JINNIU CHEMICAL(SH:600722)2016-03-22 16:00Financial Performance - In 2015, the company's operating revenue was CNY 600,026,066.11, a decrease of 57.38% compared to CNY 1,407,825,411.60 in 2014[14]. - The net profit attributable to shareholders was CNY 244,449,588.22, a significant recovery from a loss of CNY 311,968,323.40 in 2014[14]. - The company's total assets decreased by 61.42% to CNY 1,284,988,972.97 from CNY 3,330,996,760.13 in 2014[14]. - The net asset attributable to shareholders increased by 40.04% to CNY 855,318,619.31 from CNY 610,778,307.99 in 2014[14]. - The basic earnings per share for 2015 was CNY 0.3593, compared to a loss of CNY 0.4586 in 2014[15]. - The weighted average return on equity was 33.35% in 2015, a significant improvement from -40.66% in 2014[15]. - The net cash flow from operating activities was negative at CNY -38,746,526.61, a decline of 130.84% from CNY 125,657,345.21 in 2014[14]. - The company reported a net profit attributable to shareholders of RMB 244,449,588.22 for the year 2015, a significant recovery from a loss of RMB 311,968,323.40 in 2014[76]. - The company reported a significant decrease in related party transactions, with a total of 41,310.00 thousand compared to 7,426.20 thousand in the previous year, primarily due to major asset restructuring[96]. Asset Management - The company disposed of its PVC-related assets, which effectively improved its profitability and sustainability[27]. - The company's total assets decreased significantly, with fixed assets down by 65.43% to ¥365,937,547.17 due to major asset disposal[55]. - The total non-current assets decreased to CNY 392,392,200.19 from CNY 2,439,398,084.47, reflecting asset divestitures or impairments[170]. - The company has undergone a significant asset sale, shifting its main business focus from PVC and methanol production to solely methanol production and sales[69]. - The company has committed to ensuring that no illegal occupation of its funds or assets occurs by its controlling shareholders[86]. Revenue and Cost Management - The company's operating costs decreased by 61.94% to CNY 548,221,710.59, indicating improved cost management[32]. - The company's revenue from the chemical industry was approximately CNY 350.55 million, with a gross profit margin of 1.56%, reflecting a year-over-year decrease of 68.96% in revenue and 71.85% in cost[35]. - The methanol business generated sales revenue of CNY 346.75 million, with a gross profit margin of 1.34%, an increase of 305% compared to the previous year[36]. - The production volume of methanol was 203,260 tons, with a sales volume of 204,635 tons, representing a year-over-year increase of 11.04% in production and 12.10% in sales[38]. - The company's trade revenue from resin products was CNY 19.75 million, with a gross profit margin of 1.97%, indicating a slight profit[35]. Investment and Financing - The investment income for the year was CNY 422,124,227.88, a substantial increase of 7,058.15% compared to the previous year[32]. - The company committed to invest RMB 1.6 billion to subscribe for a non-public offering of up to 25.89 million A-shares at a price of RMB 6.18 per share[78]. - Total cash generated from investment activities was ¥440,657,287.61, while cash used was -¥449,830,256.12, indicating significant asset sales[50]. - The net cash flow from investment activities was 440,657,287.61 RMB, a significant improvement from -449,830,256.12 RMB in the previous period, indicating successful investment strategies[183]. Corporate Governance - The company ensured that its operations and management remain independent from its controlling shareholders and related parties[82]. - The company established an independent financial department and accounting system to maintain financial independence[82]. - The company has committed to maintaining independent banking accounts and financial personnel, ensuring compliance with tax regulations[82]. - The independent auditor issued a standard unqualified opinion on the company's internal control audit for 2015, confirming effective financial reporting controls[161]. - The company has been actively improving its governance structure in compliance with relevant laws and regulations since April 2007[147]. Market Position and Competition - The company faces increased competition from low-cost methanol producers in the northwest region, impacting its sales in Shandong and Henan[58]. - The company's methanol market share declined from 0.37% in 2013 to 0.30% in 2015, with stable production levels[57]. - The average price of methanol decreased from CNY 2,600 per ton in 2013 to CNY 1,900 per ton in 2015, while the procurement price of coke oven gas fell from CNY 0.57 per cubic meter in 2013 to CNY 0.39 per cubic meter in 2015[59]. Employee and Management Structure - The total number of employees in the parent company was 26, while the total number of employees in major subsidiaries was 165, resulting in a total of 191 employees[141]. - The company implements a performance-based salary system, linking salary to performance assessments[142]. - The total remuneration for all directors, supervisors, and senior management was 1.8461 million yuan[138]. - The management team includes individuals with significant experience in the energy sector, which may contribute to strategic decision-making[134]. Environmental and Social Responsibility - The company actively fulfilled its social responsibilities, ensuring no major safety or environmental accidents occurred during the reporting period[102]. - The company achieved a zero inventory target for hazardous waste by transferring and disposing of remaining hazardous waste materials[103]. - The company participated in environmental training and applied for permits related to hazardous waste disposal, demonstrating compliance with environmental regulations[103].