XTAD(SH:600359)2014-03-18 16:00Financial Performance - In 2013, the company reported a net profit of -15,744,476.47 RMB, with a net profit attributable to shareholders of the parent company amounting to 15,169,331.20 RMB[6]. - The company's operating revenue for 2013 was CNY 868,094,781.81, a decrease of 35.87% compared to CNY 1,353,646,219.32 in 2012[22]. - The net profit attributable to shareholders of the listed company was CNY 15,169,331.20, down 77.48% from CNY 67,354,632.20 in the previous year[22]. - The net cash flow from operating activities was CNY 73,058,580.62, a decrease of 16.37% compared to CNY 87,354,401.33 in 2012[22]. - The total assets at the end of 2013 were CNY 1,911,995,017.76, a decrease of 12.67% from CNY 2,189,425,140.39 in 2012[22]. - The basic earnings per share for 2013 was CNY 0.05, a decline of 76.19% from CNY 0.21 in 2012[22]. - The company reported a significant reduction in non-recurring gains, totaling CNY 30,279,741.94 in 2013 compared to CNY 241,912,729.36 in 2012[24]. - The company reported a total comprehensive income for the year was a loss of CNY 15,744,476.47, compared to a gain of CNY 123,846,448.51 in the previous year, indicating a substantial decline in overall financial performance[156]. Risk Factors - The company faces several risk factors including policy risk, market risk, financial risk, and operational risk, which are detailed in the board report section[10]. - The company aims to enhance internal control and improve management levels to mitigate risks and improve operational efficiency[28]. - The company anticipates facing market risks due to fluctuations in raw material prices and plans to improve raw material procurement mechanisms[67]. Business Operations - The company has undergone changes in its main business operations since its listing, transitioning from cotton planting and sales to include real estate development, dairy farming, and seed breeding[19]. - The company has a significant stake in various subsidiaries, including 85% in Akesu New Agricultural Dairy Co., Ltd. and 100% in Akesu New Agricultural Dairy Products Co., Ltd.[11]. - The company completed 147% of its cotton production target, producing 9,555 tons[41]. - The company plans to optimize its asset structure and reduce debt levels through refinancing efforts[39]. - The company has ongoing projects in yogurt production and standardized breeding facilities, contributing to future growth[47]. Shareholder Information - The company is controlled by Aral Tongzhong State-owned Assets Management Co., Ltd., which has been the controlling shareholder since 2008[20]. - The total number of shares outstanding is 32,100,000, with 100% being unrestricted circulating shares[101]. - The largest shareholder, Aral Tongzhong State-owned Assets Management Co., holds 50.79% of the shares, totaling 163,050,000 shares[104]. - The total number of shareholders at the end of the reporting period was 51,536[104]. Financial Management - The company’s financial report has been audited by Xinyong Zhonghe Accounting Firm, which issued a standard unqualified opinion[5]. - The company plans to maintain a stable profit distribution policy, adjusting only in response to significant changes in external operating conditions or internal business status[78]. - The company will strengthen financial management to ensure the achievement of operational goals and improve cash flow management[60]. - The company has established a performance evaluation and incentive mechanism for senior management based on principles that link compensation to company performance and long-term interests[134]. Internal Control and Governance - The company has implemented a governance structure that complies with relevant laws and regulations, ensuring independent operation of the board and supervisory committee[124]. - The company has maintained effective internal control over financial reporting, as confirmed by an independent audit with a standard unqualified opinion[137]. - The company reported no significant deficiencies in the design and execution of internal controls during the reporting period[136]. - The company is committed to transparency in its financial reporting and governance practices, as evidenced by detailed disclosures in the annual report[109]. Future Plans - The company plans to achieve a revenue of 960 million RMB in 2014, primarily from sales of cotton, cotton seeds, pulp, dairy products, and licorice products[60]. - The company aims to produce 7,560 tons of cotton, 7,200 tons of cotton seeds, and 50,000 tons of pulp in the upcoming year[60]. - The dairy production targets include 10,000 tons of fresh milk, 20,000 tons of liquid milk, and 2,500 tons of milk powder[60]. - The company plans to invest a total of 2.1 billion CNY in the dairy comprehensive processing base construction project and 0.5 billion CNY in the dairy marketing network construction[66]. Employee and Human Resources - The company has a total of 2,147 employees, with 1,759 in production, 58 in sales, 141 in technical roles, 77 in finance, and 112 in administration[118]. - The company plans to train 800 personnel through various training programs, including short-term technical and business training, and internal training sessions[119]. - The company has established a human resources policy that ensures fairness and motivates employees, providing benefits such as social insurance and paid leave[118]. Related Party Transactions - The company engaged in significant related party transactions, including purchasing electricity and agricultural materials, with transaction amounts reaching RMB 10,771.32 million for sales to Xinjiang Production and Construction Corps Cotton and Hemp Company[87]. - A financial assistance of RMB 88 million was provided to its subsidiary Xinjiang Tarim River Seed Industry Co., Ltd. by Alar Tarim Chuangfeng Agricultural Service Co., Ltd. without any collateral required[92]. Asset and Liability Management - The total liabilities decreased to CNY 1,206,075,656.83, down from CNY 1,215,795,773.94, reflecting a reduction of approximately 0.7%[72]. - The company reported a net loss of CNY 600,503,959.25 in retained earnings, an improvement from a loss of CNY 615,673,290.45 in the previous year[147]. - The company has recognized a provision for expected liabilities amounting to CNY 151.47 million due to the financial difficulties faced by Xinjiang Hailong Chemical Fiber Co., Ltd.[95].