TJSMW(SH:600577)2014-02-27 16:00Financial Performance - The company achieved a net profit of ¥56,486,846.07 for the year 2013, with a proposed distribution plan that includes a 10% allocation of ¥5,648,684.61 to statutory surplus reserves[5]. - The total distributable profit available to shareholders as of December 31, 2013, was ¥338,515,578.35 after accounting for cash dividends of ¥14,191,312.20 paid in April 2013[5]. - The profit distribution plan proposes a cash dividend of ¥0.2 per 10 shares (before tax), based on a total share capital of 709,565,610 shares as of December 31, 2013[6]. - The company's operating revenue for 2013 was CNY 9,549,579,116.18, representing a 15.77% increase compared to CNY 8,248,435,693.06 in 2012[15]. - The net profit attributable to shareholders for 2013 was CNY 131,697,663.90, a 13.95% increase from CNY 115,575,938.04 in 2012[15]. - The total assets at the end of 2013 were CNY 4,969,393,673.49, an 18.92% increase from CNY 4,178,733,378.09 at the end of 2012[15]. - The company's main business income for 2013 was CNY 945,793,000, a 15.65% increase from the previous year[16]. - The company's revenue from the manufacturing sector reached ¥9,446,489,635.56, with a year-on-year increase of 15.64%[32]. - The gross profit margin for the manufacturing sector improved by 0.33 percentage points to 8.72%[32]. - The company reported a net profit attributable to shareholders of 131,697,663.90 RMB for the year 2013, with a cash dividend payout ratio of 10.77%[74]. Operational Highlights - The company produced 138,570 tons of special electromagnetic wire in 2013, a 9.19% increase from 126,901 tons in 2012, with sales of 138,505 tons, up 9.84%[16]. - The total production of copper rods in 2013 was 54,708 tons, a 45.12% increase from 37,699 tons in 2012[19]. - The company has maintained its main business operations since its listing in 2002, with no significant changes reported[13]. - The company has outlined various risks including economic fluctuations, natural risks, and financial management risks in its report[8]. - The company aims to achieve a total product output of 237,400 tons and sales revenue of CNY 11.35 billion in 2014[29]. Cash Flow and Investments - The net cash flow from operating activities was negative CNY 116,621,352.22 in 2013, a decline of 114.39% from CNY 810,384,873.01 in 2012[17]. - The total cash flow from operating activities for the year was -CNY 116,621,352.22, while the net profit was CNY 140,068,275.24, indicating a significant discrepancy[27]. - The cash received from investment recovery was CNY 384,980,706.25, showing an increase compared to the previous year[26]. - The cash flow from the disposal of fixed assets increased by 773,892.55% compared to the previous year, amounting to CNY 30,840,661.76[26]. - The cash received from investment income decreased by 47.87% to CNY 5,036,508.40 compared to the previous year[26]. Research and Development - Research and development expenses for 2013 amounted to CNY 256,122,540.25, accounting for 2.68% of operating revenue[21]. - In 2013, the company's R&D expenses reached CNY 256 million, primarily incurred by subsidiaries including Guangdong Jingda and Tianjin Jingda[23]. - The direct investment in R&D by the Guangdong subsidiary was CNY 58,995,606.39, contributing significantly to the overall R&D expenses[25]. Shareholder and Governance - The company completed a share buyback of 11,568,190 shares, reducing the total share capital and enhancing earnings per share and net asset value per share[81]. - The company has established a cash dividend policy, ensuring that cash dividends do not exceed 10% of the distributable profits in a given year[70]. - The company has a three-year cycle for formulating shareholder return plans[74]. - The company’s board of directors and supervisory board operate in accordance with the company’s articles of association and relevant laws, ensuring effective governance[109]. - The company has maintained compliance with the Company Law and relevant regulations from the China Securities Regulatory Commission[111]. Financial Reporting and Audit - The company received a standard unqualified audit opinion from Huapu Tianjian Accounting Firm for the financial statements of 2013[5]. - The financial statements for the year ended December 31, 2013, were audited by Huapu Tianjian Accounting Firm, which issued a standard unqualified audit opinion[122]. - The company’s financial statements fairly reflect its financial position and operating results for the year ended December 31, 2013, in accordance with accounting standards[124]. Market and Competitive Position - The company plans to expand its market share in the automotive electronics and special cable sectors through its subsidiary, Top Science[29]. - The company aims to enhance its market share in the aluminum wire market in the Pearl River Delta region through collaboration with Guangdong Jingxun Liyah Company[67]. - The company recognizes the risk of customer concentration and plans to diversify its customer base to mitigate this risk[68]. Employee and Talent Management - The company employed a total of 2,762 staff, with 2,070 in production, 66 in sales, 361 in technical roles, 58 in finance, and 207 in administration[106]. - The company has established a training system tailored to different job categories, focusing on skill development and safety training[107]. - The company is committed to talent development and retention to support its technological and managerial needs[68]. Risk Management - The company has faced challenges due to high copper prices and increased financial costs, impacting its operational efficiency[43]. - The company faces risks related to raw material price fluctuations and is implementing measures to manage these risks effectively[68]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[6].