Wanhua Chemical releases 2014 annual net profit down 16.3%

China Coatings Network
:
Wanhua Chemical released its 2014 Annual Report on the evening of March 16. During the reporting period, the company achieved sales revenue of RMB22,088 million, 100% of the completion plan, an increase of 9.14% YoY; Realized net profit attributable to the parent company of RMB2.419 billion, a decrease of 16.33% YoY; Earnings per share were $1.12. The Company intends to pay a cash dividend (including tax) of 3 yuan per 10 shares to all shareholders.
said operating income rose 9.14% year-on-year, mainly due to an increase in sales of MDI, the main product, and an increase in sales of petrochemicals and other products such as polyethers. Sales of MDI, the company's main product, increased by 10.86 percent year-on-year, while sales of petrochemicals and other products such as polyethers increased by 31.13 percent year-on-year. However, as economic growth slowed, domestic MDI demand growth slowed sharply in 2014; Moreover, with the start-up of the new Wanhua Yantai plant, Baier Shanghai and BASF's Chongqing plant, China's MDI products will likely be oversupplied and the company's operations will face challenges.
company's product costs and sales costs increased by more than 10% year-on-year, and its financial expenses increased by 176.65 million yuan, or 68.55 percent, from a year earlier. The Company stated that the main reason was the non-exchange gains for the current period, resulting in an increase in financial expenses of $89.53 million over a year earlier; The increase in loans resulted in an increase in interest expense of $93.9 million over a year earlier. After the Ningbo subsidiary no longer meets the conditions of high-tech enterprises, the corporate income tax rate was adjusted from 15% to 25%, resulting in an increase of 291.08 million yuan, or 44.11%, in corporate income tax expenses.