ZMNY(SH:600163)2015-02-09 16:00Financial Performance - In 2014, the company's operating revenue was CNY 1,070,403,005.32, a decrease of 24.03% compared to CNY 1,408,904,112.73 in 2013[23]. - The net profit attributable to shareholders of the listed company for 2014 was a loss of CNY 561,125,045.12, compared to a loss of CNY 771,906,880.40 in 2013[23]. - The net cash flow from operating activities was a negative CNY 46,872,025.35 in 2014, improving from a negative CNY 219,541,668.56 in 2013[23]. - As of the end of 2014, the net assets attributable to shareholders of the listed company were CNY 101,237,631.90, a decrease of 84.61% from CNY 657,806,427.02 at the end of 2013[23]. - Total assets at the end of 2014 were CNY 2,223,094,365.50, down 14.97% from CNY 2,614,328,086.73 at the end of 2013[23]. - The company reported a total profit of -¥53,745.08 million, an improvement from -¥77,194.01 million in the previous year, primarily due to reduced losses in the main business despite ongoing market challenges[45]. - The company reported a net profit of -CNY 60.91 million for its subsidiary Fujian Nan Paper Biomass Fiber Co., with total assets of CNY 2,937.27 million[66]. - The company reported a net loss of approximately CNY 1.87 billion for the current period, representing a 42.88% increase in losses compared to the previous year[57]. Profit Distribution and Shareholder Returns - The company plans not to distribute profits for the 2014 fiscal year due to negative retained earnings, with cumulative distributable profits at the end of the period being negative CNY 1,868,545,924.01[3]. - The company did not propose any profit distribution for 2014 due to negative cumulative distributable profits[78]. - The company has established a cash dividend policy prioritizing cash dividends, with a minimum cash dividend ratio of 30% of the average distributable profit over the last three years[75]. - The company has a three-year shareholder return plan to ensure stable and continuous returns to investors[75]. - The company plans to distribute cash dividends amounting to at least 30% of the average annual distributable profit over the next three years, with specific ratios determined by the board based on annual profit and future funding needs[96]. Operational Challenges - The company faced significant challenges due to oversupply in the newsprint and cultural paper markets, leading to a continuous decline in sales prices[31]. - The company is facing intense competition in the newsprint market, with prices continuing to decline due to oversupply and the impact of electronic media[72]. - The company reported that the management team worked diligently to reduce losses and maintain cash flow, securing support from controlling shareholders and financial institutions[157]. Asset Management and Restructuring - The company is actively pursuing major asset restructuring to reverse the ongoing losses and improve profitability[31]. - A major asset restructuring plan was approved, which includes asset swaps, issuing shares to purchase assets, and raising matching funds[198]. - The company plans to shift its main business from the paper industry to the wind power industry following the completion of the asset restructuring[198]. Research and Development - The company’s research and development expenditure was CNY 43,610,000, slightly up by 1.05% from CNY 43,155,000 in 2013[35]. - The company has developed a low-grammage newsprint technology (45g/m2 and 42g/m2), filling a gap in the domestic market and recognized as a key project by the Ministry of Science and Technology[56]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency[130]. Environmental and Safety Measures - The company has implemented advanced anaerobic and aerobic wastewater treatment technology, achieving full compliance with wastewater discharge standards[57]. - The company is committed to enhancing safety and environmental protection measures, ensuring compliance with new environmental standards[68]. - The company has set a target to reduce carbon emissions by 20% over the next three years as part of its sustainability strategy[129]. Corporate Governance - The company strictly adheres to the requirements of the Company Law and Securities Law, ensuring effective corporate governance and internal control mechanisms[145]. - The company’s board of directors and senior management have consistently fulfilled their duties with integrity and diligence, with no discrepancies noted in governance practices[148]. - The audit committee held four meetings to review the 2014 financial statements and ensured the audit process was completed smoothly[154]. Financial Support and Funding - The company received financial support of 500 million CNY from Fujian Provincial Investment Development Group through entrusted loans[87]. - The company received temporary funding of CNY 70 million from its controlling shareholder, which was fully repaid by August 13, 2014[91]. - A new agreement was signed on December 8, 2014, for a temporary funding of up to CNY 150 million, with a maximum term of three months, with no interest charged[91]. Employee Management - The total number of employees in the parent company and major subsidiaries is 1,774, with 1,751 in the parent company and 23 in major subsidiaries[138]. - The company emphasizes employee training, with a budget allocated for training programs based on development needs and employee capabilities[140]. - The company has increased its employee compensation provisions by 320.81% to CNY 108.34 million compared to CNY 25.75 million in the previous year[57].