STAR LAKE SCIENCE(SH:600866)2015-04-27 16:00Financial Performance - In 2014, the company's operating revenue was CNY 871,491,716.87, a decrease of 3.47% compared to CNY 902,804,493.62 in 2013[23]. - The net loss attributable to shareholders was CNY -360,800,573.32, representing a significant decline of 1,883.04% from a profit of CNY 20,235,135.45 in the previous year[23]. - Total assets decreased by 13.37% to CNY 2,255,527,866.83 from CNY 2,603,736,039.60 in 2013[23]. - The net cash flow from operating activities was CNY -20,224,407.20, indicating continued financial challenges[23]. - The weighted average return on equity decreased to -27.86%, down 29.21 percentage points from 1.35% in 2013[24]. - The company reported total revenue of 871.49 million yuan in 2014, a decrease of 3.47% compared to 902.80 million yuan in 2013[30]. - The net profit attributable to shareholders was -360 million yuan, reflecting a significant decline from the previous year[30]. - The company reported a net loss of CNY 108,913,834.93, compared to a profit of CNY 251,886,738.39 in the previous period[155]. - The comprehensive income for the period showed a total loss of CNY 349,268,321.57, indicating a significant decrease compared to the previous period[167]. Revenue and Sales - The company achieved a sales revenue of 373 million yuan from biopharmaceuticals, an increase of 8.76% year-on-year[30]. - The sales revenue from feed additives reached 83.99 million yuan, marking a substantial increase of 68.75% compared to the previous year[30]. - Revenue from the manufacturing sector was 86,633.23 million RMB, with a gross margin of 7.11%, reflecting a decrease of 0.35 percentage points compared to the previous year[49]. - Biochemical products generated revenue of 37,302.29 million RMB, with a gross margin of 19.95%, down by 5.49 percentage points year-on-year[50]. - Domestic sales revenue was 665,436,194.52 RMB, showing a decline of 2.48% compared to the previous year, while export sales decreased by 7.16% to 200,896,083.87 RMB[52]. Costs and Expenses - Total manufacturing costs decreased by 1.97% to 89,299.26 million compared to the previous year[37]. - Raw material costs for biochemical drugs increased by 14.59% to 26,180.98 million, accounting for 67.94% of total costs[37]. - Energy costs for food additives rose by 32.34% to 10,316.41 million, representing 24.36% of total costs[37]. - Sales expenses increased by 4.52% to 2,861.98 million due to higher promotional efforts[39]. - Financial expenses decreased by 26.34% to 4,864.38 million as a result of reduced interest payments[39]. Investments and Financing - The company successfully completed a private placement of 95 million shares, raising funds to enhance its competitive advantage during industry downturns[29]. - The net cash flow from investment activities was 197.90 million yuan, a significant increase from 4.40 million yuan in the previous year[32]. - The company raised funds by issuing 95 million shares to improve its financial condition and enhance its competitive edge during industry downturns[47]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 19,896.54 million RMB, accounting for 13.55% of the company's net assets[79]. Subsidiaries and Market Position - The company has a total of 6 subsidiaries, all of which reported net losses in 2014, with the largest loss being -13,137.52 million RMB from Zhaodong Company[63]. - The company holds 100% equity in its subsidiaries, indicating full control over their operations and financial performance[62]. - The company is focusing on expanding its market presence and improving product quality to adapt to increasing competition in the food additive sector[67]. - The biotechnology and generic drug industries are expected to drive growth in the global active pharmaceutical ingredient market, with China being a major beneficiary[66]. Risk Management and Future Plans - The company emphasizes the importance of risk awareness regarding future plans and business strategies[4]. - The company plans to leverage its improved capital structure for future growth opportunities through organic growth and acquisitions[47]. - The company aims to achieve a fourfold increase in sales during the "12th Five-Year Plan" period, focusing on high-value product innovation in the biopharmaceutical and biofood sectors[68]. - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[162]. Corporate Governance and Compliance - The audit report for the year was issued by Da Hua Certified Public Accountants, confirming the accuracy of the financial statements[5]. - The company has implemented a series of internal control systems to protect investor interests and ensure compliance with regulations[135]. - The company maintained effective internal control over financial reporting as of December 31, 2014, according to the audit report by DaHua Accounting Firm[147]. - The company completed the election of a new board of directors and supervisory board in June 2014, ensuring compliance with corporate governance standards[131]. Shareholder Information - The company issued 95,000,000 new shares, increasing total shares from 550,393,465 to 645,393,465, representing a 17.3% increase in total shares outstanding[98]. - The number of shareholders increased from 50,614 to 51,647, showing a growth of approximately 2.0% in shareholder base[101]. - The company has not proposed a cash dividend distribution plan despite having positive undistributed profits, indicating a focus on reinvestment[74]. - The company confirmed that it holds a 14.72% stake in Xinghuo Technology after the completion of the private placement[83].