ZJJH(SH:600160)2014-04-18 16:00Financial Performance - The company achieved operating revenue of CNY 9,736,541,876.91 in 2013, representing an increase of 8.36% compared to the previous year[24]. - The net profit attributable to shareholders was CNY 253,577,840.49, a decrease of 58.56% year-on-year[24]. - The total profit for the period was CNY 306,527,900, a reduction of CNY 46,787,510 compared to the previous year[33]. - The company reported a net cash flow from operating activities of CNY 795,099,477.65, a significant increase of 753.13% from the previous year[24]. - The company's total assets reached CNY 9,596,835,601.49, reflecting a growth of 28.24% compared to the end of 2012[24]. - The basic earnings per share decreased to CNY 0.179, down 58.56% from CNY 0.432 in 2012[25]. - The weighted average return on equity was 4.29%, down from 10.21% in the previous year, a decrease of 5.92 percentage points[25]. - The company faced a loss of CNY 1,087,000,000 due to product price declines, which impacted profitability significantly[33]. - The company reported an increase in production volume contributing CNY 44,840,000 to profits, despite the challenging market conditions[33]. Dividend and Capital Management - The company plans to distribute a cash dividend of 2.0 CNY per 10 shares, totaling 362,183,190.2 CNY based on the total share capital of 1,810,915,951 shares as of the end of 2013[4]. - The company has not proposed any capital reserve transfer to increase share capital for the year[4]. - The company raised CNY 1,666,609,640.73 through a rights issue, issuing shares at CNY 4.23 each[58]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[5]. - The company has not violated decision-making procedures for providing guarantees[5]. - The company’s board of directors and supervisory board ensure the authenticity and completeness of the annual report[4]. Risk Management and Governance - The report includes a detailed description of potential risks that may affect the company's future development strategies and operational goals[10]. - The company emphasizes the importance of accurate and complete financial reporting, as stated by its responsible personnel[4]. - The report outlines the company's governance structure and internal control measures[7]. - The company is committed to addressing uncertainties in forward-looking statements regarding future plans and development strategies[4]. Operational Efficiency and Innovation - The company aims to improve its operational efficiency and innovation capabilities to address structural issues and adapt to market changes[40]. - The company has initiated several key projects, including a 100kt/a high-performance barrier material project and a 50kt/a new refrigerant project, to enhance its product offerings and market position[37]. - The company is focusing on innovation and expansion in the fluorochemical sector, with ongoing projects in new fluorinated refrigerants and fluoropolymer materials[59]. - The company is committed to optimizing its product structure and enhancing its R&D capabilities to address the existing technological gap with advanced foreign fluorochemical enterprises[156]. Market and Industry Trends - The demand for HFCs products and their blends is expected to grow significantly, with consumption projected to reach 250,000 tons by 2015, reflecting an average annual growth rate of 15% during the "12th Five-Year Plan" period[107]. - The production and consumption of R22, a widely used refrigerant, will be frozen in 2013 and will begin to be reduced starting in 2015, in accordance with the Montreal Protocol[102]. - The fluorochemical industry is encouraged to develop environmentally friendly new fluorinated refrigerants and high-performance fluoropolymer products, with a focus on innovation and market competitiveness[94]. - The fluorochemical industry in China has over 1,000 companies, with total production capacity exceeding 3 million tons and sales revenue surpassing 30 billion RMB by the end of the "11th Five-Year Plan" period[99]. Research and Development - The company completed 38 R&D projects and applied for 12 patents during the reporting period[54]. - Research and development expenses totaled CNY 114,476,105.11, representing 1.53% of net assets and 1.18% of operating income[53]. - The company has 23 invention patents and 9 utility model patents, ensuring stable gross margins for core products and maintaining a leading technological position in the industry[74]. Subsidiary Performance - Zhejiang Juhua Co., Ltd. reported a net profit of CNY 3,622.35 million for Zhejiang Quhua Fluorochemical Co., with a significant decrease of 68.68% compared to the previous year[87]. - Zhejiang Lankai Juhua Fluorochemical Co. experienced a net loss of CNY 1,941.59 million, marking a drastic change of -239.90% from a net profit of CNY -571.22 million in 2012[86]. - Zhejiang Juhua Co. has six subsidiaries with performance changes exceeding 30%, significantly impacting the consolidated financial results[85]. Environmental and Regulatory Compliance - The company is committed to adhering to national policies regarding hazardous chemicals and is focusing on relocating production facilities to specialized industrial parks[92]. - The fluorochemical industry faces high entry barriers due to stringent environmental regulations and the need for integrated production chains[132]. - The industry is supported by national policies aimed at optimizing and upgrading industrial structures, with a focus on high-performance fluorinated polymers and environmentally friendly alternatives[137].