Nisco(SH:600282)2014-04-28 16:00Financial Performance - In 2013, the company reported a net profit of -1,035,867,252.52 RMB, leading to a cumulative profit available for distribution of -1,684,222,835.96 RMB, resulting in no profit distribution for the year [6]. - The company has faced negative net profits for both 2012 and 2013, which may lead to a delisting risk warning according to the Shanghai Stock Exchange regulations [15]. - The net profit attributable to shareholders was a loss of CNY 618.45 million, compared to a loss of CNY 570.27 million in 2012 [28]. - The total profit margin decreased by 7.95%, with a total profit of -¥925.37 million compared to -¥857.23 million in the previous year [38]. - The company reported a net profit of -619 million RMB for 2013, with total revenue of 25.41 billion RMB, a decrease of 17.54% compared to the previous year [50][55]. - The company’s total net profit for 2012 was reported at -561,325,793.68 RMB, indicating a trend of financial losses over consecutive years [112]. - The company reported a significant increase in foreign exchange gains of 824.69%, amounting to ¥114.87 million, due to the appreciation of the RMB against the USD [39]. - The company aims to achieve profitability in 2014 to avoid potential stock suspension due to consecutive years of negative net profit [107]. Revenue and Sales - In 2013, the company reported a revenue of CNY 26.82 billion, a decrease of 16.26% compared to CNY 32.03 billion in 2012 [28]. - The company's operating revenue decreased by 16.26% to ¥26.82 billion from ¥32.03 billion year-on-year, primarily due to the elimination of outdated production facilities and a decline in average sales prices of steel products [38]. - The company’s sales volume for bar steel decreased by 20.44% to 1.46 million tons, while the sales volume for sheet steel fell by 1.14% to 3.34 million tons [41]. - The total revenue for the main business reached ¥26.63 billion, a decrease of 16.35% year-on-year, while the total cost of sales was ¥25.31 billion, down 17.43% year-on-year, resulting in a gross margin of 4.96%, an increase of 1.24 percentage points compared to the previous year [58]. Production and Operations - The company produced 5.786 million tons of iron, 6.053 million tons of steel, and 5.830 million tons of materials, representing year-on-year declines of 14.71%, 15.64%, and 11.00% respectively [35]. - The actual production of pig iron was 5.79 million tons, completing 98.23% of the planned target, while steel production was 6.05 million tons, achieving 97.48% of the target [55][56]. - The company completed fixed asset investments of 5.70 billion RMB, exceeding the planned target by 23.39% [56]. - The company plans to produce 5.89 million tons of pig iron and 6.21 million tons of steel in 2014, with a revenue target of 27.88 billion RMB [54]. Cash Flow and Assets - The net cash flow from operating activities increased by 49.62% to CNY 2.99 billion from CNY 1.99 billion in 2012 [28]. - The company's total assets increased by 7.28% to CNY 36.71 billion compared to CNY 34.22 billion in 2012 [28]. - The company's cash and cash equivalents at the end of the period were ¥2.75 billion, accounting for 7.50% of total assets, a decrease of 20.56% from the previous year [61]. - The inventory at the end of the period was ¥4.16 billion, representing 11.33% of total assets, down 8.62% from the previous year [61]. Investments and Research - Investment income surged by 150.64% to ¥219.34 million, resulting from the partial divestment of shares in Minsheng Bank [39]. - Research and development expenses rose by 50.48% to ¥834.48 million, reflecting the company's commitment to advancing new product development [39]. - The company has made significant investments in technology upgrades, with a total investment of CNY 1,699,649,652.90 for energy-saving and structural adjustment projects [93]. - The company holds 418 authorized patents, including 166 invention patents, and has developed 5 national key new products and 39 provincial high-tech products by the end of the reporting period [65]. Legal and Compliance Issues - There are ongoing legal disputes involving the company, with a claim for 13.145 million RMB related to a contract dispute, which is still under arbitration [120]. - The company is currently involved in litigation regarding the return of 19.8475 million yuan and compensation for interest losses [121]. - The company has faced issues related to fraud investigations involving Dongfang Long, impacting contract execution [121]. - The company has maintained compliance with environmental regulations and has not faced any pollution incidents, as confirmed by the local environmental protection bureau [114]. Corporate Governance and Shareholder Relations - The company’s independent directors have supported the decision not to distribute profits, citing alignment with the company's financial situation [110]. - The company has committed to providing equal treatment to its shareholders to protect their interests [145]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period [149]. - The company’s auditor, Tianheng Accounting Firm, has been retained for 15 years, with an audit fee of RMB 140,000 [148]. Future Outlook and Strategy - The company plans to enhance its core competitiveness in the steel sector while actively promoting diversified industrial development [95]. - The company has set a future outlook with a revenue target of 700 million for the next fiscal year, indicating a projected growth of approximately 16.67% [182]. - The management team has outlined a new strategy focusing on sustainability, aiming to reduce carbon emissions by 30% over the next five years [182]. - The company is expanding its market presence by entering two new regions, which is expected to enhance overall sales by an estimated 25% in the upcoming year [182].