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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
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COMMISSION FILE NUMBER: 001-13750
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JILIN CHEMICAL INDUSTRIAL COMPANY LIMITED
(Translation of registrant's name into English)
NO. 9, LONGTAN STREET
LONGTAN DISTRICT
JILIN CITY, JILIN PROVINCE
PEOPLE'S REPUBLIC OF CHINA
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----- -----
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): _______
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
----- -----
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82- _____.
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JILIN CHEMICAL INDUSTRIAL COMPANY LIMITED
FORM 6-K
TABLE OF CONTENTS
PAGE
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Signature 3
Third Quarterly Report for 2005, dated October 28, 2005 Exhibit
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
JILIN CHEMICAL INDUSTRIAL COMPANY LIMITED
Date: November 7, 2005
By: /s/ Yu Li
--------------------------
Name: Yu Li
Title: Chairman
EXHIBIT
JILIN CHEMICAL INDUSTRIAL COMPANY LIMITED
(CHINESE CHARACTERS)
(a joint stock limited company incorporated in the People's Republic of China
with limited liability)
(STOCK CODE: 0368)
THIRD QUARTERLY REPORT FOR 2005
Highlights of the results of the Company for the nine months ended 30 September
2005:
From 1 January to 30 September, 2005, the Company recorded sales revenue from
its principal operations of RMB23,129,520,751, representing an increase of
14.09% as compared with the corresponding period of the previous year, and a net
loss of RMB151,431,414.
This quarterly report of the Company is prepared in accordance with the
information disclosure requirement on quarterly report of listed companies
issued by China Securities Regulatory Commission and Shenzhen Stock Exchange.
All the financial information set out in this quarterly report has been prepared
in accordance with the applicable PRC accounting standards.
This quarterly report of the Company is unaudited.
This quarterly report of the Company is published pursuant to the disclosure
obligation under Paragraph 2(2) of the Listing Agreement between the Company and
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 authenticity,
accuracy and completeness of the information contained in this
quarterly report and believes that there are no misrepresentations,
misleading statements or material omissions contained in this
quarterly report.
1.2 No director stated that he (she) could not ensure the authenticity,
accuracy and completeness of the information contained in this
quarterly report or had objection of contents contained in this
quarterly report.
1.3 Director not attending the board meeting in person
DIRECTOR NOT ATTENDING REASON FOR DIRECTOR BY APPOINTED
IN PERSON NOT ATTENDING AS REPRESENTATIVE
Yu Li work Zhang Xingfu
Yang Dongyan work Zhang Xingfu
Xiang Ze work Zhang Xingfu
Jiang Jixiang work Zhang Xingfu
Zhou Henglong work Lu Yanfeng
Wang Peirong work Lu Yanfeng
Fanny Li work Lu Yanfeng
1.4 The third quarterly report of the Company is unaudited.
1.5 The chairman, Yu Li, the chief financial officer (deputy chief
accountant), Zhang Liyan, and the head of the financial department,
Wang Chunxia, 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: Jilin Chemical H shares: Jilin Chemical
Stock Exchange Shenzhen Stock Hong Kong New York
Exchange Stock Exchange Stock Exchange
Stock code 000618 0368 JCC
