Cofco Sugar(SH:600737)2014-04-08 16:00Financial Performance - In 2013, the net profit of COFCO Tunhe was CNY 287,459,469.05, with a cumulative undistributed profit balance of CNY 541,649,075.37[7]. - The company achieved a revenue of CNY 11.27 billion in 2013, representing an increase of 11.22% year-on-year[30]. - The net profit attributable to shareholders was CNY 80.32 million, a significant recovery from a loss of CNY 398.51 million in the previous year[30]. - The basic earnings per share (EPS) was CNY 0.0472, compared to a loss of CNY 0.3963 in 2012[30]. - The company reported a net profit of CNY 682.71 million for the year[49]. - The total revenue for the company reached CNY 11,027,247,302.85, representing an increase of 11.71% year-over-year[52]. - The company reported a significant increase in other current assets by 250.19% to CNY 90,519.27 million, primarily due to increased investments in financial products[53]. - The company reported a significant adjustment in capital reserves, reducing from CNY 239.8750 million in 2013 to CNY 478.6213 million in 2012[82]. - The company reported a net loss of CNY 183,743,890.37 in retained earnings, compared to a profit of CNY 257,617,085.02 in the previous year[162]. Dividends and Profit Distribution - The company proposed a cash dividend of CNY 0.30 per 10 shares, totaling CNY 61,556,284.65 to be distributed to shareholders[7]. - The profit distribution plan for 2013 proposed a cash dividend of CNY 0.30 per 10 shares, totaling CNY 61.5563 million[85]. - The company extracted surplus reserves amounting to 28,745,946.91 RMB during the profit distribution process[184]. Capital Structure and Financing - The total share capital as of December 31, 2013, was 2,051,876,155 shares, following a non-public issuance of 1,046,271,929 shares in May 2013[22]. - The company successfully completed a private placement of 1.046 billion shares, raising 4.771 billion yuan, which improved the financial structure and reduced the debt-to-asset ratio to 48.32%[33]. - The company completed a private placement of shares, raising CNY 4.771 billion by issuing 1,046,271,929 shares[50]. - The company proposed a financing limit of 10 billion yuan from COFCO Finance Co., Ltd. and 7 billion yuan from financial institutions in the 2013 annual general meeting[143]. Business Operations and Strategy - COFCO Tunhe's main business includes the manufacturing and sales of white sugar and related products, as well as tomato processing and products[20]. - The company’s sugar business accounted for 85% of total revenue, highlighting its strategic focus on this sector[30]. - The company successfully launched a new product, honey granulated pulp, enhancing its product portfolio[31]. - The company plans to expand its market presence and enhance product offerings through strategic mergers and acquisitions[56]. - The company aims to integrate domestic and imported sugar operations to enhance competitiveness and expand production scale[74]. - The company plans to produce 230,000 tons of tomato sauce in 2014, reflecting a strategic focus on the tomato business[76]. Risk Management - The company has outlined potential risks in its future development in the board report section[11]. - The company faces risks from natural disasters affecting raw material supply, price volatility in the sugar and tomato markets, and competition from other crops impacting raw material availability[79]. Audit and Compliance - The company has maintained a standard unqualified audit opinion from Tianzhi International Accounting Firm for the 2013 financial report[6]. - There were no violations of decision-making procedures regarding external guarantees during the reporting period[8]. - The company did not face any penalties or administrative actions from the China Securities Regulatory Commission during the year[107]. Employee and Management Structure - The total number of employees in the parent company is 2,458, while the total number of employees in major subsidiaries is 3,638, resulting in a combined total of 6,096 employees[132]. - The company has established a three-tier training system that covers all managers, headquarters staff, new employees, and reserve talents, focusing on practical business issues[134]. - The company aims to enhance employee motivation and morale without increasing labor costs by adjusting the salary structure and performance evaluation system[133]. - The board of directors has appointed new executives, including Yu Zuojiang as vice president on August 26, 2013[132]. Market Position and Competitiveness - The company is a leading player in the sugar industry, covering both domestic and overseas sugar production, with over 50% of the national sugar import market share[60]. - The company has established long-term partnerships with major clients such as Coca-Cola and Mengniu, enhancing its market position[60]. - COFCO aims to provide safe, nutritious, and healthy food through effective management of key segments in the supply chain[119]. Financial Position and Assets - The total assets decreased by 6.02% to CNY 11.72 billion from CNY 12.47 billion in 2012[30]. - The company's total assets amounted to CNY 1,171,724.39 million, a decrease of 6.02% compared to the previous year[53]. - The total liabilities decreased by CNY 2,939 million, resulting in a debt-to-asset ratio of 48.32%, down from 68.99% year-over-year[55]. - The company's equity increased by CNY 2,189 million, with total equity reaching CNY 60,554.83 million[57]. Future Outlook - The company plans to produce 800,000 tons of sugar in the 2014/2015 season and aims for a revenue of 10.2 billion yuan in 2014[76]. - The company has plans for further investments in technology and product development to meet customer demands[119].