(A JOINT STOCK LIMITED COMPANY INCORPORATED IN THE PEOPLE'S REPUBLIC OF CHINA
WITH LIMITED LIABILITY)
(STOCK CODE: 0368)
ANNOUNCEMENT
FIRST QUARTERLY REPORT FOR 2005
Highlights of the results of the Company for the three months ended 31
March 2005:
From January 1 to March 31, 2005, the Company's turnover was
RMB8,317,490,103, representing an increase of 32% as compared with the
corresponding period of 2004, and net profit was RMB147,189,750,
representing a decrease of 43% as compared with the corresponding period
of 2004.
All the financial information set out in this quarterly report has been
prepared in accordance with the PRC accounting rules and regulations and
the applicable rules of the Shenzhen Stock Exchange of the PRC. The
Company's quarterly report is unaudited.
This announcement is made pursuant to the disclosure obligation under Rule
13.09(2) of the Rules Governing the Listing of Securities on the Stock
Exchange of Hong Kong Limited.
1. IMPORTANT NOTICE
1.1 The board of directors (the "Board") of Jilin Chemical Industrial
Company Limited (the "Company") and the directors collectively and
individually accepts full responsibility for the truthfulness,
accuracy and completeness of the information contained in this
quarterly report and warrant that there are no misrepresentations,
misleading statements in or material omissions from this quarterly
report.
1.2 The Company's directors Xu Fengli, Ni Muhua, Jiang Jixiang, Lan
Yunsheng, Fanny Li, Wang Peirong and Zhou Henglong did not attend
the board meeting. Directors Xu Fengli, Ni Muhua, Jiang Jixiang, Lan
Yunsheng appointed chairman Yu Li and independent directors Fanny
Li, Wang Peirong and Zhou Henglong appointed independent director Lu
Yanfeng, respectively, to attend the meeting and vote on their
behalf in respect of the resolutions considered at the meeting.
1.3 The first quarterly report of the Company is unaudited.
1.4 The chairman, Mr. Yu Li, the chief financial officer (deputy chief
accountant), Ms. Zhang Liyan, and the head of the financial
department, Mr. Liao Hongwei, accept full responsibility for the
truthfulness and completeness of the financial statements contained
in this quarterly report.
2. COMPANY PROFILE
2.1 GENERAL INFORMATION REGARDING THE COMPANY
ABBREVIATION A SHARES: H SHARES:
JILIN CHEMICAL JILIN CHEMICAL
Stock Exchange Shenzhen Stock Hong Kong Stock New York Stock
Exchange Exchange Exchange
Stock code 000618 0368 JCC
Secretary to Securities matters
the Board representative
Name Zhang Liyan Nil
Telephone 0432-3903651 3903652
Contact address No. 9 Longtan Street, Longtan District,
Jilin City, Jilin Province, PRC
Facsimile 0432-3028126
E-mail ZLY@jcic.com.cn
2.2 FINANCIAL INFORMATION
2.2.1 Major Accounting Figures and Financial Benchmarks
INCREASE/(DECREASE)
AS AT MARCH 31, 2005
AS AT AS AT COMPARED WITH AS AT
MARCH 31, 2005 DECEMBER 31, 2004 DECEMBER 31, 2004
RMB RMB (%)
Total assets 12,910,660,355.00 14,392,756,371.00 -10.30
Shareholder's equity (excluding minority interests) 6,000,814,178.00 5,853,624,428.00 2.51
Net assets per share 1.69 1.64 3.05
Adjusted net assets per share 1.66 1.61 3.11
INCREASE/
(DECREASE) DURING
THE REPORTING
FROM PERIOD COMPARED
DURING THE JANUARY 1, 2005 TO WITH THE SAME
REPORTING PERIOD MARCH 31, 2005 PERIOD OF LAST YEAR
(%)
Net cash flows from operating activities 826,670,511.00 826,670,511.00 83.91
Earning per share 0.04 0.04 -42.86
Return on net assets (%) 2.45 2.45 -4.88
Return on net assets after non-operating profit/loss (%) 2.50 2.50 -5.00
Note: non-operating profit/loss AMOUNTS
1. Net profit from disposal of fixed assets -2,653,943.00
