CSSC-STC(SH:600072)2014-03-30 16:00Financial Performance - The company reported a net profit of -182,346,507.77 RMB for the year 2013, resulting in an ending undistributed profit of 116,621,602.79 RMB[6]. - Basic earnings per share for 2013 was -0.381 RMB, a decrease from -0.159 RMB in 2012[20]. - The weighted average return on net assets was -14.820% in 2013, down from -5.555% in 2012, indicating a significant decline in profitability[20]. - The company did not propose any profit distribution or capital reserve transfer to share capital for the year due to ongoing development pressures and consecutive annual losses[6]. - The company faced substantial development pressures, having reported losses for two consecutive years[6]. - Non-recurring losses per share were reported at -0.389 RMB for 2013, compared to -0.196 RMB in 2012[20]. - The company’s operating revenue for 2013 was RMB 921.15 million, a decrease of 11.56% compared to RMB 1,041.54 million in 2012[28]. - The net profit attributable to shareholders was a loss of RMB 182.35 million, a decline of 140% from a loss of RMB 76.05 million in the previous year[28]. - The total contract amount undertaken during the year was RMB 1.06 billion, a decrease of 12.69% compared to the previous year[31]. - The gross margin decreased significantly due to lower sales revenue and a decline in the gross profit of the main business[28]. - The company reported a significant loss in 2013 due to a decrease in sales revenue and a decline in gross profit margin, with the total revenue target of 1.15 billion RMB not achieved[37]. Cash Flow and Assets - The net cash flow from operating activities was negative RMB 54.02 million, an improvement from negative RMB 140.10 million in 2012[30]. - The company's cash and cash equivalents decreased by 29.98% to 219.78 million RMB, impacting its ability to cover operational expenses[43]. - Accounts receivable dropped by 17.50% to 412.86 million RMB, indicating a reduction in short-term credit extended to customers[43]. - The company’s inventory increased by 21.43% to 476.54 million RMB, suggesting a buildup of unsold products amid declining sales[43]. - The total assets at the end of 2013 were RMB 2.15 billion, down 11.10% from RMB 2.41 billion at the end of 2012[28]. - The total liabilities decreased from CNY 1,033,075,643.84 to CNY 944,508,090.50, a decrease of about 8.6%[118]. - The company's cash flow from investment activities was negative RMB 21.28 million, primarily due to increased expenditures on the Longxing Island workshop renovation project[35]. Research and Development - Research and development expenses amounted to RMB 30.56 million, representing 3.32% of operating revenue and 2.54% of net assets[34]. - The company has a strong focus on R&D to enhance its engineering contracting capabilities and overall competitiveness[50]. - The company plans to invest 2,136.75 million in research and development for advanced marine equipment, targeting a 0% increase in production efficiency[59]. - New product development initiatives are underway, with investments totaling 4,962,122.63 million aimed at innovation in shipbuilding technology[59]. Market and Strategic Outlook - The company aims to achieve a sales revenue target of 1.5 billion yuan in 2014 to turn losses into profits[49]. - The company plans to accelerate its strategic layout and enhance R&D capabilities despite facing external market challenges[37]. - Future outlook includes strategic expansions with a focus on increasing market share and enhancing product offerings, aiming for a growth rate of 2.36%[59]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[87]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase production capacity by 30%[87]. Corporate Governance and Compliance - The company’s financial statements received a standard unqualified audit opinion from the accounting firm[6]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[67]. - The internal control system was reviewed and found effective, with no significant deficiencies reported during the evaluation[106]. - The company has been conducting special corporate governance activities since June 2007, achieving significant results in compliance with regulatory requirements[97]. Employee and Community Engagement - The company has a 100% employee contract signing rate during the reporting period, reflecting strong employee responsibility practices[55]. - The company actively engages in community service and charitable donations, promoting volunteer service projects[55]. - The total number of employees in the parent company is 759, and in major subsidiaries, it is 216, resulting in a total of 975 employees[93]. Legal Matters - There was a legal dispute involving a claim for 37,791,012.63 RMB related to a steel supply contract, with the company named as a co-defendant[57]. - The company has been actively pursuing legal action against Shanghai Yingzhou Steel Structure Co., Ltd. for alleged fraud related to the aforementioned project, with the legal representative of the company being arrested[67]. Financial Strategy and Investments - The company has not made any external equity investments during the reporting period, consistent with the previous year[45]. - The company provided funding to related parties totaling CNY 261.12 million during the year, with a year-end balance of CNY 36.94 million[61]. - The company’s overall financial strategy includes maintaining strong relationships with related parties to support operational funding needs[61].