Financial Performance - Net profit attributable to shareholders was CNY -34,725,460.28, a significant decline from CNY -7,822,097.42 in the same period last year[6] - Operating revenue decreased by 26.05% to CNY 430,156,671.65, primarily due to reduced sales volume of PVC products[13] - The company reported a significant decrease in non-operating income by 91.46% to CNY 743,493.50 compared to the previous year[13] - Total operating revenue for the current period is CNY 430,156,671.65, a decrease of 26% compared to CNY 581,721,880.58 in the previous period[34] - Net loss for the current period is CNY 27,049,484.94, compared to a net loss of CNY 5,305,417.79 in the previous period[34] - Basic and diluted earnings per share for the current period are both -0.0510, compared to -0.0115 in the previous period[34] Cash Flow - Cash flow from operating activities was CNY -54,114,514.24, compared to CNY 53,919,366.27 in the previous year, indicating a significant cash outflow[5] - Operating cash flow for the period was negative at -54,114,514.24 RMB, a significant decline compared to a positive cash flow of 53,919,366.27 RMB in the same period last year[38] - Total cash inflow from operating activities decreased to 200,028,989.58 RMB, down 46.0% from 370,682,794.20 RMB year-over-year[38] - Cash outflow from operating activities increased to 254,143,503.82 RMB, up 19.0% from 316,763,427.93 RMB in the previous year[38] - The net increase in cash and cash equivalents was -162,789,747.98 RMB, a decline from -28,601,255.89 RMB in the same period last year[39] - The ending balance of cash and cash equivalents was 372,178,898.87 RMB, down 40.3% from 624,152,479.27 RMB year-over-year[39] Assets and Liabilities - Total assets increased by 3.32% to CNY 3,052,037,632.60 compared to the end of the previous year[5] - The total assets of the company reached CNY 3,052,037,632.60, compared to CNY 2,954,016,927.74, marking a growth of about 3%[29] - The company's total liabilities increased to CNY 1,955,145,135.45 from CNY 1,830,902,046.97, reflecting a growth of approximately 7%[29] - Current liabilities totaled CNY 991,590,416.43, slightly up from CNY 978,737,744.62, indicating a 1% increase[29] - Long-term borrowings rose to CNY 958,333,333.35 from CNY 846,666,666.68, representing a 13% increase[29] Shareholder Information - The number of shareholders at the end of the reporting period was 33,342[7] - The company’s major shareholder, Jizhong Energy Co., Ltd., holds 56.08% of the shares, totaling 381,554,476 shares[7] Investment Activities - The company reported a net cash outflow of ¥64,782,431.69 from investing activities, compared to -¥241,492,589.99 in the previous year, mainly due to the acquisition of a 50% stake in Hebei Jinniu Xuyang Chemical[15] - Investment activities resulted in a net cash outflow of -64,782,431.69 RMB, compared to -241,492,589.99 RMB last year, indicating a reduction in investment expenditures[38] Operational Challenges - Financial expenses increased by 43.46% to CNY 17,841,285.02 due to an increase in loan balances[13] - Asset impairment losses surged by 608.42% to CNY 6,882,556.30, reflecting increased provisions for certain products and raw materials[13] - The company's cash and cash equivalents decreased to CNY 389,378,898.87 from CNY 540,368,646.85, reflecting a decline of approximately 28%[28] - Accounts receivable rose to CNY 30,922,674.25, up from CNY 15,505,056.48, indicating a growth of about 99%[28] - Inventory increased to CNY 198,895,919.33 from CNY 175,960,421.30, representing an increase of approximately 13%[28] - The company's fixed assets decreased slightly to CNY 1,113,201,094.36 from CNY 1,143,988,414.22, a decline of about 3%[28] Future Strategies - The company plans to use ¥500,000,000 of idle raised funds to temporarily supplement working capital, with a repayment deadline of October 18, 2014[16] - Future strategies include reducing related party transactions and ensuring fair market practices in any necessary transactions with controlling entities[26] - Jinniu Chemical aims to consolidate its position as a significant player in the chemical industry by integrating other chemical assets under its management[24] - The company has committed to maintaining independent financial operations and will not engage in any illegal occupation of funds or assets[26]

