The 2015 annual report of Hunan Kaimeite Gases Co. Ltd recorded a drastic decline in both revenue and profit for the company, largely due to its exposure to the plunging price of crude oil and related products.
Losses had been largely expected, after the company released its interim results last year and noted a significant loss in revenue and profit to date. Operating revenue had plunged to just RMB 27.6m ($4.3m) for the first six months of 2015, from RMB 124.8m ($19.6m) for the same period last year.
This trend was clearly sustained throughout the remainder of the year. Reported total revenue for the full year dropped 42% from RMB 261.9m ($40m) in 2014 to RMB 151.8m ($23.2m) in 2015. Operating profit fell drastically, down 447%, to a loss of RMB 68.12m ($10.4m) against the same period last year.
Net profit attributed to shareholders of the listed company dropped 244.6% from a profit of RMB 31.4m ($4.8m) in 2014 to a loss of RMB 45.5m ($6.9m) in 2015. The numbers get even worse if non-recurring gains and losses are deducted; net profit fell 276.7% to a loss of RMB 50.1m ($7.7m) compared with a profit of RMB 28.3m ($4.3m) in 2014.
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