SHKK(SH:600272)2014-04-25 16:00Financial Performance - The company's operating revenue for 2013 was approximately RMB 859.44 million, representing a 5.06% increase compared to RMB 818.02 million in 2012[24]. - The net profit attributable to shareholders for 2013 was RMB 25.45 million, a decrease of 58.17% from RMB 60.84 million in 2012[24]. - The basic earnings per share for 2013 was RMB 0.10, down 60.00% from RMB 0.25 in 2012[23]. - The weighted average return on equity decreased to 7.20% in 2013 from 16.22% in 2012, a decline of 9.02 percentage points[23]. - The net cash flow from operating activities was RMB 14.39 million, a decrease of 38.05% compared to RMB 23.23 million in 2012[24]. - Operating profit for 2013 was 30.96 million RMB, a decrease of 50.32% compared to the previous year[31]. - Total profit for 2013 was 36.48 million RMB, down 46.94% year-on-year[31]. - The company's total operating revenue reached CNY 826,078,022.50, representing a year-on-year increase of 5.09%[51]. - The gross profit margin improved to 19.39%, an increase of 0.55 percentage points compared to the previous year[51]. Assets and Liabilities - The total assets at the end of 2013 were RMB 1,015.04 million, an increase of 4.10% from RMB 975.09 million at the end of 2012[24]. - The company's net assets attributable to shareholders increased by 10.24% to RMB 377.99 million at the end of 2013 from RMB 342.89 million at the end of 2012[24]. - Total liabilities decreased from RMB 314.72 billion at the beginning of the year to RMB 302.37 billion at the end of the year, a reduction of approximately 3.9%[176]. - Current liabilities totaled RMB 249.74 billion, down from RMB 263.56 billion, reflecting a decrease of about 5.2%[176]. - Owner's equity increased from RMB 311.28 billion to RMB 332.51 billion, representing a growth of approximately 6.8%[176]. Dividends and Shareholder Returns - The company proposed a cash dividend of RMB 0.35 per 10 shares, totaling RMB 8.51 million, which accounts for 33.42% of the net profit attributable to shareholders[5]. - The company distributed a cash dividend of RMB 0.20 per share for the year 2012, totaling RMB 4,860,000, based on 243,000,000 shares[80]. - In 2013, the company reported a net profit attributable to shareholders of RMB 25,446,761.05, with a dividend payout ratio of 33.42%[85]. Business Segments - The pharmaceutical segment's sales revenue reached CNY 661.26 million, a year-on-year increase of 7.29%, mainly due to the rise in sales of health products and peritoneal dialysis solutions[39]. - The clothing segment's sales revenue was CNY 191.61 million, a year-on-year increase of 2.31%, attributed to the growth in customized workwear sales[39]. - The company focused on the sustainable development of its pharmaceutical and clothing sectors, enhancing management capabilities and operational quality[31]. Legal and Compliance Issues - The company is involved in a legal dispute with China Everbright Bank regarding a bill of exchange, with the case currently under appeal at the Guangdong High Court[88]. - The Guangdong Intermediate People's Court previously ruled against the company's claims, which led to the company filing an appeal[88]. - The case has incurred legal costs, including a case acceptance fee of CNY 260,410, property preservation fee of CNY 250,520, and evaluation fee of CNY 80,000, all borne by China Cinda Asset Management[88]. - The company is involved in an economic crime investigation related to a former employee, with assets being frozen as part of the legal proceedings[89]. - The company is facing ongoing legal challenges, including a debt dispute with Guangdong Development Bank, which may impact its financial stability[89]. Corporate Governance - The company has established a long-term mechanism to prevent the controlling shareholder from misappropriating company funds[135]. - The company’s internal control system was continuously improved, with a self-evaluation report on internal controls completed for 2012[139]. - The company maintained independence from its controlling shareholder in terms of operations, personnel, assets, and finance, ensuring autonomous business capabilities[151]. - The independent audit conducted by Lixin Accounting Firm confirmed that the company maintained effective internal controls in all significant aspects according to the basic norms of internal control[160]. Social Responsibility - The company has actively engaged in community service and social responsibility initiatives, including partnerships with local schools and health promotion activities[38]. - The company plans to align its development strategy with social responsibility initiatives in 2014, focusing on sustainable economic returns while serving the community[85]. Employee and Management Structure - The total number of employees in the company is 1,524, with 16 in the parent company and 1,508 in major subsidiaries[126]. - The remuneration for directors, supervisors, and senior management is determined based on the company's performance evaluation and is paid monthly, with performance bonuses distributed after annual assessments[125]. - The company’s chairman and general manager's annual salary is reviewed by the compensation and assessment committee, board of directors, and shareholders' meeting[125]. Future Outlook - The pharmaceutical industry is expected to continue stable growth driven by aging population and consumption upgrades over the next 3-5 years[70]. - The company aims to enhance its main business capabilities and profitability by focusing on market-centered marketing innovations and expanding product quality[74]. - The company plans to leverage existing resources to improve asset quality and net asset return rates, while also seeking beneficial investment projects[75].