%[40]. - The average unit cost of crude oil processing was RMB 2,533.46 per ton, down 45.15% from RMB 4,618.68 per ton in 2014[43]. - The company achieved a turnaround from loss to profit in 2015, driven by lower crude oil processing costs and increased production volume[53]. - The company plans to focus on low-cost upstream and high-value downstream operations to enhance competitiveness[129]. Market Environment and Challenges - The company faced a challenging market environment with structural overcapacity and declining demand in the petrochemical sector[37]. - The company anticipates continued pressure on oil prices due to a supply surplus in the global market[127]. - The company faces increased competition in the petrochemical industry due to new projects and regulatory pressures[128]. - The company relies on imported crude oil for over 90% of its production, exposing it to procurement risks and potential cost increases due to fluctuating oil prices[137]. Research and Development - Research and development expenses for the years 2013, 2014, and 2015 were RMB 67.3 million, RMB 43.6 million, and RMB 87.6 million respectively, with a significant increase in 2015 due to higher costs of raw materials and travel expenses[87]. - The company applied for 53 patents in 2015, with 7 patents granted, indicating a strong focus on innovation and new product development[47]. - R&D expenditure increased by 101.13% in 2015, reaching RMB 876,000 compared to RMB 435,690 in 2014[98]. Environmental Compliance and Social Responsibility - The company achieved a 100% compliance rate for wastewater discharge and hazardous waste disposal in 2015[46]. - The company maintained compliance with environmental management standards, receiving ISO14001 certification and continuing to implement environmental protection measures[175]. - The company has actively engaged in social responsibility initiatives, as detailed in its corporate social responsibility report for 2015[174]. - In 2015, the company achieved a 0.69% year-on-year reduction in COD emissions, a 4.08% reduction in sulfur dioxide emissions, and a 9.63% reduction in nitrogen oxides emissions[176]. Related Party Transactions - The company engaged in significant related party transactions, with raw material purchases from Sinopec Group totaling RMB 30,926.316 million, representing 57.14% of the maximum limit approved for the year[167]. - Sales of petroleum products to Sinopec Group amounted to RMB 41,731.401 million, which is 51.65% of the maximum limit for related transactions[167]. - The company confirmed that all related party transactions were conducted at market prices and did not significantly impact its independence[166]. Auditor and Compliance - The financial statements for the year ended December 31, 2015, were audited by PwC and Deloitte, both issuing standard unqualified audit opinions[4]. - The company appointed PwC Zhongtian as the domestic auditor with a fee of RMB 4,800,000 for a term of 3 years, and PwC as the overseas auditor with a fee of RMB 3,000,000 for the same term[155]. - The company has not engaged in any stock buybacks or sales during the reporting period[186]. Employee and Shareholder Information - As of December 31, 2015, the company had a net reduction of 1,154 employees, representing 8.67% of the total workforce at the beginning of the year[49]. - The total number of ordinary shareholders was 152,258, an increase from 139,966 at the end of the previous month[198]. - The company had 4.38 billion shares under lock-up conditions at the end of the reporting period, down from 4.92 billion shares at the beginning of the year[198].