XEMC(SH:600416)2014-04-22 16:00Financial Performance - In 2013, the company achieved a net profit of CNY 48,082,952.87, a significant recovery from a net loss of CNY 207,890,395.39 in 2012[6]. - The company's operating revenue for 2013 was CNY 6,626,462,462.42, representing a year-on-year increase of 22.16% compared to CNY 5,424,501,267.94 in 2012[28]. - Basic earnings per share for 2013 were CNY 0.08, recovering from a loss of CNY 0.34 per share in 2012[29]. - The weighted average return on equity was 2.30% in 2013, a significant improvement from -9.47% in 2012[29]. - The company reported a total profit of RMB 59,557,555.38 for 2013, a significant recovery from a loss of RMB 202,859,383.83 in the previous year[184]. - The company reported a comprehensive income of RMB 58,503,037.88, a turnaround from a comprehensive loss of RMB 211,501,841.96 in the previous year[182]. Cash Flow and Assets - The net cash flow from operating activities improved to -CNY 317,924,482.32 in 2013, a 79.84% improvement from -CNY 1,577,207,090.73 in 2012[28]. - The total assets of the company increased to CNY 15,692,060,677.76 at the end of 2013, up 14.74% from CNY 13,675,329,516.94 at the end of 2012[28]. - The company's cash and cash equivalents increased to RMB 2,120,072,078.06, up from RMB 1,752,347,997.55, representing a growth of 20.9%[181]. - The cash flow from operating activities showed a net outflow of RMB 317,924,482.32, an improvement from a net outflow of RMB 1,577,207,090.73 in the previous year[186]. - The company's total current assets reached RMB 5,870,539,066.76, up from RMB 5,797,490,855.32, indicating an increase of about 1.3%[191]. Investment and R&D - The company completed the development of 65 new products during the year, with 15 key products recognized[34]. - The company’s R&D expenditure increased by 39.92% to 175.54 million RMB compared to 125.45 million RMB in 2012[37]. - Total R&D expenditure amounted to 175.54 million RMB, representing 8% of net assets and 3% of operating revenue[48]. - Investment income increased by 70.35% year-over-year, mainly due to higher profits from joint ventures[47]. Market Position and Strategy - The company’s market share in the wind power sector reached 7.6%, ranking fifth nationally, with an additional 990 MW of direct drive wind turbine capacity installed[33]. - The company aims to optimize its main industry structure by concentrating resources on four major sectors: defense equipment, general electric, vehicle equipment, and new energy equipment[79]. - The company is focusing on transitioning its business model to adapt to macroeconomic conditions and enhance its core technology advantages in electric vehicles and new energy equipment[79]. - The wind power market in China is projected to reach 200 million kW by 2020, with significant growth potential remaining[77]. Corporate Governance and Management - The company has a comprehensive management system that includes strategic management, cultural management, and performance management[59]. - The overall corporate governance structure includes a mix of experienced professionals and independent directors, ensuring effective oversight[130]. - The company has established a performance evaluation mechanism for senior management, linking their compensation to various operational factors, enhancing motivation and creativity[166]. - The board of directors consists of 11 members, including 4 independent directors, and held 6 meetings during the reporting period[154]. Shareholder Information - The total number of shareholders at the end of the reporting period was 38,332, an increase from 34,301 at the end of the previous reporting period[117]. - The largest shareholder, Xiangdian Group Co., Ltd., holds 34.9% of the shares, totaling 212,343,361 shares, with 40 million shares pledged[117]. - The company has established a cash dividend policy, ensuring that cash distributions will not be less than 10% of the distributable profit for the year[85]. Risks and Challenges - The company faces risks from a sluggish macroeconomic environment and intensified market competition, impacting operational performance[83]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - The company did not declare any dividends for the years 2011, 2012, and 2013, maintaining a consistent policy of no cash dividends during this period[91].