ANHUI EXPRESSWAY(SH:600012)2014-03-30 16:00Financial Performance - The net profit for the year 2013 was RMB 834,890 thousand according to Chinese accounting standards, and RMB 811,676 thousand according to Hong Kong accounting standards[5]. - The total distributable profit for shareholders for 2013 was RMB 811,676 thousand, leading to a proposed cash dividend of RMB 2.2 per 10 shares, totaling RMB 364,894 thousand[5]. - The company achieved a total revenue of RMB 2,330,104,247.29 in 2013, representing a year-on-year increase of 4.84%[33]. - The net profit attributable to shareholders was RMB 847,910,073.18, reflecting an increase of 11.42% compared to the previous year[33]. - The basic earnings per share for 2013 was RMB 0.511, up by 11.33% from RMB 0.459 in 2012[34]. - The total profit amounted to RMB 1,208,587 thousand, reflecting an 8.38% increase compared to the previous year[54]. - The company reported a net cash flow from investment activities of RMB -1,550,766 thousand, primarily due to arrangements for time deposits and purchasing financial products[76]. - The effective tax rate remained at 25%, with income tax expenses increasing by 5.18% to RMB 291,375 thousand due to stable revenue growth[75]. Business Operations - The company operates and develops toll highways within and outside Anhui Province as its main business[22]. - The company has established a second major business in pawn services through the establishment of a subsidiary in 2012[22]. - The company successfully completed the construction and operation of the Xuan-Ning section of the Ning-Xuan-Hang Expressway in 2013[45]. - The company has expanded its overseas business, completing the approval and registration of its Hong Kong subsidiary[45]. - The company managed a total operational road mileage of 484 kilometers as of December 31, 2013[25]. - The company completed an investment of RMB 9.43 billion in the Ningxuanhang construction project during the reporting period, with cumulative investment reaching RMB 29.68 billion[47]. - The company is currently constructing the Ningxuanhang Expressway in three phases, with the first phase (Xuancheng to Ningguo) having commenced trial operation in September 2013[108]. Revenue Sources - Toll revenue for the reporting period was RMB 2,188,382 thousand, an increase of 2.86% compared to the previous year[55]. - The toll revenue, the main source of income, accounted for RMB 2,188,382 thousand, representing 93.92% of total revenue[68]. - The company’s revenue from Anhui Province was RMB 2.280 million, reflecting a year-on-year increase of 5.02%[81]. - The revenue from the subsidiary Xin'an Financial reached RMB 1.082 billion, with a net profit of RMB 707.947 million[91]. Financial Management - The company has maintained a good credit rating, with a total credit limit of RMB 3.359 billion, of which RMB 2.658 billion remains unused[77]. - The total loan amount obtained from banks was RMB 368,048 thousand, with a remaining bank loan balance of RMB 746,448 thousand at the end of the reporting period[77]. - The company has issued RMB 2 billion in corporate bonds, which will mature at the end of 2014, creating significant repayment pressure[120]. - The company has maintained its auditor, PwC Zhongtian, for 12 years, with audit fees amounting to RMB 130 thousand for domestic services and RMB 70 thousand for overseas services[147]. Strategic Planning - The board of directors has outlined potential risks and future development strategies in the report[14]. - The company is actively seeking investment projects to cultivate new profit growth points and has completed the registration of its Hong Kong subsidiary[50]. - The company anticipates challenges and opportunities in 2014, particularly in governance and market competition, while expecting policy reforms to drive growth[52]. - The company plans to utilize self-owned funds, bank loans, and corporate bonds to meet the funding needs for ongoing projects[109]. - The overall toll revenue target for 2014 is set at approximately RMB 2.315 billion, compared to RMB 2.188 billion in 2013, indicating a growth expectation of about 5.8%[104]. Governance and Compliance - The company has not received any administrative penalties or public reprimands from the China Securities Regulatory Commission during the year[148]. - The governance structure includes a shareholders' meeting, board of directors, supervisory board, and management team, ensuring compliance with relevant laws and regulations[199]. - The company has established a multi-level governance framework to clarify responsibilities, authorities, and codes of conduct[200]. - The company is committed to improving its governance structure and internal control systems to maximize shareholder value[102]. Human Resources - The total number of employees in the parent company and major subsidiaries is 2,106, with 1,686 in the parent company and 420 in subsidiaries[192]. - The company emphasizes employee training, implementing an annual training plan based on needs assessment and utilizing an E-learning system for all employees[195]. - In 2013, the company paid a total of RMB 23.8 million in various social insurance fees for employees[193]. - The company provided RMB 14.85 million in housing provident fund for employees in 2013[194]. Management Changes - Meng Jie was appointed as the deputy general manager of the company, with a term from the board's approval date until August 16, 2014[191]. - Wang Changyin resigned from the position of deputy general manager due to work adjustments[190]. - Liu Xianfu resigned as a non-executive director due to work adjustments, and Wu Xinhua was elected as a new non-executive director[190]. - The company has experienced changes in its management team, reflecting ongoing adjustments to meet operational needs[190].