FARATRONIC(SH:600563)2015-03-25 16:00Financial Performance - The company achieved a net profit of RMB 306,198,846.25 for the year 2014, representing a 6.98% increase compared to RMB 286,218,371.03 in 2013[2]. - Total operating revenue for 2014 was RMB 1,416,210,363.38, reflecting a growth of 6.74% from RMB 1,326,761,399.58 in 2013[21]. - Basic earnings per share for 2014 were RMB 1.36, up 7.09% from RMB 1.27 in 2013[23]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of RMB 298,043,292.52, which is a 9.01% increase from RMB 273,417,655.57 in 2013[21]. - The company achieved a revenue of 1.416 billion RMB in 2014, representing a year-on-year growth of 6.74%[33]. - The net profit attributable to the parent company was 306 million RMB, an increase of 6.98% compared to the previous year[33]. - Domestic market revenue reached 803 million RMB, up 10.77% year-on-year, while international market revenue was 591 million RMB, growing by 2.21%[37]. Assets and Liabilities - The company's total assets increased to RMB 2,022,858,719.03 at the end of 2014, a rise of 7.37% from RMB 1,884,019,741.04 in 2013[22]. - The company's total liabilities decreased from CNY 232,506,900.24 to CNY 217,634,638.25, reflecting a reduction of about 6.5%[162]. - The total equity attributable to shareholders increased from CNY 1,614,209,484.42 to CNY 1,762,988,854.19, marking a growth of approximately 9.16%[163]. - Cash and cash equivalents decreased by 48.66% to ¥362,564,402.49, representing 17.92% of total assets[51]. - The company's total liabilities were not explicitly stated but can be inferred to be managed effectively given the increase in equity[186]. Cash Flow - The cash flow from operating activities for 2014 was RMB 302,470,794.46, a decrease of 5.56% from RMB 320,293,340.56 in 2013[21]. - The net cash flow from operating activities was 302.47 million RMB, down 5.56% from the previous year[36]. - The total cash outflow from investment activities was -478.66 million RMB, a significant increase compared to -64.94 million RMB in the previous year[36]. - The net cash flow from financing activities was -CNY 162,301,066.68, worsening from -CNY 150,600,250.91 in the previous year[176]. Research and Development - R&D expenditure totaled 67.32 million RMB, accounting for 4.75% of revenue and 3.73% of net assets[45]. - The company invested 3% of its revenue annually in R&D, focusing on original technology development in the capacitor industry[53]. - The company has a strong focus on research and development in the renewable energy sector, emphasizing a strategy of "steady market advancement with moderate R&D ahead of the curve" to mitigate policy risks[71]. Dividend and Retained Earnings - The company plans to distribute a cash dividend of RMB 7 per 10 shares, totaling RMB 157,500,000.00, with retained earnings post-distribution at RMB 961,240,719.84[2]. - The retained earnings at the beginning of the year were RMB 970,041,873.59, leading to a final retained earnings balance of RMB 1,118,740,719.84 after accounting for dividends[2]. - The company reported a total of 970,041,000 in retained earnings, indicating a significant portion of equity is being reinvested[186]. Market and Competition - The company aims to optimize existing markets and enhance operational stability amidst increasing competition in conventional markets[68]. - The company will focus on expanding into the renewable energy market, leveraging technological and quality advantages to meet growing customer demands[68]. - The thin film capacitor market is expected to grow steadily due to increased investments in smart grid construction and renewable energy[66]. Governance and Compliance - The company has established a governance structure including a shareholders' meeting, board of directors, and various committees to enhance operational efficiency[193]. - The company’s governance practices align with the requirements of the Company Law and regulations from the China Securities Regulatory Commission[138]. - The company has not reported any related party transactions during the reporting period, ensuring fairness and compliance with internal control systems[137]. Employee and Management - The number of employees in the parent company is 1,435, while the total number of employees including major subsidiaries is 1,655[124]. - The company has a stable core technology team with no turnover, indicating strong talent retention policies[122]. - The compensation management system is designed to link actual salary growth with labor productivity, ensuring fairness and motivation[125]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies, although specific figures and strategies were not disclosed in the earnings report[169]. - The company’s future strategy focuses on new energy applications and energy-saving products to drive economic growth[67]. - The overall financial health of the company is indicated by the increase in total equity and comprehensive income, positioning it well for future opportunities[185].