SECRETARY TO THE BOARD SECURITIES MATTERS 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 jcic@jcic.com.cn
2.2 Financial Information
2.2.1 Major Accounting Figures and Financial Benchmarks
INCREASE/(DECREASE)
AS AT SEPTEMBER 30, 2005
AS AT AS AT COMPARED WITH
SEPTEMBER 30, 2005 DECEMBER 31, 2004 AS AT DECEMBER 31, 2004
------------------ ------------------ ------------------------
RMB RMB (%)
Total assets 12,919,163,712.00 14,392,756,371.00 -10.24%
Shareholder's equity
(excluding minority interests) 5,704,114,730.00 5,853,624,428.00 -2.55%
Net assets per share 1.60 1.64 -2.44%
Adjusted net assets per share 1.56 1.61 -3.11%
INCREASE/(DECREASE)
FROM DURING THE REPORTING
JANUARY 1, 2005 PERIOD COMPARED
DURING THE TO WITH THE SAME PERIOD OF
REPORTING PERIOD SEPTEMBER 30, 2005 LAST YEAR (%)
---------------- ------------------ -----------------------
Net cash flows from operating
activities -875,441,592.00 1,270,315,571.00 -160.61%
Earning per share -0.08 -0.04 -117.39%
Return on net assets (%) -4.83% -2.65% -116.21%
Return on net assets after
non-operating profit/loss (%) -4.21% -2.01% -114.03%
non-operating profit/loss Amounts
1. Loss on disposal of fixed assets 62,476,193.00
2. Net profit on disposal of
intangible assets -19,643,427.00
3. subsidy income
(value added tax return) -2,683,084.00
4. Loss on non-seasonal shut down 18,058,866.00
5. Write-back of asset
impairment provision -900,104.00
6. Other non-operating income -2,222,138.00
7. income tax credit -18,178,481.00
Total 36,907,825.00
2.2.2 Financial Statement
2.2.2.1 UNAUDITED BALANCE SHEETS
In Rmb Yuan
SEPTEMBER 30, 2005 December 31, 2004
----------------------------------- -----------------------------------
ASSETS GROUP COMPANY Group Company
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED) (Audited) (Audited)
CURRENT ASSETS
Cash and bank 15,543,241.00 14,058,077.00 14,629,219.00 11,819,321.00
Short-term investments
Notes receivable 1,819,488.00 1,819,488.00 10,545,237.00 9,456,637.00
Dividend receivable
Interest receivable
Accounts receivable 227,916,701.00 302,148,200.00 254,700,444.00 322,568,028.00
Other receivables 33,646,347.00 7,349,589.00 45,075,155.00 19,094,936.00
Advances to suppliers 163,882,111.00 160,498,274.00 376,959,411.00 376,874,901.00
Subsidy receivable
Inventories 2,213,371,330.00 2,163,709,900.00 2,606,053,383.00 2,566,518,007.00
Prepaid expenses 19,814,666.00 18,186,208.00 19,856,484.00 19,474,862.00
Long-term bond investments
maturing within one year
Other current assets
TOTAL CURRENT ASSETS 2,675,993,884.00 2,667,769,736.00 3,327,819,333.00 3,325,806,692.00
LONG-TERM INVESTMENTS
Long-term equity investments 125,925,225.00 163,355,454.00 99,139,594.00 169,469,728.00
Long-term bond investments
TOTAL LONG-TERM INVESTMENTS 125,925,225.00 163,355,454.00 99,139,594.00 169,469,728.00
Including: Consolidation difference
FIXED ASSETS
Fixed assets-cost 16,024,620,125.00 15,691,542,022.00 16,196,975,563.00 15,822,513,692.00
Less: Accumulated depreciation 7,293,596,941.00 7,150,806,487.00 6,719,916,853.00 6,545,147,557.00
Fixed assets-net book value 8,731,023,184.00 8,540,735,535.00 9,477,058,710.00 9,277,366,135.00
Less: Impairment of fixed assets 419,228,779.00 410,799,267.00 282,023,248.00 269,931,112.00
Fixed assets-net book amount 8,311,794,405.00 8,129,936,268.00 9,195,035,462.00 9,007,435,023.00
Construction materials 14,732,460.00 14,732,460.00 2,837,473.00 2,837,473.00
Construction in progress 141,824,709.00 141,824,709.00 42,555,665.00 42,555,665.00
Fixed assets pending disposal
TOTAL FIXED ASSETS 8,468,351,574.00 8,286,493,437.00 9,240,428,600.00 9,052,828,161.00
