SMIC(SH:600810)2016-04-28 16:00Financial Performance - The company reported a negative distributable profit for 2014, resulting in no profit distribution for the year[4]. - The company's revenue for 2014 was approximately ¥9.54 billion, a decrease of 45.31% compared to ¥17.45 billion in 2013[29]. - Net profit attributable to shareholders for 2014 was ¥60.53 million, representing a 95.62% increase from ¥30.94 million in 2013[29]. - Basic earnings per share for 2014 was ¥0.14, a 100% increase compared to ¥0.07 in 2013[31]. - The total assets of the company at the end of 2014 were approximately ¥7.92 billion, an increase of 4.27% from ¥7.59 billion at the end of 2013[30]. - The weighted average return on equity for 2014 was 2.51%, an increase of 1.22 percentage points from 1.29% in 2013[31]. - The net cash flow from operating activities for 2014 was approximately ¥1.36 billion, a significant increase from ¥140.59 million in 2013[30]. - Non-recurring gains and losses for 2014 amounted to approximately ¥21.12 million, compared to ¥16.43 million in 2013[34]. - The company reported a decrease of 3.44% in net assets attributable to shareholders, totaling approximately ¥2.32 billion at the end of 2014[30]. - The diluted earnings per share for 2014 was also ¥0.14, reflecting the same growth as basic earnings per share[31]. - The company achieved a total profit of 92.64 million yuan, an increase of 5.4 million yuan compared to the same period last year[38]. - Operating revenue for the period was 9,542,727,616.60 yuan, a decrease of 45.31% from 17,448,108,296.12 yuan in the previous year[40]. Business Operations - The main business of the company now focuses on the production and sales of industrial yarns, tire cords, and plastic chips[23]. - The company no longer engages in the chlor-alkali business after selling its 99.81% stake in Henan Shenma Chlor-Alkali Development Co., Ltd. in 2013[23]. - The company acquired a 51% stake in Pingdingshan Shenma Engineering Plastics Co., Ltd. by purchasing 45.72% of shares and providing cash capital increase[23]. - The company has completed the procurement of all new equipment for the East Plant's industrial upgrade project, which is expected to enhance development potential[39]. - The company acquired a 51% stake in Pingdingshan Shenzhou Engineering Plastics Co., Ltd. to strengthen its nylon chemical industry chain[39]. - The production of industrial yarn was 58,092 tons, with sales of 55,865 tons, showing a slight decrease of 0.34% compared to the previous year[43]. - The company implemented lean management practices across various sectors, resulting in a noticeable reduction in costs[38]. - The company has established strategic partnerships with over 40 Fortune 500 companies and exports products to more than 30 countries and regions[141]. Research and Development - Research and development expenditure rose to 60,896,446.40 yuan, a 196.08% increase compared to 20,567,550.76 yuan last year[41]. - Total research and development expenditure amounted to 60,896,446.40, representing 2.36% of net assets and 0.64% of operating income[52]. - The company developed 30 new high-value-added products, with a 100% customer acceptance rate for 11 of them[65]. - The company completed the development of a new low-shrinkage head cloth, which improved product quality by reducing shrinkage rates[53]. - The company is focusing on enhancing its nylon product quality and efficiency through increased R&D efforts[85]. - The company is investing in research and development for new technologies, aiming to introduce at least two innovative products in the next year[150]. Financial Management - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6]. - The company has not violated any decision-making procedures in providing guarantees[7]. - The company has received a standard unqualified audit report from Asia Pacific (Group) CPA[3]. - The company reported a cash dividend of CNY 60,530,695.31 for 2014, maintaining its existing cash dividend policy without adjustments[93]. - The company’s financial expenses increased by 24.48% to 236,248,645.53, impacting overall profitability[50]. - The company reported a significant decrease in income tax expenses by 85.97% to 6,547,156.86, due to the reversal of deferred tax assets[50]. - The company’s investment activities generated a net cash flow of -266,914,259.47, primarily due to increased cash outflows for fixed asset purchases[55]. - The company’s total procurement from the top five suppliers was 67,485,800, accounting for 48.57% of total procurement[49]. - The company’s total liabilities amounted to ¥5,331,171,436.77, an increase from ¥5,009,950,945.42[199]. - Total equity attributable to shareholders of the parent company was ¥2,322,054,202.21, down from ¥2,404,810,259.91[199]. Market and Competition - The company is facing intense competition in the nylon industry, with prices under pressure due to increased domestic production capacity[84]. - The company anticipates that the demand for nylon engineering plastics and industrial yarns will continue to grow due to the rapid development of the automotive and high-speed rail industries in China[84]. - The company faces increasing competition in the Nylon 66 industry, prompting a strategic shift to Nylon 6 to enhance product quality and leverage unique advantages[87]. - The company holds a 25% share of the global nylon 66 industrial yarn and fabric market, with an 80% share in the domestic market[82]. Corporate Governance - The company has established a governance structure that complies with the Company Law and the Securities Law, ensuring independent operations and timely information disclosure[169]. - The company has not experienced any significant personnel changes in its core technology team that would impact its core competitiveness during the reporting period[159]. - The company has implemented a strategy to address related party transactions by adhering to market prices and regulatory requirements[182]. - The independent directors did not raise any objections to the board's proposals during the reporting period[178]. - The company maintains a clear separation from its controlling shareholder in terms of business operations, personnel, and financial management[181]. Future Outlook - The projected production for 2015 includes 59,000 tons of industrial yarn, 59,000 tons of dipped fabric, and 111,000 tons of chips, aiming for balanced production and sales[85]. - The expected revenue for 2015 is 12.2 billion RMB, with costs estimated at 11.4 billion RMB and expenses at 700 million RMB[85]. - The company plans to invest 56.18 million RMB in the "retreating city to park" project, with an expected annual revenue increase of 22.575 million RMB post-completion[81]. - The company has a total of 981 retired employees that incur expenses[161]. - The company plans to expand its market presence by increasing its production capacity by 20% in the next fiscal year[182]. - The company is committed to sustainability initiatives, with plans to reduce carbon emissions by 25% over the next five years[150].