SHBM(SH:900939)2014-03-20 16:00Financial Performance - The net profit attributable to shareholders for 2013 was -7,353,247.00 RMB, resulting in a negative retained earnings of -216,682,555.58 RMB by the end of the year[5]. - Due to the annual loss and negative retained earnings, the company will not distribute profits or increase capital reserves for 2013[5]. - The company's operating revenue for 2013 was CNY 10,771,418.06, a decrease of 30.77% compared to CNY 15,559,935.52 in 2012[41]. - The net profit attributable to shareholders for 2013 was a loss of CNY 7,353,247.00, representing a decline of 290.28% from a profit of CNY 3,864,486.99 in the previous year[41]. - The net cash flow from operating activities decreased by 79.32% to CNY 1,848,387.86 from CNY 8,936,264.79 in 2012[42]. - The total assets at the end of 2013 were CNY 79,203,979.67, down 7.56% from CNY 85,676,943.58 at the end of 2012[41]. - The weighted average return on equity decreased to -13.64% in 2013 from 7.14% in 2012, a drop of 20.78 percentage points[41]. - The company reported a total profit of -5,793,000 RMB for the year, a decrease of 9,028,000 RMB compared to 2012[94]. - The company reported a net loss of CNY 7,353,247 for the year 2013, with no profit distribution or capital reserve increase due to negative retained earnings[73]. - The company did not propose any cash dividend distribution for 2013, as it did not meet the requirements for profit distribution[74]. - The company faced a litigation case resulting in an adverse impact of approximately CNY 2,750,000 on its profits[75]. - The company reported a decline in operating revenue compared to the previous year and experienced losses, indicating a need for improvement in revenue generation[124]. Business Focus and Strategy - The company has shifted its main business focus to factory leasing and flooring trade since 2010, after halting its flooring production due to significant losses[23]. - The company aims to significantly increase its main business revenue as a key focus moving forward[23]. - The company’s main business has been stable but small in scale, prompting a need for growth strategies[23]. - The company is focusing on maintaining stable rental income and exploring low-risk trade opportunities in the flooring business[67]. - The company plans to recover 13 million RMB in outstanding payments related to the sale of land lease rights in 2014[69]. - The company aims to achieve a minimum of 12 million RMB in main business revenue for 2014, with a target to control expenses within 5.8 million RMB[67]. - The company is closely monitoring the progress of the equity reform of its controlling shareholder, Huili Group, which may impact its operations[68]. - The company faces risks related to the inability to grow its main business revenue, which could lead to delisting if revenue falls below 10 million RMB[69]. Audit and Compliance - The company has received a standard unqualified audit report from Zhonghua Accounting Firm[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[3]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The internal control audit report issued by the accounting firm confirmed that the company maintained effective internal controls over financial reporting in all significant aspects[129]. - The company did not experience any major errors in annual report disclosures during the reporting period, as per the established accountability system[129]. - The independent directors did not raise any objections to the board's proposals or other matters during the reporting period[123]. Shareholder Information - The total number of shares outstanding remained at 181,500,000, with 93,500,000 shares (51.52%) being non-tradable and 88,000,000 shares (48.48%) being tradable[87]. - The total number of shareholders at the end of 2013 was 9,400, an increase from 9,107 in the previous year[92]. - The largest shareholder, Shanghai Huili Group Co., Ltd., holds 32.64% of the shares, totaling 59,249,300 shares, with no changes during the reporting period[92]. - The company has no other shareholders holding more than 10% of the shares as of the end of the reporting period[98]. - The actual controller of the company is the State-owned Assets Supervision and Administration Commission of Shanghai Pudong New Area[96]. Employee and Management Structure - The company has a total of 14 employees, with 9 in the parent company and 5 in major subsidiaries[109]. - The professional composition includes 2 production personnel, 1 sales personnel, 2 technical personnel, 5 financial personnel, and 4 administrative personnel[109]. - The total compensation paid to directors and supervisors during the reporting period amounted to 796,000 RMB, with a total of 1,310,000 RMB paid in the previous year, indicating a decrease of approximately 39%[100]. - The company reported no stock holdings by directors and supervisors, reflecting a potential focus on cash compensation rather than equity incentives[100]. - The current board members have extensive experience in various leadership roles within the Shanghai Huili Group, indicating strong internal governance and continuity[102]. - The company has maintained a stable leadership team, with key executives holding their positions since at least 2011, ensuring consistency in strategic direction[102]. - The financial responsibility is held by the CFO, who has been in the role since 2011, suggesting a solid financial management structure[102]. Financial Reporting and Accounting Policies - The company adheres to the Chinese Accounting Standards, ensuring the accuracy and completeness of its financial reporting[157]. - The financial statements are prepared based on the going concern principle, ensuring the company's ability to continue operations[156]. - The accounting period for the company is from January 1 to December 31 each year, aligning with the calendar year[158]. - The company utilizes RMB as its functional currency for accounting purposes, ensuring consistency in financial reporting[159]. - Revenue is recognized based on the fair value of goods sold or services provided, net of VAT and discounts, when risks and rewards are transferred to the buyer[195]. - Deferred tax assets and liabilities are calculated based on the difference between the tax basis of assets and liabilities and their book values, including taxable temporary differences and deductible temporary differences[199]. Asset Management - The total assets decreased from RMB 85.68 billion in 2012 to RMB 79.20 billion in 2013, a decline of approximately 7.5%[139]. - The company's total equity decreased from RMB 61.51 billion in 2012 to RMB 53.57 billion in 2013, a decline of approximately 12.9%[141]. - Cash and cash equivalents increased from RMB 1.44 million in 2012 to RMB 5.12 million in 2013, a growth of about 254.5%[139]. - Accounts receivable rose from RMB 584.37 million in 2012 to RMB 870.91 million in 2013, an increase of approximately 48.9%[139]. - Inventory decreased from RMB 13.89 million in 2012 to RMB 9.61 million in 2013, a decline of about 30.5%[139]. - The company's retained earnings showed a negative balance of RMB 216.68 million in 2013, compared to a negative RMB 209.33 million in 2012[141]. Future Outlook - The company plans to deepen its existing building materials business as part of its future development strategy[94]. - The report indicates that the company has been experiencing long-term losses but has shown signs of improvement in recent years[94]. - The company is positioned to leverage its established market presence for potential expansion opportunities in the construction materials industry[103].