Jilin (NYSE:JCC)
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Jilin Chemical Industrial Company Limited Announces 2004 Interim
Results
JILIN CITY, China and HONG KONG, July 28 /Xinhua-PRNewswire-FirstCall/ -- Jilin
Chemical Industrial Company Limited (the "Company") (NYSE: JCC; HKSE: 0368)
announced its unaudited results for the six months ended June 30, 2004,
prepared under the International Financial Reporting Standards.
Turnover for the six months ended June 30, 2004 was approximately RMB13,730
million (approximately US$1659 million) representing an increase of 147.9 per
cent as compared with the first six months of 2003. Net profit amounted to
approximately RMB606 million (approximately US$73 million). Earnings per share
for the six months ended June 30, 2004 was RMB0.17 (approximately US$0.02).
The board of directors of the Company has resolved not to declare any interim
dividend for the six months ended June 30, 2004.
During the first half of 2004, guided by the principles set down at the
beginning of the year, that is, "strict and micro management", the Company
ensured that the work safety and implementation of its goal was its principal
responsibility. The Company seized the opportunity afforded by a rise in the
price of its products, to further enlarge production output and sales and
strengthen financial management. Together with the reduction in costs, the
Company has been able to succeed in various projects and the Company's profile
have continued to rise and the major technical and economic targets have
reached their historical high.
For the first half of 2004, in accordance with PRC GAAP, actual realized sales
revenue from the sale of the Group's petroleum products was RMB6,431.75
million, which accounted for 51% of the revenue from principal business
activities and the requisite cost of sales was RMB6,132.24 million, with a
gross profit margin of 5%; actual realized sales revenue from the sale of
petrochemical and organic chemical products was RMB5,062.35 million, which
accounted for 40% of the revenue from principal business activities and the
requisite cost of sales was RMB3,925.91 million, with a gross profit margin of
22%. Under IFRS, realized sales actual revenue from the sales of the Group's
petroleum products was RMB6,212.55 million which accounted for 45% of the
revenues; realized sales actual revenue from the sales of petrochemical and
organic chemical products was RMB5,493.96 million which accounted for 40% of
the revenues.
During the second half of 2004, the Company shall follow the overall
arrangements and rate of progress set down at the beginning of the year,
overcoming all adverse factors and ensuring the further implementation of
various projects. To achieve this, the Company is fully committed to strengthen
its safe production management methods so as to ensure its production
facilities run safely, reliably and at full capacity. The Company shall ensure
that all hidden dangers be eliminated and further improve production methods,
product mix and capital resources through the observance of market forces. The
Company shall optimize the allocation of resources; secure the procurement of
raw materials and fuel in large quantities (which include crude oil, Russian
crude oil and coal) in order to ensure maximum economies of scale, and further
enhance efficiency and development potentials. The Company aims to maximize
both the national and overseas resources, to expand the size of its market and
raise the competitiveness of its products. Through strengthening of its
financial management and strictly implementing its internal controls for
financial management purposes, the Company aims to further reduce the
proportion of interest bearing borrowings and efficiently deploy its capital.
The Company expects the processing capacity for crude oil to reach over 3
million tons in the second half of 2004. Subject to crude oil prices not
increasing at a significant level and the petrochemical market remaining
relatively stable, the Company shall endeavour to increase its profiles to 200%
to 250% for the nine months ending September 30th, 2004 as compared to the same
period in 2003.
* In this statement, amounts in Renminbi have been converted into United
States dollars at the rate of US$1.00=RMB8.2766, as announced by the
People's Bank of China as of June 30, 2004.
For further information, please contact:
Mr. Li Chunqing Tel: (86) 432-390 3651
Jilin Chemical Industrial Company Limited Fax: (86) 432-302 8126
E-mail:
Ms. Gladys Lee Tel: (852) 2838 1162
Fortune China Public Relations Ltd. Fax: (852) 2834 5109
E-mail:
Unaudited Consolidated Interim Condensed Profit And Loss Account
(Prepared under IFRS)
For The Six Months Ended 30th June, 2004
(RMB thousands except for per share data)
Six months ended 30th June,
2004 2003
Notes RMB RMB
Turnover 2 13,729,975 9,282,866
Cost of sales (12,615,949) (8,527,355)
Gross profit 1,114,026 755,511
Distribution costs (16,076) (14,910)
Administrative expenses (306,330) (253,128)
Other operating expenses, net (62,364) (6,629)
Operating profit 3 729,256 480,844
Interest expense 4 (152,934) (236,587)
Interest income 585 2,606
Exchange loss (3,892) (8,632)
Exchange gain 6,926 548
Share of profit of a
jointly controlled entity 12,559 2,825
Share of profit/(loss)
of an associated company 1,005 (223)
Profit before taxation 593,568 241,381
Taxation -- --
Profit before minority interests 593,568 241,381
Minority interests 12,786 1,462
Profit attributable to shareholders 606,354 242,843
Basic and diluted earnings per share 5 RMB 0.17 RMB 0.07
Dividend 6 -- --
Notes To The Unaudited Consolidated Interim Condensed Financial
Statements
For The Six Months Ended 30th June, 2004
(Amounts in thousands unless otherwise stated)
1. Accounting Policies
The unaudited consolidated interim condensed financial statements are
prepared in accordance with IAS 34 "Interim Financial Reporting". The
accounting policies used in the preparation of the consolidated
interim condensed financial statements are consistent with those used
in the preparation of the financial statements for the year ended 31st
December, 2003.
