HAC(SH:600202)2014-04-21 16:00Financial Performance - In 2013, Harbin Air Conditioning Co., Ltd. reported a net profit attributable to shareholders of -87,997,963.34 RMB, leading to a total distributable profit of 248,717,709.61 RMB after accounting for previous undistributed profits and cash dividends paid[5]. - The company reported a total operating revenue of CNY 879.64 million in 2013, a decrease of 7.32% compared to CNY 949.13 million in 2012[18]. - The net profit attributable to shareholders was a loss of CNY 87.99 million in 2013, a significant decline from a profit of CNY 21.04 million in 2012, representing a decrease of 518.23%[19]. - The basic earnings per share were -CNY 0.2296 in 2013, down from CNY 0.0549 in 2012, marking a decline of 518.21%[18]. - The company’s total assets decreased by 5.63% to CNY 2.72 billion at the end of 2013 from CNY 2.89 billion at the end of 2012[19]. - The company’s net assets attributable to shareholders decreased by 10.17% to CNY 833.52 million at the end of 2013 from CNY 927.91 million at the end of 2012[19]. - The company reported a net profit of CNY -87.99 million for the reporting year, compared to a profit of CNY 21.04 million in the previous year, indicating a significant change in profit structure[37]. - The company achieved operating revenue of CNY 879.65 million, which was 16.22% lower than the planned target of CNY 1.05 billion for the year[38]. - The company reported a total comprehensive income of CNY -87,868,994.98 for 2013, reflecting the impact of the net loss and other comprehensive income adjustments[146]. Dividend Policy - The company plans not to distribute dividends for the 2013 fiscal year due to losses and tight financial conditions, with profits carried forward to 2014 for project construction, debt repayment, and working capital[5]. - The company has not proposed any capital reserve transfer to increase share capital for the 2013 fiscal year[5]. - The company has not made any adjustments to its cash dividend policy during the reporting period[65]. - The board of directors has approved a dividend payout of 0.5 RMB per share, reflecting a commitment to returning value to shareholders[107]. Audit and Compliance - The company received a standard unqualified audit report from Zhongshen Zhonghuan Accounting Firm, ensuring the accuracy and completeness of the financial report[3]. - The board of directors and management have confirmed the authenticity and completeness of the annual report, taking legal responsibility for its content[3]. - The company’s financial report emphasizes the importance of maintaining accurate and complete financial disclosures to stakeholders[3]. - The company’s internal control system was evaluated as effective by the auditing firm, ensuring accurate financial reporting as of December 31, 2013[126]. - The company strictly adhered to the "Major Error Responsibility Pursuit System" for annual report disclosures, with no significant accounting errors or omissions reported[127]. Risk Management - The report includes a risk statement regarding forward-looking statements, indicating that future plans do not constitute a substantive commitment to investors[5]. - The company reported an asset-liability ratio that reached a historical high, indicating increased refinancing and interest rate risks due to high accounts receivable and inventory levels[62]. - The company faces significant market risks due to a slowdown in domestic electricity demand and reduced thermal power projects[62]. - The company is exposed to foreign exchange risks as most international contracts are denominated in USD, impacting cash flow due to currency fluctuations[63]. - Measures to mitigate financial risks include establishing a financial warning system and optimizing financing structure to diversify refinancing risks[63]. Research and Development - The company’s R&D expenditure increased by 105.79% to CNY 29.63 million in 2013 from CNY 14.40 million in 2012[25]. - The company has developed significant competitive advantages in the power station air cooling sector, including independent intellectual property rights and a national R&D center[43]. - The company is investing 100 million RMB in research and development for new technologies in HVAC systems[107]. - The company aims to enhance its core competitiveness by increasing R&D investment and accelerating technological advancements and product innovation[60]. Operational Strategy - The company is focusing on project construction and debt repayment as part of its future strategy, reflecting a cautious approach to financial management[5]. - The company plans to achieve a revenue target of 900 million RMB and control costs at 850 million RMB for 2014[59]. - The company expects to maintain its current business scale and complete ongoing projects with a funding requirement of approximately 1 billion RMB[61]. - The company is focusing on optimizing its operational layout and asset integration to improve asset returns and enhance management efficiency[60]. - The company is committed to strengthening its market position in the international air cooling market while focusing on brand development and high-end growth strategies[57]. Investments - The company has invested a total of 30 million in a non-principal floating short-term financial product with a yield of 2.30%, generating a profit of 45,369.88[46]. - Another investment of 30 million in a guaranteed return short-term financial product yielded 3.00%, resulting in a profit of 106,027.25[46]. - A significant investment of 70 million in a non-principal floating product yielded 2.30%, with a profit of 66,164.40[46]. - The company has also allocated 50 million to a guaranteed return product with a yield of 3.00%, generating a profit of 29,166.67[46]. Corporate Governance - The company respects the rights of stakeholders, including banks, employees, and customers, and actively engages in social responsibility initiatives[118]. - The company’s governance structure ensures equal rights for all shareholders, particularly minority shareholders, in major decision-making processes[115]. - The company has established a comprehensive investor relations management system to enhance communication with investors through various channels[119]. - The company has committed to implementing an equity incentive plan following the completion of the equity division reform[78]. Market Position and Competition - The company specializes in the design, manufacturing, and sales of various high, medium, and low-pressure air coolers, including petrochemical and power station air coolers[154]. - The company has established a strong position in the petrochemical air cooling market, particularly in high-temperature and high-pressure applications[44]. - The company is involved in various manufacturing and technical services related to air conditioning and cooling systems, which positions it within a competitive market landscape[153]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2015[107]. Employee and Management - The company employed a total of 914 staff members, including 737 in the parent company and 177 in major subsidiaries[111]. - The management team has extensive experience in engineering and management, contributing to the company's strategic direction[94][95][96][97]. - The company trained a total of 209 employees in 2013, enhancing their professional skills and overall quality[112]. Financial Health - The company’s cash flow from operating activities was CNY 79.16 million, a significant improvement from -CNY 20.06 million in 2012, representing an increase of 494.62%[25]. - Cash and cash equivalents decreased by 32.50% to ¥151,836,534.38, accounting for 5.57% of total assets[41]. - The company’s cash flow from operating activities showed a negative trend, indicating potential liquidity issues moving forward[141]. - The total equity at the end of 2013 was CNY 833,522,612.98, down from CNY 906,867,954.20 in 2012, marking a decrease of approximately 8.1%[146][147].