NBYS(SH:600366)2014-04-28 16:00Financial Performance - The company's operating revenue for 2013 was CNY 2,138,442,603.36, a decrease of 26.76% compared to CNY 2,919,614,599.87 in 2012[23] - The net profit attributable to shareholders for 2013 was CNY 350,164,601.72, down 22.22% from CNY 450,219,394.88 in the previous year[23] - The net profit after deducting non-recurring gains and losses was CNY 236,854,050.77, a decline of 38.69% compared to CNY 386,306,217.10 in 2012[23] - The net cash flow from operating activities was CNY 239,963,634.08, a significant drop of 75.43% from CNY 976,663,885.94 in 2012[23] - The total assets at the end of 2013 were CNY 3,941,179,873.36, a decrease of 2.46% from CNY 4,040,774,149.55 in 2012[23] - The net profit attributable to the parent company for 2013 was RMB 350.16 million, down RMB 100.55 million or 22.22% from the previous year[34] - The company reported a basic earnings per share of RMB 0.6806, a decrease of 22.23% compared to RMB 0.8751 in 2012[26] - The weighted average return on net assets decreased to 12.12%, down 5.15 percentage points from 2012[26] - The company recorded non-operating income of RMB 113.31 million in 2013, significantly higher than RMB 63.91 million in 2012[28] - The company experienced a 34.58% decrease in main business income due to a significant drop in rare earth material prices[43] Assets and Liabilities - The total cash and cash equivalents decreased by CNY 45,278.99 million during the year[51] - The total assets of the major subsidiaries include 735.92 million for Gaoke Magnetic, 259.21 million for Magnetic Materials, and 281.86 million for Baotou Qiang Magnetic[68] - The company's total liabilities decreased from CNY 1,026,700,851.36 to CNY 857,182,659.26, a reduction of approximately 16.5%[140] - Owner's equity attributable to shareholders increased from CNY 2,777,705,560.79 to CNY 2,970,821,106.76, reflecting a growth of about 6.94%[140] - Current liabilities increased significantly from CNY 500,650,636.69 to CNY 855,858,696.98, representing a rise of about 70.73%[140] Investments and Dividends - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares, totaling CNY 77,174,662.50 to shareholders[7] - The company made a new investment of CNY 25.25 million in Ningbo Qianshi Venture Capital Partnership during the reporting period[59] - The total initial investment in listed companies amounted to CNY 16.52 million, with a total value of CNY 15.66 million at the end of the period, resulting in a loss of CNY 865,759.89[60] - The company holds a stake in Guizhou Moutai with an initial investment of CNY 7.57 million, which has a current value of CNY 4.96 million, reflecting a loss of CNY 2.61 million[60] Operational Developments - The company successfully developed new customers and implemented a flexible incentive mechanism to improve market share[35] - The company completed several new projects for automotive magnetic steel, including samples for new energy vehicles[37] - The company transferred 75% equity stakes in four subsidiaries to optimize its business structure and focus on core operations[40] - The company is focusing on the development of automotive magnetic steel products, particularly for the new energy vehicle sector, to enhance its product offerings[72] Governance and Compliance - The company has established a robust internal control system and improved its governance structure in line with regulatory requirements[79] - The board of directors consists of 8 members, including 3 independent directors with expertise in magnetic materials, law, and finance[81] - The supervisory board held 3 meetings during the reporting period to oversee the company's operations and financial status[83] - The company held one annual general meeting during the reporting period, ensuring compliance with legal requirements and protecting minority shareholders' rights[80] Risk Management - The company has detailed potential risks in the report, which investors are encouraged to review[10] - The company has acknowledged potential risks, including increased regulatory scrutiny in the rare earth industry and competition from substitute products[74] - The company has faced challenges due to the low demand in upstream and downstream industries, which could impact future growth[71] Employee and Management Information - The total number of employees in the parent company is 235, while the total number of employees in major subsidiaries is 2,863, resulting in a combined total of 3,098 employees[112] - The company reported a total remuneration of 852.72 million yuan for all directors, supervisors, and senior management personnel during the reporting period[111] - The company emphasizes employee training, offering eight major training modules and conducting at least one course per week to enhance employee skills and performance[114] - The company’s board and management remuneration is determined based on actual profitability and individual contributions, promoting stability and motivation[111] Financial Reporting and Accounting Policies - The company prepares financial statements based on the going concern principle, adhering to the accounting standards issued by the Ministry of Finance[167] - The financial statements accurately reflect the company's financial position, operating results, and cash flows[168] - The company uses Renminbi as its functional currency for accounting purposes[170] - The company applies the acquisition method for business combinations, measuring assets and liabilities at their book values on the acquisition date for same control combinations[171]