FULING POWER(SH:600452)2014-03-13 16:00Financial Performance - In 2013, the company achieved operating revenue of CNY 1,243,921,679.80, an increase of 11.44% compared to CNY 1,116,192,289.61 in 2012[21]. - The net profit attributable to shareholders was CNY 54,149,463.59, representing a significant increase of 91.44% from CNY 28,285,678.04 in the previous year[21]. - The company's total revenue from the electricity industry was CNY 1,227,599,949.73, with a year-on-year increase of 12.94%[35]. - The company's electricity sales revenue reached CNY 1,089,211,316.35, representing a year-on-year increase of 25.24%[35]. - The company's gross margin for electricity sales improved by 1.03 percentage points to 11.00%[35]. - The total operating revenue for 2013 reached CNY 1,105,453,409.42, an increase from CNY 896,618,696.15 in 2012, representing a growth of approximately 23.3%[131]. - The company's net loss for 2013 was CNY 7,165,998.86, an improvement compared to a net loss of CNY 69,517,171.90 in 2012[129]. - The net profit for 2013 reached CNY 62.35 million, compared to CNY 54.15 million in 2012, marking an increase of approximately 15.1%[132]. Investment and Impairment - The company recognized an impairment provision of CNY 40.5784 million for its long-term equity investment in Chongqing Pengwei Petrochemical due to continuous losses over the past two years[6]. - The company will continue to monitor the operational status of its investment in Pengwei Petrochemical and develop follow-up disposal plans as necessary[6]. - The company holds a 15% stake in Chongqing Pengwei Petrochemical Co., with an investment of 89.41 million RMB, which has incurred significant losses, leading to a provision for impairment of 40.58 million RMB as of December 31, 2013[51]. - The company's investment income increased by 61.80% to CNY 5,156,431.71, driven by improved profitability of associated companies[28]. - The company's investment in equity stakes decreased in Chongqing Yinke Credit Guarantee Co., Ltd. from 4.55% to 3.33% following a capital increase[38]. Business Operations - The company’s main business remains unchanged, focusing on electricity supply and sales, primarily in the Fuling District of Chongqing[14]. - The company has expanded its business scope to include electrical facility installation and sales of related equipment and materials[14]. - The company completed a total electricity sales volume of 2.117 billion kWh with a 100% electricity fee recovery rate[24]. - The company has completed the construction of the Fuling QiuYueMen 110KV substation project, with an actual investment of RMB 3,200 million and a generated revenue of RMB 1,089 million[43]. - The Fuling City Power Grid Construction and Renovation project has been completed, with an actual investment of RMB 4,000 million and a generated revenue of RMB 447 million[44]. - The company has allocated RMB 1,840 million to supplement its working capital from the funds originally intended for the Fuling Dongjiawan 110KV substation project[47]. Financial Management - The company received a standard unqualified audit report from Ruihua Certified Public Accountants[3]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[3]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[3]. - The company has engaged in daily related transactions with Chongqing Electric Power Company, with a total transaction amount of RMB 574,707,962.52, accounting for 74.20% of similar transactions[69]. - The company has recognized the excess portion of daily related transactions for the year 2013[67]. Shareholder and Capital Structure - The registered capital of the company increased to CNY 160 million after a public offering of 52 million shares in 2004[15]. - The company reported no changes in share capital during the reporting period, maintaining a total of 160,000,000 shares[80]. - The largest shareholder, Chongqing Chuan Dong Electric Power Group Co., Ltd., holds 51.64% of the shares, totaling 82,630,044 shares[85]. - The total number of shareholders at the end of the reporting period was 16,570, an increase from 13,449 five trading days prior to the report[85]. - The company has not proposed any cash dividend distribution for the years 2011-2013, as the accumulated undistributed profits were negative[62]. Management and Governance - The company has a stable management team with members having extensive experience in the electric power sector[93]. - The board of directors has held 8 meetings during the year, with 5 conducted in person and 3 via communication methods, demonstrating active governance[112]. - The independent directors have not raised any objections to the board's proposals during the reporting period, indicating a consensus on governance matters[112]. - The company has implemented strict insider information management practices, with no incidents of insider information leakage reported during the year[109]. - The company has established a three-year shareholder return plan for 2013-2015, which was approved in the first extraordinary general meeting[110]. Compliance and Risk Management - The company has ensured compliance with legal requirements in its governance structure, reflecting adherence to regulatory standards set by the China Securities Regulatory Commission[107]. - The audit committee provided independent opinions on the 2013 financial report, ensuring its accuracy and completeness[113]. - The company aims to enhance risk management and information disclosure quality to ensure compliance and asset safety[118]. - The company has committed to maintaining operational independence despite transactions with related parties[71]. Employee and Training Programs - The total number of employees in the parent company is 1,019, with 130 retired employees[101]. - The company has a structured approach to employee training, focusing on practical skills and job competency[103]. - A new employee training program aims for "three-year full coverage" to enhance skills and competencies[103]. - The company implements a performance-based compensation policy, focusing on ability and performance[102]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern assumption and comply with the relevant accounting standards[160]. - The company assesses the carrying value of financial assets for impairment at each balance sheet date and recognizes impairment losses when objective evidence indicates[174]. - The company applies an aging analysis method for provisioning bad debts, with specific percentages for different aging categories, such as 90% for receivables over 4 years[181]. - Long-term equity investments are tested for impairment at each balance sheet date, and impairment losses are recognized if the recoverable amount is less than the carrying amount[191].