SPC(SH:600688)2017-03-15 16:00Financial Performance - The net profit attributable to shareholders for 2016 was RMB 5,955,576 thousand according to Chinese accounting standards, and RMB 5,968,466 thousand according to International Financial Reporting Standards[5]. - The total profit for 2016 was RMB 7,765,405 thousand, representing an increase of 84.51% from RMB 4,208,729 thousand in 2015[24]. - The net profit attributable to shareholders of the parent company was RMB 5,955,576 thousand, up 83.48% from RMB 3,245,849 thousand in 2015[24]. - The company's net profit for the year was RMB 5,981.5 million, an increase of 80.5% from RMB 3,310.4 million in 2015[58]. - The profit attributable to shareholders was RMB 5,968.5 million, representing 9.0% of total sales revenue[58]. - The company's operating profit was RMB 6,777.9 million, accounting for 10.3% of total sales revenue[59]. - The net profit after tax for 2016 was RMB 5.9815 billion, an increase of RMB 2.6711 billion from RMB 3.3104 billion in the previous year[82]. - The company's total sales revenue for 2016 was RMB 65,936.5 million, a decrease of 1.64% from RMB 67,037.2 million in 2015[59]. Revenue and Costs - In 2016, the company's operating revenue was RMB 77,894,285 thousand, a decrease of 3.60% compared to RMB 80,803,422 thousand in 2015[24]. - The company's revenue for 2016 was RMB 77.84 billion, a decline of 3.6% year-on-year[38]. - The total cost of crude oil processing for 2016 was RMB 23.19 billion, a reduction of 28.41% from RMB 32.39 billion in the previous year[41]. - The sales cost and expenses for 2016 amounted to RMB 59.1586 billion, a decrease of 6.29% from RMB 63.1283 billion in 2015[66]. - Operating costs for 2016 were RMB 55.743 billion, down 7.23% from RMB 60.089 billion in the previous year[98]. Dividends and Shareholder Returns - The proposed dividend for 2016 is RMB 0.25 per share (before tax), pending approval at the annual shareholders' meeting[5]. - The company declared a cash dividend of RMB 2,700,000 thousand for the year 2016, representing 45.34% of the net profit attributable to shareholders[173]. - In 2015, the cash dividend was RMB 1,080,000 thousand, accounting for 33.27% of the net profit attributable to shareholders[173]. Assets and Liabilities - The company's total assets at the end of 2016 were RMB 34,123,693 thousand, a 21.77% increase from RMB 28,022,171 thousand at the end of 2015[24]. - The company's net assets attributable to shareholders of the parent company increased by 24.76% to RMB 24,750,048 thousand at the end of 2016 from RMB 19,838,862 thousand at the end of 2015[24]. - The asset-liability ratio decreased to 26.645% at the end of 2016 from 28.143% at the end of 2015, a reduction of 1.498 percentage points[24]. - The total borrowings at the end of 2016 decreased by RMB 1.5236 billion to RMB 5.464 billion, primarily due to a reduction in short-term borrowings[85]. - The debt-to-asset ratio as of December 31, 2016, was 26.34%, down from 27.77% in 2015[86]. Operational Efficiency - The company's net cash flow from operating activities increased by 40.20% to RMB 7,210,957 thousand from RMB 5,143,397 thousand in 2015[24]. - The average thermal efficiency of heating furnaces was 92.40%, a slight decrease of 0.05 percentage points from the previous year[45]. - The company achieved a product sales rate of 100.27% and a cash collection rate of 100% in 2016[38]. - The number of unplanned shutdowns for major production units decreased by 30% and the duration of these shutdowns decreased by 16.11% compared to the previous year[37]. Market and Industry Analysis - The average Brent crude oil price in 2016 was $44.55 per barrel, down 14.95% from $52.38 per barrel in 2015[40]. - The refining and chemical industry is currently in a recovery phase, with a national crude oil processing volume of 541 million tons, a year-on-year increase of 2.8%[142]. - The company holds over 40% market share in Shanghai for gasoline, diesel, and kerosene, and about 5% for ethylene and paraxylene[143]. - The company expects the peak of the petrochemical industry cycle to occur between 2016 and 2018, with international oil prices gradually recovering[143]. Research and Development - Research and development expenses for 2016 were RMB 1.021 billion, an increase from RMB 0.876 billion in 2015, reflecting higher costs for materials and personnel travel[87]. - The company's research and innovation efforts are focused on enhancing production processes and developing new technologies[149]. - The company is focusing on the development of new products and technologies, including the construction of a second phase of the carbon fiber project[130]. Environmental and Safety Measures - The company invested RMB 1.71 billion in environmental protection, accounting for 0.22% of total revenue[167]. - The company achieved a 100% compliance rate for external wastewater and controlled gas emissions, as well as a 100% proper disposal rate for hazardous waste[45]. - The company plans to enhance safety and environmental protection measures, implementing a "one-vote veto" system for major safety incidents[127]. Future Outlook - The company anticipates a challenging economic environment in 2017, with ongoing pressures on domestic demand and production costs[124]. - The company expects international crude oil prices to rise in 2017 compared to 2016, influenced by compliance with production cut agreements by oil-producing countries[123]. - The planned total crude oil processing volume for 2017 is 14.6 million tons, with a target production of 8.86 million tons of refined oil[126].