SCC(SH:600740)2017-03-30 16:00Financial Performance - In 2016, the company achieved a net profit of CNY 45,525,265.75, with a net profit attributable to shareholders of CNY 44,216,440.78[5]. - The company's operating revenue for 2016 was CNY 4,038,150,179.24, representing a 19.97% increase compared to CNY 3,365,841,040.08 in 2015[20]. - The net assets attributable to shareholders at the end of 2016 were CNY 2,040,758,336.68, a 2.22% increase from CNY 1,996,368,209.22 in 2015[20]. - The total assets of the company as of the end of 2016 were CNY 10,708,790,916.39, reflecting a 1.01% increase from CNY 10,601,336,566.90 in 2015[20]. - The basic earnings per share for 2016 was CNY 0.0577, compared to a loss of CNY 1.0842 per share in 2015[22]. - The weighted average return on equity for 2016 was 2.19%, a significant recovery from -34.43% in 2015[22]. - The company reported a net cash flow from operating activities of CNY 1,136,762,846.91 in 2016, a substantial improvement from -CNY 719,122,947.40 in 2015[20]. - The board of directors proposed no profit distribution for the year due to a retained earnings deficit of CNY -1,206,824,522.78[5]. - The company’s net profit attributable to shareholders was CNY 44,216,400, showing a significant improvement in profitability[39]. - The company’s cash flow from operating activities was CNY 1,136,762,846.91, a substantial recovery from a negative cash flow in the previous year[41]. Production and Operations - The company produced 293.46 million tons of coke, completing 97.82% of the annual plan, and produced 21.02 million tons of methanol, completing 70.07% of the annual plan[39]. - The company has established a complete industrial chain for coal coking, including upstream coal resources and downstream processing facilities, enhancing its competitive edge[31]. - The company has a transportation capacity of 12 million tons per year through its dedicated railway lines, ensuring efficient logistics for production needs[32]. - The company is developing a 600,000 tons/year coal-to-olefins project, marking a significant transition from traditional coal chemical processes to modern coal chemical production[32]. - The company has implemented strict safety and environmental management practices, ensuring compliance with national regulations and improving operational stability[35]. - The company has a designed capacity of 353.6 million tons/year for coke production, with a capacity utilization rate of 83%[69]. - The company has a total of 340,000 tons per year for methanol from coke oven gas[92]. Market and Economic Environment - The domestic economy showed a GDP growth of 6.7% in 2016, with a notable increase in steel and coke consumption due to rising investment in construction and transportation[29]. - The price of coke increased significantly, with the highest rise in Shanxi province reaching 300% due to supply constraints from government policies aimed at reducing production capacity in the coal and steel industries[30]. - The company is facing dual competition from integrated coking enterprises and independent coking enterprises, leading to intensified competition in the market[81]. - The company is experiencing rising coke prices due to increased demand from the steel industry and rising coal prices since September 2016[76]. Research and Development - The company’s R&D expenditure increased by 660.06% to CNY 17,775,553.31, indicating a strong focus on innovation[42]. - The company applied for 6 patents in 2016, of which 2 have been authorized, and received 4 technical innovation awards from the China Coking Industry Association[65]. - The company has established an industrial technology innovation strategic alliance to enhance its comprehensive strength and competitiveness[64]. Environmental and Social Responsibility - The company has invested ¥18 million in environmental protection, accounting for 0.45% of its total revenue[78]. - The company completed environmental upgrades, significantly reducing emissions below national standards, with total COD emissions at 57.6 tons and ammonia nitrogen at 1.49 tons[113]. - The company has engaged in poverty alleviation efforts, with a total investment of 42.85 million RMB in 2016[110]. - The company has organized material donation activities and winter clothing donations for the needy[108]. Governance and Shareholder Relations - The company has established a governance structure comprising a shareholders' meeting, board of directors, and supervisory board[194]. - The company has actively engaged in communication with investors through multiple channels to ensure transparency[113]. - The total remuneration for directors, supervisors, and senior management amounted to 4.241 million yuan[140]. - The company has maintained a stable shareholding structure, with no changes in shareholdings for key executives during the reporting period[131]. Financial Position and Liabilities - The company's total liabilities were CNY 8,087,892,749.25, slightly up from CNY 8,026,137,352.19, indicating a year-over-year increase of about 0.76%[161]. - The total current liabilities increased to CNY 6,505,933,130.47 from CNY 5,615,802,438.17, reflecting an increase of about 15.79%[161]. - The company reported a net loss of CNY 1,206,824,522.78 in retained earnings, slightly improved from a loss of CNY 1,251,040,963.56 at the beginning of the year[162]. - The non-current liabilities decreased to CNY 1,581,959,618.78 from CNY 2,410,334,914.02, representing a significant decline of approximately 34.47%[161]. Future Outlook - The company plans to produce 3 million tons of coke, process 300,000 tons of tar, 100,000 tons of crude benzene, and 225,000 tons of methanol in 2017, with a projected annual revenue of ¥6 billion[84]. - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year[135]. - The company plans to adjust its industrial structure in line with national policies, extending into fine processing of related chemical products to increase product added value[87].