SEPTEMBER 30, 2005 December 31, 2004
----------------------------------- -----------------------------------
ASSETS GROUP COMPANY Group Company
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED) (Audited) (Audited)
INTANGIBLE AND OTHER ASSETS
Intangible assets 1,245,725,625.00 1,244,237,512.00 1,345,139,741.00 1,343,581,225.00
Long-term deferred expenses 110,674,349.00 110,674,349.00 64,648,462.00 64,648,462.00
Other long-term assets
TOTAL INTANGIBLE AND OTHER ASSETS 1,356,399,974.00 1,354,911,861.00 1,409,788,203.00 1,408,229,687.00
DEFERRED TAXES
Deferred tax assets 292,493,055.00 292,493,055.00 315,580,641.00 315,580,641.00
TOTAL ASSETS 12,919,163,712.00 12,765,023,543.00 14,392,756,371.00 14,271,914,909.00
CURRENT LIABILITIES
Short-term loans 2,132,160,000.00 2,087,520,000.00 2,918,970,000.00 2,874,330,000.00
Notes payable
Accounts payable 1,880,956,559.00 1,818,691,188.00 1,891,153,893.00 1,864,805,946.00
Advances from customers 1,993,171,128.00 1,982,845,552.00 2,137,105,902.00 2,119,941,248.00
Salaries payable 167,779,635.00 161,069,400.00 139,240,168.00 139,183,607.00
Welfare payable 74,945,260.00 61,969,868.00 57,854,011.00 48,261,501.00
Dividend payable
Taxes payable -106,287,532.00 -107,921,236.00 154,334,897.00 150,912,286.00
Other levies payable
Other payables 129,400,615.00 123,390,879.00 137,027,193.00 131,685,926.00
Accrued expenses 120,011,366.00 115,468,804.00 26,049,897.00 26,049,897.00
Provisions
Long-term liabilities due within
one year 145,321,576.00 145,321,576.00 167,105,430.00 167,105,430.00
Other current liabilities
TOTAL CURRENT LIABILITIES 6,537,458,607.00 6,388,356,031.00 7,628,841,391.00 7,522,275,841.00
LONG-TERM LIABILITIES
Long-term loans 553,007,385.00 553,007,385.00 682,499,114.00 682,499,114.00
Debentures payable
Payables due after one year
Special project payables
Other long-term liabilities 119,545,397.00 119,545,397.00 213,515,526.00 213,515,526.00
TOTAL LONG-TERM LIABILITIES 672,552,782.00 672,552,782.00 896,014,640.00 896,014,640.00
DEFERRED TAXES
Deferred tax liabilities
TOTAL LIABILITIES 7,210,011,389.00 7,060,908,813.00 8,524,856,031.00 8,418,290,481.00
MINORITY INTERESTS 5,037,593.00 14,275,912.00
SHAREHOLDERS' EQUITY
Share capital 3,561,078,000.00 3,561,078,000.00 3,561,078,000.00 3,561,078,000.00
Capital surplus 2,295,540,602.00 2,295,540,602.00 2,293,618,886.00 2,293,618,886.00
Statutory common reserve fund 699,270,943.00 693,730,248.00 701,442,717.00 693,730,248.00
Including: Statutory common
welfare fund 126,834,279.00 125,287,623.00 126,834,279.00 125,287,623.00
Accumulated losses -851,774,815.00 -846,234,120.00 -702,515,175.00 -694,802,706.00
Foreign exchange difference reserve
TOTAL SHAREHOLDERS' EQUITY 5,704,114,730.00 5,704,114,730.00 5,853,624,428.00 5,853,624,428.00
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 12,919,163,712.00 12,765,023,543.00 14,392,756,371.00 14,271,914,909.00
2.2.2.2 UNAUDITED PROFIT AND LOSS ACCOUNTS AND PROFIT
APPROPRIATION STATEMENTS FOR THE PERIOD FROM
JULY 1 TO SEPTEMBER 30, 2005
In Rmb Yuan
FROM JULY 1 TO From July 1 to
SEPTEMBER 30, 2005 September 30, 2004
----------------------------------- -----------------------------------
ITEMS GROUP COMPANY Group Company
(UNAUDITED) (UNAUDITED) (Unaudited) (Unaudited)
---------------- ---------------- ---------------- ----------------
1. SALES REVENUE 7,007,325,543.00 6,994,631,971.00 7,715,878,932.00 7,703,580,892.00
Less: Cost of sales 6,862,767,315.00 6,847,773,851.00 6,055,172,908.00 6,044,399,024.00
Sales tax and other levies 161,513,511.00 161,513,511.00 199,044,499.00 199,044,499.00
