YMCC(SH:600691)2014-05-22 16:00Financial Performance - The net profit of Yangmei Chemical's subsidiary, Qingdao Hengyuan Chemical Co., Ltd., for the year 2013 was -93.37 million RMB, indicating significant uncertainty regarding the company's ability to continue as a going concern[6]. - As of December 31, 2013, the equity attributable to the parent company's owners was -88.20 million RMB, reflecting financial challenges faced by the company[6]. - In 2013, the company's operating revenue reached ¥25,090,646,517.82, an increase of 42.63% compared to ¥17,591,315,386.07 in 2012[21]. - The net profit attributable to shareholders was -¥22,347,311.98 in 2013, a decrease of 110.63% from ¥210,138,026.15 in 2012[21]. - The cash flow from operating activities was ¥1,119,350,027.89, reflecting a 47.08% increase from ¥761,059,434.90 in 2012[21]. - The total assets at the end of 2013 amounted to ¥25,112,684,013.25, a 13.46% increase from ¥22,134,211,773.60 in 2012[21]. - The company's basic earnings per share in 2013 were -¥0.0152, a decrease of 107.30% from ¥0.2082 in 2012[22]. - The weighted average return on equity was -0.50% in 2013, down 6.18 percentage points from 5.68% in 2012[22]. - The company reported a total revenue of ¥24,681 million, with a year-on-year increase of 44.11%, while the overall gross margin decreased by 3.68 percentage points to 6.75%[47]. - The company reported a net profit of -93.37 million yuan for its subsidiary, indicating significant uncertainty regarding its ability to continue as a going concern[75]. Production and Sales - The company's production of chemical products reached 7.13 million tons in 2013, a 2.44% increase from 6.96 million tons in 2012[27]. - Urea production in 2013 was 3,682,199 tons, a significant increase of 54.45% from 2,384,144 tons in 2012[27]. - The sales volume of urea in 2013 was 3,698,070 tons, up 54.34% from 2,396,099 tons in 2012[27]. - Methanol production reached 525,568 tons, an increase of 136,758 tons or 35.17% compared to last year, with sales of 514,163 tons, up 143,193 tons or 38.60%[32]. - The total production of chemical products reached 7.13 million tons, a 2.44% increase from the previous year, with urea production increasing by 54.45% to 3,682,199 tons[44]. Costs and Expenses - The total cost for urea reached ¥5,926,476,039.51, an increase of 37.64% compared to the previous year[35]. - The total cost for octanol was ¥1,727,928,272.97, showing a decrease of 6.88% year-over-year[35]. - The total cost for methanol increased to ¥954,915,391.87, reflecting a growth of 6.88% compared to the same period last year[35]. - The total cost for liquid ammonia was ¥920,671,910.59, which is a 6.39% increase from the previous year[35]. - The company reported a financial expense increase of ¥161,520,000, representing a 42.28% rise year-over-year[38]. - R&D expenses totaled ¥47,479,167.27, accounting for 0.75% of net assets and 0.19% of operating income, with a 108.96% increase from the previous year[41]. Investments and R&D - The company has committed to ongoing investment in technology research and development within the coal chemical sector[17]. - The company’s R&D expenditure rose by 108.96% to 47.48 million RMB, indicating a focus on innovation and development[33]. - The company has allocated 5,500 million RMB for research and development in new technologies and products for 2014[97]. - The company is focused on enhancing its coal chemical business and expanding its market presence[98]. Corporate Governance and Compliance - The company emphasizes the importance of accurate and complete financial reporting, as stated by its management team[5]. - The audit report issued by Zhongqin Wanxin CPA confirmed the financial statements without reservations, despite highlighting certain matters[6]. - The company has established a comprehensive cash dividend policy in compliance with regulatory guidelines, but no cash dividends were proposed for 2013 due to negative distributable profits[80]. - The company has implemented measures to ensure compliance with regulations regarding insider information and corporate governance[107]. - The company has established a problem rectification team led by the chairman and general manager to address regulatory issues identified by the China Securities Regulatory Commission[107]. Market and Strategic Direction - The company anticipates a continued oversupply in the coal chemical product market, which will increase competitive pressures[69]. - The company is focusing on developing new coal chemical technologies with higher added value as a strategic direction for future growth[70]. - The company plans to expand its market presence with a focus on new product development and technological advancements, aiming for a growth rate of 10% in the upcoming fiscal year[97]. - The company is pursuing strategic acquisitions to enhance its market position, with a budget of 3,400 million RMB earmarked for potential mergers and acquisitions[97]. Related Party Transactions - The company reported a total revenue of 3,100,016.41 CNY from transactions with related parties, with a year-end balance of 3,850,000.00 CNY[93]. - The company engaged in related party transactions to reduce procurement and sales costs, enhancing competitiveness without harming minority shareholders' interests[90]. - The company’s related party transactions are conducted at market prices, ensuring no significant discrepancies exist[90]. Employee and Management Information - The total number of employees in the parent company is 95, while the total number of employees in major subsidiaries is 21,908, resulting in a combined total of 22,003 employees[136]. - The company has implemented a performance assessment system to determine the remuneration of its directors, supervisors, and senior management[136]. - The total remuneration for the board members and senior management during the reporting period amounted to 491.37 million CNY, with 157.85 million CNY being paid out in the reporting period[125]. Legal and Regulatory Matters - The company undertook a lawsuit against Shanxi Yancoal Fengxi Fertilizer Co., Ltd. for a guarantee responsibility amounting to RMB 5,471,000[83]. - The company is involved in a lawsuit regarding a loan guarantee of RMB 37,431,398.77, with the case currently under trial[84]. - The company has provided a joint guarantee for a loan of RMB 4,400,000 to Shenzhen Yizhi Aluminum Hose Co., Ltd.[84]. - The company did not engage in any asset transactions or corporate mergers during the reporting period[85].