WTECL(SH:600157)2014-04-21 16:00Financial Performance - The net profit attributable to the parent company for 2013 was CNY 476,485,771.96, with earnings per share of CNY 0.2696[5]. - The company's retained earnings at the end of 2013 amounted to CNY 515,213,204.27 after accounting for previous distributions and reserves[5]. - The company's operating revenue for 2013 was CNY 9,843,259,492.39, representing a 27.53% increase compared to CNY 7,718,329,792.09 in 2012[31]. - The net profit attributable to shareholders decreased by 51.77% to CNY 476,485,771.96 from CNY 987,883,019.06 in the previous year[31]. - The basic earnings per share fell by 51.76% to CNY 0.2696 from CNY 0.5589 in 2012[32]. - The company's total assets increased by 11.85% to CNY 47,614,892,353.08 compared to CNY 42,568,635,562.49 at the end of 2012[31]. - Operating profit decreased by 47.97% to approximately 879.44 million RMB from 1.69 billion RMB in the previous year, while net profit attributable to shareholders was approximately 476.49 million RMB, down 51.77% from 987.88 million RMB, mainly due to a sharp decline in coal prices[70]. Dividend and Share Capital - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares, totaling CNY 176,755,953.00, and to increase the total share capital to 3,535,119,060 shares through a capital reserve transfer[5]. - The cash dividend policy stipulates that the total cash dividends distributed should not be less than 30% of the net profit attributable to shareholders[108]. - In 2012, the company distributed a total cash dividend of 530,267,859.00 RMB, amounting to 3.00 RMB per 10 shares[109]. - The company has maintained a consistent cash dividend policy, with no adjustments or changes reported during the reporting period[111]. Business Operations and Strategy - The company successfully transitioned its main business focus to coal mining since January 2011, moving away from oil and real estate[24]. - The company faced significant challenges in the coal market, with overall demand insufficient and prices continuing to decline, impacting operational performance[40]. - The company achieved a coal production target exceeding 10 million tons, despite the adverse market conditions[40]. - The company is actively pursuing project approvals and advancements in coal mining projects in Xinjiang and Shaanxi, as well as exploration in Australia[42]. - The company plans to accelerate the technological transformation of existing coal mine projects to increase coal production and improve economic efficiency[68]. - The company aims to achieve a coal production target of 12 million tons and a coal trading volume target of 2.4 million tons in 2014[99]. - The company plans to expand its coal production capacity to 30 million tons, electricity generation capacity to 10 million kilowatts, and oil and gas logistics and processing capacity to 10 million tons within three years[97]. Research and Development - Research and development expenses surged by 201.62% to CNY 17,070,826.59 from CNY 5,659,800.00 in the previous year[45]. - Research and development expenses amounted to CNY 17,070,826.59, representing 0.13% of net assets and 0.17% of total revenue[59]. Financial Management and Debt - The company has optimized its debt structure through bond issuance, reducing financing costs and improving cash flow[43]. - The company issued bonds totaling CNY 3.80 billion in 2013, with an interest rate of 6.80%, approved by the China Securities Regulatory Commission[66]. - The company’s bonds maintained a credit rating of AA+ with a stable outlook, reflecting its strong financial position[143]. - The company has no overdue bank loans or interest payments, indicating a solid financial standing[144]. Market Conditions and Challenges - The company experienced a decline in overall profitability due to a challenging coal market, with industry-wide effects leading to decreased coal prices and increased competition[93]. - The coal market in 2013 saw a recovery in demand, particularly from thermal power, crude steel, and cement sectors, although long-term growth is expected to slow[94]. - The coal industry is expected to face structural overcapacity and increased competition, leading to a return to average profit levels in the coming years[95]. Acquisitions and Investments - The company has acquired 100% equity in several coal mining companies, with total investments amounting to 413.425 million RMB[82]. - The company acquired 49% equity in Shanxi Ling Shi Hua Ying Tian Xing Coal Industry Co., Ltd. for a cash consideration of RMB 341 million and 49% equity in Shanxi Ling Shi Hua Ying Tian Xing Bai Gou Coal Industry Co., Ltd. for RMB 461 million[121]. - The total amount of guarantees provided by the company to subsidiaries during the reporting period was RMB 860 million, with a total guarantee balance of RMB 1,073.43 million[131]. Corporate Governance - The company has implemented a centralized management system to enhance operational efficiency and reduce management costs[78]. - The governance structure has been improved, complying with relevant laws and regulations, enhancing internal control systems, and increasing the quality of information disclosure[199]. - The board of directors and management operate in a regulated manner, ensuring clear responsibilities and effective checks and balances[200]. Employee Management - The company has a total of 9,555 employees, with 110 in the parent company and 9,445 in major subsidiaries[192]. - The company emphasizes employee training, focusing on professional skills and safety production, with a high evaluation from safety training authorities[194]. - The company adheres to a salary policy that combines internal fairness and external competitiveness, with management on a salary system and employees on a wage system[193]. Social Responsibility and Compliance - The company emphasizes social responsibility by promoting local employment and economic development while ensuring compliance with safety and environmental regulations[114]. - The company has implemented emergency response plans for environmental incidents to enhance its ability to manage potential environmental risks[116]. - The company has committed to increasing environmental protection investments and improving pollution prevention measures in line with national environmental policies[107].