2. Loss on non-seasonal shut down 8,147,692.00
3. Write-back of asset impairment provision -764,295.00
4. Other non-operating profit/loss -170,716.00
5 Net income tax expense -1,504,384.00
Total 3,054,354.00
2.2.2 Profit Statement
UNAUDITED PROFIT STATEMENT FOR THE PERIOD FROM JANUARY 1,
2005 TO MARCH 31, 2005 OF JILIN CHEMICAL INDUSTRIAL COMPANY
LIMITED
IN RMB YUAN
FROM FROM FROM FROM
JANUARY 1 TO JANUARY 1 TO JANUARY 1 TO JANUARY 1 TO
MARCH 31, 2005 MARCH 31, 2004 MARCH 31, 2005 MARCH 31, 2004
CONSOLIDATED CONSOLIDATED PARENT COMPANY PARENT COMPANY
ITEMS (Unaudited) (Unaudited) (Unaudited) (Unaudited)
1. INCOME FROM PRINCIPAL OPERATION 8,317,490,103 6,281,600,192 8,294,856,515 6,269,380,537
LESS: Cost of principal operation (7,655,435,483) (5,542,813,367) (7,635,701,898) (5,517,017,029)
Tax of principal operation and other levies (214,427,314) (196,580,779) (214,427,314) (196,580,779)
2. PROFIT FROM PRINCIPAL OPERATION 447,627,306 542,206,046 444,727,303 555,782,729
ADD: Other operating (Loss)/profit (37,607,988) (11,956,367) (37,386,234) (13,713,683)
LESS: Operating expenses (5,378,102) (12,181,041) (5,377,452) (12,174,927)
Administrative expenses (133,788,519) (131,571,573) (123,604,180) (126,547,736)
Financial expenses, net (51,411,413) (126,658,406) (50,081,814) (125,370,218)
3. OPERATING PROFIT 219,441,284 259,838,659 228,277,623 277,976,165
ADD: Investment income/(loss) 5,139,926 5,449,794 (3,875,378) (5,177,240)
Subsidy income 2,683,084 -- 2,683,084 --
Non-operating income 3,365,934 146,382 3,364,114 121,899
LESS: Non-operating expenses (8,936,663) (13,697,330) (8,936,663) (13,638,467)
4. TOTAL PROFIT 221,693,565 251,737,505 221,512,780 259,282,357
LESS: Income tax (74,323,030) -- (74,323,030) --
Minority interests (180,785) 7,544,852 -- --
5. NET PROFIT 147,189,750 259,282,357 147,189,750 259,282,357
2.3 AS AT MARCH 31, 2005, THE COMPANY HAD A TOTAL OF 65,722
SHAREHOLDERS.
As at March 31, 2005, the total shareholders and the top 10
shareholders of listed shares of the Company were as follows:
Total number of shareholders
as at March 31, 2005 65,722 shareholders
INFORMATION ON THE TOP 10 SHAREHOLDERS OF LISTED SHARES OF
THE COMPANY
NUMBER OF
LISTED SHARES
NAME OF SHAREHOLDERS CLASS HELD (SHARES)
HKSCC Nominees Limited H shares 821,672,699
HSBC Nominees (Hong Kong) Limited H shares 135,627,300
Industrial and Commercial Bank of China-Pu Feng
Securities Investment Funds A shares 3,694,432
Bank of China-Tong Sheng Securities Investment Funds A shares 3,692,197
Qiu Mingsheng A shares 2,542,569
Zhang Jiuru A shares 1,881,302
Qiao Liang A shares 1,450,000
Zhang Yufu A shares 1,272,800
Zhang Li A shares 1,250,000
Chen Shumei A shares 1,056,300
3. MANAGEMENT DISCUSSION AND ANALYSIS
3.1 ANALYSIS OF OPERATING ACTIVITIES OF THE COMPANY DURING THE REPORTING
PERIOD
For the three months ended March 31, 2005, the Company processed
1.73 million tons of crude oil, representing an increase of 11.2% as
compared with the corresponding period of 2004 and it recorded a
sale of products of approximately 2.17 million tonnes, representing
an increase of approximately 6.6% as compared with the corresponding
period of last year; an income from principal operations of
approximately RMB 8,317,490,103, representing an increase of
approximately 32% as compared with the corresponding period of last
year; a net profit of approximately RMB 147,189,750, representing a
decrease of approximately 43% as compared with the corresponding
period of last year; a shareholders' equity of approximately RMB
6,000,814,178, representing an increase of approximately 2.5% as
compared with that as at the December 31, 2004.
