BIRD(SH:600130)2014-03-24 16:00Financial Performance - The company's operating revenue for 2013 was CNY 1,336,754,481.56, representing a 24.41% increase compared to CNY 1,074,486,095.39 in 2012[24]. - The net profit attributable to shareholders for 2013 was CNY 67,966,519.73, a slight decrease of 0.8% from CNY 68,513,659.13 in 2012[24]. - The net profit after deducting non-recurring gains and losses was CNY 17,216,897.37, down 47.09% from CNY 32,540,261.52 in the previous year[24]. - The net cash flow from operating activities improved significantly to CNY 92,518,929.69, compared to a negative cash flow of CNY -2,778,225.61 in 2012[24]. - The total assets at the end of 2013 were CNY 1,082,373,851.88, reflecting a 14.73% increase from CNY 943,407,715.35 in 2012[24]. - The net assets attributable to shareholders increased by 9.01% to CNY 824,191,926.29 from CNY 756,072,100.51 in 2012[24]. - The basic earnings per share for 2013 were CNY 0.09, unchanged from the previous year[25]. - The weighted average return on net assets decreased to 8.60% from 9.49% in 2012, a decline of 0.89 percentage points[26]. - The company achieved a sales revenue of CNY 1,336,754,481.56, representing a year-on-year increase of 24.41%[32]. - Operating profit decreased to CNY 45,587,100, a decline of 22.63% compared to the previous year[32]. - The gross profit margin declined due to intensified market competition and fluctuations in core component prices[32]. Cash Flow and Investments - The net cash flow from operating activities was CNY 92,518,929.69, an increase from a negative cash flow of CNY -2,778,225.61 in the previous year[44]. - The net cash flow from investment activities was -RMB 51.01 million, an increase of RMB 3.64 million from the previous year[45]. - The net cash flow from financing activities was -RMB 0.31 million, a decrease of RMB 8.61 million from the previous year[45]. - The cash inflow from sales of goods and services increased by RMB 276.11 million compared to the previous year[45]. - The company reported a total investment of RMB 50,000,000 in a bank wealth management product with an expected return of RMB 74,520.55 over a 16-day period[60]. - The company has a significant investment of RMB 70,000,000 for 20 days, with a return of RMB 138,082.19[61]. - The company has a total expected return from various investments amounting to RMB 723,397.26 from a RMB 40,000,000 investment over 161 days[61]. Revenue Breakdown - Domestic revenue reached RMB 461.44 million, representing a 59% increase year-on-year[47]. - Overseas revenue was RMB 789.46 million, showing a 9.22% increase year-on-year[47]. - Revenue from mobile phones and accessories was RMB 1.21 billion, with a year-on-year increase of 25.08%[47]. - The gross profit margin for mobile phones and accessories decreased by 3.62 percentage points to 7.19%[47]. Subsidiaries and Corporate Structure - The company established a wholly-owned subsidiary, Fenghua Bodao Software Co., Ltd., with an investment of 20 million RMB in December 2013[65]. - The company has six wholly-owned subsidiaries as of the end of the reporting period[64]. - The company has established subsidiaries for wholesale and retail of electronic and communication products, with registered capital of 5 million RMB[199]. - Ningbo Baogao Co., Ltd. has established several wholly-owned subsidiaries focused on telecommunications and software development, including Ningbo Baogao Software Co., Ltd. and Suizhou Baogao Electronics Co., Ltd.[200]. - All subsidiaries are consolidated in the financial statements, reflecting full control and integration into the parent company's operations[200]. Future Plans and Market Strategy - In 2014, the company plans to increase its overseas market expansion efforts and expects revenue growth compared to the previous year, while maintaining a certain level of profitability in its main business[69]. - The company aims to enhance its R&D capabilities and invest more in the development of various types of smartphones[69]. - The company will actively explore new business areas and develop new products and applications beyond mobile phones[69]. - The company recognizes the challenges posed by the slowing growth of the smartphone market and increased price competition[67]. - The company is focused on leveraging opportunities in the domestic 4G smartphone market while increasing its export sales of smartphones[69]. Governance and Compliance - The company has maintained its current accounting firm, Tianjian Accounting Firm, for 12 years, with an audit fee of RMB 55 million[83]. - The company adheres to legal and regulatory requirements, ensuring a sound corporate governance structure that protects the interests of shareholders and maintains operational independence from the controlling shareholder[118][124]. - The board of directors has conducted six meetings during the year, with all resolutions passed without dissent from independent directors[122]. - The company emphasizes the importance of information disclosure, ensuring that all information is accurate, complete, and timely to protect the rights of investors, especially minority shareholders[118]. Employee and Management Information - The total remuneration for directors, supervisors, and senior management amounted to 4.1117 million yuan[110]. - The company employed a total of 1,050 staff, including 579 production personnel and 334 technical personnel[112]. - The company has 38 employees with a master's degree or higher, and 384 with a bachelor's degree[112]. - The company has established a comprehensive training system that includes onboarding, job training, transfer training, and on-the-job training to enhance employee capabilities and promote sustainable development[114]. Internal Control and Risk Management - The internal control system has been strengthened, with 125 internal control systems and 189 processes established to enhance operational management and risk prevention capabilities[128]. - The company has actively engaged in risk assessment and management, with the supervisory board reporting no significant issues during the reporting period[124]. - The company conducted a self-assessment of its internal control effectiveness as of December 31, 2013, and found no significant defects in design or execution[129]. Financial Reporting and Accounting Policies - The financial statements were audited by Tianjian Accounting Firm, which issued a standard unqualified opinion[134]. - The company adheres to the enterprise accounting standards, ensuring that its financial statements reflect a true and complete picture of its financial status[165]. - The company has not reported any changes in accounting policies or prior period error corrections during the current reporting period[163]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[166].