GSMG(SH:600543)2014-04-25 16:00Financial Performance - The company reported a net profit of -61,559,514.31 RMB for the year 2013, resulting in no profit distribution or capital reserve transfer to share capital [6]. - Basic earnings per share for 2013 was -0.26 RMB, a decrease of 262.50% compared to 0.16 RMB in 2012 [22]. - The weighted average return on net assets was -7.51% in 2013, a decrease of 12.01 percentage points from 4.50% in 2012 [22]. - The company’s diluted earnings per share also stood at -0.26 RMB for 2013, reflecting the same decline as basic earnings [22]. - The net loss attributable to shareholders was 82.76 million RMB, a decrease of 264.53% compared to the previous year [26]. - The company reported a significant increase in accounts payable from CNY 35,851,958.86 to CNY 42,034,189.23, an increase of about 17.9% [100]. - The company’s retained earnings decreased from CNY 257,792,780.01 to CNY 164,440,296.85, a decline of approximately 36.3% [100]. - The total comprehensive income for the current period is a loss of ¥82,755,523.16, compared to a gain of ¥50,298,620.69 in the previous period [107]. - The company reported a net loss of ¥82,755,523.16 for the current period, impacting the total equity attributable to shareholders [120]. Revenue and Operations - The company achieved a revenue of 364.74 million RMB, representing a year-on-year increase of 0.96% [26]. - The wine industry revenue declined by 34.01% to 187.92 million RMB, primarily due to economic slowdown and increased competition [26]. - The barley malt industry revenue increased by 53.25% to 63.96 million RMB, attributed to inventory clearance [26]. - The company developed 71 new products, including organic wines, to enhance its product line [27]. - The company established 15 new specialty stores across various regions to expand its market presence [26]. - The company aims to achieve a wine production volume of 2.2 million kiloliters by 2015, representing a 100% increase from the end of the 11th Five-Year Plan, with an average annual growth rate of 15% [40]. - The sales revenue target is set at 60 billion RMB by 2015, which is an 85% increase compared to the end of the 11th Five-Year Plan, with an average annual growth rate of 13% [40]. Cash Flow and Investments - The company's cash flow from operating activities was 71.32 million RMB, down 17.61% from the previous year [30]. - Cash flow from investing activities resulted in a net outflow of ¥295,083,464.12, compared to a net outflow of ¥71,115,711.91 in the previous period, indicating a significant increase in investment expenditures [112]. - The cash inflow from operating activities totaled ¥432,278,827.75, a decrease from ¥448,349,360.55 in the prior period [117]. - The company has utilized 311,173,847.23 RMB of the total raised funds of 389,790,000 RMB, leaving 78,616,152.77 RMB unutilized [38]. Shareholder Information - The total number of shares outstanding is 321,120,000, with no changes during the reporting period [58]. - The company has 37,240 shareholders as of the end of the reporting period, down from 39,316 five trading days prior [60]. - The largest shareholder, Gansu Huangyanghe Agricultural Industry Group Co., Ltd., holds 13.31% of shares, totaling 42,729,215 shares [60]. - Gansu Provincial Agricultural Reclamation Group Co., Ltd. is the second-largest shareholder with 8.40%, holding 26,963,636 shares [60]. - The company has not issued any new securities or listed any shares in the past three years [59]. Governance and Management - The company appointed Da Xin Accounting Firm as its financial and internal control audit institution for the fiscal year 2013, with a remuneration of RMB 500,000 [53]. - The board of directors held 6 meetings during the reporting period, ensuring effective governance and decision-making [80]. - The supervisory board conducted 5 meetings, fulfilling its oversight responsibilities regarding the management's duties [80]. - Independent directors actively participated in major decision-making and provided independent opinions on significant matters, ensuring the protection of minority shareholders' rights [85]. - The management team consists of experienced individuals with backgrounds in various sectors, including agriculture and finance [68]. Compliance and Regulatory Matters - There were no administrative penalties or public reprimands from the China Securities Regulatory Commission or the stock exchange against the company or its key personnel during the reporting period [53]. - The company has established a comprehensive internal control system, which was audited and deemed effective by the auditing firm [90]. - The financial statements for the year ended December 31, 2013, were audited and received a standard unqualified opinion from the auditing firm [93]. Asset Management - The total assets decreased by 5.41% to 1.22 billion RMB compared to the previous year [26]. - Current assets decreased from CNY 827,062,627.61 to CNY 727,029,817.90, representing a reduction of about 12.1% [99]. - Cash and cash equivalents dropped significantly from CNY 497,295,616.47 to CNY 270,244,219.21, a decrease of approximately 45.7% [99]. - Total liabilities increased from CNY 145,300,133.11 to CNY 164,009,838.45, an increase of about 12.5% [100]. Strategic Initiatives - The company is committed to a national expansion strategy, focusing on wine production and market development [42]. - The company aims to transform its resource advantages into competitive advantages in the wine industry by 2020 [40]. - The company plans to expand its wine grape planting area to approximately 500,000 acres and increase wine production capacity to over 200,000 tons by 2020 [40]. - The company is engaged in the research and development of environmental protection and energy-saving technologies, with a focus on technical consulting and technology transfer [196]. Subsidiaries and Diversification - The company controls a total of 11 subsidiaries and 6 branches, indicating a diversified operational structure [133]. - Gansu Mogao Industrial Development Co., Ltd. reported a total revenue of 150 million CNY from its subsidiary Gansu Mogao International Winery Co., Ltd. for the year 2013 [196]. - The company has a significant focus on the wine industry, with multiple subsidiaries dedicated to grape wine sales across different regions [197]. - The company has maintained a 100% ownership stake in its subsidiaries, ensuring full control over its operations and strategic direction [197].