LZCIC(SH:600423)2014-04-24 16:00Financial Performance - The company's operating revenue for 2013 was CNY 2,586,693,075.55, a decrease of 11.70% compared to CNY 2,929,522,617.14 in 2012[34]. - The net profit attributable to shareholders for 2013 was a loss of CNY 148,839,899.84, representing a decline of 455.25% from a profit of CNY 41,897,190.67 in 2012[34]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 202,940,211.12, compared to a profit of CNY 6,459,512.10 in 2012, a decrease of 3,241.73%[34]. - In 2013, the company reported a net loss of CNY 152.49 million, with a significant decline in basic and diluted earnings per share to -CNY 0.37, a decrease of 470% compared to the previous year[35][44]. - The company faced significant challenges due to external market conditions, leading to a profit reduction of CNY 259 million attributed to falling product prices[44][49]. - The company reported a 92.68% decrease in income tax expenses due to a loss during the reporting period[57]. Cash Flow and Assets - The net cash flow from operating activities increased by 44.06% to CNY 414,240,361.39 from CNY 287,538,415.63 in 2012[34]. - The total assets at the end of 2013 were CNY 4,302,662,601.06, a decrease of 2.30% from CNY 4,403,820,034.09 in 2012[34]. - The net assets attributable to shareholders decreased by 12.60% to CNY 1,332,344,174.56 from CNY 1,524,480,491.65 in 2012[34]. - Cash and cash equivalents increased by 87.09% to ¥272,386,055.20, primarily due to the sale of the controlling subsidiary Xin Yi Mining[68]. - Accounts receivable increased by 126.80% to ¥100,381,470.50, mainly due to an increase in sales settled by notes[68]. - Short-term borrowings increased by 32.13% to ¥1,457,400,000.00, mainly to supplement working capital[70]. Business Operations and Strategy - The company has maintained its main business operations without changes since its listing[28]. - The company achieved a production total of 602,700 tons of ammonia in 2013, with a historical daily production record of 1,030 tons[41]. - The company implemented a marketing system reform to enhance market control, resulting in an increase in sales volume for most products despite adverse market conditions[41]. - The company plans to acquire 95% of Hunan Zhongcheng's equity and 95.5% of Zhenhua Industrial's equity to optimize its asset structure and improve operational efficiency[42]. - The company aims to achieve an operating revenue of 3.2 billion yuan in 2014 and plans to turn losses into profits[90]. - The company will focus on internal potential tapping, energy saving, and efficiency improvement in 2014, alongside accelerating the upgrade of mixed fertilizer and nitric acid systems[88]. Shareholder and Governance - The total number of shareholders at the end of the reporting period was 38,799, an increase from 37,610 at the end of the previous reporting period[133]. - The largest shareholder, Liuzhou Chemical Industry Group Co., Ltd., holds 36.30% of the shares, totaling 144,958,192 shares, with no changes during the reporting period[139]. - The company has retained its accounting firm, Da Xin Accounting Firm, for 13 years, with an audit fee of RMB 45,000[121]. - The company has a robust internal audit function, with members actively involved in monitoring financial practices and compliance[146]. - The company has established a governance structure that complies with the requirements of the Company Law and the relevant regulations of the China Securities Regulatory Commission[162]. Risks and Challenges - The company faces risks from excess capacity and insufficient demand in the domestic market, which may challenge product sales[92]. - The company faced financing difficulties and decided not to increase capital reserves or distribute profits for 2013[9]. - The company has outlined potential risks in its future plans, which investors should be aware of[16]. Environmental and Compliance - The company achieved a 100% compliance rate for sulfur content in coal used during the reporting period[102]. - Environmental protection facilities operated in sync with production equipment at a rate exceeding 98%[102]. - The company has established a long-term environmental safety guarantee mechanism to prevent environmental issues[102]. - The company has not experienced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[122].