Jilin Chemical Industrial Company Limited Announces Resolutions Passed at the Board Meeting
October 28 2005 - 9:46AM
PR Newswire (US)
HONG KONG, Oct. 28 /Xinhua-PRNewswire/ -- The board of directors of
Jilin Chemical Industrial Company Limited (the "Company") (HKSE:
368, NYSE: JCC) held a meeting on October 28, 2005 at No. 9 Longtan
Street, Longtan District, Jilin City, Jilin Province, China to
approve the third quarterly report for 2005 of the Company. The
Company's quarterly financial statements prepared under PRC GAAP
were unaudited. 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 operation of approximately RMB
23,129.52 million, representing an increase of 14.09% as compared
with the same period of 2004 and a net loss of approximately RMB
151.43 million. As at 30 September 2005, the shareholders' equity
was RMB 5,704.11 million, representing decrease of 2.55% as
compared with 31 December 2004. During the third quarter of 2005,
the Company adopted effective measures to ensure its production
facilities operating 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 disposals and provisions for the
impairment of certain fixed assets. 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
approximately 600 million in 2005. The Company is one of the
largest producers of basic chemical and chemical raw materials, and
one of the largest diversified chemical enterprises in the PRC. Its
primary business consists of the production of petroleum products,
petrochemical and organic chemical products, synthetic rubber
products, chemical fertilizers and other chemical products. This
press release contains statements of a forward-looking nature.
These statements are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. You can
identify these forward- looking statements by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. The accuracy of
these statements may be impacted by a number of business risks and
uncertainties that could cause actual results to differ materially
from those projected or anticipated, including risks related to:
the risk that the PRC economy may not grow at the same rate in
future periods as it has in the last several years, or at all,
including as a result of the PRC government's macro-economic
control measures to curb over-heating; uncertainty as to global
economic growth in future periods; the risk that prices of the
Company's raw materials, particularly crude oil, will continue to
increase but that the Company may not be able to raise its prices
accordingly which would adversely affect the Company's
profitability; the risk that new marketing and sales strategies may
not be effective; the risk that fluctuations in demand for the
Company's products may cause the Company to either over-invest or
under-invest in production capacity in its major production
categories; the risk that investments in new technologies and
development cycles may not produce the benefits anticipated by
management; the risk that the trading price of the Company's shares
may decrease for a variety of reasons, some of which may be beyond
the control of management; competition in the Company's existing
and potential markets; and other risks outlined in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company does not undertake any obligation to update this
forward-looking information, except as required under applicable
law. For further information, please contact: Jilin Chemical
Industrial Tel: (86) 432-390 3651 Company Limited Mr. Li Chunqing
Fax: (86) 432-302 8126 E-mail: Fortune China Public Tel: (852) 2838
1162 Relations Ltd. Ms. Nellie Chan Fax: (852) 2834 5109 E-mail:
DATASOURCE: Jilin Chemical Industrial Company Limited CONTACT: Mr.
Li Chunqing of Jilin Chemical Industrial Company Limited,
+86-432-390-3651, fax, +86-432-302-8126, , or Ms. Nellie Chan of
Fortune China Public Relations Ltd., +852-2838-1162, fax,
+852-2834-5109,
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