CCCCDC(SH:600720)2014-03-12 16:00Financial Performance - The company reported a profit of 1,633,531,342.97 RMB to be carried forward for distribution in the next fiscal year[4]. - The company's operating revenue for 2013 reached CNY 5,813,025,594.52, representing a year-on-year increase of 36.83%[19]. - Net profit attributable to shareholders was CNY 464,700,104.15, a significant increase of 167.77% compared to the previous year[19]. - The company achieved a profit margin of 11.82% on weighted average return on equity, up from 5.97% in 2012[19]. - The company received government subsidies totaling CNY 8,344,901.83, which contributed to its financial performance[20]. - The total assets increased to CNY 10,932,475,866.68, reflecting a year-on-year growth of 7.93%[19]. - The gross profit margin for cement increased by 8.14 percentage points to 30.51%, reflecting improved pricing and cost management[28]. - The company reported a significant increase in revenue from the Tianshui region, up 80.15%, primarily due to the completion of the second phase of the Zhangxian company and rising prices in the area[29]. - The company reported a total of CNY 1,074,981,803.42 in undistributed profits, indicating a substantial reserve for future investments[158]. Shareholder Information - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares, totaling 116,443,542.30 RMB, based on a total share capital of 776,290,282 shares as of the end of 2013[4]. - The controlling shareholder of the company is China National Materials Group Corporation, holding 13.24% of the total share capital as of the end of 2013[16]. - The company has a total of 102,772,822 shares held by its controlling shareholder, China National Materials Group Corporation[16]. - The company has a total of 102,603,917 shares held by its parent company, Qilian Mountain Holdings, representing 13.22% of the total share capital[16]. - The shareholding structure post-capital increase shows China National Materials Group Corporation holding 13.24% and Gansu Qilian Mountain Building Materials Holding Co., Ltd. holding 13.22%[75]. - The company had a total of 86,941 shareholders as of the end of the reporting period[76]. Capital Management - As of the end of 2013, the company implemented a capital reserve conversion plan, increasing the share capital by 30% (3 shares for every 10 shares held)[16]. - The company raised a total of RMB 765,247,684.14 through a rights issue, with a net amount of RMB 740,299,248.00 after deducting issuance fees[34]. - The company completed a capital increase by converting capital reserves, distributing 3 additional shares for every 10 shares held, resulting in a total share capital of 776,290,282 shares[48]. - The company has established a special account for the management of raised funds, adhering to regulatory requirements[35]. - The company has no instances of delayed or inaccurate disclosures regarding the use of raised funds[36]. Operational Highlights - The company produced and sold 17.56 million tons of cement and 18.98 million tons of clinker, with year-on-year growth of 30.84% and 28.15% respectively[22]. - The company expanded its cement production capacity by 5 million tons, bringing total capacity to 26 million tons[22]. - The company completed the acquisition of Longnan Runji and successfully introduced strategic investors for the Tibet project, enhancing its market control and influence[26]. - The company is focusing on expanding its business into ready-mixed concrete and aggregates, as well as promoting circular economy initiatives[42]. - The company plans to produce 20 million tons of cement and sell 19.73 million tons in the current year[42]. Risk Management - The company has outlined potential risks including policy, market, and operational risks in its annual report[9]. - The company is facing risks related to policy changes, market competition, and rising operational costs, particularly in coal and electricity[44]. - The company aims to eliminate potential competition in the cement business over a five-year period, with a target completion date of September 2015[64]. Governance and Compliance - The company has received a standard unqualified audit report from its auditing firm, Xinyong Zhonghe[4]. - The company has established a comprehensive governance structure and internal control system to reduce risks and enhance information disclosure[104]. - The company has committed to maintaining independence in governance and operations, ensuring separation in personnel, finance, assets, and business from its controlling shareholder[64]. - The company has not faced any penalties or administrative actions from the China Securities Regulatory Commission during the reporting period[67]. Research and Development - Research and development expenditures totaled CNY 220 million, a 74.60% increase from the previous year, focusing on efficiency improvements and emissions reduction[24]. - The company is committed to environmental protection and is adopting new technologies to reduce emissions[44]. - The company emphasizes the importance of new product and technology development, although specific figures were not provided[91]. Subsidiaries and Acquisitions - The company holds a 60% equity stake in Jiugang (Group) Hongda Building Materials Co., Ltd., which is engaged in cement production and sales[34]. - The company completed the acquisition of 100% of Longnan Qilian Mountain Cement Co., Ltd. for 265,594,600 RMB, with a net profit contribution of -3,435,126.41 RMB[53]. - The company is actively involved in the limestone mining sector through its subsidiary Qinghai Qicai Mining Co., Ltd., which has a production capacity of 1,600 million RMB[199]. Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 6,498, with 115 in the parent company and 6,383 in subsidiaries[96]. - The total compensation for the board members and senior management amounted to 509.25 million CNY before tax, with a total shareholding increase of 11,391 shares during the reporting period[87]. - The company has a diverse board with members holding advanced degrees and significant industry experience, enhancing its strategic decision-making capabilities[88]. Financial Position - The company reported a total asset of CNY 10,932,475,866.68 as of December 31, 2013, an increase from CNY 10,129,680,292.75 at the beginning of the year, reflecting a growth of approximately 7.9%[129]. - The company's total liabilities amounted to CNY 6,253,852,734.54, up from CNY 6,066,860,802.87, indicating a rise of about 3.1%[129]. - The total equity attributable to shareholders increased to CNY 4,152,007,646.08 from CNY 3,704,253,569.08, representing a growth of approximately 12.1%[129].