Hisense V.T.(SH:600060)2015-04-24 16:00Financial Performance - The company's net profit for the year reached CNY 1,351,396,579.33, with a total distributable profit of CNY 5,505,541,845.45, resulting in a cash dividend of CNY 3.25 per 10 shares [2]. - Total revenue for 2014 was CNY 29,007,069,215.72, representing a 1.85% increase from CNY 28,479,859,095.63 in 2013 [25]. - The net profit attributable to shareholders decreased by 11.55% to CNY 1,400,041,987.42 from CNY 1,582,879,067.44 in the previous year [25]. - The operating cash flow net amount was CNY 954,502,474.69, down 27.41% from CNY 1,314,957,642.46 in 2013 [25]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, which was CNY 1,320,060,900.82, down 11.07% from CNY 1,484,302,760.33 in 2013 [25]. - Basic earnings per share decreased by 11.64% to CNY 1.070 from CNY 1.211 in 2013 [26]. - The weighted average return on net assets was 13.52%, down from 17.03% in the previous year, a decrease of 3.51 percentage points [26]. - Revenue from television sales reached ¥26,363,559,592.25, with a gross margin of 18.01%, showing a year-on-year decrease [45]. - Domestic revenue increased by 5.84% to ¥19,464,297,996.65, while international revenue surged by 25.59% to ¥7,281,468,189.81 [47]. Assets and Liabilities - The total assets at the end of 2014 were CNY 20,703,513,257.23, a 3.50% increase from CNY 20,003,396,082.01 in 2013 [25]. - The total liabilities decreased from CNY 9,834,483,940.73 to CNY 9,578,816,548.31, representing a reduction of about 2.6% [130][131]. - The company's total equity increased from CNY 10,168,912,141.28 to CNY 11,124,696,708.92, indicating a growth of approximately 9.4% [131]. - Cash and cash equivalents at the end of 2014 were CNY 2,981,007,649.48, up from CNY 2,906,008,459.13, showing an increase of about 2.6% [129]. - Accounts receivable rose to CNY 1,742,469,068.18 from CNY 1,390,150,119.22, marking an increase of approximately 25.3% [129]. - Inventory levels increased to CNY 3,465,052,648.40 from CNY 3,077,205,091.79, reflecting a growth of about 12.6% [129]. - The non-current assets totaled CNY 2,583,517,592.78, up from CNY 2,446,647,830.62, indicating an increase of approximately 5.6% [130]. Operational Highlights - The company achieved a retail volume market share of 16.66% and a retail value market share of 16.24% in the Chinese color TV market, ranking first [32]. - The activation rate of smart TVs reached 81.1%, with daily active users totaling 2.96 million and an average daily active rate of 37.0% [33]. - The company launched ULED TVs and laser cinema products, achieving significant advancements in display technology and winning the "Global Display Technology Annual Gold Award" at CES 2015 [33]. - Research and development expenses increased by 2.52% to ¥1,128,182,373.34 in 2014 from ¥1,100,404,347.51 in 2013 [41]. - The company implemented the NPS management system to enhance user experience and engagement [34]. Shareholder Information - The company reported a total of 1,308,481,222 shares outstanding, with 100% being unrestricted shares [83]. - The total number of shareholders as of the end of the reporting period was 71,135, an increase from 50,080 five trading days prior [86]. - The largest shareholder, Hisense Group Co., Ltd., holds 528,241,020 shares, representing 40.37% of the total shares [88]. - Qingdao Hisense Electronics Industry Holding Co., Ltd. increased its holdings by 3,561,607 shares, totaling 73,142,633 shares or 5.59% [88]. - The top ten shareholders collectively hold significant stakes, with the largest being state-owned entities and investment funds [89]. Corporate Governance - The company has retained the same accounting firm, Ruihua Certified Public Accountants, for 6 years, with an audit fee of 70,000 RMB [75]. - The board of directors includes independent directors such as Ma Jinquan and Liu Zhiyuan, enhancing governance and oversight [100]. - The company emphasizes performance-based remuneration for senior management, aligning compensation with company performance [101]. - The company is committed to maintaining high standards of corporate governance and transparency in its operations [98]. Strategic Focus - The company emphasizes a strategic shift towards "structural growth" in the TV market, focusing on larger screens, ultra-high definition, and smart features [61]. - The company is committed to continuous innovation in display technology, including advancements in ULED and the introduction of commercial 4K laser displays [63]. - The company aims to enhance user experience through a comprehensive internet service model, integrating product, content, and user engagement [63]. - The company is focused on optimizing resource allocation and improving operational efficiency to support ongoing investments and business sustainability [65]. - The company acknowledges potential risks from increased competition in the flat-panel TV market and rising labor costs impacting operational pressures [67]. Financial Reporting and Accounting - The financial statements are prepared based on the going concern assumption and comply with the relevant accounting standards issued by the Ministry of Finance [172]. - The company follows the accrual basis of accounting, with historical cost as the measurement basis for most financial statements [172]. - The company recognizes revenue based on specific accounting policies tailored to its production and sales characteristics [173]. - The company has established specific accounting policies for business combinations, differentiating between those under common control and those not [178]. - The company’s accounting treatment for non-common control business combinations includes recognizing goodwill when the acquisition cost exceeds the fair value of identifiable net assets [179].