2. GROSS PROFIT ON SALES -16,955,283.00 -14,655,391.00 1,461,661,525.00 1,460,137,369.00
Add: Other operating loss -39,248,199.00 -45,903,924.00 3,948,800.00 1,508,024.00
Less: Selling expenses 3,555,323.00 3,551,773.00 4,356,284.00 4,355,194.00
General and administrative
expenses 152,256,951.00 141,807,346.00 120,190,557.00 115,095,908.00
Financial expenses, net 382,832.00 -324,188.00 64,546,981.00 63,203,180.00
3. OPERATING (LOSS)/PROFIT -212,398,588.00 -205,594,246.00 1,276,516,503.00 1,278,991,111.00
Add: Investment income 3,315,236.00 -1,800,849.00 11,797,546.00 11,557,884.00
Subsidy income
Non-operating income 22,932,632.00 22,930,698.00 4,107,034.00 4,106,434.00
Less: Non-operating expenses 230,361,207.00 229,764,417.00 13,081,967.00 12,783,735.00
4. TOTAL (LOSS)/PROFIT -416,511,927.00 -414,228,814.00 1,279,339,116.00 1,281,871,694.00
Less: Income tax -138,840,849.00 -138,840,849.00 -366,500,820.00 -366,500,820.00
Minority interests -2,283,113.00 -2,532,578.00
add: unrecognized investment loss
5. (NET LOSS)/NET PROFIT -275,387,965.00 -275,387,965.00 1,648,372,514.00 1,648,372,514.00
Add: Accumulated losses at the
beginning of the period -578,558,624.00 -570,846,155.00 -2,671,187,298.00 -2,663,474,829.00
Transfer from other sources 2,171,774.00
6. ACCUMULATED LOSSES -851,774,815.00 -846,234,120.00 -1,022,814,784.00 -1,015,102,315.00
Less: Transfer to statutory common
reserve fund
Transfer to statutory common
welfare fund
Transfer to staff and workers'
bonus and welfare fund
Appropriation to Reserve Fund
Appropriation to Enterprise
Expansion Fund
Redemption of capital
7. ACCUMULATED LOSSES -851,774,815.00 -846,234,120.00 -1,022,814,784.00 -1,015,102,315.00
Less: Dividend for
preference stocks
Transfer to discretionary
common reserve fund
Dividend for common stocks
Dividend for common stocks
transferred to capital
8. ACCUMULATED LOSSES
AT THE END OF THE PERIOD -851,774,815.00 -846,234,120.00 -1,022,814,784.00 -1,015,102,315.00
SUPPLEMENTARY INFORMATION
1. Income from sale and
disposal of departments
or investees
2. Loss from natural catastrophe
3. Increase in total profit
resulting from change in
accounting policies
4. Increase in total profit
resulting from change in
accounting estimates
5. Loss from debt restructuring
6. Other
2.2.2.3 UNAUDITED PROFIT AND LOSS ACCOUNTS AND PROFIT
APPROPRIATION STATEMENTS FOR THE PERIOD FROM
JANUARY 1 TO SEPTEMBER 30, 2005
In Rmb Yuan
FROM JANUARY 1 TO From January 1 to
SEPTEMBER 30, 2005 September 30, 2004
----------------------------------- -----------------------------------
ITEMS GROUP COMPANY Group Company
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED) (Unaudited) (Unaudited)
1. SALES REVENUE 23,129,520,751.00 23,049,855,657.00 20,272,595,485.00 20,249,122,782.00
Less: Cost of sales 21,986,180,223.00 21,936,000,556.00 17,010,650,379.00 16,965,599,703.00
Sales tax and other levies 570,554,354.00 570,554,354.00 565,409,565.00 565,409,565.00
2. GROSS PROFIT ON SALES 572,786,174.00 543,300,747.00 2,696,535,541.00 2,718,113,514.00
Add: Other operating loss -96,981,354.00 -109,005,612.00 -35,648,241.00 -43,443,859.00
Less: Selling expenses 12,172,237.00 12,165,972.00 20,432,509.00 20,424,375.00
General and administrative
expenses 419,453,674.00 387,720,815.00 502,909,770.00 486,494,507.00
Financial expenses, net 82,305,426.00 80,468,675.00 213,879,720.00 209,564,865.00
3. OPERATING (LOSS)/PROFIT -38,126,517.00 -46,060,327.00 1,923,665,301.00 1,958,185,908.00
Add: Investment income 14,712,077.00 17,885,726.00 25,360,938.00 3,710,860.00
