Financial Performance - In 2013, the company's operating revenue was CNY 19,279,979,584, a decrease of 0.37% compared to 2012[24]. - The net profit attributable to shareholders was CNY 67,940,203.94, representing a significant decline of 92.16% year-on-year[24]. - The basic earnings per share dropped to CNY 0.076, down 92.12% from CNY 0.965 in 2012[24]. - The net cash flow from operating activities was CNY 2,861,735,410, a decrease of 29.21% compared to the previous year[24]. - Total assets at the end of 2013 reached CNY 35,354,889,045.2, an increase of 19.25% from 2012[24]. - The net assets attributable to shareholders were CNY 6,112,044,859, a decrease of 1.3% compared to the previous year[24]. - The weighted average return on equity was 1.1%, down 14.23% from 15.32% in 2012[24]. - The company reported a significant increase in revenue from other products, which rose by 203.01% to CNY 583,016,681.25, with a gross margin of 34.11%[58]. - The company's revenue from fertilizers was CNY 10,064,950,362.5, a decrease of 2.29% year-over-year, with a gross margin decline of 36.82% attributed to falling prices of urea and diammonium phosphate[58]. - Chemical products generated revenue of CNY 7,017,422,392.17, with a gross margin of 10.27%, reflecting a 6.93% increase in costs year-over-year[58]. Production and Operations - The company produced 326,000 tons of urea, 143,000 tons of diammonium phosphate, and 96,000 tons of PVC, achieving 98.78%, 127.68%, and 104% of their respective annual production targets[35]. - The company expanded its production capacity with new projects, including a 50,000-ton ion membrane caustic soda and a 60,000-ton PVC project in Xinjiang[37]. - The company has shifted its urea production to regions with cost advantages, such as Inner Mongolia and Xinjiang, where 180,000 tons of its 320,000 tons capacity have significantly lower costs than the industry average[98]. - The company plans to produce 3.2 million tons of urea, 1.4 million tons of diammonium phosphate, 1 million tons of PVC, 40,000 tons of pentaerythritol, and 45,000 tons of insurance powder in 2014, aiming for a revenue of 20 billion yuan[99]. Costs and Expenses - The company's operating costs increased by 5.9% to CNY 16.45 billion, primarily due to rising natural gas prices and increased sales volume[34]. - Research and development expenses rose by 10.98% to CNY 67.7 million, reflecting increased investment in new product development[34]. - The total cost of fertilizers amounted to ¥8,323,364,786.53, reflecting a year-on-year increase of 2.82% compared to ¥7,479,867,841.73 in 2012[43]. - The total cost for chemical products reached ¥6,296,453,764.05, with a year-on-year increase of 2.85% from ¥5,893,094,612.70[43]. - The total cost for trade business was ¥1,160,039,687.89, down 3.91% from ¥1,801,805,527.62 in 2012[45]. Cash Flow and Investments - The net cash flow from operating activities was ¥2,861,735,410.19, down 29.21% from ¥4,042,846,515.59 in the previous year[54]. - Investment cash inflow surged by 563.23% to ¥242,231,902.00, primarily due to the recovery of trust product investments[56]. - The company reported a total investment of 1,551,347,000 CNY in securities, with a year-end value of 1,025,041,000 CNY, resulting in a profit of 257,093,500 CNY[74]. Market and Competition - The company is the largest urea producer in China, with a production capacity that accounts for only 5%-6% of the national total, indicating a highly competitive market environment[98]. - The company anticipates intensified competition in the fertilizer and basic chemical industry due to severe overcapacity and an increase in construction projects[97]. - Domestic sales accounted for CNY 16,524,466,903.4, down 4.84% year-over-year, while international sales increased by 49.34% to CNY 2,381,237,477.52[58]. Shareholder and Governance - The company plans to distribute a cash dividend of CNY 0.10 per 10 shares to all shareholders[6]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 501.7 million, with CNY 212.5 million received from shareholder units[183]. - The company has not engaged in any stock incentive plans during the reporting period[123]. - The company has a total of 15,572 employees, with 14,471 in production, 278 in sales, 493 in technology, 241 in finance, and 89 in administration[188]. Risks and Future Outlook - The company faced significant risks as outlined in the 2013 annual report, which may impact future performance[12]. - The company’s estimated cumulative net profit for the first quarter of 2014 is projected to decline by 50% to 60%, with an expected range of CNY 4,190.54 million to CNY 5,238.18 million compared to CNY 10,476.35 million in the same period last year[96]. - The company faces risks from rising natural gas prices, which increased by 0.23 yuan per cubic meter to 1.34 yuan per cubic meter, potentially impacting urea production costs[100].