FJC(SH:600802)2016-04-25 16:00Financial Performance - The company's operating revenue for 2015 was CNY 1,524,466,261.01, a decrease of 26.06% compared to CNY 2,061,836,155.10 in 2014[20]. - The net profit attributable to shareholders for 2015 was a loss of CNY 390,426,509.20, representing a decline of 887.51% from a profit of CNY 49,577,273.15 in 2014[20]. - The cash flow from operating activities for 2015 was CNY 108,423,482.34, down 63.27% from CNY 295,225,962.66 in 2014[20]. - The total profit amounted to -542.99 million yuan, a significant decline of 667.12% year-on-year[36]. - The company reported a net loss of ¥535,467,941.18, compared to a net profit of ¥73,046,517.27 in the previous year[176]. - The operating profit was negative at ¥-550,343,296.29, a significant decline from a profit of ¥70,478,294.69 in the prior year[176]. - The company reported a total comprehensive income loss of ¥523,210,481.18 for the period[190]. Assets and Liabilities - The total assets at the end of 2015 were CNY 5,046,524,982.85, a decrease of 6.59% from CNY 5,402,736,476.25 at the end of 2014[20]. - The total liabilities increased to CNY 3,211,085,016.77 from CNY 2,794,337,915.21, representing an increase of approximately 15%[174]. - The company's total assets as of December 31, 2015, amounted to CNY 5,046,524,982.85, a decrease from CNY 5,402,736,476.25 at the beginning of the year[169]. - The total equity attributable to shareholders decreased to CNY 957,691,158.73 from CNY 1,354,541,673.15, representing a decline of about 29.2%[171]. - The company's short-term borrowings increased to CNY 1,960,500,000.00 from CNY 1,814,500,000.00, an increase of approximately 8.0%[171]. Sales and Production - The average selling price of cement decreased by 14.42% year-on-year, with an average price of 270 RMB per ton, down 29 RMB from the previous year[35]. - The company's sales volume decreased by 14.34% year-on-year, reflecting the impact of reduced market demand and pricing pressures[35]. - The company produced 5.054 million tons of clinker and 6.618 million tons of cement, representing year-on-year declines of 19.41% and 13.12% respectively[36]. - Total sales of goods (cement and clinker) reached 6.708 million tons, a year-on-year decrease of 14.34%[36]. Management and Governance - The company has a strong emphasis on corporate governance with a diverse board of directors and independent members[138]. - The management team has extensive experience in the cement sector, which is expected to drive growth and profitability[137]. - The total remuneration for senior management in 2015 amounted to CNY 3.2914 million, including severance payments for departing executives[143]. - The company has not implemented any stock incentive plans for directors, supervisors, and senior management during the reporting period[140]. Industry Context and Risks - The cement industry in China faced a downturn, with a total production of 2.36 billion tons in 2015, a decline of 5.3% compared to the previous year, and industry profits dropped by 58%[30]. - The company has outlined various industry risks and countermeasures in the management discussion and analysis section of the report[6]. - The company anticipates a challenging year in 2016 due to excess capacity in the cement industry and declining demand from the real estate sector[71]. Cash Flow and Investments - Cash and cash equivalents decreased by 40.55% to 31,693.53 million, primarily due to insufficient net cash flow from operating activities to cover the combined net cash flow from investing and financing activities[54]. - The cash flow from investment activities improved by 8.17 million yuan, mainly due to reduced cash payments for fixed assets[49]. - The cash flow from financing activities resulted in a net outflow of -¥136,352,736.03, slightly better than -¥149,147,129.70 in the previous period[184]. Shareholder Information - The company did not distribute profits for the reporting period due to a loss in the parent company, and there are no plans for capital reserve conversion into share capital[80]. - The company has commitments from shareholders and related parties to not reduce their holdings of company stock during specified periods[81]. - The largest shareholder, Fujian Province Building Materials (Holding) Co., Ltd., holds 109,913,089 shares, accounting for 28.78% of total shares[122]. Environmental and Social Responsibility - The company invested over CNY 40 million in energy-saving and emission-reduction technology upgrades during the year[110]. - The total emissions for the year included 1,480 tons of dust, 872 tons of SO2, 406 tons of NOX, and 174,200 tons of CO2[111]. - The company utilized 1.165 million tons of mixed materials and 387,600 tons of industrial by-products, achieving a resource utilization tax rebate of CNY 3.5082 million[110].