FULING POWER(600452)2015-04-02 16:00Financial Performance - The company achieved a net profit of CNY 71,960,836.05 for the year 2014, with a distributable profit of CNY 58,315,353.47 after covering previous losses and legal reserves [3]. - The company's operating revenue for 2014 was CNY 1,268,629,191.59, representing a 1.99% increase compared to CNY 1,243,921,679.80 in 2013 [29]. - The net profit attributable to shareholders for 2014 was CNY 71,960,836.05, a 32.89% increase from CNY 54,149,463.59 in 2013 [29]. - The net cash flow from operating activities increased by 53.12% to CNY 151,495,991.73 in 2014, compared to CNY 98,938,654.37 in 2013 [29]. - The total assets at the end of 2014 were CNY 836,115,171.43, reflecting a 13.67% increase from CNY 735,579,804.71 at the end of 2013 [29]. - The net assets attributable to shareholders increased by 22.53% to CNY 525,504,435.55 at the end of 2014, compared to CNY 428,880,870.72 at the end of 2013 [29]. - Basic earnings per share for 2014 were CNY 0.45, up 32.35% from CNY 0.34 in 2013 [30]. - The weighted average return on equity increased to 15.38% in 2014, compared to 13.84% in 2013, an increase of 1.54 percentage points [30]. - The company reported a net profit of CNY 42,349,447.26 after deducting non-recurring gains and losses, which is a 9.42% increase from CNY 38,703,510.18 in 2013 [29]. - Non-recurring gains and losses amounted to CNY 29,611,388.79 in 2014, compared to CNY 15,445,953.41 in 2013 [34]. Dividends and Share Capital - A cash dividend of CNY 2 per 10 shares will be distributed to shareholders, totaling CNY 32 million [3]. - The total share capital of the company is 160 million shares, with no plans for capital reserve conversion into share capital for the year [3]. - The company plans to continue its strategy of not increasing capital reserves through stock dividends for the current year [83]. - The company has committed to a cash dividend policy, distributing at least 10% of the annual distributable profits, with a cumulative distribution of no less than 30% of the total distributable profits over three years [106]. Investments and Impairments - The company recognized an impairment provision of CNY 43,544,400 for its investment in Chongqing Pengwei Petrochemical due to ongoing operational losses and industry downturns [10]. - The company's investment in Chongqing Pengwei Petrochemical has been significantly affected by the downturn in the PTA industry, leading to a near shutdown of operations [10]. - The company completed a shareholding reform in 2005, resulting in the Chongqing Electric Power Company becoming the ultimate controller of the company [22]. - The company plans to continue its investment strategy in joint ventures and expand its market presence through ongoing projects and partnerships [57]. Operational Highlights - The company has maintained its core business in electricity supply and sales, primarily in the Fuling District of Chongqing [20]. - The company achieved a total electricity sales volume of 2.276 billion kWh, generating operating revenue of CNY 1.269 billion, a year-on-year increase of 1.99% [36]. - The company plans to continue focusing on enhancing service quality and expanding its market presence in the Fuling District of Chongqing [51]. - The company aims to strengthen its core business in electricity sales and improve its regional power grid infrastructure [72]. - The company anticipates potential impacts on operations due to the upcoming electricity system reform [75]. Related Party Transactions - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties [5]. - The company has not reported any violations in decision-making procedures regarding external guarantees [5]. - The total amount of related party transactions for the year reached RMB 845,125,918.49, with a significant portion being electricity sales at government pricing [93]. - The company emphasized that there are no significant sales returns due to the nature of the power supply industry, ensuring stable revenue streams [93]. - Related party transactions are deemed necessary and reasonable for the company's normal production and electricity supply security [93]. - The company maintains independence from related parties, with no cross-over in personnel, assets, or finances [93]. Governance and Compliance - The company’s financial report received a standard unqualified audit opinion from Ruihua Certified Public Accountants [3]. - The independent directors did not raise any objections to the board's proposals during the reporting period, indicating a consensus on governance matters [182]. - The audit committee provided independent opinions on the financial reports, ensuring their accuracy and completeness for the annual report [183]. - The company has not faced any penalties or administrative actions from the China Securities Regulatory Commission during the reporting period [111]. - The company is not subject to any risks of suspension or termination of listing [112]. - The company has established multiple channels for information disclosure, enhancing transparency and communication with investors [176]. Employee and Management Structure - The total number of employees in the parent company is 930, with 148 retired employees [167]. - The company has a total of 345 employees with a bachelor's degree or higher [167]. - The company emphasizes a salary distribution system based on job value, ability, and performance [168]. - The company has implemented a performance-based salary system for senior management [168]. - The management team has extensive experience in the power sector, contributing to the company's operational stability [158]. Financial Management and Accounting - The company has retained Ruihua Certified Public Accountants for financial auditing at a fee of 360,000 RMB for the year 2014 [109]. - The company has implemented new accounting standards effective July 1, 2014, impacting its financial reporting [113]. - The company reported a total of 79.30 million RMB in losses from long-term equity investments in various entities [115]. - The company changed its accounting method for certain investments from the cost method to available-for-sale financial assets, with no impact on net profit or net assets for the fiscal year 2013 and the current period [116]. - The internal control system was further improved, with an independent audit conducted by Ruihua Accounting Firm, confirming effective financial reporting internal controls as of December 31, 2014 [191].