XINJI ENERGY(SH:601918)2016-04-28 16:00Financial Performance - The company's audited net profit attributable to shareholders for 2015 was negative at -2,561,164,037.42 RMB, compared to -1,969,256,690.89 RMB in 2014, indicating a worsening performance [2]. - Operating revenue for 2015 decreased by 27.17% to 4,779,256,772.37 RMB from 6,562,499,638.24 RMB in 2014 [16]. - The basic earnings per share for 2015 was -0.989 RMB, a decline from -0.76 RMB in 2014 [17]. - The weighted average return on net assets was -46.00% in 2015, down from -25.59% in 2014 [17]. - The company reported a significant cash flow from operating activities net amount of -722,965,446.72 RMB for 2015, an improvement from -1,187,112,728.81 RMB in 2014 [16]. - The company’s net assets attributable to shareholders decreased by 35.75% to 4,308,171,378.89 RMB at the end of 2015 from 6,705,743,193.37 RMB at the end of 2014 [16]. - The company's net profit for 2015 was -2.56 billion RMB, reflecting a significant loss compared to the previous year [34]. - The average selling price of commercial coal decreased to 298.97 RMB/ton, down 76.19 RMB/ton from the previous year's price of 375.16 RMB/ton [36]. - The company reported a decrease in coal mining revenue of 27.55%, amounting to 4.44 billion RMB, due to reduced sales volume and lower prices [36]. - The company reported a significant reduction in collapse costs, which were CNY 255.612 million in 2015, down 69.40% from the previous year [44]. - The company's total costs for coal mining and washing amounted to CNY 51.148 billion in 2015, a decrease of 24.48% compared to the previous year [42]. - The company reported a net profit attributable to ordinary shareholders of RMB 14,914,353.86 for 2013, with a profit distribution ratio of 86.85% [73]. Assets and Liabilities - The total assets increased by 5.40% to 30,455,566,739.68 RMB at the end of 2015, compared to 28,894,032,879.25 RMB at the end of 2014 [16]. - The company's total liabilities increased, with current liabilities due within one year rising by 78.27% to CNY 4.278 billion [52]. - The company's total liabilities reached CNY 25,858,457,228.89, up from CNY 21,919,959,323.30, indicating an increase of about 18.4% [149]. - The total equity attributable to shareholders decreased to CNY 4,308,171,378.89 from CNY 6,705,743,193.37, a decline of approximately 35.7% [150]. - The company's long-term borrowings increased significantly to CNY 10,965,763,436.60 from CNY 7,976,874,536.60, reflecting a rise of about 37.3% [149]. - The company's total current liabilities rose to CNY 9,241,884,125.29 from CNY 7,110,092,700.27, an increase of 30% [154]. Production and Operations - The company achieved a total production capacity of 23.95 million tons per year across its operational mines as of the end of 2015 [26]. - The company produced 14,808,538 tons of thermal coal and sold 14,860,301 tons, resulting in a sales revenue of 44.43 million and a sales cost of 50.68 million, leading to a gross loss of 6.25 million [55]. - The company has two mines under construction with a combined capacity of 800,000 tons per year, contributing to future production growth [26]. - The company’s coal resource reserves stood at 8.13 billion tons, accounting for approximately 7% of the total reserves in East China [29]. - In 2015, the company produced 18.58 million tons of raw coal and sold 14.86 million tons of commercial coal, generating operating revenue of 4.78 billion RMB, a decrease of 27.17% compared to the previous year [34]. Cost Management and Efficiency - The company successfully reduced costs by CNY 1.577 billion in 2015 through various internal management measures [32]. - The company achieved cost savings of 157.39 million RMB through 15 key technology and economic integration projects [33]. - The company implemented twelve operational control measures to enhance management efficiency and reduce non-productive expenditures [32]. - Labor costs in 2015 were CNY 1.939 billion, down 17.26% year-on-year, due to measures taken to optimize human resource allocation [43]. - Management expenses decreased by 24.88% to CNY 429.862 million in 2015, while sales expenses fell by 18.97% to CNY 60.700 million [45]. Strategic Initiatives and Future Outlook - The company aims to advance its transformation by focusing on three major industries: coal, electricity, and gas, with plans for new projects in the "13th Five-Year Plan" [33]. - The company anticipates significant challenges in 2016 due to structural oversupply in the coal market, increased competition from renewable energy sources, and regulatory pressures [64]. - The company is focusing on developing strategic industries and services to align with national strategies such as "Belt and Road" and "Made in China 2025" [96]. - The company plans to produce 16.02 million tons of raw coal and 13.65 million tons of commercial coal in 2016, with an expected power generation of 322,200 million kWh [66]. Governance and Compliance - The financial report was approved by the board of directors on April 27, 2016, ensuring compliance with corporate governance standards [185]. - The company has not identified any significant doubts regarding its ability to continue as a going concern within the next 12 months [188]. - The company adheres to the accounting standards for enterprises, reflecting its financial status, operational results, and cash flows accurately [189]. - The company has not experienced any non-standard audit reports during the reporting period [75]. Shareholder and Equity Information - The largest shareholder, State Development Investment Corporation, transferred 126,936,548 shares (4.9% of total shares) to China Ocean Shipping (Group) Company, maintaining its control with 30.31% of shares post-transfer [87]. - The total number of ordinary shareholders increased from 272,843 to 294,005 during the reporting period [92]. - The total remuneration for the chairman, Chen Pei, was CNY 592,700 during the reporting period [105]. - The total remuneration for all directors, supervisors, and senior management personnel during the reporting period amounted to 5.4105 million yuan [112]. Employee and Management Information - The total number of employees in the parent company is 13,724, while the total number of employees in major subsidiaries is 10,268, resulting in a combined total of 23,992 employees [115]. - The company implemented a salary reduction policy in 2015 due to declining performance, with management taking the lead in the reductions [116]. - The company has established a training program aimed at improving employee skills and safety, with a focus on safety management personnel and technical staff [117]. Financial Adjustments and Accounting Changes - The company made changes to accounting estimates that increased the total profit for 2015 by RMB 180,206,034.85 [76]. - The change in depreciation standards for mining buildings increased the current period's depreciation by CNY 5,286,915, reducing the total profit for 2015 by the same amount [77]. - The change in the amortization method for mining rights decreased the current period's amortization by CNY 16,705,670.94, increasing the total profit for 2015 by the same amount [77]. - The change in the amortization method for collapse compensation fees reduced the amortization by CNY 174,988,693.74, increasing the total profit for 2015 by the same amount [77].