INESA-it(SH:600602)2014-03-19 16:00Financial Performance - In 2013, the company achieved operating revenue of CNY 1,138,382,053.72 and a net profit attributable to the parent company of CNY 114,068,453.16, resulting in earnings per share of CNY 0.10 and a weighted average return on equity of 4.66%[6]. - The company achieved operating revenue of ¥1,138,382,053.72 in 2013, a decrease of 5.59% compared to the previous year[36]. - Net profit attributable to shareholders was ¥114,068,453.16, representing an increase of 6.39% year-over-year[36]. - The basic earnings per share increased to ¥0.10, up 11.11% from ¥0.09 in 2012[29]. - Total revenue for the company was CNY 1,123,645,970.92, representing a decrease of 4.83% compared to the previous year[49]. - The gross profit margin decreased to 14.84%, down by 0.20 percentage points year-on-year[49]. - The company reported a net cash flow from operating activities of -¥23,206,848.37, an improvement from -¥78,544,370.61 in the previous year[37]. - The company reported a significant increase in non-operating income, totaling ¥93,649,195.34, up 110.55% from the previous year[37]. - The company reported a net loss of RMB 170,764,027.57 for the year, an improvement compared to a loss of RMB 191,682,500.27 in the previous year[158]. Profit Distribution - The company's undistributed profits at the beginning of the year were CNY -199,125,903.20, and by the end of 2013, the undistributed profits were CNY -85,057,450.04, indicating a negative profit distribution for the year[6]. - The board of directors proposed not to distribute profits for 2013 due to the negative profit situation after loss compensation[6]. - The company will not distribute profits for 2013 due to negative retained earnings, as the year-end undistributed profits stood at CNY -85,057,450.04[78]. Business Development and Strategy - The company has entered the smart security field in 2013, expanding its main business to include consumer electronics, special electronics, and smart security[22]. - The company has undergone strategic adjustments since 2010, accelerating the development of the consumer electronics industry[22]. - The company plans to expand its business into smart security and smart campus sectors, leveraging existing resources and aiming for rapid growth through acquisitions and mergers[74]. - The company is positioned to benefit from the growing trend of smart consumer electronics, with increasing competition and market consolidation among major brands[70]. - The company anticipates a 20% annual growth rate in the security industry, with a projected market size of CNY 500 billion by 2015[74]. - The company aims to complete the construction of new industrial bases and laboratories within three years, enhancing its technological capabilities and market competitiveness[72]. Research and Development - Research and development expenses for the year were ¥64,860,926.89, a decrease of 6.28% from the previous year[38]. - The total R&D expenditure for the period was ¥64,860,926.89, representing 5.70% of operating revenue and 2.56% of net assets[45]. - The company invested CNY 64.86 million in R&D, accounting for 5.7% of total revenue, and filed 17 patents during the year[55]. - The company has increased the recruitment of technical personnel for the ultra-short focus smart display terminal project and established a new smart security project team[124]. Assets and Liabilities - Total assets at the end of 2013 were ¥2,846,351,977.93, a 3.17% increase from the previous year[36]. - The company reported total assets of RMB 2,497,248,882.67 as of December 31, 2013, a slight decrease from RMB 2,501,453,894.59 at the beginning of the year[156]. - Total liabilities amounted to RMB 65,263,116.38, down from RMB 87,370,975.25 at the start of the year, indicating a reduction of approximately 25.4%[158]. - The company's total equity increased to RMB 2,431,985,766.29 from RMB 2,414,082,919.34, reflecting a growth of about 0.74%[158]. Governance and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - The company has established a comprehensive information disclosure management system, ensuring no significant errors in annual report disclosures during the reporting period[147]. - The company’s governance structure has been continuously improved since its listing, ensuring compliance with relevant laws and regulations[134]. - The company’s board of directors and supervisory board operate independently to ensure major decisions are made according to legal procedures[134]. Risks and Challenges - The company has faced various risks as detailed in the board report, which investors are advised to pay attention to[13]. - The company is facing potential risks in mergers and acquisitions, including cultural integration and talent retention challenges[76]. - The company reported a significant loss of 184.50 million RMB in one of its subsidiaries, Shanghai Guanglian Electronics Co., Ltd., indicating challenges in that segment[66]. Related Party Transactions - The company has not recorded any impairment provisions for the financial products, indicating stable asset performance[61][62]. - The company engaged in significant related transactions with various subsidiaries, including sales and procurement activities totaling 226.135 million RMB[87]. - The company confirmed a management income of 500,000 RMB from the entrusted management of Shenzhen Jinling Communications Technology Co., Ltd. for the year 2013[89]. Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 1,023, with 101 in the parent company and 922 in subsidiaries[125]. - The total remuneration for directors, supervisors, and senior management in 2013 was 6.401 million yuan[126]. - The company has a total of 64 retired employees who need to be supported financially[125]. Market Trends - In 2013, the shipment of smart TVs in China reached 108 million units, with over 50% of these being based on the Android system, indicating a significant market trend towards smart devices[70].