CORUN(SH:600478)2014-03-28 16:00Financial Performance - The company reported a net profit of -32,773,587.86 RMB for the year 2013, with a total accumulated undistributed profit of -35,000,221.40 RMB[6]. - The company did not distribute any profits for the year due to negative accumulated profits, in accordance with the Company Law and its articles of association[6]. - In 2013, the company's operating revenue decreased by 32.76% to CNY 1,130,711,460.36, a reduction of CNY 550,936,584.22 compared to the previous year[24]. - The net profit attributable to shareholders was CNY 10,195,196.98, a significant recovery from a loss of CNY 57,943,082.47 in 2012[24]. - The company reported a total comprehensive income for the year was a loss of CNY 42,956,785.16[166]. - The company reported a decrease in net profit of CNY 42,956,785.16 compared to the previous year[166]. - The company reported a basic and diluted earnings per share of CNY 0.03, compared to a loss of CNY 0.18 per share in 2012[142]. - The company reported a significant reduction in short-term borrowings from CNY 705,631,726.24 to CNY 247,193,800.00, a decrease of approximately 65.0%[134]. Capital Structure and Shareholder Information - The board proposed a capital reserve transfer to shareholders, with a plan to increase the total share capital from 314,823,465 shares to 472,235,198 shares, representing a 50% increase[7]. - The company has a total of 314,823,465 shares, with 100% being tradable shares[90]. - The company has a registered capital of 105,000,000 RMB[95]. - The total owner's equity at the end of 2013 was CNY 967,324,303.05, with a capital reserve of CNY 624,935,831.02[167]. - The largest shareholder, Hunan Keli Yuan High-Tech Holdings Co., Ltd., holds 63,178,541 shares, accounting for 20.07% of total shares[93]. - The actual controller, Mr. Zhong Faping, holds 25,097,143 shares, representing 7.97% of total shares[93]. - The total number of shareholders at the end of the reporting period was 14,873[93]. Operational Highlights - The company’s main business has shifted to the research, development, production, and sales of new materials and new energy since 2009[18]. - The company launched China's first fully automated HEV nickel-hydrogen battery production line in October 2013, marking a significant milestone in domestic HEV battery production[28]. - A strategic partnership was formed with Toyota to establish a joint venture, Koli Mei (China) Automotive Power Battery Co., Ltd., with a 40% ownership stake[29]. - The company produced over 60,000 sets of HEV vehicle power batteries, achieving an operating profit of JPY 929 million, a year-on-year increase of 57.6%[29]. - The company aims to enhance its core competitiveness in the HEV battery market through continuous innovation and technology introduction[50]. Research and Development - R&D expenditures increased by 111.03% to CNY 31,951,499.98, reflecting the company's commitment to innovation[32]. - The company plans to establish a new subsidiary for the research and production of battery pack systems, addressing key technical challenges for domestic automakers[52]. - The company is focusing on the development of advanced energy storage materials and aims to enhance its technological capabilities in battery production[64]. Financial Management and Audit - The company received a standard unqualified audit report from Tianjian Accounting Firm for the fiscal year 2013[6]. - The company’s financial statements are prepared based on the principle of going concern and comply with accounting standards[172]. - The company has established an internal control system to enhance risk prevention and management, ensuring compliance with relevant regulations[123]. - The company’s internal control system is aligned with new accounting standards and regulations, ensuring effective financial management and compliance[122]. Market and Industry Outlook - The company aims to increase the market share of HEV batteries, which can reduce CO2 emissions by 40-80% and save fuel by 30-55% compared to traditional vehicles[65]. - The company anticipates that the HEV battery energy pack industry will experience rapid growth due to increasing environmental and energy security pressures[67]. - HEV market is expected to experience rapid growth by 2015, driven by the maturation of related technologies and reduction in production costs[68]. Compliance and Governance - The company has maintained its accounting firm, Tianjian Accounting Firm, with an audit fee of 600,000 RMB for the year[84]. - The company emphasizes the protection of stakeholders' rights, including employees and creditors, to foster sustainable development[115]. - The company has implemented strict information disclosure practices to ensure transparency and protect investor interests[116]. - The company maintains independence from its controlling shareholder in personnel, assets, finance, and operations, ensuring unbiased decision-making[114]. Asset Management - The company reported a total asset of CNY 1,906,751,039.03 as of December 31, 2013, a decrease from CNY 2,458,519,039.22 at the beginning of the year, reflecting a decline of approximately 22.5%[132]. - The company's current assets totaled CNY 640,079,879.99, down from CNY 1,323,239,161.26, indicating a reduction of about 51.7%[132]. - The total liabilities decreased to CNY 703,276,782.09 from CNY 1,248,328,686.57, a reduction of about 43.8%[135]. Employee and Management Information - The total number of employees in the company and its main subsidiaries is 2,168, with 99 in the parent company and 2,069 in subsidiaries[108]. - The total remuneration for the board members and senior management was 402.68 million RMB[97]. - The company has implemented a composite salary management system based on position salary points, adjusting employee wages according to the social wage increase in Changsha, Hunan Province[108]. Investment and Financing Activities - The company reported a net cash outflow from financing activities of 489.99 million yuan, a decrease of 305.73% compared to the previous year, primarily due to reduced financing costs and loan repayments[38]. - The company received CNY 270,203,605.89 from borrowings, a decrease of 75.0% compared to CNY 1,082,074,257.26 in the previous period[149]. - The company paid CNY 741,329,372.13 in debt repayments, a decrease of 20.0% from CNY 926,358,206.18 in the previous period[150].