During the first quarter of 2005, the Company had adopted effective
measures to ensure the safe, stable, optimized and full operation of
its production facilities, to increase the sales of petrochemical
and synthetic rubber products and reduce the financial costs to
mitigate the adverse impact of the unfavorable factors. However, the
domestic price of the crude price had been increasing due to the
substantial increase in the international price of crude oil and the
rising range of the price of crude oil was higher than that of
gasoline and diesel oil in the PRC. As a result, the Company's net
profit decreased approximately 43% as compared with the
corresponding period of 2004.
3.1.1 Major operations or products accounting for more than 10% of
the Company's income or profits from principal operation
IN RMB
INCOME FROM COST OF GROSS PROFIT
OPERATIONS OR PRODUCTS PRINCIPAL OPERATION PRINCIPAL OPERATION (%)
Petroleum products 3,860,635,131.20 4,252,487,723.27 -10.15
Of which: connected transaction 3,731,366,104.00 4,105,137,034.00 -10.02
Petrochemical and organic chemical products 3,827,029,695.46 2,804,475,802.01 26.72
Including: connected transaction 2,136,481,824.00 1,486,262,798.00 30.43
3.1.2 Seasonal or cyclical nature of the Company's operation
|_| Applicable |X| Non-applicable
3.1.3 Profit composition during the reporting period (significant
changes of profit from principal operation, profit from other
operations, costs during the reporting period, investment
profit, subsidy income, and non-operating income and expenses
(net) as a percentage of the total profit as compared with
the previous reporting period and the reason for such
changes)
IN RMB
FORM JANUARY 1, TO FORM JANUARY 1, TO
MARCH 31, 2005 MARCH 31, 2004
AS A PERCENTAGE AS A PERCENTAGE CHANGE REASONS
ITEMS AMOUNTS OF TOTAL PROFIT AMOUNTS OF TOTAL PROFIT IN RATIO FOR CHANGE
(%) (%)
Total profit 221,693,565.00 100.00 251,737,505.00 100.00 -- --
Profit from principal
operation 447,627,306.00 201.91 542,206,046.00 215.39 -13.48 --
Profit/(loss) from
other operations -37,607,988.00 -16.96 -11,956,367.00 -4.75 -12.21 --
Expenses during the
reporting period 190,578,034.00 85.96 270,411,020.00 107.42 -21.46 Note
Investment income 5,139,926.00 2.32 5,449,794.00 2.16 0.16 --
Subsidy income 2,683,084.00 1.21 -- -- -- --
Non-operating income
and expenses, net -5,570,729.00 -2.51 -13,550,948.00 -5.38 2.87 --
NOTE: The decrease of expenses during the reporting period as
percentage of the total profits is attributable to the
reduction of interest expenses as a result of the
decrease of interest-bearing liabilities in the first
quarter.
3.1.4 Significant changes of principal operation and its structure
as compared with the previous reporting period and the reason
for such changes
|_| Applicable |X| Non-applicable
3.1.5 Significant change of profitability of principal operation
(gross profit margin) as compared with the previous reporting
period and the reason for such change
|X| Applicable (SEE 3.1) |_| Non-applicable
3.2 Analysis of significant events and its effects and solutions
|_| Applicable |X| Non-applicable
3.3 Changes of significant accounting policies, accounting estimates and
basis of preparation of the consolidated financial statements and
major differences arising from the application of different
accounting policies, and the reason for such changes
|_| Applicable |X| Non-applicable
3.4 Statement from the board of directors and supervisory committee
issued based on "unqualified opinion" on the audited financial
statements
|_| Applicable |X| Non-applicable
3.5 Warning in respect of forecast on possible accumulated loss from the
beginning of the year to the end of the next reporting period or
significant changes as compared with the corresponding period of
previous year, and the reason for such change
|_| Applicable |X| Non-applicable
3.6 Amendment to the annual business plan or budget disclosed by the
Company
|_| Applicable |X| Non-applicable
The Board of Directors of the Company comprises of :
EXECUTIVE DIRECTORS: YU LI, SHI JIANXUN, ZHANG XINGFU
NON-EXECUTIVE DIRECTORS: XU FENGLI, NI MUHUA, JIANG JIXIANG, LAN YUNSHENG
INDEPENDENT NON-EXECUTIVE
DIRECTORS: LU YANFENG, WANG PEIRONG, FANNY LI, ZHOU HENGLONG
By Order of the Board
YU LI
CHAIRMAN
Jilin, PRC
April 19, 2005