SLSVC(SH:600123)2014-05-21 16:00Financial Performance - The company achieved a net profit attributable to the parent company of CNY 1,001,311,024.91 in 2013, with a total distributable profit of CNY 1,151,416,847.36[6]. - Basic earnings per share decreased by 46.25% to CNY 0.8765 in 2013, down from CNY 1.6307 in 2012[24]. - The weighted average return on net assets was 10.41% in 2013, a decrease of 10.89 percentage points compared to 21.30% in 2012[24]. - The company reported a decrease in diluted earnings per share of 46.25% to CNY 0.8765 in 2013[24]. - The net profit attributable to shareholders was CNY 1.00 billion, down 46.25% from CNY 1.86 billion in the previous year[26]. - The net profit for the year was 1.226 billion yuan, representing a significant decline of 46.83% year-on-year, primarily due to a decrease in coal prices by 147.33 yuan per ton and urea prices by 331.66 yuan per ton[42]. - The company adjusted its annual sales revenue target from 8 billion yuan to 6.371 billion yuan, achieving 6.577 billion yuan, and adjusted profit target from 2.35 billion yuan to 1.215 billion yuan, achieving 1.226 billion yuan[43]. - The company reported a total profit of RMB 1,226,176,636.10, down 46.8% from RMB 2,306,141,244.19 in the previous year[133]. - Net profit attributable to shareholders decreased to RMB 1,001,311,024.91, a decline of 46.2% compared to RMB 1,862,871,876.18 last year[133]. Revenue and Sales - In 2013, the company achieved operating revenue of CNY 6.58 billion, a decrease of 13.46% compared to CNY 7.60 billion in 2012[26]. - The company's total operating revenue for the year was 6.577 billion yuan, a decrease of 19.26% compared to the previous year[43]. - The average selling price of coal decreased by 19.96% to CNY 590.93 per ton, while the average selling price of urea fell by 15.57% to CNY 1,797.79 per ton[31]. - The top five customers contributed CNY 2.86 billion in sales, accounting for 43.43% of total revenue[34]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 2.63 per 10 shares, totaling CNY 300,451,200 for the year[6]. - A cash dividend of CNY 2.63 per 10 shares (including tax) is proposed, totaling CNY 300,451,200, which represents 30% of the net profit attributable to shareholders[64]. - The company allocated RMB 685,440,000.00 to shareholder distributions, impacting the retained earnings negatively[149]. Assets and Liabilities - Total assets at the end of 2013 were CNY 20.48 billion, a slight increase of 0.54% from CNY 20.37 billion at the end of 2012[25]. - Accounts receivable increased by 38.53% to CNY 2,305,656,121.40, representing 11.26% of total assets[46]. - Long-term equity investments decreased by 41.92% to CNY 1,025,262,018.66, accounting for 5.01% of total assets[46]. - Total liabilities decreased to ¥10,004,073,628.35 from ¥10,050,279,820.25, indicating a reduction in overall debt levels[128]. - Current liabilities decreased significantly from ¥4,739,190,775.16 to ¥3,508,259,787.12, reflecting improved liquidity management[127]. Investments and R&D - The company invested CNY 1.95 billion in safety measures, enhancing safety equipment and standards across its operations[27]. - Research and development expenses amounted to CNY 14.61 million, a decrease of 13.22% from CNY 16.84 million in 2012[33]. - The company applied for 25 patents and completed 11 technology projects, with an investment of CNY 20.69 million in technological advancements[29]. - The company plans to invest a total of 774.33 million yuan in key projects, with 233.29 million yuan invested in the current year and a cumulative investment of 417.70 million yuan[58]. Operational Efficiency and Cost Management - The company implemented cost control measures, resulting in a 12.10% decrease in management expenses and a 22.52% decrease in financial expenses[39]. - The company will implement a dynamic assessment system based on market changes to strengthen cost control and improve operational efficiency[59]. - The company aims to foster a culture of accountability and performance excellence among its workforce to enhance overall operational effectiveness[60]. Market and Industry Challenges - The company anticipates ongoing challenges in the coal market due to structural oversupply and declining demand from downstream industries, which may impact profitability[60]. - The company is transitioning from traditional coal chemical production to modern coal chemical industries to mitigate competition in the urea market[56]. Corporate Governance and Management - The total remuneration for the board members amounted to 9.41 million yuan (approximately 1.4 million USD) for the reporting period[91]. - The company has a diverse board with members holding various positions and expertise in engineering, finance, and management[92][93][94]. - The management's performance evaluation and incentive mechanisms are based on annual target assessments and a dual salary structure, aimed at enhancing long-term stability and development[116]. Compliance and Internal Control - The company has maintained compliance with environmental regulations, with all major pollutants meeting discharge standards and no environmental accidents reported in 2013[65]. - The company has strengthened its internal control system to enhance risk prevention and management[110]. - The audit committee reviewed the 2013 audit report and confirmed it objectively reflects the company's asset status and operating results[114]. Future Outlook - In 2014, the company aims to achieve a coal production target of 7.15 million tons and a urea production target of 1.18 million tons, with a sales revenue goal of 6.8 billion yuan and a profit target of 800 million yuan[57]. - The company plans to actively address the issue of industry competition with the controlling shareholder, considering market trends and shareholder interests[115].