CPEC(SH:600339)2014-03-27 16:00Financial Performance - The company reported a net profit of -16,410,044.65 RMB for the year 2013, with no profit distribution or capital reserve increase planned[4]. - Basic earnings per share for 2013 was 0.0093 RMB, compared to -0.3878 RMB in 2012, indicating a significant recovery[24]. - The weighted average return on net assets was 0.46% in 2013, up from -17.32% in 2012, showing improvement in profitability[24]. - The company achieved total operating revenue of CNY 3,057,262,076.62 in 2013, a decrease of 4.14% compared to CNY 3,189,231,284.25 in 2012[30]. - The net profit attributable to shareholders was CNY 5,402,227.24, a significant recovery from a loss of CNY 224,213,575.98 in the previous year[30]. - The net cash flow from operating activities increased by 62.15% to CNY 355,357,484.72, up from CNY 219,155,587.47 in 2012[35]. - The company reported a total profit of CNY 2,466.75 million, an increase of CNY 29,564.62 million compared to the previous year[33]. - The net profit for 2013 was 80.0288 million RMB, representing an increase of 81.37%[125]. - The total comprehensive income for the year was CNY 10,746,860.29, recovering from a comprehensive loss of CNY 243,703,795.78 in the previous year[198]. Operational Highlights - The company has maintained its main business operations, including advanced lubricating oil additives and fine chemical products, since its establishment[19]. - The company maintained high production levels, achieving record output for key products such as acetone, MTBE, polypropylene, and natural gas transportation[30]. - In 2013, the production of adipic acid increased by 0.95% to 7.40 million tons compared to 2012[36]. - The sales volume of acetone increased by 15.81% to 6.74 million tons in 2013, up from 5.82 million tons in 2012[36]. - The company expanded its other business income channels, resulting in a 40.33% increase in revenue from labor, transportation, and material sales[35]. - The company achieved a total operating value of 1.384 billion RMB in 2013, with a sales revenue increase of 8.23% year-on-year, reaching 1.421 billion RMB[125]. Research and Development - Research and development expenses rose significantly to CNY 95,062,895.85, compared to CNY 2,140,330.77 in the previous year, marking an increase of 4,341.50%[35]. - The total R&D expenditure for the year was approximately ¥95.06 million, accounting for 7.54% of net assets and 3.11% of operating income[44]. - The company had a total of 9 ongoing R&D projects by the end of the reporting period, with 5 projects under Tianli High-tech and 4 under Lande Chemical[45]. - New product development initiatives are underway, focusing on advanced technology in the petrochemical sector, with an investment of 200 million CNY allocated for R&D[142]. Financial Position - The company reported a decrease in total assets by 7.50%, from CNY 4,210,411,898.47 in 2012 to CNY 3,894,460,710.97 in 2013[30]. - The company reported a basic earnings per share of CNY 0.0093, compared to a loss per share of CNY 0.3878 in the previous year[197]. - Total liabilities decreased from CNY 2,937,283,862.22 to CNY 2,632,872,381.87, a reduction of approximately 10.4%[189]. - The company's retained earnings increased from CNY 35,455,742.29 to CNY 40,857,969.53, an increase of approximately 15.5%[189]. - Total current assets decreased from CNY 690,566,741.76 at the beginning of the year to CNY 550,454,824.80, a decline of approximately 20.2%[188]. Risk Management - The company has faced various risks as detailed in the board report, which should be reviewed by investors[10]. - The company acknowledges the risk of intensified market competition due to rapid capacity expansion in its main products, which may lead to oversupply[83]. - The company is facing risks related to raw material price fluctuations, which may impact future operational performance[84]. Governance and Compliance - The company has not experienced any changes in its shareholder structure or asset and liability structure due to stock distributions or other reasons[118]. - The company has established a comprehensive internal control system and completed the self-evaluation of the internal control system, addressing identified deficiencies[159]. - The board of directors consists of 11 members, including 4 independent directors, ensuring compliance with legal requirements[160]. - The company received a standard unqualified audit opinion for its financial statements for the year ended December 31, 2013, from Zhongshun Huayin Wuzhou Accounting Firm[180]. Future Outlook - The company plans to achieve a total operating income of 34 billion for the year, with a target to control operating costs at 31 billion[54]. - The company expects sales revenue to increase by over 2 billion RMB in 2014 due to new projects coming online[125]. - The company plans to apply for loans not exceeding 2 billion CNY from financial institutions to meet its operational needs in 2014[82]. - The company aims to enhance production efficiency and safety by implementing rigorous management and maintenance strategies for its facilities[80].