HNZHKJ(SZ:000702)2014-04-21 16:00Financial Performance - The company's operating revenue for 2013 was CNY 2,024,098,384.46, representing a 2.95% increase compared to CNY 1,966,032,593.29 in 2012[14]. - The net profit attributable to shareholders for 2013 was a loss of CNY 26,239,811.17, a significant decline of 790.85% from a profit of CNY 3,798,215.14 in 2012[14]. - The net cash flow from operating activities decreased by 65.49% to CNY 34,924,278.37, down from CNY 101,203,746.11 in the previous year[14]. - The total assets at the end of 2013 were CNY 728,685,295.12, a decrease of 20.10% from CNY 912,031,028.54 at the end of 2012[14]. - The net assets attributable to shareholders decreased by 3.94% to CNY 436,522,699.07 from CNY 454,408,672.59 in 2012[14]. - The basic earnings per share for 2013 was CNY -0.0984, a decline of 792.96% compared to CNY 0.0142 in 2012[14]. - The weighted average return on net assets was -5.89% in 2013, down from 0.84% in 2012, indicating a significant deterioration in profitability[14]. Revenue and Sales - In 2013, the company achieved operating revenue of CNY 2,024.10 million, an increase of 2.95% compared to the previous year[22]. - The net profit attributable to the parent company was CNY -26.24 million, a decrease of 790.85% year-on-year[22]. - The sales volume of feed was 534,793 tons, a decrease of 1.4% compared to 542,394 tons in 2012[23]. - The sales revenue from feed raw materials increased by 21% to CNY 197.80 million from CNY 163.47 million in the previous year[22]. - The company's total cost of sales was CNY 1,867.45 million, an increase of 3.43% from CNY 1,805.45 million in 2012[25]. Expenses and Losses - The company's management expenses decreased by 11.17% to CNY 72.26 million, while financial expenses decreased by 51.33% to CNY 7.97 million[28]. - The company reported a significant increase in asset impairment losses, totaling CNY 35.26 million, compared to CNY 1.41 million in the previous year[28]. - The total non-recurring gains and losses amounted to CNY 106.31 million, an increase from CNY 61.05 million in 2012[18]. Cash Flow and Financing - Operating cash inflow totaled ¥2,123,221,434.36, representing a year-on-year increase of 3.02%[31]. - Net cash flow from operating activities decreased by 65.49% to ¥34,924,278.37 due to a reduction in advance payments and an increase in raw material payments[32]. - The company reported a net cash outflow from financing activities of ¥87,501,162.51, an increase of 38.11% year-on-year[32]. - The investment activities generated a net cash outflow of ¥8,608,592.77, a slight improvement of 2.23% compared to the previous year[32]. Market and Strategic Plans - The company plans to expand its market presence through new product development and strategic investments in subsidiaries[42]. - The company aims to focus on the feed sector, adjusting its industrial structure and concentrating resources on feed production to enhance its competitive advantage in the "pig feed" market[50]. - The company plans to increase its production capacity through technological upgrades and new constructions, emphasizing quality control, cost control, service marketing, and performance evaluation[51]. - The company will enhance its marketing and customer teams to provide technical guidance and professional training, aiming to improve market share and competitiveness[51]. Risks and Challenges - The report highlights potential risks including industry competition and market fluctuations, which may impact future performance[7]. - The company faces risks from raw material price fluctuations, which could impact profitability, and plans to mitigate this through market tracking and alternative sourcing[53]. - The company is also concerned about increased industry competition and plans to leverage its brand and research advantages to optimize product design and enhance service models[54]. Shareholder and Governance Information - The total number of shareholders at the end of the reporting period was 40,941, an increase from 39,690 prior to the annual report disclosure[76]. - The largest shareholder, Yueyang Quyuan Agricultural Reclamation Co., Ltd., holds 25.75% of the shares, totaling 68,656,416 shares[76]. - The company has not made any changes to its accounting policies or the scope of its consolidated financial statements compared to the previous year[55][56]. - The company has maintained a standard unqualified audit report for the 2013 financial statements[70]. Employee and Management Information - The company has a total of 1,698 employees, with 712 in production, 566 in sales, 105 in technology, 104 in finance, and 211 in administration[98][100]. - The company emphasizes a differentiated compensation policy based on performance and position, linking salaries to contributions and company performance[102]. - The total remuneration for the chairman, Xia Zhuanghua, was CNY 465,800 during the reporting period[93]. - The total remuneration for the president, Zhang Naiji, was CNY 262,100 during the reporting period[93]. Financial Reporting and Compliance - The company has established a system for accountability regarding significant errors in annual report disclosures, enhancing the quality and transparency of financial reporting[135]. - The audit opinion issued was a standard unqualified opinion, confirming that the financial statements fairly represent the company's financial position[142]. - The company adheres to the Chinese Accounting Standards, ensuring that its financial reports accurately reflect its financial position and performance[172].