Sytech(SH:600183)2014-03-07 16:00Financial Performance - The company's operating revenue for 2013 was CNY 6,570,259,191.92, representing a 7.83% increase compared to CNY 6,092,949,825.25 in 2012[22]. - Net profit attributable to shareholders for 2013 was CNY 557,850,257.24, a significant increase of 72.50% from CNY 323,382,228.31 in 2012[22]. - Basic earnings per share for 2013 rose to CNY 0.39, up 69.57% from CNY 0.23 in the previous year[20]. - The weighted average return on equity increased to 13.17%, up 5.12 percentage points from 8.05% in 2012[20]. - The net cash flow from operating activities for 2013 was CNY 719,354,839.01, a substantial increase of 125.15% compared to CNY 319,497,002.56 in 2012[22]. - Total assets at the end of 2013 reached CNY 7,933,711,753.77, an 18.13% increase from CNY 6,716,303,914.77 at the end of 2012[22]. - The net profit after deducting non-recurring gains and losses was CNY 381,951,737.48, reflecting a 25.52% increase from CNY 304,306,387.91 in 2012[22]. - The company's net assets attributable to shareholders increased to CNY 4,414,774,665.40, an 8.70% rise from CNY 4,061,378,237.98 at the end of 2012[22]. - The gross margin for copper clad laminates and bonding sheets was reported at 13.88%, with a slight increase of 1.81 percentage points year-on-year[48]. - The total comprehensive income for the year was CNY 558,736,484.12, compared to CNY 337,417,453.75 in the previous year, indicating a growth of 65.4%[144]. Production and Sales - In 2013, the company produced 57.8 million square meters of copper-clad laminates, a year-on-year increase of 6.06%[26]. - The production of semi-cured sheets reached 75.8 million meters, up 10.12% year-on-year, while sales were 74.1 million meters, up 7.81%[26]. - The company’s sales of various specifications of silicon micro-powder were 30,372.34 tons, a decrease of 2.32% year-on-year[26]. - The company’s production and sales of printed circuit boards decreased by 14.52% and 8.74% year-on-year, respectively[26]. - Domestic sales revenue reached ¥3,240,562,070.92, reflecting a year-on-year increase of 26.16%, while foreign sales decreased by 5.76% to ¥3,238,658,479.58[48]. Investments and Acquisitions - The company completed the acquisition of Shengyi Electronics, marking a significant merger action that began in 2012[30]. - The company has fully acquired Dongguan Shengyi Electronics Co., Ltd., which has significantly impacted the financials, including increases in short-term loans and employee compensation[49]. - The company acquired 70.2% of Dongguan Shengyi Electronics Co., Ltd. from Xunda Technology China Co., Ltd. for 702 million RMB and sold 20% of Dongguan Meiwai Circuit Co., Ltd. for 18 million RMB[67]. - A joint venture was established with Nippon Steel & Sumitomo Metal Chemical Co., Ltd. with a total investment of 32 million RMB, where the registered capital is 16 million RMB, with the Chinese side holding 49% and the Japanese side holding 51%[67]. Research and Development - The company's R&D expenditure for the period is approximately CNY 264.57 million, reflecting an 11.74% increase from CNY 236.76 million in the previous year[36]. - The company has established three major platforms for technology development, including a technology research platform, a R&D roadmap platform, and a product committee[32]. - The company is focusing on developing high-performance materials for multilayer printed circuit boards, targeting advanced applications in supercomputers and communication bases[39]. - The company developed new high-performance halogen-free substrates to meet the demand from consumer electronics for halogen-free products[40]. - The company is focusing on the development of high thermal conductivity substrates to address the heat accumulation issues in high-density PCB applications[40]. Corporate Governance and Management - The company emphasizes the principle of sharing development results with shareholders, society, and employees to ensure sustainable development[65]. - The company has established a National Electronic Circuit Substrate Engineering Center to address key technological issues and develop high-value-added products[49]. - The company has implemented various behavioral norms and systems to maintain harmonious relationships with all stakeholders[65]. - The company has established four specialized committees: strategy, audit, nomination, and compensation, which actively contributed to improving corporate governance and development during the reporting period[118]. - The company is committed to improving corporate governance and investor relations management[112]. Financial Management - The company reported a significant increase in prepayments, which rose by 94.93% to ¥2,161,667.85, primarily due to the acquisition of Dongguan Shengyi Electronics Co., Ltd.[49]. - The company's total investment at the end of the reporting period reached ¥1,739,491,484.94, an increase of ¥672,346,136.26 or 63.00% compared to the beginning of the period[50]. - The company’s cash and cash equivalents increased by 78.57% to ¥1,231,907,074.62, indicating improved liquidity[48]. - The company’s total liabilities at the end of the year were CNY 1,937,259,779.49, up from CNY 1,442,523,155.01, marking an increase of 34.4%[142]. - The company’s internal control system is designed to provide reasonable assurance regarding the achievement of its operational objectives[122]. Shareholder Information - The company has a total share capital of 1,423,018,290 shares, with 98.42% being unrestricted circulating shares[76]. - The company granted a total of 49.8056 million stock options, representing 3.50% of the total share capital of 1,423.0183 million shares[68]. - The total remuneration for the board members and senior management during the reporting period amounted to 549.52 million RMB after tax[98]. - The company has a dispersed shareholding structure with no single shareholder holding more than 30%[91]. - The company held its first extraordinary general meeting in April 2013 to approve the aforementioned equity transfer matters[67]. Market Outlook - The company is optimistic about the global economic growth forecast of 3.7% for 2014, with specific expectations for the U.S. economy to grow by 3%[32]. - The company plans to expand its market presence and invest in new technologies to drive future growth[144]. - The company aims to enhance its market development strategy by focusing on product and customer integration, which is crucial for future technology and product development[32]. Risks and Challenges - The company faces risks related to macroeconomic conditions, raw material price fluctuations, and exchange rate volatility[60]. - The company reported a significant management turnover, with a turnover rate exceeding 30% for senior management and technical personnel in the current year[130]. - The company faced challenges in maintaining effective internal controls due to inherent limitations and potential changes in circumstances[131].