GZRS(SH:600367)2014-04-03 16:00Financial Performance - The company achieved a net profit of RMB 49,403,228.66 for the year 2013, with a total distributable profit of RMB 299,810,100.42[7] - The consolidated net profit attributable to shareholders for 2013 was RMB 3,263,928.84, leading to a year-end distributable profit of RMB 436,297,691.81[7] - The proposed cash dividend for 2013 is RMB 0.1 per 10 shares, totaling RMB 2,912,000 (including tax) to be distributed to shareholders[7] - In 2013, the company's operating revenue was CNY 1,053,062,157.60, a decrease of 8.92% compared to CNY 1,156,244,080.20 in 2012[32] - The net profit attributable to shareholders was CNY 3,263,928.84, down 89.12% from CNY 29,992,336.93 in the previous year[32] - Basic earnings per share dropped to CNY 0.01, reflecting a 90% decline from CNY 0.10 in 2012[32] - The weighted average return on equity decreased to 0.27%, down 2.25 percentage points from 2.52% in 2012[31] - The company reported a decline in overall profitability due to external factors, despite efforts to enhance competitiveness through technology and market development[40] - The company reported a total comprehensive income of CNY 8,006,120.34, down from CNY 28,764,391.75 in the previous year[195] Production and Sales - The company produced 278,512 tons of barium carbonate, achieving 105.5% of the budgeted target[39] - The production of strontium carbonate was 24,014 tons, which is 92.36% of the budgeted amount[39] - The sales of barium carbonate remained flat compared to the previous year, with pressure on sales prices due to market conditions[42] - EMD product sales increased due to targeted marketing efforts, although export volumes decreased due to price competition[42] - The production volume of electrolytic manganese dioxide increased by 15.60% year-on-year, while the sales volume rose by 4.18%[52] - The production of barium sulfate increased by 7.21%, with sales volume rising by 17.35% year-on-year, driven by enhanced market sales efforts[53] Financial Position - The total assets at the end of 2013 were CNY 1,766,625,025.50, an increase of 1.67% from CNY 1,737,654,957.16 in 2012[32] - The net assets attributable to shareholders were CNY 1,199,708,329.92, a slight decrease of 0.55% from CNY 1,206,294,774.54 in 2012[32] - The company reported a total current assets of CNY 1,152,915,380.18 as of December 31, 2013, an increase from CNY 1,118,301,156.53 at the beginning of the year, reflecting a growth of approximately 3.5%[185] - The cash and cash equivalents decreased to CNY 188,525,693.52 from CNY 220,699,591.77, representing a decline of about 14.6%[185] - The accounts receivable increased to CNY 140,444,724.62 from CNY 118,461,804.81, showing a growth of approximately 18.5%[185] Investments and Projects - The company invested a total of approximately $65.98 million in various projects, including $25.37 million in the new barium salt project and $16.90 million in the manganese salt technical upgrade project[89] - The company’s investment projects, Rongguang Mining and Hongxing Logistics, are still in a loss phase, impacting consolidated profits, with Rongguang Mining's losses exacerbated by weak sales and high financial costs[40] - The project for 10,000 tons/year of insoluble sulfur has not progressed as planned due to challenges in raw material safety control and market barriers, currently in a suspended state[84] Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report[9] - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[10] - The company has not experienced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[130] - The company has implemented measures to improve employee safety awareness and environmental compliance, including supervision and assessment of environmental work[108] Research and Development - The company has made progress in R&D, with new projects and products achieving initial production scales, including high-performance EMD and lithium-ion battery materials[44] - The company is focusing on developing high-purity barium salt products, which have a higher profit margin and are less affected by external economic fluctuations[96] - The manganese salt technical upgrade project is designed to meet new market demands for high-performance EMD and high-purity manganese sulfate products[90] Shareholder Structure and Governance - The controlling shareholder, Qingdao Hongxing Chemical Group, reduced its shareholding from 68.6% in 2001 to 39.67% by the end of 2013[26] - The company has a total of 291,200,000 shares, with 100% being tradable shares[137] - The largest shareholder, Qingdao Hongxing Chemical Group Co., Ltd., holds 39.67% of shares, totaling 115,520,000 shares[141] - The company has committed to not engage in major asset restructuring or share issuance for a period extending to six months from November 15, 2012[128] Employee and Management - The total number of employees in the parent company is 875, while the main subsidiaries have 2,289 employees, resulting in a total of 3,164 employees[157] - The total remuneration for all directors, supervisors, and senior management personnel during the reporting period amounts to 2.9756 million yuan[157] - The company has continued to build a stable core technical team and attract new technical personnel to contribute to technological innovation and product structure adjustment[156] Cash Flow and Financing - The net cash flow from operating activities was negative at CNY -460,598.41, a significant decrease from CNY 42,814,244.61 in 2012[32] - The net cash flow from financing activities increased to ¥70,087,000.09 in 2013 from -¥126,364.46 in 2012, due to increased working capital loans[68] - The company has not engaged in capital market refinancing since its initial public offering in 2001, relying mainly on sales revenue and retained profits[105]