BNMC(SH:601011)2014-03-24 16:00Financial Performance - The company reported a significant decline in performance for the year 2013, with a net profit attributable to shareholders of the parent company being relatively small, leading to no cash dividends or capital reserve transfers for shareholders [5]. - The company's operating revenue for 2013 was CNY 1,891,983,558.54, a decrease of 16.23% compared to 2012 [23]. - Net profit attributable to shareholders decreased by 83.93% to CNY 11,662,752.66 in 2013 [23]. - Basic earnings per share fell by 84.21% to CNY 0.03, while diluted earnings per share also decreased by the same percentage [23]. - The weighted average return on net assets dropped to 0.42%, down 2.17 percentage points from the previous year [23]. - The net cash flow from operating activities increased by 341.93% to CNY 229,097,679.43, primarily due to a reduction in accounts receivable and an increase in accounts payable [23]. - The company reported a net profit of -4.61 million RMB and an operating profit of -4.84 million RMB during the reporting period [138]. - The total comprehensive income for the year was CNY 7,579,931.03, down 89.7% from CNY 73,729,764.49 in the previous year [196]. Business Operations - The company has maintained its main business focus on coal mining, washing, processing, coking, chemical production, power generation, and heating, with no significant changes since its listing [18]. - The company aims to increase the proportion of chemical products in its business as new investment projects are completed and put into production [18]. - The production of coke decreased by 4.19% and the sales price dropped by 13.35% compared to the previous year [29]. - The sales volume of methanol decreased by 20.38%, with a corresponding production decline of 21.27% [31]. - The company experienced a significant decline in sales of coal products, with a 20.60% drop in the sales volume of fine coal [30]. - The company produced 1.09 million tons of coke, achieving 90.83% of the annual operational plan [45]. - The company plans to continue its transition towards modern coal chemical processes and expand its market presence through strategic acquisitions and partnerships [44]. Research and Development - Research and development expenses decreased by 28.59% to CNY 10,804,258.86 in 2013 [30]. - The total R&D expenditure was 10,804,258.86 yuan, accounting for 0.57% of operating income [41]. - The company applied for 121 patents in 2013, with over 30 already approved, enhancing its technological capabilities in high-temperature coal tar hydrogenation and other processes [60]. - The company established a coal circular economy research institute with an investment of 5 million RMB to enhance its research capabilities [103]. Inventory and Assets - The total assets at the end of 2013 were CNY 5,345,332,021.97, an increase of 4.36% from the previous year [23]. - The inventory of crude benzene decreased by 96.91% year-on-year, ending at 12.75 tons, which is 0.08% of the annual production [34]. - The inventory of methanol decreased by 34.06%, primarily due to sales exceeding production by 2,098.25 tons [34]. - The inventory of washing oil increased by 929.13% year-on-year, attributed to a 12.02% decrease in sales despite an 11.65% increase in production [34]. - The company's cash and cash equivalents decreased by 46.64% to CNY 246,398,070.97, primarily due to increased expenditures on investment projects [54]. - Accounts receivable increased by 119.67% to CNY 150,240,035.83, attributed to extended payment terms due to market softness [55]. - Inventory rose by 57.10% to CNY 974,791,596.19, as the company increased stock levels in anticipation of higher production in 2014 [55]. Financial Management - The company has decided to retain undistributed profits to supplement working capital in response to the potential continued downturn in the coke market [5]. - The company did not propose a cash dividend distribution for the reporting period due to a significant decline in annual performance and losses in its main business, opting to retain profits for future project needs and stable development [102]. - The company’s profit distribution policy emphasizes reasonable returns to investors, with a commitment to distribute at least 15% of the average distributable profit over the last three years in cash dividends when conditions allow [101]. - The company has maintained a consistent cash dividend policy aligned with its financial health and shareholder expectations [101]. Strategic Initiatives - The company plans to enhance its product competitiveness by forming mixed-ownership companies with large state-owned coal and steel enterprises [84]. - The company aims to transform from selling products to selling technology products, patents, and national standard products, reflecting a strategic upgrade in economic transformation [85]. - The company plans to produce 300,000 tons/year of stable light hydrocarbons from coke, generating an annual output value of 2.4 billion yuan and creating 400 jobs [89]. - The methanol-to-olefins project in cooperation with Long Coal Group is expected to produce 600,000 tons of olefins, achieving an annual output value of 10.8 billion yuan and a profit of 2.622 billion yuan [89]. Risks and Challenges - The company is facing risks from price fluctuations in its main products due to oversupply in the coke market, which may impact production stability [95]. - The company acknowledges the risk of intensified competition in the coke industry, with increasing production capacity and stagnant demand [96]. - The company is addressing the risk of single raw material dependency and strong cyclicality in the coke industry, which could lead to operational difficulties [96]. - The company is implementing measures to mitigate policy risks related to environmental regulations and industry standards [98]. Corporate Governance - The company has established a stable sales channel through strategic alliances with steel enterprises, ensuring stable operations [60]. - The company has no major litigation, arbitration, or media disputes reported during the year [106]. - The company retained Ruihua Certified Public Accountants as its auditing firm for the 2013 fiscal year, with an annual audit fee of CNY 400,000 [116]. - The company has implemented effective internal control systems to ensure the safety of assets and the accuracy of financial reporting [178]. - The board's audit committee has actively communicated with the company and auditors to facilitate efficient annual report audits [172]. Employee Management - The number of employees in the parent company is 2,451, while the total number of employees in the parent company and major subsidiaries is 4,397 [152]. - The company has established a training system for employees, focusing on safety education and professional skills enhancement [154]. - The company has a total of 12 employees with master's degrees or higher, reflecting a commitment to educational qualifications within the workforce [153].