SPC(SH:600688)2014-03-27 16:00Financial Performance - The net profit attributable to shareholders for 2013 was RMB 2,003,545 thousand according to Chinese accounting standards, and RMB 2,055,328 thousand according to International Financial Reporting Standards[4]. - In 2013, the company's net sales reached RMB 105,503.2 million, a significant increase from RMB 87,217.3 million in 2012, representing a growth of 20.9%[23]. - The company reported a net profit attributable to shareholders of RMB 2,055.3 million in 2013, recovering from a loss of RMB 1,528.4 million in 2012[23]. - Basic and diluted earnings per share for 2013 were RMB 0.190, compared to a loss of RMB 0.212 per share in 2012[23]. - The company's total sales revenue for 2013 was RMB 105.5032 billion, an increase of 20.97% compared to RMB 87.2173 billion in 2012[59]. - The operating profit for 2013 was RMB 2.1923 billion, a turnaround from an operating loss of RMB 1.7724 billion in the previous year, marking an increase of RMB 3.9647 billion[70]. - The pre-tax profit for 2013 was RMB 2.4447 billion, a significant increase of RMB 4.4612 billion from a pre-tax loss of RMB 2.0165 billion in the previous year[72]. - The net profit for 2013 reached RMB 2.01 billion, a significant recovery from a net loss of RMB 1.53 billion in 2012[88]. Dividends and Shareholder Returns - The proposed cash dividend is RMB 0.50 per 10 shares, based on a total share capital of 10.8 billion shares as of December 31, 2013[4]. - The company reported a net profit attributable to shareholders of RMB 2,003,545 thousand for 2013, with a proposed dividend of RMB 0.50 per 10 shares, totaling RMB 540,000 thousand[133]. - The company emphasizes a stable and continuous profit distribution policy, aiming for cash dividends to be at least 30% of the average distributable profit over the last three years[131]. Operational Highlights - The company has maintained its main business operations without any changes since its listing[19]. - The company achieved a weighted average return on equity of 11.778% in 2013, an increase of 20.806 percentage points from -9.028% in 2012[24]. - The total processed crude oil reached 15.67 million tons, a growth of 39.97%, with an average processing cost of RMB 4,819.11 per ton, down 7.76% from 2012[37]. - The production of gasoline, diesel, and aviation kerosene totaled 9.07 million tons, marking a 54.33% increase, with gasoline production alone rising by 181.44%[33]. - The company maintained a 100% product sales rate and a 100% receivables collection rate throughout the year[34]. Financial Stability and Liabilities - The company's total liabilities decreased to RMB 18,645.3 million in 2013 from RMB 20,158.6 million in 2012, resulting in an improved debt-to-asset ratio of 50.995%[25]. - The debt-to-asset ratio as of December 31, 2013, was 50.89%, down from 55.29% in 2012, indicating improved financial stability[78]. - The total borrowings at the end of 2013 decreased by RMB 4.5334 billion to RMB 7.7218 billion, with short-term borrowings down by RMB 3.9299 billion[77]. Investments and Capital Expenditures - Capital expenditures for 2013 amounted to RMB 1.317 billion, a decrease of 65.44% compared to RMB 3.811 billion in 2012[128]. - The company plans to invest approximately RMB 2 billion in capital expenditures for 2014[128]. - The company completed investments of RMB 1.317 billion in various projects, including the development of carbon fiber and new product industrialization[40]. Market and Industry Outlook - The company expects the international oil price to slightly decline in 2014 due to oversupply and geopolitical factors[107]. - The petrochemical industry in China is anticipated to face continued challenges in 2014, with increased competition in the refining sector[108]. - The company plans to focus on safety, environmental protection, and improving operational efficiency in 2014 to achieve sustainable development[109]. Related Party Transactions - The company has engaged in related party transactions with Sinopec Limited and its affiliates, which could adversely affect its business and economic benefits if agreements are modified unfavorably[123]. - The company confirmed that all related transactions were conducted under normal commercial terms and did not significantly affect its independence[149]. Corporate Governance and Compliance - The financial statements for the year ended December 31, 2013, were audited by PwC and received standard unqualified opinions[3]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[5]. - There were no violations of decision-making procedures regarding external guarantees[6]. - The company had no major litigation, arbitration, or bankruptcy restructuring matters during the reporting period[139]. Human Resources and Management - The company reduced its workforce by 880 employees, representing 5.86% of the total workforce of 15,007 at the beginning of the year[42]. - The company will continue to enhance its human resources development and training programs to improve employee capabilities and maintain a stable workforce[116]. Research and Development - Research and development expenses for 2013 were RMB 67.32 million, a decrease of 6.73% from RMB 72.17 million in 2012[87]. - The company plans to focus on developing new technologies and products, including fine chemicals and high-performance fibers, to align with market demand and improve profitability[114].