AsAc(SH:601890)2014-04-24 16:00Financial Performance - The company's net profit for 2013 was -30,497,350.37 RMB, resulting in a total distributable profit of 152,513,900.19 RMB after accounting for retained earnings [4]. - Operating revenue decreased by 24.43% to 1,408,816,717.26 RMB in 2013 from 1,864,202,175.50 RMB in 2012 [20]. - The net profit attributable to shareholders was -20,982,544.94 RMB, a decline of 127.92% compared to the previous year's profit of 75,150,449.94 RMB [20]. - Basic earnings per share for 2013 was -0.0448 RMB, down 127.90% from 0.1606 RMB in 2012 [18]. - The weighted average return on equity decreased to -0.76% in 2013 from 2.70% in 2012, a reduction of 3.46 percentage points [18]. - The net cash flow from operating activities was -39,509,956.64 RMB, a significant decline of 110.89% compared to 362,795,855.19 RMB in 2012 [20]. - Total assets at the end of 2013 were 3,721,158,032.49 RMB, a decrease of 1.72% from 3,786,228,358.43 RMB in 2012 [20]. - The company did not propose any profit distribution or capital reserve transfer due to the negative net profit for the year [4]. - The net profit for the year was a loss of CNY 19.81 million, reflecting the challenging market conditions [25]. - The total revenue for 2013 was CNY 1,408.82 million, down 24.43% compared to CNY 1,864.20 million in 2012 [27]. Market Conditions and Risks - The company faced market risks due to unoptimistic order prices in the shipbuilding industry, affecting profitability [9]. - The fluctuation in raw material prices poses a significant risk to the company's performance, as these costs constitute a large portion of product expenses [9]. - Domestic sales fell by 39.00% to ¥459,908,495.00, while international sales decreased by 13.25% to ¥907,196,139.30 [42]. - The company is exposed to risks from fluctuations in raw material prices, which constitute a significant portion of product costs [71]. - The company has increased its export sales proportion, leading to potential exchange rate risks impacting performance [71]. Production and Sales - In 2013, the company produced 109,510 tons of marine anchor chains, a decrease of 40,924 tons or 27.2% year-on-year [25]. - The company’s sales of marine anchor chains and accessories reached 120,765 tons, a decline of 41,930 tons or 25.77% year-on-year [25]. - Revenue from marine anchor chains was CNY 920.88 million, down 28.63% year-on-year, while revenue from offshore mooring chains was CNY 446.23 million, down 12.41% [25]. - The total order contract amount for 2013 was CNY 1.803 billion, an increase of 9.41% compared to the previous year [29]. Research and Development - Research and development expenses increased by 17.69% to CNY 47.16 million compared to CNY 40.07 million in 2012 [27]. - The company is developing a higher-grade R6 mooring chain, with the R5 chain already breaking foreign technology monopolies [46]. - The annual production capacity for the R4 marine mooring chain project reached 30,000 tons, which has completed construction and entered trial production [61]. - The R5 marine mooring chain technology renovation project is expected to be completed by March 2015, with a current investment of RMB 5,472.77 million and a cumulative investment of RMB 8,712.88 million [62]. Financial Management and Investments - The company utilized a total of 2.336 billion RMB in idle funds for purchasing bank financial products in 2013, with 1.055 billion RMB from idle raised funds and 1.281 billion RMB from idle self-owned funds [55]. - The company reported a total income of 20,749,600.89 RMB from these financial products, with a cumulative amount of 16,226,258.42 RMB from idle funds [55]. - The company has consistently engaged in wealth management strategies, with various products yielding returns between 2.6% to 5.1% [51]. - The company invested RMB 10.55 billion in bank wealth management using idle raised funds, recovering RMB 9.35 billion with an actual investment return of RMB 6.2173 million by December 31, 2013 [60]. Shareholder and Governance - The company distributed a cash dividend of 0.6 yuan per 10 shares, totaling 28,080,000 yuan based on a total share capital of 468 million shares as of December 31, 2012 [74]. - The company has established a profit distribution policy that emphasizes reasonable returns to investors while ensuring sustainable development, with a focus on cash dividends [73]. - The total number of shareholders at the end of the reporting period was 37,761, an increase from 37,217 prior to the annual report disclosure [92]. - The largest shareholder, Tao Anxiang, holds 27.70% of shares, totaling 129,655,471 shares, with no changes during the reporting period [92]. Internal Controls and Compliance - The company established several internal control systems in 2013, including self-assessment and risk management protocols [120]. - The audit report for the financial statements was issued with a standard unqualified opinion, confirming the fair presentation of the financial position [121]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with relevant laws and regulations [108]. - The company has implemented a salary policy that combines individual earnings with company performance to enhance motivation [105]. Employee and Management Structure - The total number of employees in the company is 2,241, with 1,786 in production, 63 in sales, 75 in technical roles, 34 in finance, and 283 in administration [105]. - The company employed a total of 1,258 staff members at the parent company level [104]. - The company has maintained a consistent management structure with no significant changes in key personnel during the reporting period [96]. - The total remuneration for all directors, supervisors, and senior management personnel amounted to 2.27654 million yuan [103].