Zhejiang Longsheng(SH:600352)2014-04-04 16:00Financial Performance - In 2013, the company achieved a net profit of RMB 491,707,555.51, with a statutory surplus reserve of 10% amounting to RMB 49,170,755.55[5] - The undistributed profits at the end of 2013 reached RMB 588,546,255.11 after deducting the distributed dividends of RMB 249,630,708.10[5] - The profit distribution plan for 2013 proposes a cash dividend of RMB 2.70 per 10 shares (including tax)[5] - The company achieved total revenue of CNY 14,085,822,576.70 in 2013, representing a year-on-year growth of 84.15%[28] - Net profit attributable to shareholders reached CNY 1,349,109,935.32, an increase of 62.49% compared to the previous year[28] - The basic earnings per share rose to CNY 0.9084, reflecting a growth of 60.67% year-on-year[22] - The net profit after deducting non-recurring gains and losses surged by 509.53% to CNY 1,153,663,505.78[28] - The company’s weighted average return on equity increased by 4.63 percentage points to 16.19%[22] Revenue and Growth - The revenue from specialty chemicals reached ¥11,246,287,776.28, a 129.82% increase compared to ¥4,893,507,294.22 in the previous year, primarily due to the consolidation of Dystar's dye business and an increase in both volume and price of the company's dye products[32] - The revenue from real estate business was ¥1,045,031,553.67, reflecting a 55.14% increase from ¥673,599,818.21, mainly due to the sales from Shanghai Shengyu and Pinghu Shengyu exceeding the previous year's revenue from Shanghai Longsheng Real Estate[32] - The total cash inflow from operating activities was ¥14,393,535,726.29, a 34.09% increase from ¥10,733,998,685.63, driven by an expansion in production and sales scale[39] - The total cash outflow from operating activities was ¥13,501,467,509.86, a 39.98% increase from ¥9,645,027,898.56, attributed to a significant increase in accounts receivable[39] Research and Development - Research and development expenses increased by 87.04% to CNY 451,753,597.17, indicating a strong focus on innovation[30] - The total R&D expenditure was ¥451,753,597.17, accounting for 4.54% of net assets and 3.21% of operating revenue[37] - The company has established a comprehensive R&D system, leading to the completion of 5 industry standards and 5 national standards in 2013[49] Operational Efficiency - The company has maintained a consistent focus on risk management, detailing potential risks in its board report[9] - The company has been expanding its product lines, with the intermediate business contributing 12.15% to total revenue by the end of 2005, and superplasticizers contributing 11.55% by the end of 2006[18][19] - The company successfully completed a debt-to-equity swap with Dystar, leading to improved operational efficiency and profitability in the textile chemical sector[28] - The company plans to enhance R&D and project investments in the intermediate field to ensure new projects are launched annually[28] Environmental Initiatives - The company has invested over 400 million RMB in environmental upgrades in recent years, enhancing its competitive edge in the industry[84] - The MVR system implemented by the company has effectively reduced wastewater by over 70% and solid waste by over 90%[84] - The company has established a circular economy industrial park in Zhejiang, achieving over 70% reduction in wastewater and over 90% reduction in solid waste emissions through clean production technologies[51] Shareholder Information - As of the end of the reporting period, the controlling shareholders held a combined 23.56% of the company's shares[20] - The company’s stock is traded on the Shanghai Stock Exchange under the code 600352[16] - The company has a robust profit distribution policy in place, adhering to its articles of association[82] - The company distributed a cash dividend of 1.70 RMB per 10 shares (before tax) for the year 2012, totaling 249,630,708.10 RMB[82] - In 2013, the cash dividend increased to 2.70 RMB per 10 shares, amounting to 412,523,801.10 RMB, representing 30.58% of the net profit attributable to shareholders[82] Financial Management - The company has engaged Tianjian Accounting Firm to provide a standard unqualified audit report for the fiscal year[5] - The company has maintained effective internal controls over financial reporting, with no significant deficiencies reported in the internal control evaluation[156] - The independent audit firm issued a standard unqualified opinion on the company's internal control effectiveness as of December 31, 2013[157] - The company reported no significant accounting errors or omissions during the reporting period, ensuring the integrity of its financial disclosures[158] Market Expansion and Strategy - The company aims to become a world-class specialty chemicals service provider, focusing on technology development and strategic acquisitions to diversify and internationalize its product offerings[41] - The company is actively pursuing market expansion through strategic acquisitions and investments in various sectors[91] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[176] Legal and Compliance - The company is involved in ongoing litigation regarding patent infringement, seeking 100 million RMB in damages[87] - The company has reached a settlement agreement with one of the defendants in the patent dispute, resolving the issue amicably[87] - The company has not faced any major environmental issues or pollution incidents during the reporting period[85] Employee and Management Structure - The total number of employees in the parent company is 254, while the main subsidiaries employ 9,261, resulting in a total of 9,515 employees[134] - The company has implemented a structured salary system that includes basic salary, position salary, and various allowances, adjusting according to market conditions[135] - The company emphasizes targeted employee training to enhance skills and improve overall performance, aligning with business development needs[136] - The total remuneration for all directors, supervisors, and senior management personnel amounted to 8.6214 million yuan during the reporting period[131] Future Projections - The company aims to achieve total revenue of 19 billion RMB in 2014, representing a growth of 34.89% compared to the previous year[74] - The total profit is projected to reach 3 billion RMB, an increase of 65.02% year-on-year, with net profit attributable to shareholders expected to be 2.5 billion RMB, up 85.32%[74][75] - The company anticipates a funding requirement of 5.5 billion RMB to maintain current operations and complete ongoing investment projects[77]