Qinghai Salt Lake Industry Co., Ltd. (000792), released its preliminary financial performance report for 2017 on the cninfo.com.cn website on Tuesday.
This forecast covers the period from January 1, 2017 to December 31, 2017, and shows a net loss in its business operation.
According to this unaudited financial report, this company suffered losses in 2017, which were between RMB 3.54 billion and RMB 4.525 billion, a sharp contrast to the amount of RMB 341.2647 million as profits attributable to shareholders in 2016.
Correspondingly, earnings per share shows a loss ranging from RMB 1.62 to RMB 1.2, as opposed to a profit of RMB 0.1837 in 2016.
The earnings per share is calculated on the basis of increased share capitals. This company currently has a total of 2,786,090,601 shares, up from 1,857,393,734 after it adopted a new profit distribution plan for the year of 2016 on June 16, 2017.
This report explained the causes leading to such volatility in its business performance.
Impairment of assets is the most significant factor. Sustained losses occurred at a multi-purpose chemical project, a PVC integrated project, an ADC integrated project, and a magnesium metal integrated project, due to their prolonged construction cycles, massive investments, or high production costs.
Two of its subsidiaries suffered increased business losses in 2017, due to fixed asset transfers and deprecations, loan interests, suppressed production activities, high production costs, and factory downtime.
Also, its sales of potassium chloride dropped by 266,000 tons last year.
In 2017, this company gained RMB 248.879 million from the settlement of equities it held in a Shanghai real estate company.
The final fiscal data will be available in its annual report for 2017 to be published later.
A provincial-level state-owned enterprise based in the northwestern province of Qinghai, Qinghai Salt Lake Industry Co., Ltd. manufactures chemical raw materials and chemical products. It is the largest potassic fertilizer producer in China.
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