HECHI CHEMICAL(SZ:000953)2016-05-03 16:00Financial Performance - The company's operating revenue for 2015 was ¥622,898,214.30, representing a 12.18% increase compared to ¥555,288,426.40 in 2014[17]. - The net profit attributable to shareholders in 2015 was -¥107,013,484.35, a significant decrease of 700.04% from ¥17,834,293.30 in 2014[17]. - The net cash flow from operating activities was -¥70,612,968.22, improving by 67.25% from -¥215,633,043.01 in 2014[17]. - Total assets at the end of 2015 were ¥1,409,691,989.86, down 11.54% from ¥1,593,601,321.16 at the end of 2014[17]. - The net assets attributable to shareholders decreased by 54.83% to ¥108,231,030.67 from ¥239,625,551.00 in 2014[17]. - The basic earnings per share for 2015 was -¥0.3639, a decline of 700.50% from ¥0.0606 in 2014[17]. - The weighted average return on equity was -57.50% in 2015, down 60.74% from 3.24% in 2014[17]. - The company reported a net loss of CNY 107 million, a decline of 700.04% year-on-year, but a significant reduction in loss of CNY 240 million when excluding non-recurring gains and losses[32]. - The total comprehensive income for the current period was -¥130,661,209.35, an improvement from -¥301,740,829.14 in the previous period[171]. Revenue and Sales - Urea products accounted for over 80% of the company's total operating revenue, with sales of urea reaching CNY 517.63 million, a decrease of 1.25% compared to the previous year[34]. - The company's revenue from the fertilizer industry reached ¥517,626,292.28, representing a year-on-year increase of 10.52%[37]. - Urea sales volume increased by 8.22% to 309,318.27 tons, while production volume rose by 28.81% to 346,347.54 tons[38]. - Operating cash inflows increased by 33.06% to ¥621,064,766.79, attributed to enhanced marketing strategies and increased urea sales[46]. Costs and Expenses - Operating costs decreased by 19.20% year-on-year, totaling CNY 735 million[32]. - The total operating costs decreased to ¥735,217,129.12 from ¥909,931,648.84, a reduction of about 19.16%[170]. - The company's financial expenses decreased by 26.24% to ¥49,394,761.43, primarily due to a reduction in financing rates[45]. - The company incurred financial expenses of ¥49,394,761.43, down from ¥66,967,523.61, reflecting a decrease of approximately 26.45%[170]. Inventory and Assets - The ending inventory of urea surged by 342.79% to 47,831.74 tons due to a sluggish market environment[38]. - The company reported a significant increase in inventory, with a total of 178.19 million yuan, representing 12.64% of total assets[50]. - The company's cash and cash equivalents dropped significantly from RMB 441,928,156.29 to RMB 259,903,820.99, a decrease of about 41.2%[167]. - The company's total assets amounted to CNY 541,536,666.88 at the end of the previous period[178]. Financing and Borrowing - The company experienced a significant increase in financing cash inflows by 230.21% to ¥1,764,366,000.00, mainly from loans obtained from related parties[46]. - Short-term borrowings increased by 190.60 million yuan, a growth of 58.90%, primarily due to new borrowings from related parties[50]. - The company borrowed a total of RMB 1.25 billion from related parties during the reporting period, with interest payments amounting to RMB 8.2154 million[92]. - The company plans to utilize the borrowed funds primarily for short-term financing needs and to ensure liquidity[90]. Market and Competition - The company faced challenges from a saturated fertilizer market and increased financing costs, impacting its overall financial performance[30]. - The urea market is expected to remain under pressure due to overcapacity and increased competition, with a 1.13% growth in China's urea production capacity in 2015 compared to 2014[63]. Corporate Governance and Shareholder Relations - The company conducted 72 investor communications, including 30 personal inquiries and 42 responses on the Shenzhen Stock Exchange interaction platform[67]. - The company has maintained a consistent governance structure with independent directors contributing to oversight and strategic direction[126]. - The company held three shareholder meetings during the reporting period, reviewing 25 proposals, ensuring equal rights for all shareholders, especially minority shareholders[140]. - The company has established a dedicated investor relations management system to ensure equal access to information for all investors[141]. Environmental and Social Responsibility - The company has implemented clean production practices and enhanced monitoring of wastewater and waste gas to support national energy-saving and emission-reduction efforts, ensuring compliance with environmental standards[103]. - The company has actively engaged in social responsibility initiatives, including increasing contributions to public welfare within its capacity[103]. - The company has established an emergency response plan for environmental pollution incidents, which has been filed with relevant authorities[103]. Employee and Management - The total number of employees in the company is 1,226, with 886 in production, 18 in sales, 112 in technical roles, 18 in finance, and 192 in administration[135]. - The company provides employees with benefits including "five insurances and one fund," paid leave, and training opportunities[136]. - The company has no stock incentive plans for directors, supervisors, and senior management during the reporting period[135]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern principle and comply with the relevant accounting standards[6]. - The company maintained a standard unqualified audit opinion for its financial statements, confirming compliance with accounting standards[160]. - The internal control evaluation report indicated that 100% of the total assets and operating income were included in the evaluation scope[155].