Subsidy income 2,683,084.00 2,683,084.00
Non-operating income 30,142,169.00 30,094,317.00 5,800,915.00 5,772,197.00
Less: Non-operating expenses 244,279,365.00 243,682,575.00 83,185,692.00 80,709,344.00
4. TOTAL (LOSS)/PROFIT -234,868,552.00 -239,079,775.00 1,871,641,462.00 1,886,959,621.00
Less: Income tax -87,648,361.00 -87,648,361.00 -366,500,820.00 -366,500,820.00
Minority interests 4,211,223.00 -15,318,159.00
add: unrecognized investment loss
5. (NET LOSS)/NET PROFIT -151,431,414.00 -151,431,414.00 2,253,460,441.00 2,253,460,441.00
Add: Accumulated losses at the
beginning of the period -702,515,175.00 -694,802,706.00 -3,276,275,225.00 -3,268,562,756.00
Transfer from other sources 2,171,774.00
6. ACCUMULATED LOSSES -851,774,815.00 -846,234,120.00 -1,022,814,784.00 -1,015,102,315.00
Less: Transfer to statutory common
reserve fund
Transfer to statutory common
welfare fund
Transfer to staff and workers'
bonus and welfare fund
Appropriation to Reserve Fund
Appropriation to Enterprise
Expansion Fund
Redemption of capital
7. ACCUMULATED LOSSES -851,774,815.00 -846,234,120.00 -1,022,814,784.00 -1,015,102,315.00
Less: Dividend for preference
stocks
Transfer to discretionary
common reserve fund
Dividend for common stocks
Dividend for common stocks
transferred to capital
8. ACCUMULATED LOSSES
AT THE END OF THE PERIOD -851,774,815.00 -846,234,120.00 -1,022,814,784.00 -1,015,102,315.00
SUPPLEMENTARY INFORMATION
1. Income from sale and disposal
of departments or investees
2. Loss from natural catastrophe
3. Increase in total profit
resulting from change in
accounting policies
4. Increase in total profit
resulting from change in
accounting estimates
5. Loss from debt restructuring
6. Other
2.2.2.4 UNAUDITED CASH FLOW STATEMENTS FOR NINE MONTHS ENDED
SEPTEMBER 30, 2005
In Rmb Yuan
FROM JANUARY 1 TO SEPTEMBER 30, 2005
--------------------------------------
ITEMS GROUP COMPANY
----------------- -----------------
(Unaudited) (Unaudited)
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sale of goods or rendering of services 27,168,919,596.00 26,994,491,512.00
Refund of tax 9,674,715.00 9,674,715.00
Cash received relating to other operating activities 4,111,878.00 3,771,092.00
SUB-TOTAL OF CASH INFLOWS 27,182,706,189.00 27,007,937,319.00
Cash paid for goods and services 23,970,744,321.00 23,890,087,648.00
Cash paid to and on behalf of employees 573,642,723.00 518,575,259.00
Payment of all types of taxes 1,288,711,815.00 1,261,887,014.00
Cash paid relating to other operating activities 79,291,759.00 77,046,512.00
SUB-TOTAL OF CASH OUTFLOWS 25,912,390,618.00 25,747,596,433.00
NET CASH FLOWS FROM OPERATING ACTIVITIES 1,270,315,571.00 1,260,340,886.00
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from sale of investments
Cash received from return of investments 24,000,000.00 24,000,000.00
Net cash received from disposal of fixed assets
and intangible assets 44,821,675.00 44,821,675.00
Cash received relating to other investing activities
SUB-TOTAL OF CASH INFLOWS 68,821,675.00 68,821,675.00
Cash paid to acquire fixed assets and other long-term
assets 178,911,875.00 171,915,874.00
Cash paid to acquire investments
Cash paid relating to other investing activities 2,172,466.00
SUB-TOTAL OF CASH OUTFLOWS 181,084,341.00 171,915,874.00
NET CASH FLOWS FROM INVESTING ACTIVITIES -112,262,666.00 -103,094,199.00
3. CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuing shares
Including: Cash received from minority shareholders
Proceeds from borrowings 6,237,780,000.00 6,237,780,000.00
Cash received relating to other financing activities
