DAAE(SH:600178)2014-04-28 16:00Financial Performance - The company reported a net loss for both 2012 and 2013, leading to a risk of delisting under the Shanghai Stock Exchange regulations[8]. - The board of directors decided not to distribute profits or increase capital reserves for the year 2013 due to the company's losses[6]. - In 2013, the company's operating revenue was CNY 855.47 million, a decrease of 31.19% compared to CNY 1,243.20 million in 2012[22]. - The net loss attributable to shareholders was CNY 557.10 million, compared to a loss of CNY 65.41 million in 2012[22]. - The weighted average return on equity was -28.28%, down 25.41 percentage points from 2012[22]. - The total assets at the end of 2013 were CNY 2.90 billion, a decrease of 19.98% from CNY 3.62 billion in 2012[22]. - The company's total revenue for 2013 was CNY 855,470,301.79, a decrease of 31.19% compared to CNY 1,243,195,266.41 in 2012[37]. - The total operating cost for 2013 was CNY 856,784,855.30, down 23.16% from CNY 1,115,079,631.58 in the previous year[37]. - The net cash flow from operating activities was -CNY 157.35 million, a decline of 177.79% compared to CNY 202.27 million in 2012[28]. - The company reported a significant increase in asset impairment losses, totaling CNY 395,046,329.92, up 619.42% from the previous year[37]. - The company reported a net profit of CNY 228,872,486.09, reflecting a significant performance in the automotive parts manufacturing sector[50]. - The company reported a net loss for 2013 was ¥557,096,254.42, significantly higher than the net loss of ¥65,409,008.83 in the previous year, indicating a worsening financial performance[125]. Business Operations - The company has maintained its core business of producing and selling microcar engines and components since its listing in 1998, with no significant changes[18]. - The company is currently under the control of China Changan Automobile Group Co., Ltd., following a series of ownership changes since 2003[20]. - The company launched the M series three-cylinder turbocharged engine, marking a new era for turbocharging at the company[26]. - The company achieved a significant breakthrough in market development, successfully launching M series engines in three models of Changan Automobile[25]. - The company aims to sell 130,000 powertrains in 2014, targeting an operating income of CNY 950 million[55]. - The company has developed the M series engines that comply with national fuel consumption regulations, enhancing its product offerings in the market[45]. - The company is actively seeking joint ventures in the components business to strengthen its market position and expand its operations[56]. - The company aims to reduce market risks by expanding into new markets and accelerating the promotion of the M series engines[59]. Research and Development - The company’s R&D expenditure increased by 24.50% to CNY 32.27 million in 2013[28]. - The company completed the development of the M series three-cylinder turbocharged engine platform, with initial performance tests exceeding design specifications[32]. - The company holds 178 patents, which support its innovation and product development efforts, particularly for the M series[45]. - The company plans to accelerate new product development, focusing on 10 adaptive development projects for various engine models in 2014[56]. Financial Management - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6]. - The company received a standard unqualified audit report from Zhongxing Caiguanghua Accounting Firm for the fiscal year[6]. - The company has implemented a quality management system based on TS16949 to enhance product quality control[57]. - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company funds, with no incidents reported[98]. - The company has maintained effective internal control over financial reporting, with no significant deficiencies identified[109]. - The audit report issued by Zhongxing Caiguanghua Certified Public Accountants confirmed that the financial statements fairly represent the company's financial position as of December 31, 2013[118]. Shareholder Information - The company has a registered capital of CNY 4,582.37 million[77]. - The largest shareholder, China Changan Automobile Group Co., Ltd., holds 54.51% of the shares, totaling 251,893,000 shares[75]. - The total number of shareholders as of the end of the reporting period was 47,763, an increase from 45,150 prior to the report[75]. - The company has not undergone any significant changes in shareholding structure during the reporting period[74]. Employee Management - The company reported a total of 2,959 employees, with 2,210 in production, 30 in sales, 454 in technical roles, 32 in finance, and 233 in administration[88]. - The employee education breakdown includes 65 with master's degrees, 534 with bachelor's degrees, 718 with associate degrees, and 1,642 with other qualifications[89]. - The company has implemented a compensation system based on base salary, position salary, performance salary, and talent allowances to attract and retain talent[89]. - The training plan focuses on continuous improvement of employee skills and satisfaction, with an emphasis on innovative training models and knowledge sharing[90]. - The company aims to cultivate a high-quality talent pool through systematic planning and investment in human capital[90]. Compliance and Governance - The company has not faced any penalties or administrative actions from the China Securities Regulatory Commission during the reporting period[70]. - The board of directors and supervisory board operate independently, adhering to legal and regulatory requirements[98]. - The company has maintained a transparent information disclosure process, ensuring compliance with relevant laws and regulations[99]. - The company held a total of 6 board meetings during the year, with 1 in-person meeting and 5 conducted via communication methods[104]. - Independent directors did not raise objections to any board resolutions during the reporting period[104]. Market Conditions - The automotive industry is expected to grow by 7%-8% in 2014, providing a favorable environment for the company's growth despite competitive pressures[52].