Gofar Stock(SH:600538)2014-02-18 16:00Financial Performance - The net profit attributable to the parent company for 2013 was CNY 10,688,527.02, while the cumulative distributable profit at the end of 2013 was -CNY 360,560,527.14, resulting in no cash dividends being distributed [7]. - The company's operating revenue for 2013 was CNY 452.42 million, a decrease of 16.68% compared to 2012 [23]. - The net profit attributable to shareholders was CNY 10.69 million, marking a turnaround from a loss of CNY 109.57 million in 2012 [23]. - The company achieved a 33% reduction in operating losses compared to the previous year [25]. - The company's total revenue for 2013 was CNY 452.29 million, a decrease of 16.68% compared to CNY 542.84 million in 2012 [41]. - The company reported a net loss of CNY 360.56 million, an improvement from a loss of CNY 371.25 million in the previous year [153]. - The total comprehensive income for the current period, including net profit and other comprehensive income, amounts to CNY 11,344,899.45 [168]. - The company reported a basic earnings per share of CNY 0.04, recovering from a loss of CNY 0.39 per share in the previous year [157]. Assets and Liabilities - The company's total assets increased by 12.50% to CNY 690.74 million at the end of 2013 [23]. - The total liabilities increased to CNY 579.21 million from CNY 522.38 million, representing a rise of about 10.8% [153]. - The company's total equity reached CNY 111.53 million, up from CNY 91.60 million, reflecting an increase of approximately 21.8% [153]. - The cash balance at the end of 2013 was 5.95 million RMB, all in cash and bank deposits, with a net cash flow from operating activities of 47.64 million RMB [115]. - The company's total liabilities to equity ratio stands at approximately 5.19, indicating a high leverage position [153]. Revenue Breakdown - The pesticide production segment reported a sales revenue of CNY 253.42 million in 2013, down 29.08% from CNY 357.32 million in 2012 [41]. - The pharmaceutical distribution segment's revenue increased by 9.31%, reaching CNY 186.44 million in 2013 compared to CNY 170.55 million in 2012 [41]. - The hotel service segment's revenue declined by 23.62% to CNY 11.43 million in 2013 from CNY 14.96 million in 2012 [41]. - The pharmaceutical business sales revenue grew by 9.31% year-on-year, despite a 29.08% decline in pesticide sales due to market fluctuations [28]. Cash Flow and Investments - The company’s cash flow from operating activities improved, with a net cash outflow of CNY 4.95 million, significantly better than the outflow of CNY 24.09 million in 2012 [27]. - The company reported a cash outflow from financing activities of -55.38 million RMB for the year 2013 [115]. - The net cash flow from investing activities was 3,958,827.17 RMB, a significant recovery from -6,976,861.12 RMB in the previous period [162]. - The company invested CNY 1,065,000 in external equity investments during the reporting period, an increase of 18.33% from the previous year [52]. Shareholder Information - The controlling shareholder, Guangxi Guofa Investment Group Co., Ltd., held 14.98% of the shares as of August 2, 2013, after repurchasing 13.8 million shares [20]. - The actual controller of the company changed from Pan Libin to Peng Tao and Zhu Rongjuan after a capital increase of CNY 120 million in July 2013 [21]. - The total number of shareholders at the end of the reporting period was 24,398, an increase from 23,549 in the five trading days prior to the report [112]. Corporate Governance - The company received a standard unqualified audit report from Tianjian Accounting Firm for the fiscal year [6]. - The company has established a comprehensive employee rights protection system, including paid leave and insurance benefits [94]. - The governance structure includes 9 directors, with 3 independent directors, ensuring compliance with legal requirements [132]. - The company has maintained a stable core technical team with no significant changes affecting its core competitiveness during the reporting period [125]. Market and Industry Outlook - The pharmaceutical industry in China has maintained an annual growth rate of approximately 20% since 2000, with a projected compound annual growth rate of 22% over the next decade [69]. - The global pesticide market is projected to grow from $25.8 billion in 2001 to $50.3 billion in 2011, reflecting a growth rate of 94.96% [74]. - The ongoing healthcare reform in China is expected to stimulate drug consumption, benefiting the pharmaceutical sector [70]. - The company aims to expand its market share in the new rural cooperative medical market, leveraging healthcare reform policies [83]. Risks and Challenges - The company has faced various risks as detailed in the annual report, which investors are advised to pay attention to [10]. - The company acknowledges potential risks including regulatory changes in the pharmaceutical industry, environmental regulations, and market competition, and is prepared to adapt accordingly [90][91]. - The government is enhancing environmental regulations, leading to higher industry entry barriers and accelerating consolidation in the domestic pesticide industry [73]. Future Plans and Strategies - The company plans to achieve a sales revenue target of CNY 656 million in 2014, aiming for a 20% year-on-year growth [40]. - The company aims for a 30% year-on-year sales growth in 2014, with cost control set at 490 million CNY and expenses at 120 million CNY [78]. - The company plans to develop a modern logistics park for pharmaceuticals, ensuring compliance with GSP certification [83]. - The company will focus on enhancing internal control systems to ensure compliance and improve operational efficiency [81].