SPC(SH:600688)2016-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2016 was CNY 36,993,191 thousand, a decrease of 12.24% compared to CNY 42,152,450 thousand in the same period last year[23]. - Net profit attributable to shareholders of the parent company increased by 78.88% to CNY 3,096,675 thousand, up from CNY 1,731,166 thousand in the previous year[23]. - The net profit attributable to shareholders of the parent company, after deducting non-recurring gains and losses, rose by 79.56% to CNY 3,117,585 thousand from CNY 1,736,231 thousand year-on-year[23]. - The net cash flow from operating activities reached CNY 4,645,024 thousand, representing a significant increase of 141.40% compared to CNY 1,924,239 thousand in the same period last year[23]. - Basic earnings per share increased by 79.38% to CNY 0.287 compared to the same period last year[25]. - Taxable profit increased to CNY 4,101.9 million, up from CNY 2,279.9 million, a year-on-year increase of 79.99%[34]. - The company achieved a net sales revenue of RMB 30.782 billion, a decrease of 12.21% compared to the same period last year[43]. - The company reported a total profit of 4,069,599 thousand RMB, an increase of 86.3% from 2,182,295 thousand RMB in the same period last year[131]. - The net profit for the six months ended June 30, 2016, was RMB 3,134,109,000, compared to RMB 1,704,947,000 for the same period in 2015, indicating a year-over-year increase of approximately 83.5%[142]. Assets and Liabilities - The net assets attributable to shareholders of the parent company at the end of the reporting period were CNY 21,906,328 thousand, an increase of 10.42% from CNY 19,838,862 thousand at the end of the previous year[24]. - Total assets increased by 13.93% to CNY 31,924,949 thousand from CNY 28,022,171 thousand at the end of the previous year[24]. - The total liabilities as of June 30, 2016, were CNY 9,742,003, an increase of 23.4% from CNY 7,886,271 at the end of 2015[128]. - The company's total borrowings at the end of June 2016 decreased by RMB 1.2103 billion to RMB 859.7 million, primarily due to a reduction in short-term debt[49]. - The asset-liability ratio as of June 30, 2016, was 30.20%, an increase from 27.77% at the end of 2015[51]. Operational Efficiency - The company implemented cost reduction strategies, optimizing raw material structure and production processes to maximize economic benefits[38]. - The total production volume of goods decreased by 8.53% to 6,510,500 tons compared to the same period last year[35]. - The average unit cost of crude oil processing decreased by RMB 907.72 per ton, a decline of 34.22%, with a total crude oil processing volume of 6.0372 million tons, down 62.41% year-on-year[45]. - The company incurred a total operating cost of 15,516,828 thousand RMB, down 34.0% from 23,525,573 thousand RMB in the previous year[131]. Research and Development - Research and development expenses increased by 230.49% to CNY 47,144, compared to CNY 14,265 in the previous year[62]. - The company produced 117,300 tons of new products and achieved a differentiation rate of 73.44% for synthetic fibers[41]. - The company applied for 26 patents and received 28 patent authorizations in the first half of 2016[41]. Shareholder Information - The largest shareholder, China Petroleum & Chemical Corporation, holds 5,460,000,000 shares, representing 50.56% of total shares[104]. - The company distributed a cash dividend of RMB 1.00 per 10 shares, totaling RMB 1,080 million based on a total share capital of 10.8 billion shares as of December 31, 2015[72]. - The total number of restricted shares held by the largest shareholder is 4,380,000,000, with no current restrictions on trading[106]. Corporate Governance - The company has complied with the Corporate Governance Code, except for the separation of roles between the Chairman and the CEO[122]. - The Audit Committee reviewed the financial reports of the group during the reporting period[120]. - Changes in the board included the resignation of Wang Li Qun as a supervisor and the appointment of Zhang Jian Bo as the company secretary[118]. Environmental and Social Responsibility - The company maintained stable operations with a focus on safety and environmental protection, achieving a 100% disposal rate for "three wastes" and a significant reduction in emissions[37]. - The company organized 8 public open days, inviting over 200 participants from local government and media to promote transparency and community engagement[40]. Financial Reporting and Compliance - The financial statements for the six months ending June 30, 2016, comply with accounting standards and accurately reflect the company's financial position and performance[154]. - The accounting period covered by the financial report is from January 1, 2016, to June 30, 2016[155]. - The company confirmed no non-compliance with the Securities Trading Standard Code by directors and supervisors during the reporting period[123].