CGA(SH:600297)2014-04-18 16:00Financial Performance - The company achieved total revenue of CNY 427.45 million in 2013, a decrease of 43.73% compared to CNY 759.70 million in 2012[26]. - Net profit attributable to shareholders was CNY 52.74 million, representing a growth of 13.85% from CNY 46.32 million in the previous year[26]. - The basic earnings per share increased to CNY 0.15, up 13.85% from CNY 0.13 in 2012[31]. - The company reported a net profit of 1.67 million yuan from its subsidiary, Dalian Meiluo Traditional Chinese Medicine Factory[50]. - The total profit for 2014 is projected to be 50 million yuan, a decrease of 17% compared to the previous year[51]. - The company reported a comprehensive income total of CNY 64,352,868.00 for 2013, down from CNY 96,427,551.73 in the previous year[113]. - The net profit for the year was CNY 52,738,771.81, reflecting a significant increase compared to the previous year[126]. - The total comprehensive income for the year amounted to CNY 64,352,868.00, which includes other comprehensive income of CNY 10,720,710.00[126]. Dividends and Shareholder Information - The proposed cash dividend for 2013 is RMB 0.4521 per share, totaling RMB 15,823,500.00, pending shareholder approval[6]. - The company approved a cash dividend distribution plan for 2012, distributing RMB 0.3971 per 10 shares, totaling RMB 13,898,500.01[60]. - In 2013, the company proposed a cash dividend of RMB 0.4521 per 10 shares, amounting to RMB 15,823,500.00, with a net profit attributable to shareholders of RMB 52,738,771.81, resulting in a payout ratio of 30.004%[62]. - The total number of shareholders at the end of the reporting period was 49,092, an increase from 39,962 before the annual report disclosure[73]. - Meiluo Group Co., Ltd. holds 48.36% of shares, totaling 169,265,014 shares, with 85,000,000 shares pledged[73]. - The actual controller of Meiluo Group has undergone changes, with significant share transfers to Suzhou Industrial Park Mali Jiebei Venture Capital Partnership, which now holds 23% of Meiluo Group[75]. Business Operations and Strategy - The company’s current business scope includes the manufacturing of APIs, tablets, powders, oral liquids, capsules, and eye drops, among others[18]. - The company successfully passed FDA certification for its solid dosage form workshop, marking a significant milestone in its internationalization efforts[27]. - The company implemented a new marketing model focusing on professional agency partnerships, aiming to enhance sales structure and precision in recruitment[28]. - The company aims to enhance its core competitiveness through internationalization, structural adjustment, and management improvement[51]. - The company plans to increase its R&D investment to accelerate the commercialization of new products[56]. - The company plans to continue expanding its market presence and investing in new product development[126]. Financial Position and Assets - The total assets at the end of 2013 were CNY 1.38 billion, a slight increase of 2.36% from CNY 1.34 billion at the end of 2012[26]. - The company's total assets as of December 31, 2013, amounted to CNY 1,376,229,968.31, an increase from CNY 1,344,446,499.30 at the beginning of the year[106][108]. - The total liabilities decreased from CNY 444,016,019.48 at the beginning of the year to CNY 425,345,120.50 by the end of 2013[107][108]. - The company's equity increased to CNY 844,327,934.64, compared to CNY 811,124,660.16 at the start of the year, marking a growth of 4.1%[110]. - The company's retained earnings increased to CNY 256,235,553.54 from CNY 221,033,388.19, showing a growth of approximately 15.9%[108]. Audit and Compliance - The company received a standard unqualified audit report from Dahua Accounting Firm[6]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[6]. - The company has appointed Da Hua Accounting Firm for internal control audits, with a remuneration of RMB 55,000[67]. - The audit committee supervised the annual report preparation and recommended the reappointment of the auditing firm for 2014[95]. - The company did not report any significant accounting errors or omissions in its annual report during the reporting period[100]. Research and Development - Research and development expenses decreased by 28.49% to CNY 2.81 million from CNY 3.92 million in 2012[34]. - R&D expenses totaled ¥2,805,789.96, accounting for 0.30% of net assets and 0.66% of operating revenue[36]. Risk Management - The company faces risks related to product quality management and the impact of current bidding policies on product pricing[58]. - The company emphasizes the importance of quality risk management to ensure product quality across all operations[55]. - The company has established a robust internal control system to manage risks associated with major investments and transactions[99]. Employee Information - The company employed a total of 547 staff, with 285 in production, 17 in sales, 147 in technical roles, 19 in finance, and 79 in administration[84]. - The number of employees with a bachelor's degree or higher reached 127, while those with a college diploma totaled 130[84]. - The company has established a salary committee and related regulations to determine employee compensation based on performance evaluations[84]. - The company has implemented a comprehensive training plan to enhance employee skills and qualifications annually[84]. Governance and Structure - The company has maintained its controlling shareholder, Merro Group Limited, since its listing in 2000[18]. - The report indicates a stable governance structure with no significant changes in the board of directors during the reporting period[77]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal requirements[89]. - The supervisory board is composed of 3 members, including 1 employee representative, also meeting legal standards[90]. - The company adheres to the latest governance requirements, ensuring clear responsibilities among the shareholders, board of directors, and management[88]. Financial Instruments and Accounting Policies - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements reflect the true financial condition and operating results[150]. - The company’s financial statements are prepared based on the principle of going concern and comply with relevant accounting regulations[149]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[154]. - The company measures financial assets at fair value, with changes recognized in current profit or loss, and interest or dividends recognized as investment income during the holding period[165].