DHCT(SH:600844)2014-03-19 16:00Financial Performance - The company's operating revenue for 2013 was CNY 743.76 million, a decrease of 32.52% compared to CNY 1,102.16 million in 2012[26]. - The net profit attributable to shareholders was a loss of CNY 174.25 million, a decline of 727.97% from a profit of CNY 27.75 million in 2012[26]. - The basic earnings per share for 2013 was -CNY 0.2238, down 728.65% from CNY 0.0356 in 2012[27]. - The weighted average return on equity decreased to -18.96% in 2013 from 2.79% in 2012, a reduction of 21.75 percentage points[27]. - The company reported a net profit of -21.75 million RMB for the year 2013[82]. - The company reported a net loss of CNY 800,842,980.08, compared to a loss of CNY 626,196,809.42 in the previous year[112]. - The company reported a net loss of 174,252,431.11 RMB for the year, contributing to a decrease in total equity[129]. Production and Operations - The company produced 89,527 tons of ethylene glycol in 2013, a decrease of 11.43% from 101,080 tons in 2012[27]. - The average production load for the year was 54.59%, with the second half improving to 72.98%[26]. - The company plans to produce 140,000 tons of ethylene glycol and 50,000 tons of oxalic acid in 2014, aiming for an average production load of over 80% of design capacity[55]. - The company achieved a revenue of 76,382.86 million RMB from its subsidiary Tongliao Jinmei, but reported an operating loss of 25,550.82 million RMB[48]. Financial Position - The total assets at the end of 2013 were CNY 3.58 billion, a decrease of 4.45% from CNY 3.74 billion in 2012[26]. - Cash and cash equivalents decreased by 30.17% to ¥149,520,302.80, primarily due to loan repayments by a subsidiary[39]. - The company's total equity at the end of the year was 1,551,727,219.48 RMB, reflecting a decrease due to the net loss incurred[130]. - The total liabilities increased from CNY 1,896,295,739.33 to CNY 2,025,371,724.70, an increase of about 6.8%[112]. Research and Development - The company incurred research and development expenses of CNY 13.08 million in 2013[27]. - Total R&D expenses amounted to ¥13,082,382.85, representing 0.84% of net assets and 1.76% of operating revenue[34]. - The company is focusing on technology investment to achieve breakthroughs in new product development and catalyst recovery[56]. Shareholder and Governance - The company held its annual shareholders' meeting on June 28, 2013, to elect the new board of directors and supervisory board[87]. - The company has a total of nine members in the seventh board of directors[87]. - The total remuneration for the board of directors and senior management during the reporting period amounted to 2.4649 million CNY[84]. Related Party Transactions - The total amount of related party transactions reached 66,981,637.37 RMB, with significant purchases including steam (5,325,302.65 RMB) and raw materials (7,438,523.18 RMB) accounting for 100% of the market pricing[67]. - The company provided guarantees totaling 138,846.45 million RMB, which represents 166.88% of the company's net assets[71]. - The company engaged in daily related transactions with its controlling shareholder, Jiangsu Danhua Group, including purchasing electricity and natural gas at market prices[68]. Market and Industry Outlook - The domestic ethylene glycol market is expected to face tight supply in 2014, with new production capacity estimated at 3.22 million tons against 6.42 million tons of capacity undergoing maintenance[53]. - The self-sufficiency rate of domestic ethylene glycol production remains below 30%, highlighting the need for increased domestic production capabilities[52]. - The company faces risks from significant fluctuations in raw material and product prices, particularly for ethylene glycol and oxalic acid, which can greatly impact performance stability[58]. Internal Control and Compliance - The audit report issued by Zhongxinghua Certified Public Accountants confirmed the effectiveness of the company's internal control over financial reporting[104]. - The company has not identified any significant deficiencies in internal control design or execution during the reporting period[103]. - The company has established a system for managing insider information to prevent premature leaks[97]. Environmental and Social Responsibility - The company is enhancing its environmental management practices, including wastewater treatment improvements and increased coal utilization efficiency[62]. - The company is committed to balancing economic and social benefits, emphasizing corporate social responsibility in its operations[61].