NFC(SZ:000758)2014-04-21 16:00Financial Performance - The company's operating revenue for 2013 was CNY 17,865,865,818.56, an increase of 23.16% compared to CNY 14,505,999,729.62 in 2012[21]. - The net profit attributable to shareholders was CNY 81,858,363.06, a decrease of 59.59% from CNY 202,592,256.83 in the previous year[21]. - The net cash flow from operating activities was CNY -999,219,698.09, an improvement of 12.2% compared to CNY -1,138,047,815.43 in 2012[21]. - The company's total assets increased by 8.43% to CNY 16,912,681,650.65 at the end of 2013, up from CNY 15,597,133,137.21 in 2012[21]. - The revenue from non-ferrous metal mining and smelting was CNY 4,169,385,200, an increase of 9.24% year-on-year, while gross profit decreased by 19.28% to CNY 633,505,100[31]. - The international engineering contracting business revenue surged by 211.87% to CNY 1,239,453,300, with gross profit increasing by 458.32% to CNY 133,617,600[32]. - The equipment manufacturing segment reported revenue of CNY 1,359,206,100, a decline of 2.41%, but gross profit rose by 6.34% to CNY 270,240,500[33]. - Trade business revenue reached CNY 1,101,588,820, an increase of 24.96%, with gross profit rising by 6.88% to CNY 154,960,600[34]. - The company's main business income was CNY 17,731,429,700, up 23.56% year-on-year, while main business costs increased by 26.06% to CNY 16,558,459,100[35]. Dividend Policy - The company plans to distribute a cash dividend of 0.10 RMB per 10 shares to all shareholders based on the total share capital as of December 31, 2013[5]. - The cash dividend for 2012 was 1.00 RMB per 10 shares, amounting to a total distribution of 98,468,921.20 RMB, which represented 48.6% of the net profit attributable to shareholders[112]. - The cash dividend for 2011 was also 1.00 RMB per 10 shares, totaling 76,665,600.00 RMB, which accounted for 19.49% of the net profit attributable to shareholders[111]. - The company’s cash dividend policy requires that the cumulative cash distribution over any three consecutive years should not be less than 30% of the average annual distributable profit for those years[106]. - The company’s profit distribution plan must be approved by more than half of the board members and independent directors[107]. - The company has not proposed a cash dividend distribution plan for the reporting period despite having positive retained earnings[112]. - The company’s cash dividend for 2013 accounted for 12.03% of the net profit attributable to shareholders[112]. Business Expansion and Strategy - The company has expanded its main business to include the development of non-ferrous metal resources, particularly aluminum and zinc, as of December 15, 2003[18]. - The company plans to explore suitable investment and acquisition opportunities during the industry downturn to enhance resource development and operational efficiency[31]. - The company aims to enhance resource reserves by increasing exploration efforts around existing mines and pursuing acquisitions in regions like Mongolia and Chifeng[98]. - The company plans to continue expanding its operations in the rare earth sector, leveraging its existing resources and market position[78]. - The company is focused on technological and management innovation to become a world-class mining group with international competitiveness[168]. - The company aims to implement a "going out" strategy to enhance overseas resource development and accelerate engineering contracting and related trade services[168]. Risk Management and Governance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[4]. - The company has outlined potential risks and its work plan for 2014 in the board report section[12]. - The company operates under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council[9]. - The company has established a comprehensive governance structure, including rules for board meetings and independent director management[199]. - The audit committee confirmed that the 2013 financial statements accurately reflect the company's overall situation, emphasizing the importance of audit supervision[200]. - The company has implemented measures to prevent operational risks and enhance decision-making processes through the audit committee[200]. Shareholder Information - The company’s stock is listed on the Shenzhen Stock Exchange under the code 000758[15]. - The total number of shareholders at the end of the reporting period was 135,227, an increase from 132,635 before the report disclosure[165]. - The largest shareholder, China Nonferrous Metal Mining Group Co., Ltd., holds 33.75% of shares, totaling 332,306,616 shares[165]. - The second-largest shareholder, Wanxiang Resources Co., Ltd., holds 7.87% of shares, totaling 77,474,183 shares[165]. - The company has not engaged in any repurchase transactions during the reporting period[166]. Operational Performance - The company’s inventory of zinc ingots decreased by 31.9% year-on-year to 18,769 tons, indicating improved sales performance[37]. - The company completed its 2013 share placement and is in the process of implementing a non-public stock issuance plan, which has been approved by the board and shareholders[36]. - The company achieved a net cash inflow from financing activities of CNY 1.33 billion, a slight increase of 1.47% from CNY 1.31 billion in the previous year[46]. - The company has not reported any significant impact on its core competitiveness due to equipment upgrades or loss of franchise rights during the reporting period[58]. Research and Development - In 2013, the company's R&D expenditure was CNY 5.27 million, a decrease of 61.41% compared to CNY 13.65 million in the previous year, representing 0.12% of net assets and 0.03% of operating revenue[44]. - The company authorized 150 patents during the year, including 26 invention patents, and received government funding support of CNY 17.2 million for one of its projects[44]. Related Party Transactions - The company reported a total of CNY 80,264.04 million in related party transactions, which are necessary for the company's main business or auxiliary production[129]. - The company maintains that all related party transactions are conducted at fair market prices, ensuring no harm to the interests of the company and its shareholders[129]. - The expected related party transaction amount for the subsidiary Mongolia Xindu Mining Co., Ltd. with New Yang Trading Co., Ltd. in 2013 was CNY 110.5 million, with an actual completion amount of CNY 87.59 million, achieving a completion rate of approximately 79.26%[129]. Management and Personnel - The company has a total of 9,000 employees, with 69.12% being production personnel[186]. - The governance structure complies with the requirements of the Company Law and the relevant regulations of the China Securities Regulatory Commission[192]. - The total remuneration for the board of directors, supervisors, and senior management during the reporting period amounted to 1,090.54 million CNY, with 673.4 million CNY paid from the company and 417.14 million CNY from the shareholder unit[182][184]. - The company has not granted any stock incentives to the board, supervisors, or senior management during the reporting period[184].