Hisense V.T.(SH:600060)2014-04-24 16:00Financial Performance - The company's operating revenue for 2013 was CNY 28,479,859,095.63, representing a 12.78% increase compared to CNY 25,251,980,431.00 in 2012[25] - The net profit attributable to shareholders for 2013 was CNY 1,582,879,067.44, a decrease of 1.26% from CNY 1,603,158,980.57 in 2012[25] - The basic earnings per share for 2013 was CNY 1.211, down 1.46% from CNY 1.229 in 2012[24] - The weighted average return on equity for 2013 was 17.03%, a decrease of 3.07 percentage points from 20.1% in 2012[24] - The net cash flow from operating activities for 2013 was CNY 1,314,957,642.46, a significant increase of 462.52% compared to CNY 233,760,452.56 in 2012[25] - The total assets at the end of 2013 were CNY 19,867,136,531.26, an increase of 8.85% from CNY 18,251,357,297.88 at the end of 2012[25] - The company's net assets attributable to shareholders at the end of 2013 were CNY 9,888,056,226.72, reflecting a 12.56% increase from CNY 8,784,430,054.23 at the end of 2012[25] Revenue and Market Share - The television business generated revenue of 25.90 billion RMB, growing by 16.09% year-on-year[45] - The domestic revenue was 20.67 billion RMB, reflecting a growth of 15.62% year-on-year, while international revenue was 5.80 billion RMB, up by 8.69%[45] - The company's market share in television sales reached 15.15%, with e-commerce sales share at 15.44%[30] - The sales volume of multimedia products exceeded 15 million units, marking a year-on-year growth of 20.24%[30] Strategic Initiatives - The company plans to enhance user experience and accelerate international expansion in response to competitive pressures from internet companies entering the television industry[12] - The company aims to improve operational efficiency and increase domestic market share as part of its strategic initiatives for 2014[12] - The company plans to enhance display technology and smart capabilities, aiming to create a complete ecosystem of "terminal + service" for better user experience[65] - Hisense's cloud service platform is designed to provide differentiated and personalized services, enhancing user engagement through big data analysis[63] - The company emphasizes the importance of software technology in developing user-friendly smart TV products, which is a core competitive advantage[61] Research and Development - Research and development expenses totaled 1.10 billion RMB, accounting for 3.86% of operating revenue[41] - The ULED TV, launched after three years of R&D, has applied for 13 domestic and international patents and won the "Best Innovation Design and Engineering Award" at CES 2013[65] - Hisense is actively engaged in research and development of new technologies and products, aiming to enhance its market competitiveness[132] Investments and Financial Management - The company has invested approximately CNY 357.41 million in Qingdao Hisense Media Network Technology Co., holding a 9.35% stake, and CNY 24,724.66 million in Qingdao Hisense Electric Marketing Co., holding an 82.42% stake[49] - The company has utilized CNY 10,477.40 million of the total CNY 149,997.76 million raised from non-public offerings, with a cumulative usage of CNY 140,135.74 million[56] - The company has increased its non-current liabilities due to the rise in government subsidy projects that are yet to be completed[47] Employee and Management Structure - Total number of employees is 23,668, with 9,997 in the parent company and 13,671 in major subsidiaries[103] - The company has implemented a performance-based compensation policy for its employees, linking pay to individual performance and company profitability[103] - The company has maintained a consistent leadership structure with no major changes in senior management roles, ensuring continuity in strategic direction[102] - The company’s board of directors includes key figures such as Yu Shumin, who serves as Vice Chairman and President, and Zhou Houjian, who is the Chairman[100] Related Party Transactions - The total amount of related party transactions with Qingdao Hisense Import and Export Co., Ltd. and its subsidiaries was approximately ¥4,556,854,735.52, accounting for 18.82% of similar transaction amounts[75] - The total amount of related party transactions with Hisense (Hong Kong) Co., Ltd. was approximately ¥4,619,284,041.91, accounting for 19.08% of similar transaction amounts[75] - The total amount of related party transactions for sales of goods, including televisions, was approximately ¥5,613,055,037.08, accounting for 19.71% of similar transaction amounts[75] Compliance and Governance - The company has not faced any penalties or criticisms from the China Securities Regulatory Commission during the reporting period[79] - The company’s audit committee confirmed that there were no significant deficiencies in internal control over financial reporting as of the evaluation date[113] - The company has established a mechanism for evaluating senior management based on work performance and attitude[109] Financial Reporting and Accounting Policies - Hisense Electric's financial statements for 2013 were prepared in accordance with the Chinese Accounting Standards, reflecting a true and fair view of its financial position[135] - The company recognizes sales revenue when the significant risks and rewards of ownership have transferred to the buyer, and the related economic benefits are likely to flow to the company[189] - The company records operating lease expenses on a straight-line basis over the lease term, with initial direct costs recognized in the period incurred[197]