Langsha(SH:600137)2014-04-18 16:00Financial Performance - In 2013, Sichuan Langsha Holding Co., Ltd. achieved a net profit of CNY 8,172,869.29[7]. - The net profit attributable to shareholders was CNY 8.17 million, representing a decrease of 21.16% compared to 2012[26]. - The company's total assets at the end of 2013 were CNY 595.02 million, a decrease of 3.43% from the previous year[26]. - The company's revenue for 2013 increased by 5.51% compared to 2012, reaching CNY 437,650,483.30[53]. - Net profit for 2013 decreased by 21.16% compared to 2012, indicating a decline in profitability[53]. - The basic earnings per share decreased by 21.50% to CNY 0.084[26]. - The weighted average return on equity fell to 1.80%, down 0.53 percentage points from 2012[26]. - The gross margin for the apparel manufacturing sector was 16.63%, an increase of 2.42 percentage points from the previous year[55]. - The company reported a net profit of ¥8,172,869.29 for the year 2013, with undistributed profits amounting to ¥9,560,576.83 as of December 31, 2013[77]. - The board proposed no profit distribution or cash dividends for 2013, as the parent company's undistributed profits were negative at -¥160,379,471.02[77]. Revenue and Sales - In 2013, the company achieved operating revenue of CNY 437.82 million, a year-on-year increase of 5.51%[26]. - Domestic sales contributed ¥408,811,802.68, with a growth of 6.30%, driven by strengthened brand development and expanded market presence[44]. - The company faced a decline in export sales, generating ¥28,838,680.62, down 5.09% due to increased pressure from RMB appreciation and reduced competitiveness[44]. - Sales expenses increased significantly by 76.18% in 2013 due to a higher proportion of television shopping sales[34]. - The company maintained a production and sales rate of 100% throughout the year[35]. Cash Flow and Assets - The net cash flow from operating activities increased by 44.92% to CNY 23.23 million[26]. - The company's cash and cash equivalents increased by 11.07% to CNY 163,005,366.29, representing 27.39% of total assets[58]. - The total current assets decreased from ¥426,565,157.20 to ¥413,938,259.41, a decline of approximately 2.9%[161]. - Cash and cash equivalents increased from ¥146,763,128.46 to ¥163,005,366.29, an increase of about 11.5%[161]. - Total liabilities decreased from ¥165,271,683.01 to ¥135,965,254.64, a reduction of about 17.7%[162]. Corporate Governance - The board of directors includes experienced professionals with significant backgrounds in finance and management, enhancing corporate governance[111]. - The independent directors bring diverse expertise, including economics and accounting, which supports robust decision-making processes[113]. - The company has established a network voting mechanism for major decisions to protect minority shareholders' rights[132]. - The company has established a procurement and payment system with clear regulations to ensure quality and cost-effectiveness in material procurement[133]. - The company has implemented a comprehensive human resource management system to optimize personnel allocation and training, supporting sustainable development[134]. Strategic Plans and Future Outlook - The company plans to enhance brand competitiveness and marketing strategies to reverse three consecutive years of declining performance[39]. - The company plans to increase its revenue by 10% in 2014 compared to 2013 and aims to reverse the downward trend in profits[71]. - The company intends to control the growth of overall expenses to not exceed 20% compared to 2013 while enhancing management efficiency[71]. - The company will focus on developing new products with high added value, including functional underwear with moisture-wicking and low-carbon features, to create new profit growth points[71]. Legal and Compliance - The company faced several lawsuits during the reporting period, with a total amount involved in disputes reaching ¥1,148,600.58, but no expected liabilities were recognized[84]. - The company has ongoing litigation with a customer for ¥498,961.84, of which ¥50,000 has been recovered as of December 31, 2013[84]. - The company has not reported any significant errors in annual report disclosures during the reporting period[152]. - The financial statements for the year ended December 31, 2013, were audited and received a standard unqualified opinion from the auditors[155]. Research and Development - Research and development expenses amounted to ¥13,219,938.43, showing a slight decrease of 1.09% from the previous year[43]. - The company places a high emphasis on R&D, establishing a postdoctoral workstation for new product development in the underwear sector to meet consumer demands[133]. Employee and Workforce Management - The company employed a total of 639 staff, with 454 in production, 86 in sales, 56 in technical roles, 16 in finance, and 27 in administration[120]. - The company has implemented a monthly salary system for employees, with performance-based bonuses for management[121]. - The company has a robust training program for employees at all levels, enhancing skills and compliance with industry standards[122].