Henan Zhongfu Industrial (SH:600595)2014-04-24 16:00Financial Performance - The net profit attributable to the parent company for 2013 was -848,637,588.29 RMB, indicating a significant loss compared to the previous year[6]. - The company's operating revenue for 2013 was CNY 10,668,323,052.85, a decrease of 3.39% compared to CNY 11,042,238,855.92 in 2012[30]. - The net profit attributable to shareholders was a loss of CNY 848,637,588.29, a decline of 1,558.89% from a profit of CNY 58,169,958.04 in the previous year[30]. - The basic earnings per share for 2013 was -CNY 0.55, down 1,540.93% from CNY 0.04 in 2012[31]. - The weighted average return on equity was -17.07%, a decrease of 18.16 percentage points from 1.09% in 2012[31]. - The company reported a net profit decrease for Linfeng Aluminum due to falling aluminum prices and fixed asset impairment provisions[76]. - The company’s net profit for Zhongfu Power increased significantly due to falling coal prices and rising electricity prices compared to the previous year[76]. - The company anticipates a revenue of approximately RMB 11 billion for 2014, focusing on stable operations and accelerating deep processing projects[80]. - The company expects a net profit attributable to the parent company of approximately -1 billion RMB for the fiscal year 2013[122]. - The net profit for 2013 was approximately -CNY 861.55 million, compared to a profit of CNY 110.92 million in 2012, indicating a significant decline[186]. Capital and Equity Changes - The registered capital increased from 1,514,873,778 RMB to 1,741,540,403 RMB during the reporting period[23]. - The company completed a non-public stock issuance of 22,666,600 shares at a price of CNY 4.44 per share, raising a net amount of CNY 99,280,920[56]. - The company completed a private placement of 226,666,625 restricted shares, increasing total share capital from 1,514,873,778 to 1,741,540,403 shares[116]. - The equity stake of the controlling shareholder, Yulian Group, increased from 51.68% to 57.97% following the share issuance[117]. - The total number of shareholders at the end of the reporting period was 157,613, an increase from 155,072 five trading days prior[118]. - The total share capital increased from 1,514,873,778 shares to 1,741,540,403 shares due to a private placement of 226,666,625 shares in November 2013[200]. Operational Challenges - The company faced significant operational pressure due to the prolonged low aluminum prices, impacting its financial performance[15]. - The average selling price of aluminum products decreased by 7.99% compared to the previous year, contributing to a 4.9% decline in main business income[42]. - The company has experienced risks related to aluminum price fluctuations and raw material procurement, particularly for alumina[81]. - The company has faced significant operational pressures due to a substantial decline in aluminum prices, leading to a market adjustment period for electrolytic aluminum enterprises[79]. Research and Development - The total R&D expenditure for the period was CNY 110,218,807.85, representing 1.78% of net assets and 1.03% of operating revenue[52]. - The company has established a joint research center with Shanghai Jiao Tong University to enhance the development of high-purity aluminum and new materials[67]. - The company is committed to developing new materials, products, and technologies to enhance its integrated industrial chain in aluminum processing[122]. Internal Control and Governance - The company has implemented a comprehensive internal control management system, improving risk management processes and internal information systems[153]. - The internal control audit report confirmed the effectiveness of the internal control system as of December 31, 2013[169]. - The company has maintained compliance with the Company Law and relevant regulatory requirements regarding corporate governance[155]. - The company has established various governance rules to ensure clear responsibilities and effective checks and balances among its power, decision-making, execution, and supervisory bodies[152]. Employee and Management Information - The total number of employees in the parent company is 2,760, while the total number of employees in major subsidiaries is 8,596, resulting in a combined total of 11,356 employees[142]. - The total remuneration payable to the board members before tax amounted to 2,536,700 RMB (approximately 253.67 million RMB) for the reporting period[130]. - The chairman, He Huaqin, received a total remuneration of 320,000 RMB (approximately 32 million RMB) during the reporting period[130]. - The company has implemented a "thousand professional technical talent plan" to enhance the quality of its workforce through various training programs[144]. Financial Position - The company's total assets increased by 2.75% to CNY 26,624,004,565.68 at the end of 2013, compared to CNY 25,912,083,959.07 at the end of 2012[30]. - The company's total liabilities rose to CNY 20.42 billion in 2013, compared to CNY 18.96 billion in 2012, an increase of 7.69%[184]. - The company's cash and cash equivalents decreased to CNY 3.84 billion in 2013 from CNY 4.25 billion in 2012, a decline of 9.43%[182]. - The total equity decreased to CNY 6.21 billion in 2013 from CNY 6.95 billion in 2012, a drop of 10.65%[184]. Guarantees and Financing Activities - The total guarantee amount (including guarantees to subsidiaries) reached CNY 5,476,633,086, accounting for 101.13% of the company's net assets[98]. - The company provided guarantees for various financing limits, including RMB 95 million for Henan Zhongfu Electric Power Co., Ltd. and RMB 50 million for Linzhou Linfeng Aluminum Electric Co., Ltd.[162]. - The company has issued bonds totaling 15 billion RMB and 10 billion RMB in previous years, indicating ongoing financing activities[115].