SUB-TOTAL OF CASH INFLOWS 6,237,780,000.00 6,237,780,000.00
Repayment of borrowings 7,269,835,712.00 7,269,835,712.00
Cash paid for interest expense 125,083,171.00 122,952,219.00
Including: Dividends paid to minority shareholders
Cash paid relating to other financing activities
SUB-TOTAL OF CASH OUTFLOWS 7,394,918,883.00 7,392,787,931.00
NET CASH FLOWS FROM FINANCING ACTIVITIES -1,157,138,883.00 -1,155,007,931.00
4. EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH
5. NET INCREASE IN CASH AND CASH EQUIVALENTS 914,022.00 2,238,756.00
SUPPLEMENTARY INFORMATION
1. RECONCILIATION OF (NET LOSS)/NET PROFIT TO CASH FLOWS
FROM OPERATING ACTIVITIES
(Net loss)/Net profit -151,431,414.00 -151,431,414.00
Add: Provision for impairment of assets 154,319,903.00 154,319,903.00
Depreciation of fixed assets 699,830,361.00 686,351,398.00
Amortization of intangible assets 81,677,543.00 81,607,140.00
Amortization of long-term deferred expenses 22,994,079.00 22,994,079.00
(Increase)/Decrease in prepaid expenses -76,279.00 1,288,654.00
Increase in accrued expenses 94,983,506.00 90,440,944.00
Gain on disposal of fixed assets -26,976,081.00 -26,976,081.00
Loss on scrapping of fixed assets 69,808,846.00 68,796,766.00
Financial expenses 124,061,134.00 121,930,182.00
Investment income -14,712,077.00 -17,885,726.00
Deferred tax credit 23,087,586.00 23,087,586.00
Decrease in inventories 392,012,453.00 402,808,107.00
Decrease in operating receivables 240,480,941.00 264,992,495.00
Decrease in operating payables -443,956,153.00 -461,983,147.00
Minority interests 4,211,223.00
Net cash flows from operating activities 1,270,315,571.00 1,260,340,886.00
1. RECONCILIATION OF (NET LOSS)/NET PROFIT TO CASH FLOWS FROM
OPERATING ACTIVITIES
2. INVESTING AND FINANCING ACTIVITIES THAT DO NOT INVOLVE
CASH RECEIPTS AND PAYMENTS
Purchase of fixed assets
Convertible bonds maturing within one year
Finance lease of fixed assets
3. NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash at the end of the period 15,543,241.00 14,058,077.00
Less: Cash at the beginning of the period 14,629,219.00 11,819,321.00
Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
NET INCREASE IN CASH AND CASH EQUIVALENTS 914,022.00 2,238,756.00
2.3 As at September 30, 2005, the total shareholders and the ten largest
shareholders of listed shares of the Company were as follows:
Total shareholders 56,481 shareholders
Information concerning the ten largest shareholders of listed share of
the Company
Name of shareholders Number of shares held (shares) Class
-------------------- ------------------------------ -------
HKSCC Nominees Limited 822,030,699.00 H-Shares
HSBC Nominees (Hong Kong) Limited 135,637,300.00 H-Shares
China Construction Bank - Shangtou Mogan China
Advantage Securities Investment Funds 5,652,677.00 A-Shares
China Merchants Bank Co., Limited
- Zhongxin Jingdian Peizhi Securities Investment Funds 2,364,934.00 A-Shares
Qiao Liang 1,400,000.00 A-Shares
Zhang Li 1,250,000.00 A-Shares
Huang Sujie 1,150,000.00 A-Shares
Zhao Ying 1,060,000.00 A-Shares
Sun Menglan 1,000,000.00 A-Shares
Zhang Chunlian 994,600.00 A-Shares
3. MANAGEMENT DISCUSSION AND ANALYSIS
3.1 Analysis of operating activities of the Company during the reporting
period
During the third quarter of 2005, the Company adopted effective
measures to ensure its production facilities operated in a safe and
stable manner and at full utilization rate, enlarged sales volume of
its high margin products, adjusted its product sales strategy in a
timely manner and controlled stringently on costs and expenses.
