NANSHAN ALUMINIUM(SH:600219)2014-03-19 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, with an estimated total distribution of no less than 290,125,367.10 RMB[4]. - In 2013, the company distributed a cash dividend of RMB 0.12 per share, representing 33.6% of the net profit attributable to shareholders[82]. - The company has not proposed a cash dividend distribution plan for the current year despite having positive undistributed profits[83]. Financial Performance - The company achieved operating revenue of CNY 14,524,516,126.58 in 2013, a decrease of 2.32% compared to the previous year[24]. - Net profit attributable to shareholders reached CNY 793,626,274.34, an increase of 8.66% year-on-year[24]. - The company reported a total comprehensive income of CNY 858.40 million, slightly up from CNY 826.21 million in 2012[175]. - The net profit for the year was CNY 730,408,119.59, representing a significant increase compared to the previous year[191]. - The company reported a significant increase in asset impairment losses, totaling CNY 182.23 million, compared to CNY 92.03 million in the previous year[175]. Market Conditions - The company reported a stable aluminum price in the Shanghai Metal Exchange, although it showed a declining trend compared to LME prices, maintaining a gap of at least 200 USD[10]. - The company faces intensified competition from Southeast Asian countries and South America, which are rapidly developing their aluminum products and pricing based on LME, impacting domestic and export sales[10]. - The company reported that LME aluminum prices were consistently lower than Shanghai aluminum prices in 2013, impacting export volumes and profits negatively[80]. Operational Strategy - The company is diversifying its aluminum ore import channels due to Indonesia's export ban, with increased imports from countries like Australia, India, and Malaysia expected[11]. - The company is actively sourcing alternative bauxite supplies from regions including India, Malaysia, and Guinea due to Indonesia's export ban on bauxite[29]. - The company is exploring global bauxite markets to mitigate supply risks from the Indonesian ban[29]. - The company is focused on cost reduction and efficiency improvement as part of its operational strategy[75]. Research and Development - The total R&D expenditure amounted to CNY 509,425,766.94, representing 2.69% of net assets and 3.51% of operating income[43]. - The company aims to enhance its R&D capabilities by recruiting talent and establishing a product R&D team, leveraging resources from its research institutes[76]. - The company has initiated research and development for new products, aiming to enhance its competitive edge in the aluminum industry[194]. Financial Management - The company generated a net cash flow from operating activities of CNY 1,410,283,115.47, reflecting an increase of 8.07% from the previous year[24]. - The company reported a net cash flow from investing activities of CNY -2,085,900,805.57, an improvement from CNY -4,431,547,538.64 in the previous year[185]. - The total cash and cash equivalents at the end of 2013 were CNY 2,481,225,925.89, down from CNY 4,035,361,823.12 at the beginning of the year[185]. Environmental Compliance - The company has established an environmental protection leadership group to manage and monitor environmental compliance[6]. - The company has established an environmental protection leadership group to manage compliance with environmental standards and monitor pollution[81]. Corporate Governance - The company improved its corporate governance structure, ensuring compliance with the Company Law and regulations from the China Securities Regulatory Commission[142]. - The company held 15 board meetings in the reporting period, with 5 conducted in person and 10 combining in-person and communication methods[146]. - The independent audit of the internal control effectiveness was conducted by Shandong Hexin Accounting Firm, confirming the adequacy of the internal control system[155]. Employee Management - The total number of employees in the parent company is 9,916, while the main subsidiaries have 3,895 employees, resulting in a total of 13,811 employees[138]. - The company has implemented a salary system that includes structured wages, piece-rate wages, and commission-based wages, along with various subsidies[138]. - The company conducted various training programs, including a "Master-Apprentice" approach and a "Excellent Engineer Program" to enhance technical skills[140]. Investment and Expansion - The company plans to invest USD 56.2 million in the second phase of the high-end aluminum alloy profile production plant in the United States to meet market demand[111]. - The company plans to continue expanding its market presence and invest in new technologies to enhance production efficiency[175]. - The company is exploring potential mergers and acquisitions to further strengthen its market position and operational capabilities[194].