LS BEARINGS(SH:600592)2014-04-25 16:00Financial Performance - The company achieved a net profit of ¥74,237,563.77 for the year 2013, after deducting a statutory surplus reserve of 10% amounting to ¥7,423,756.38[7] - The total distributable profit available for shareholders, after accounting for the previous year's dividend of ¥39,955,357.10, is ¥445,355,380.51[7] - The company plans to distribute a cash dividend of ¥1.00 per 10 shares, totaling ¥39,955,357.10, to all shareholders[7] - The company's total revenue for 2013 was CNY 705.11 million, a decrease of 2.93% compared to CNY 726.41 million in 2012[31] - The net profit attributable to shareholders for 2013 was CNY 50.78 million, down 47.78% from CNY 97.24 million in 2012[31] - The basic earnings per share for 2013 was CNY 0.14, a decline of 56.25% from CNY 0.32 in 2012[23] - The weighted average return on equity decreased to 3.02% in 2013 from 8.21% in 2012, a drop of 5.19 percentage points[23] - The company reported a retained earnings balance of ¥418,496,930.22 at the beginning of the year[7] - The company achieved an actual operating revenue of 705 million RMB, completing 78.33% of the planned revenue of 900 million RMB for 2013[43] - The net profit for the year was CNY 74,237,563.77, compared to a net profit of CNY 109,788,333.76 in the previous year, indicating a decrease of 32.4%[186] Investments and Acquisitions - The company has expanded its business scope through acquisitions and investments, including a 100% stake in Jin Chang Long Company, which is currently under construction[20] - The company has established several subsidiaries over the years, including a 90% stake in Sanzi Company and a 55% stake in Changsha Bode[20] - The company holds a 100% stake in Fujian Jinchanglong Machinery Technology Co., Ltd. with an investment of CNY 22,300.00 million[62] - The company has a 90.34% stake in Fujian Sanming Gearbox Co., Ltd. with an investment of CNY 6,599.83 million[62] - The company has a 100% stake in New Dragon Axle Automotive Technology (Fujian) Co., Ltd. with an investment of CNY 1,000.00 million[62] - The company holds a 55% stake in Changsha Bode Metallurgical Materials Co., Ltd. with an investment of CNY 165.00 million[62] - The company has a 88.29% stake in Fujian Yong'an Bearing Co., Ltd. with an investment of CNY 8,376.48 million[62] - The company invested CNY 44,659.90 million in external equity, with an increase of 38.01% in investment amount[61] Financial Management and Audit - The company's financial report has been audited and received a standard unqualified opinion from the accounting firm[6] - The company’s 2013 annual financial statements were audited and confirmed to be in accordance with legal and regulatory standards[156] - The audit committee approved the reappointment of the auditing firm and its remuneration for the 2013 fiscal year[156] - The company’s internal control system received positive recognition from the Fujian Securities Regulatory Bureau, highlighting its effectiveness[150] - The company maintained effective internal control over financial reporting, with no significant deficiencies identified during the reporting period[167] - The internal control audit conducted by the accounting firm provided a standard unqualified opinion, confirming the effectiveness of the internal control system[167] Market Challenges and Strategic Plans - The company has faced uncertainties and risks in its future operations, which may impact its strategic plans and annual business objectives[11] - The company faced challenges due to shrinking market demand and increased costs from industrial investments and R&D, impacting short-term profitability[31] - The company aims to enhance its competitive advantage through innovation and strategic management to adapt to market changes[30] - The company is focusing on expanding into high-end markets and new applications, particularly in the aerospace and military sectors, to enhance its competitive position[82] - The company plans to strengthen its research and development capabilities, with a focus on high-value-added products to improve profit margins[86] - The company is facing risks from macroeconomic policies that may reduce investment preferences, potentially impacting growth in the domestic engineering machinery and heavy truck sectors[85] Shareholder and Equity Information - The company’s total equity attributable to shareholders of the parent company is CNY 1,861,930,125.33, up from CNY 1,293,351,113.40, indicating a significant increase of 44.0%[180] - The total shareholders' equity at year-end reached CNY 1,868,506,407.29, an increase from CNY 1,275,711,417.98 at the end of the previous year, representing a growth of 46.5%[186] - The largest shareholder, Zhangzhou Jiulongjiang Construction Co., Ltd., held 37.85% of the company's shares as of April 2013[192] - The total number of shareholders at the end of the reporting period was 26,592, slightly down from 26,641 prior to the report[118] - The top ten shareholders hold a combined 82.60% of the shares, with the largest shareholder owning 37.85%[118] Research and Development - Research and development expenses increased by 40.61% to CNY 35.56 million in 2013 from CNY 25.29 million in 2012[32] - The company developed over 300 new products annually, showcasing strong R&D capabilities[58] - The company holds 32 authorized patents, including 9 invention patents, with 16 more invention patents pending[58] Corporate Governance - The company has established a comprehensive corporate governance mechanism in accordance with relevant laws and regulations to protect the interests of all shareholders[149] - The company conducted training for directors, supervisors, and senior management to enhance legal awareness and business capabilities, focusing on insider trading risk prevention[150] - The company’s governance includes a mix of academic and industry professionals, ensuring a well-rounded approach to management[130] - The company has maintained a stable management structure with experienced professionals in key positions since 2004[136] Cash Flow and Liquidity - The net cash flow from operating activities improved to CNY 36.78 million in 2013, compared to a negative CNY 24.61 million in 2012[32] - The net cash flow from financing activities increased by 66.64 million yuan, primarily from a targeted share issuance that raised 65.2 million yuan[34] - The company's cash and cash equivalents at the end of the period are CNY 150,000,000.00, compared to CNY 96,000.00 at the beginning of the period, showing a substantial increase[180] - The ending cash and cash equivalents balance increased to ¥162,695,588.98 from ¥131,485,918.16 at the beginning of the year[183] Legal and Compliance Issues - The company faced litigation involving a total amount of RMB 14,962,410.60, with 14 parties involved as of December 31, 2013[96] - The company agreed to bear a guarantee liability of RMB 6,547,817.62 related to a lawsuit, with a payment of RMB 4,798,517.62 due within 30 days of the agreement[95] - The company has not reported any overdue loans or litigation issues related to the entrusted loans provided to subsidiaries[69] Future Outlook - The company plans to achieve a revenue of RMB 910 million in 2014, with costs and expenses projected at RMB 870 million, indicating a potential profit margin of approximately 4.4%[83] - The company will invest a total of RMB 240 million for land purchases, ongoing projects, and other investments in 2014, primarily funded through self-owned funds, raised funds, and bank loans[84] - The company plans to focus on new product development and market expansion strategies to improve future performance[46]