Costs that incur unevenly during the financial year are anticipated or
deferred in the interim report only if it would also be appropriate to
anticipate or defer such costs at the end of the financial year.
Income tax expense is recognised based on the best estimate of the
weighted average annual income tax rate expected for the full
financial year. The estimated weighted average annual tax rate used
for the six-month period from 1st January, 2004 to 30th June, 2004 is
33% (the estimated weighted average tax rate used for the six-month
period from 1st January, 2003 to 30th June, 2003 was 33%).
The Group did not recognize deferred income tax assets in respect of
tax losses at this point of time because management did not think it
is probable that taxable profits will be available against which the
deferred tax asset can be utilized.
These unaudited consolidated interim condensed financial statements
should be read in conjunction with the 2003 annual financial
statements where the accounting policies are described in more detail.
The results of operation for the six months ended 30th June, 2004 are
not necessarily indicative of the results to be expected for the full
year ending 31st December, 2004.
2. Segment Information
Six months ended 30th June, 2004
Petro- Chemical
chemical fertilisers Other
and organic and Synthetic products
Petroleum chemical inorganic rubber and
products products products products services Total
RMB RMB RMB RMB RMB RMB
Revenues 6,212,553 5,493,959 616,306 800,349 606,808 13,729,975
Segment
results (93,733) 818,966 (91,967) 172,965 (76,975) 729,256
Finance costs,
net (149,252)
Share of profit
of a jointly
controlled entity -- 12,559 -- -- -- 12,559
Share of profit
of an associated
company -- -- -- -- 1,005 1,005
Profit before
taxation 593,568
Six months ended 30th June, 2003
Petro- Chemical
chemical fertilisers Other
and organic and Synthetic products
Petroleum chemical inorganic rubber and
products products products products services Total
RMB RMB RMB RMB RMB RMB
Revenues 4,021,317 3,939,206 67,166 533,830 721,347 9,282,866
Segment results 26,321 369,918 (37,652) 137,885 (15,628) 480,844
Finance costs,
net (242,065)
Share of profit
of jointly
controlled
entities -- 2,825 -- -- -- 2,825
Share of loss
of an
associated
company -- -- -- -- (223) (223)
Profit before
taxation 241,381
All assets and operations of the Group are located in the PRC, which is
considered as one geographic location in an economic environment with similar
risks and returns. Accordingly, no geographic segment information is presented.
3. Operating Profit
The following items have been charged/(credited) to operating profit during the
period:
Six months ended 30th June,
2004 2003
RMB RMB
Depreciation of property, plant and equipment 501,375 449,636
Loss on disposal of property,
plant and equipment 34,158 1,200
Provision for impairment of property,
plant and equipment 19,814 --
Provision for impairment of intangible assets 6,698 --
Provision for impairment of receivables
(included in "administrative expenses") 22,533 31,859
Provision/(reversal) of diminution
in value of inventories 79,169 (393)
Amortisation of intangible assets 61,562 39,048
Research and development expenditure 192 1,200
Employee compensation costs 497,520 310,800
Operating lease rentals on land and buildings 4,320 5,251
Repair and maintenance 304,285 131,981
4. Interest Expense
Six months ended 30th June,
2004 2003
RMB RMB
Interest expense 152,934 260,022
Less: Amount capitalised -- (23,435)
152,934 236,587
5. Basic And Diluted Earnings Per Share
Basic and diluted earnings per share for the six months ended 30th June, 2004
have been computed by dividing the profit attributable to shareholders of RMB
606,354 (2003: profit attributable to shareholders of RMB 242,843) by the
number of 3,561,078,000 shares issued and outstanding for the period.
6. Dividend
The directors do not recommend the payment of an interim dividend for the six
months ended 30th June, 2004 (2003: nil).
DATASOURCE: Jilin Chemical Industrial Company Limited
CONTACT: Mr. Li Chunqing of Jilin Chemical Industrial Company Limited,
+86-432-390-3651, or fax: +86-432-302-8126, ; or Ms. Gladys
Lee of Fortune China Public Relations Ltd., +852-2838-1162,
or fax: +852-2834-5109,