TROILA TECHNOLOGY(SH:600225)2014-04-10 16:00Financial Performance - The net profit of the parent company for 2013 was -116,474,961.88 CNY, with an unallocated profit at the beginning of the year of -302,419,649.50 CNY and at the end of the year of -418,894,611.38 CNY, leading to no profit distribution for the year [5]. - Basic earnings per share for 2013 was -0.46 CNY, a decrease of 428.57% compared to 0.14 CNY in 2012 [22]. - The weighted average return on net assets for 2013 was -26.91%, a decrease of 34.18 percentage points from 7.27% in 2012 [22]. - The diluted earnings per share for 2013 was also -0.46 CNY, reflecting the same decline as basic earnings per share [22]. - The company reported a significant drop in the basic earnings per share after deducting non-recurring gains and losses, which was -0.56 CNY in 2013 compared to 0.05 CNY in 2012, marking a decrease of 1,220.00% [22]. - The net profit attributable to shareholders was CNY -289,119,510.84, a decrease of 437.98% compared to the previous year [27]. - The company reported a net loss of approximately 289.12 million RMB in 2013, with no cash dividends proposed for that year [73]. - The company reported a significant increase in financial expenses, totaling CNY 545,077,962.25, compared to CNY 199,072,964.78 in the previous year [159]. - The net loss for the year was CNY 307,048,507.48, compared to a net profit of CNY 108,993,874.75 in the previous year [159]. Revenue and Costs - The company achieved operating revenue of CNY 2,841,150,063.84, representing a year-on-year increase of 5.49% [27]. - Total operating revenue for 2013 was CNY 2,841,150,063.84, an increase of 5.5% from CNY 2,693,242,270.46 in the previous year [158]. - Total operating costs rose to CNY 3,173,109,653.27, up 19.7% from CNY 2,652,158,974.00 in 2012 [158]. - The company generated CNY 1,219,969,191.62 from sales, down from CNY 1,429,173,006.55 in the previous year, reflecting a decline in revenue generation [163]. Cash Flow - The net cash flow from operating activities was CNY -1,675,648,603.53, indicating a significant decline from CNY -421,222,273.11 in the previous year [31]. - The net cash flow from operating activities was -CNY 1,675,648,603.53, a decrease of CNY 1,254,426,330.42 from the previous year, primarily due to reduced sales collections and increased land purchases and tax payments [39]. - Cash flow from operating activities showed a net outflow of CNY 1,675,648,603.53, worsening from a net outflow of CNY 421,222,273.11 in the previous year [163]. - The total cash inflow from financing activities reached 7,314,780,000.00 RMB, significantly up from 2,850,590,000.00 RMB in the previous year, reflecting increased borrowing and capital inflow [164]. - The cash flow from financing activities showed a net increase of 640,852,141.76 RMB, compared to a net decrease of -7,392,651.16 RMB in the previous year, suggesting a shift towards positive financing activities [167]. Assets and Liabilities - The company’s total assets increased by 18.52% to CNY 12,746,599,984.57 at the end of 2013 [31]. - The company’s total liabilities increased, leading to a decrease in net assets attributable to shareholders by 23.72% to CNY 929,841,333.59 [31]. - The company’s total liabilities grew to ¥11,645,858,326.16 from ¥9,313,999,729.95, marking an increase of approximately 25.0% [154]. - Shareholders' equity decreased to ¥1,100,741,658.41 from ¥1,441,085,523.56, a decline of approximately 23.6% [154]. Business Strategy and Development - The company has undergone significant changes in its main business focus, shifting from agricultural products to real estate development since 2009 [18]. - The company plans to continue focusing on real estate development as its primary business strategy [54]. - The company aims to increase investment in urban projects while reducing investment in suburban areas and third- and fourth-tier cities [66]. - The company will enhance its product offerings, focusing on residential development while also considering infrastructure projects, commercial, medical, and trade developments [66]. - The company anticipates a stable growth in the real estate market in 2014, but with a slowdown in growth rates due to macroeconomic policies and increased supply [70]. Shareholder and Governance - The total remuneration for the board members during the reporting period amounted to 297.47 million CNY before tax and 245.52 million CNY after tax [116]. - The company has established a cash dividend plan for shareholders for the next three years (2013-2015) to enhance shareholder returns [131]. - The company’s governance structure aligns with the requirements set by the China Securities Regulatory Commission, with no discrepancies noted [135]. - The company has been actively expanding its operations and restructuring its assets to enhance its market position [99]. Financial Management and Audit - The financial statements for the year ended December 31, 2013, were audited by Ruihua Certified Public Accountants, resulting in a standard unqualified audit opinion [146]. - The management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting standards [148]. - The company has implemented a performance evaluation mechanism for senior management based on annual operational goals and key financial indicators [139]. Risk Management - The company emphasizes the importance of product innovation, cost control, and effective management to navigate the tightening market environment [70]. - The company’s financial statements indicate a need for strategic adjustments to address the decline in total owner's equity [174]. - The company has a commitment to announce any sale of shares that exceeds 1% of the total shares within two working days [95].