However, the Company recorded a loss due to the increase in the price
of crude oil to a high level which could not be offset by the increase
in the price of refined oil and the writing-off and provision for the
impairment of certain fixed assets. For the nine months ended
September 30, 2005, the Group had processed 5.07 million tons of crude
oil and recorded a sales revenue from principal operations of
approximately RMB23,129.52 million, representing an increase of 14.09%
as compared with the same period of 2004 and a net loss of
approximately RMB151.43 million. As at 30 September 2005, the
shareholders' equity was RMB5,704.11 million, representing decrease of
2.55% as compared with 31 December 2004.
3.1.1 Businesses or major products contributed more than 10% of the
Company's income or profits from principal operation
X Applicable Non-applicable
--- ---
in Rmb Yuan
INCOME FROM COST OF PRINCIPAL GROSS
BUSINESSES OR PRODUCTS PRINCIPAL OPERATION OPERATION PROFIT (%)
---------------------- ------------------- ----------------- ----------
Petroleum products 11,245,566,722.96 12,395,709,945.58 -10.23%
Petrochemical and organic
chemical products 10,106,866,626.00 8,042,476,795.49 20.43%
Of which: connected transaction 16,529,690,833.00 16,393,950,329.00 0.82%
3.1.2 Seasonal or periodic characteristics 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)
X Applicable Non-applicable
--- ---
in Rmb Yuan
FROM JULY 1, FROM JANUARY 1,
TO SEPTEMBER 30, 2005 TO JUNE 30, 2005
------------------------- -------------------------
AS A AS A
PERCENTAGE PERCENTAGE REASONS
OF TOTAL OF TOTAL CHANGE FOR
ITEMS AMOUNTS PROFIT (%) AMOUNTS PROFIT (%) IN RATIO CHANGE
----- ------------ ---------- ----------- ---------- -------- ------
Total (loss)/profit (416,511,927) 100.00 181,643,375 100.00 - -
(Loss)/profit from
principal operation (16,955,283) 4.07 589,741,457 324.67 (320.60) Note 1
Loss from other operations (39,248,199) 9.42 (57,733,155) (31.78) 41.20 -
Expenses during
the reporting period 156,195,106 (37.50) 357,736,231 196.94 (234.44) Note 2
Investment income 3,315,236 (0.80) 11,396,841 6.27 (7.07) -
Subsidy income - - 2,683,084 1.48 - -
Non-operating income
and expenses, net 207,428,575 (49.80) 6,708,621 3.69 (53.49) -
Notes:
1. The decrease of the profit from principal operation as
percentage of the total profit is attributable to the
increase of cost of raw material as a result of the increase
in the price of crude oil.
2. The decrease of expenses during the reporting period as
percentage of the total profit is attributable to recording
a loss in the third 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 loss from the beginning to
the end of the next reporting period or significant changes as
compared with the same period of previous year, and the reason for
such change
X Applicable Non-applicable
--- ---
If the prices of refined oil and crude oil which are controlled by the
State remain unchanged in the future, it is expected that the Company
would record a loss of RMB approximately 600 million in 2005.
3.6 Amendment to the annual business plan or budget disclosed by the
Company
Applicable X Non-applicable
--- ---
3.7 Special commitment made by original shareholders of Non-circulation
during the period of Share Merge Reform and its implementation
Applicable X Non-applicable
--- ---
JILIN CHEMICAL INDUSTRIAL COMPANY LIMITED
YU LI
Chairman
Jilin, PRC
28th October, 2005
The Board of Directors of the Company comprises of:
Executive Directors: Yu Li, Zhang Xingfu, Li Chongjie
Non-executive Directors: Yang Dongyan, Xiang Ze, Ni Muhua, Jiang Jixiang
Independent non-executive Directors: Lu Yanfeng, Wang Peirong, Fanny Li,
Zhou Henglong
"Please also refer to the published version of this announcement in The
Standard"