FLDT(SH:600228)2014-04-29 16:00Financial Performance - The net profit attributable to the parent company for 2013 was -194,639,280.72 RMB, resulting in a total distributable profit of -556,170,856.09 RMB, leading to no profit distribution for the year[6]. - The company reported a total revenue of RMB 719.69 million in 2013, a decrease of 6.19% compared to RMB 767.14 million in 2012[26]. - The net loss attributable to shareholders was RMB 194.64 million in 2013, an increase in loss of RMB 4.99 million compared to RMB 144.68 million in 2012[27]. - The basic earnings per share for 2013 was -0.81 RMB, compared to -0.60 RMB in 2012[22]. - The company reported a significant decrease in inventory by 32.42% to CNY 39,208,746.72, indicating reduced stockpiling[41]. - The company incurred a loss of RMB 4.67 million related to corporate restructuring expenses in 2013[23]. - The company’s weighted average return on equity was -220.94% in 2013, reflecting significant financial challenges[22]. - The company reported a net profit decrease of CNY 250,236,084.38 for the current period, compared to a net profit decrease of CNY 113,234,536.38 in the same period last year, indicating a significant decline in profitability[145][147]. Cash Flow and Assets - The company achieved a net cash flow from operating activities of RMB 36.80 million, a significant increase of 3,601.18% from RMB 0.99 million in 2012[28]. - The company’s total assets decreased by 21.36% to RMB 671.59 million at the end of 2013, down from RMB 854.01 million at the end of 2012[23]. - Cash and cash equivalents decreased from CNY 20,814,097.88 to CNY 3,802,185.80, highlighting liquidity challenges[129]. - The company’s total liabilities decreased to CNY 713,000,501.91 from CNY 745,620,908.32, showing a reduction in overall debt[130]. - The company’s total assets decreased significantly from CNY 503,217,332.76 to CNY 286,629,067.50, indicating a substantial decline in asset value[130]. Business Operations - The company’s main business remains unchanged, focusing on the research, production, and sales of various chemical products including methanol, urea, and biological chemicals[18]. - The production of acrylamide increased by 20.57% to 60,441.50 tons in 2013, while sales rose by 20.62% to 61,353.39 tons[29]. - The company plans to focus on the development of the acrylamide industry and improve cash flow by utilizing idle assets to offset debts[27]. - The company aims to enhance its operational capabilities and asset quality through strategic measures, including debt forgiveness and asset disposal[27]. - The company plans to integrate its Jiangsu production bases to increase acrylamide production capacity from 30,000 tons to 50,000 tons annually, aiming to enhance profitability[60]. Corporate Governance - The company has maintained a good corporate image and relationships with stakeholders, adhering to environmental regulations without incidents in 2013[65]. - The internal control system is being strengthened to improve management standards and ensure compliance with regulations[62]. - The board of directors has seen multiple resignations, including the general manager and financial director, due to work-related reasons[75]. - The company conducted investor and media briefings to address concerns regarding information disclosure, confirming no violations were found[67]. - The company strictly adhered to the regulations of the Articles of Association and ensured equal rights for all shareholders, particularly minority shareholders[108]. Risks and Challenges - The company has outlined potential risks in its future development plans, which investors should be aware of[10]. - The company faces risks related to the cyclical nature of the chemical industry and potential fluctuations in raw material prices, which could impact production costs[57]. - The company has accumulated losses of CNY 556.17 million as of December 31, 2013, and its current liabilities exceed current assets by CNY 402.33 million[59]. - The company is currently planning a major asset restructuring, but the approval from relevant authorities remains uncertain[122]. Related Party Transactions - The company’s related party transactions included sales of water and electricity, with a total transaction amount of RMB 2,440,316.72[68]. - The company’s related party debts included RMB 323,465,928.15 owed to its controlling shareholder, with an additional RMB 62,050,000 incurred during the reporting period[69]. - The company reported a total guarantee amount of RMB 80 million for its subsidiaries during the reporting period[70]. Research and Development - The total R&D expenditure amounted to ¥6,178,115.81, representing 0.86% of the operating revenue[32]. - The company plans to focus on sustainable development in 2014, emphasizing technological innovation and improving economic efficiency[50]. Legal Matters - The company faced a lawsuit regarding a restructuring fund issue, with a claim of RMB 352 million, leading to the auction of 18 million shares of the company by the court[67]. - The company is involved in a lawsuit seeking 352 million RMB in overdue restructuring funds from Jiangxi Guokong and Ganzhou Industrial Investment Group, which has impacted its restructuring projects[74].