YIWU CCC(SH:600415)2014-10-20 16:00Financial Performance - The company's operating revenue for 2013 was CNY 3,654,653,388.78, representing a 1.19% increase compared to CNY 3,611,827,711.15 in 2012[22] - The net profit attributable to shareholders for 2013 was CNY 707,466,255.39, a slight increase of 0.06% from CNY 707,016,443.45 in 2012[22] - The net profit after deducting non-recurring gains and losses was CNY 677,395,602.10, up by 0.46% from CNY 674,285,843.44 in the previous year[22] - The total profit for the year was 943 million yuan, up by 0.08 billion yuan, or 0.86% compared to the previous year[28] - The company completed 106% of its operating revenue target of 3.448 billion yuan and 110.16% of its profit target of 856 million yuan[28] - The company reported a net profit of 10.311 million RMB from Yiwu Small Loan Co., Ltd., while several subsidiaries reported losses, including Yiwu China Commodity City Real Estate Development Co., Ltd. with a net loss of 1.161 million RMB[67] - The company reported a significant rise in short-term borrowings, which increased to CNY 4,231,000,000.00 from CNY 983,170,000.00, highlighting a shift in financing strategy[144] Cash Flow and Liquidity - The net cash flow from operating activities for 2013 was negative CNY 325,596,623.18, a significant decrease of 116.79% compared to CNY 1,938,789,715.60 in 2012[22] - The cash and cash equivalents decreased to CNY 1,011,852,572.19 from CNY 1,303,290,116.82, reflecting a reduction in liquidity[144] - The net cash flow from financing activities increased by RMB 400.01 million, primarily due to a net increase in debt financing of RMB 392.80 million[44] - The cash inflow from sales of goods and services was 4,791,951,428.23 RMB, up from 4,047,733,628.41 RMB in the previous year, marking an increase of approximately 18.4%[152] Assets and Liabilities - Total assets at the end of 2013 reached CNY 24,070,310,678.53, marking a 31.67% increase from CNY 18,281,337,539.50 at the end of 2012[22] - The company's total liabilities reached CNY 14,973,352,937.53, up from CNY 10,018,699,104.33 at the start of the year, indicating a significant increase in leverage[144] - Inventory surged to CNY 8,867,785,498.05, compared to CNY 5,432,066,792.96 at the beginning of the year, indicating a 63.5% increase[144] - The long-term investments rose to CNY 1,516,976,950.59 from CNY 870,143,298.87, indicating a focus on expanding investment activities[144] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1 per 10 shares to all shareholders based on the total share capital of 2,721,607,088 shares as of the end of 2013[6] - In 2013, the cash dividend distributed was CNY 272.16 million, representing 38.47% of the net profit attributable to shareholders[82] - The company has committed to a cash dividend policy where the cash dividend amount has exceeded 30% of the net profit attributable to shareholders for the past three years[80] Business Strategy and Market Position - The company continues to focus on the development and operation of the small commodity market and related services, with no changes in its main business since its listing[17] - The company aims for a revenue target of CNY 3.995 billion and a total profit of CNY 483 million for 2014[75] - The company plans to address a funding gap of CNY 3 billion in 2014 through various financing methods, including bank loans and short-term financing instruments[77] - The company is positioned to benefit from the deepening of international trade reforms in Yiwu, which is expected to drive sustained growth in foreign trade[73] Governance and Compliance - The company emphasizes improving corporate governance and operational standards to adapt to its rapid business expansion[76] - The company actively engages with shareholders, ensuring their rights are protected and that they are informed about major company matters[124] - The company has established a performance evaluation mechanism for senior management, linking compensation to performance metrics[133] Research and Development - Research and development expenses increased by 241.97% to CNY 7,661,195.17 from CNY 2,240,292.20 in the previous year, accounting for 0.21% of operating revenue[36][41] - Research and development expenses increased by 30%, totaling $150 million, reflecting the company's commitment to innovation[183] Market Expansion and Future Outlook - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[176] - The company plans to enhance its e-commerce capabilities through the "Yiwu Purchase" platform and B2R channels, aiming for a new growth point in cross-border e-commerce[73] - The company plans to implement a new customer loyalty program aimed at increasing retention rates by 15% over the next year[179] Legal and Regulatory Matters - The company is involved in several ongoing lawsuits, with amounts including 644.138 million RMB for a rental dispute and 420.2846 million RMB for a construction contract dispute[84] - The company has reported a total of 1,089.22281 million RMB in related party transactions, primarily for office space rental and management fees[87]