Financial Performance - The company's operating revenue for 2013 was CNY 1,935,405,256.17, a decrease of 2.52% compared to CNY 1,985,339,659.63 in 2012[26]. - The net profit attributable to shareholders for 2013 was a loss of CNY 159,650,161.19, compared to a profit of CNY 102,976,776.76 in 2012[26]. - The net cash flow from operating activities improved to CNY 149,249,143.47 in 2013, compared to a negative cash flow of CNY -556,762,321.53 in 2012[26]. - Total assets increased by 4.40% to CNY 2,954,016,927.74 at the end of 2013, up from CNY 2,829,538,279.70 at the end of 2012[26]. - The net assets attributable to shareholders decreased by 28.54% to CNY 923,907,696.84 at the end of 2013, down from CNY 1,292,927,846.91 at the end of 2012[26]. - The company reported a revenue of RMB 1,935,405,256.17, a decrease of 2.52% compared to the previous year[40]. - The net profit attributable to shareholders was a loss of RMB 159,650,161.19, reflecting ongoing challenges in the market[40]. - The company reported a net profit attributable to the parent company of -¥159,650,200, a significant decrease attributed to falling caustic soda prices and rising raw material costs[54]. Production and Sales - The company produced 170,000 tons of PVC resin and 62,700 tons of caustic soda during the reporting period[39]. - In 2013, the production volume of PVC resin decreased by 8.01% to 170,000 tons, while sales volume fell by 6.50% to 171,100 tons[44]. - Methanol production volume decreased by 4.69% to 201,100 tons, with sales volume also down by 4.74% to 200,600 tons; the average price per ton decreased by 1.90% to ¥2,263[45]. - The production volume of caustic soda dropped significantly by 26.06% to 62,700 tons, and sales volume decreased by 26.95% to 59,100 tons, with the average price per ton falling by 24.31% to ¥1,623.18[45]. Costs and Expenses - Operating costs increased by 3.67% to RMB 1,897,603,843.35, while management expenses rose by 11.01% to RMB 106,916,380.61[41]. - The company recorded an asset impairment loss of RMB 58,862,542.72, primarily due to provisions for the shutdown of cement production line equipment[43]. - Total costs decreased by 5.89% to ¥155,940,280, with raw material costs constituting 74.23% of total costs[50]. Investments and Acquisitions - The company acquired a 50% stake in Jinniu Xuyang for RMB 20,044.78 million, which produced 201,100 tons of methanol and generated a net profit of RMB 22,195,800[39]. - The company completed the acquisition of a 50% stake in Jinniu Xuyang, which is part of a broader asset integration plan[55]. - The company made equity investments totaling RMB 217.95 million during the reporting period, including a RMB 200.45 million acquisition of a 50% stake in Jinniu Xuyang and a RMB 17.50 million acquisition of a 6.67% stake in Canghua Storage, which became a wholly-owned subsidiary[69]. Future Plans and Projects - The company is progressing on a 400,000-ton PVC project, with 75% of the main engineering completed by the end of the reporting period[39]. - The company plans to complete the PVC project by June 2014 and achieve full trial operation by August 2014[77]. - The company aims for a revenue target of 1.9 billion RMB in 2014, with sales, management, and financial expenses not exceeding 10% of total revenue[94]. - The company plans to enhance its competitive edge through the construction of the 400,000-ton PVC project, utilizing advanced technology from European firms[68]. Risk Management - The company has outlined potential risks and uncertainties in its future plans, which do not constitute a substantive commitment to investors[7]. - The company faced significant risks including policy risks, industry competition, and raw material price fluctuations, which could impact operational performance[99][97][98]. - The company has initiated methanol futures hedging to mitigate price volatility impacts on operations[71]. Governance and Compliance - The company has not distributed dividends or increased capital in the profit distribution plan for the year[5]. - The company has not implemented any stock incentive plans during the reporting period[113]. - The company has established strict guidelines to ensure that any related party transactions are conducted fairly and transparently[133]. - The company has actively fulfilled its social responsibilities, including safety measures and environmental protection initiatives[106]. Shareholder Information - The total number of shares outstanding is 680,319,676, with 258,899,676 shares (38.06%) being restricted shares and 421,420,000 shares (61.94%) being tradable[140]. - Jizhong Energy holds 56.08% of the company's shares, amounting to 381,554,476 shares, after selling 5 million shares[146]. - The restricted shares held by Jizhong Energy (258,899,676 shares) will become tradable on September 11, 2015, after a 36-month lock-up period[151]. Management and Employees - The company employed a total of 2,422 staff, with 1,194 in production, 84 in sales, and 148 in technical roles[175]. - The company has implemented a performance-based salary system, linking wages to attendance and performance assessments[176]. - The core technical team remains stable, ensuring no impact on the company's core competitiveness and operations[174]. - The company has conducted extensive employee training, focusing on safety and specialized skills to enhance overall management and operational capabilities[177].