Financial Performance - In 2013, the company achieved a net profit of CNY 14,189,829.70, a decrease of 80.15% compared to CNY 71,475,855.71 in 2012[29] - The company's operating revenue for 2013 was CNY 5,714,948,279.62, down 3.84% from CNY 5,943,455,417.86 in 2012[29] - Basic earnings per share (EPS) fell to CNY 0.03 in 2013, a decline of 78.57% from CNY 0.14 in 2012[27] - The weighted average return on equity decreased to 0.62% in 2013, down 2.49 percentage points from 3.11% in 2012[27] - The net cash flow from operating activities was negative CNY 226,347,734.17 in 2013, a significant decline from a positive CNY 164,594,922.01 in 2012[29] - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of negative CNY 18,692,051.33 in 2013, compared to a profit of CNY 48,705,172.72 in 2012, marking a decline of 138.38%[29] - The company's net profit attributable to shareholders was CNY 14.19 million, down 80.15% year-on-year[34] - The company reported a significant increase in accounts receivable by 84.39% to CNY 105,940,695.29, attributed to increased sales by subsidiaries[47] - The company reported a net loss of CNY 15,963,138.72 for Jiangxi Liuguo Chemical Co., Ltd., which is a 51% owned subsidiary[55] Revenue and Sales - In 2013, the company's main business revenue was CNY 5.71 billion, a decrease of 3.84% compared to CNY 5.94 billion in 2012[37] - The average price of urea in the market was CNY 1,920 per ton, marking a year-on-year decline of 13.4%[32] - The company sold 75,000 tons of controlled-release fertilizers in 2013, doubling the sales volume from 2012[33] - The total revenue for diammonium phosphate was CNY 1,972,179,573.61, with a gross margin of 3.36%, reflecting a year-over-year decrease of 2.49 percentage points[43] - The total revenue for compound fertilizer was CNY 2,475,881,860.27, with a gross margin of 8.58%, showing a slight decrease in revenue of 1.96% year-over-year[43] Costs and Expenses - Total operating costs for 2013 were CNY 5,795,776,765.75, down from CNY 5,914,968,221.42, reflecting a reduction of 2.01%[122] - Financial expenses increased by 123.84% to CNY 138,612,693.34 due to interest from loans for completed projects being recognized in the current period[41] - The total cost of diammonium phosphate was CNY 1,761,886,148.73, a decrease of 2.09% compared to the previous year[38] - The total cost of compound fertilizer was CNY 2,040,154,346.02, down by 5.11% year-over-year[38] Assets and Liabilities - The total assets of the company at the end of 2013 were CNY 6,427,089,852.92, a decrease of 0.83% from CNY 6,480,757,230.98 at the end of 2012[29] - The company's equity attributable to shareholders was CNY 2,264,854,332.18, down from CNY 2,302,346,270.71, reflecting a decrease of approximately 1.6%[117] - Current assets totaled CNY 2,110,766,742.76, down from CNY 2,564,746,602.69 at the start of the year, indicating a decline of approximately 17.7%[116] - Total liabilities amounted to CNY 3,987,594,152.20, slightly up from CNY 3,980,894,348.27, showing a marginal increase of 0.2%[117] - Short-term borrowings rose by 59.07% to CNY 1,299,280,000.00, reflecting the company's operational funding needs[46] Research and Development - The company increased its R&D expenditure to CNY 97.80 million, a rise of 6.25% from CNY 92.05 million in the previous year[37] - The total R&D expenditure amounted to CNY 9,780.18, representing 4.32% of net assets and 1.71% of total revenue[44] Market Conditions and Risks - The company faces risks related to management optimization, environmental regulations, and industry competition, which may impact operational efficiency and costs[14] - The company faced significant challenges due to a downturn in the fertilizer market, with profits in the nitrogen fertilizer sector dropping over 50%[32] - The global fertilizer market is experiencing an oversupply, and the company anticipates continued challenges in 2014[56] - The company faces risks including potential operational inefficiencies due to management platform delays, increased operational costs from stricter environmental regulations, and declining profitability due to industry overcapacity and competition[59] Corporate Governance and Management - The board of directors includes key members such as the chairman, who has been in position since January 2016, and other directors with significant experience in the chemical industry[87] - The company has seen a consistent leadership structure with several members holding positions since 2013, indicating stability in management[88] - The independent directors contribute to governance, ensuring compliance and oversight, which is crucial for maintaining investor confidence[88] - The company has a diverse board composition, with a mix of experienced professionals from various sectors, promoting a well-rounded approach to management[87] - The company has maintained a consistent dividend policy, reflecting its commitment to returning value to shareholders[88] Employee and Compensation - The total number of employees in the parent company is 1,683, while the total number of employees in major subsidiaries is 2,647, resulting in a combined total of 4,330 employees[97] - The professional composition includes 2,565 production personnel, 380 sales personnel, 436 technical personnel, 57 financial personnel, 302 administrative personnel, and 590 others[97] - The compensation policy is based on the company's operational strategy and market conditions, including a basic monthly salary, various allowances, performance bonuses, and social welfare benefits[97] Future Plans and Strategies - The company plans to transition from a production-oriented to a marketing-oriented enterprise to enhance operational efficiency[56] - The company aims to enhance its marketing capabilities and transition from a production-oriented to a marketing-oriented enterprise, increasing investment in marketing resources[57] - The company plans to implement a "simulated marketization" operation assessment method to improve market awareness and profit consciousness among all employees[58] - The company will strengthen training to improve the stability of production system management and enhance product quality[58] Accounting and Financial Reporting - The company has not experienced any changes in accounting policies or estimates during the year[192] - The company ensures that all revenue recognition principles are met before recognizing sales and service income[186] - The corporate income tax rate is set at 25%, but the company enjoys a reduced rate of 15% as a high-tech enterprise from 2011 to 2013[196] - The company conducts annual impairment tests for goodwill, comparing the carrying amount of the asset group to its recoverable amount[151]