XINJI ENERGY(SH:601918)2015-04-17 16:00Financial Performance - The company's operating revenue for 2014 was CNY 6,562,499,638.24, a decrease of 16.00% compared to CNY 7,812,147,259.62 in 2013[24]. - The net profit attributable to shareholders for 2014 was a loss of CNY 1,969,256,690.89, compared to a profit of CNY 14,914,353.86 in 2013, marking a decline of 13,303.77%[24]. - The net cash flow from operating activities was a negative CNY 1,187,112,728.81 in 2014, a decrease of 333.38% from CNY 508,671,137.14 in 2013[24]. - The basic earnings per share for 2014 was -CNY 0.760, a decrease of 12,766.67% from CNY 0.006 in 2013[26]. - The weighted average return on equity for 2014 was -25.59%, a decrease of 25.76 percentage points from 0.17% in 2013[26]. - The company's net assets attributable to shareholders decreased by 22.75% to CNY 6,705,743,193.37 in 2014 from CNY 8,680,412,461.93 in 2013[25]. - The company reported a net loss from non-operating income and expenses totaling CNY -37,247,216.24 for the year[29]. - The company achieved a coal sales revenue of CNY 613,260.92 million, a decrease of 15.46% year-on-year[36]. - The company reported a total of 1,435,655,200.00 RMB in planned related party transactions for 2014, with actual transactions amounting to 1,125,710,845.08 RMB[79]. - The company reported a total comprehensive loss of -1,971,244,163.5 RMB for the year, compared to a profit in the previous year[172]. Assets and Liabilities - The total assets at the end of 2014 were CNY 28,894,032,879.25, an increase of 7.31% from CNY 26,924,506,150.89 at the end of 2013[25]. - The company's total liabilities increased to CNY 21,919,959,323.30 from CNY 18,198,775,853.76, representing a rise of about 20.0%[153]. - The total equity attributable to the owners of the parent company decreased to CNY 6,705,743,193.37 from CNY 8,680,412,461.93, a decline of about 22.7%[153]. - The company's long-term borrowings increased to CNY 7,976,874,536.60 from CNY 6,907,984,536.60, reflecting an increase of approximately 15.5%[153]. - The company's cash and cash equivalents increased by 41.98% compared to the previous period, primarily due to concentrated sales collections at the end of December[50]. - The company's accounts payable decreased by 45.55%, attributed to a reduction in the issuance of payable notes[51]. Revenue and Sales - The main business income was CNY 6,179,703,500, a decline of 15.25% year-on-year, primarily due to a decrease in coal sales volume and price[35]. - The average selling price of coal decreased by CNY 49.39 per ton, impacting revenue by CNY 80,741.29 million[35]. - The total coal sales volume was 16,346,500 tons, down 73,920 tons or 4.33% from the previous year[36]. - Operating revenue from domestic sales decreased by 6.43% to 4,927,848,750.48 RMB, while revenue from external sales dropped significantly by 39.03% to 1,208,469,964.49 RMB[48]. Costs and Expenses - In 2014, the total cost for coal mining and washing was CNY 677,276.5 million, an increase of 8.81% compared to the previous year[38]. - Material costs amounted to CNY 65,255.02 million, up 7.54% year-on-year, primarily due to increased mining and support activities[39]. - Wages decreased to CNY 140,135.68 million, down 11.19% from the previous year, attributed to a downturn in the coal market[39]. - Social security expenses rose to CNY 72,839.4 million, an increase of 12.69%, due to the inclusion of medical insurance in social insurance[39]. - Depreciation expenses were CNY 81,754.32 million, up 5.56% year-on-year, influenced by increased asset transfers[39]. - Repair costs surged to CNY 26,018.73 million, a significant increase of 45.87%, due to complex geological conditions and aging equipment[40]. Strategic Initiatives and Management - The company focused on "lean management" to address challenges in the coal market and improve operational efficiency[31]. - The company has a long-term development strategy focusing on coal, electricity generation, and extending into coal-to-gas projects[64]. - The company has established a five-year training plan (2014-2018) aimed at enhancing employee skills, focusing on safety management, technical training, and skill certification[125]. - The company has actively fulfilled its social responsibilities, with a full report available on the Shanghai Stock Exchange website[73]. Shareholder and Governance - The company did not propose a cash dividend distribution plan for 2014, despite having a positive undistributed profit, and should disclose the reasons and usage plans for the undistributed profits[71]. - The company emphasized the importance of independent directors and minority investors' opinions in the profit distribution plan, which was approved at the annual shareholders' meeting[70]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.937 million yuan[121]. - The company appointed a new general manager, Bao Zhengming, and elected Huang Shuming as a director during the reporting period[122]. Market Risks and Challenges - The company faces significant market risks due to a structural oversupply in the coal market, with increased competition from renewable energy sources and rising operational costs[63]. - The company anticipates challenges in coal demand due to economic slowdown and increased imports affecting domestic supply[63]. - The company’s coal production is impacted by safety risks associated with natural disasters, despite high mechanization and safety management levels[66].