Fynex Textile(SH:600493)2015-03-30 16:00Financial Performance - The company achieved a net profit of CNY 8,341,100.91 for the year 2014, with a profit available for distribution to shareholders amounting to CNY 89,160,733.72 after accounting for previous retained earnings and cash dividends paid [5]. - Total revenue for 2014 was CNY 776,833,162.74, representing a decrease of 11.73% compared to CNY 880,087,769.64 in 2013 [24]. - The net profit attributable to shareholders decreased by 28.49% to CNY 10,015,333.90 in 2014 from CNY 14,004,466.62 in 2013 [24]. - Basic earnings per share for 2014 were CNY 0.0368, down 28.54% from CNY 0.0515 in 2013 [25]. - The company's net profit for 2014 was 10.01 million RMB, while operating profit was -5.64 million RMB [30]. - The company reported a decrease in operating costs by 13.78% to 693.07 million RMB from 803.88 million RMB in 2013 [31]. - Investment income fell by 61.92% to CNY 228.81 million due to reduced dividends from associated companies [44]. - The company reported a total profit of ¥14,202,679.89, down from ¥17,425,294.79, a decrease of about 18.5% year-over-year [161]. Cash Flow and Assets - The company reported a significant increase in net cash flow from operating activities, which rose by 306.25% to CNY 186,381,327.86 in 2014 from CNY 45,878,006.90 in 2013 [24]. - Cash and cash equivalents increased by 25.38% to CNY 10,413.36 million, attributed to changes in payment settlement methods [50]. - Accounts receivable decreased by 4.63% to CNY 11,230.73 million due to enhanced risk control measures [51]. - Inventory decreased by 26.85% to CNY 17,552.66 million as the company reduced stock levels in response to falling raw material prices [51]. - The total assets of the company decreased by 7.62% to CNY 1,089,490,685.99 at the end of 2014, down from CNY 1,179,346,878.14 in 2013 [24]. - The total non-current assets amounted to CNY 643,806,822.54, down from CNY 691,069,214.36, indicating a decrease of 6.8% [156]. - The total liabilities decreased from CNY 551,582,536.71 to CNY 457,151,010.66, a decline of approximately 17.1% [157]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.2 per 10 shares, totaling CNY 5,440,000.00, subject to shareholder approval [5]. - In 2014, the company distributed cash dividends totaling RMB 5,440,000, representing 54.32% of the net profit attributable to shareholders [81]. - The cash dividend policy prioritizes consistent and reasonable returns to investors, with a minimum of 10% of distributable profits to be allocated as dividends if profits are positive [75]. - The company committed to prioritize cash dividends during profit distribution, ensuring that the cash dividend proportion is not less than 40% in the next three years [88]. Market and Operational Challenges - The company faced challenges such as low market demand and fluctuating cotton prices, impacting sales and profitability [30]. - The company anticipates continued pressure on the textile industry due to rising labor costs and competition from countries like India and Pakistan, which have increased their market share in low-end yarns [65]. - The company’s financial performance was affected by the temporary shutdown of its Shandong subsidiary, leading to reduced sales in the spinning business [32]. Research and Development - The company’s R&D expenditure decreased by 23.53% to 4.68 million RMB from 6.12 million RMB in the previous year [31]. - The company developed several new fabric technologies, achieving international and domestic recognition for their advancements [41]. - New fabric technologies developed include a high-elasticity, high-loft fabric and a functional moisture-wicking fabric, both achieving advanced technical standards [54]. Strategic Initiatives - The company adjusted its marketing strategy to develop new customers and promote high-value products [30]. - The company plans to enhance new product development through technological innovation and cooperation, aiming to improve product quality and reduce production costs [67]. - The company is focusing on expanding its market presence and enhancing its technological capabilities to become a leader in high-end knitted fabrics [62]. Governance and Compliance - The company has established a comprehensive internal control system, with no major or important deficiencies reported during the period [148]. - The internal control audit report issued by Fujian Huaxing Accounting Firm confirmed the effectiveness of the internal control system with a standard unqualified opinion [150]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission or stock exchanges during the reporting period [91]. Employee and Management - The total number of employees in the parent company is 1,159, while the total number of employees including major subsidiaries is 1,980 [120]. - The company has established attractive compensation incentive policies based on industry and regional conditions [121]. - Annual training activities are organized for new employees and regular professional training to promote employee growth and development [122].