LFX(SH:600612)2014-04-24 16:00Financial Performance - The company's operating revenue for 2013 was approximately CNY 32.98 billion, representing a 29.08% increase compared to CNY 25.55 billion in 2012[23]. - The net profit attributable to shareholders for 2013 was approximately CNY 889.85 million, a 45.57% increase from CNY 611.31 million in 2012[23]. - The net cash flow from operating activities reached approximately CNY 1.52 billion, showing a significant increase of 102.82% compared to CNY 750.53 million in 2012[23]. - The total assets at the end of 2013 were approximately CNY 9.34 billion, reflecting a 5.09% increase from CNY 8.89 billion at the end of 2012[23]. - The net assets attributable to shareholders increased to approximately CNY 3.33 billion, a growth of 20.70% from CNY 2.76 billion in 2012[23]. - The basic earnings per share for 2013 were CNY 1.70, up 45.57% from CNY 1.17 in 2012[24]. - The diluted earnings per share for 2013 were also CNY 1.70, consistent with the basic earnings per share[24]. - The company reported a total of CNY 189.48 million in other operating income, including relocation compensation[33]. - The company's main business revenue for 2013 increased by 27.17% year-on-year, primarily due to increased sales in the jewelry business[37]. - The jewelry segment generated CNY 25,843,480,233.88 in revenue, reflecting an 8.77% increase year-over-year[50]. Cash Flow and Investments - The net cash flow from financing activities decreased by 888.54% to -522.07 million RMB, primarily due to cash payments for debt repayment and dividend distributions[43]. - Cash and cash equivalents increased by CNY 909,185,205.47, representing a growth of 48.40%[50]. - The company’s total investment in various listed companies resulted in a year-end book value of CNY 173,223,386.90, indicating a significant increase in shareholder equity[64]. - The total investment income from selling shares during the reporting period was CNY 6,356,749.84, with a total investment of CNY 52,373,949.55[66]. - The company’s investment in Shanghai Meilin resulted in a profit of CNY 4,979,206.89 from a total investment of CNY 4,360,610.01[66]. Market Expansion and Strategy - The company plans to enhance its product offerings and expand market presence, focusing on new technologies and strategic acquisitions[50]. - The company aims to achieve a revenue of no less than 35 billion yuan in 2014, with three expense categories not exceeding 4% of revenue[75]. - The company plans to open at least 120 new stores in 2014, aiming to reach a total of 1000 stores by the end of the "12th Five-Year Plan" period[75]. - The company will establish a new jewelry production base in Dongguan to enhance its product innovation and self-profitability[76]. - The company is focusing on technological and product innovation to enhance its competitive edge in the market[76]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of CNY 8.60 per 10 shares to shareholders[4]. - The company plans to distribute a cash dividend of RMB 0.86 per share for 2013, representing 50.56% of the net profit attributable to shareholders[81]. - For the fiscal year 2013, the total cash dividend amount is RMB 449,881,277.04, based on a total share capital of 523,117,764 shares[81]. - The retained earnings after the dividend distribution for 2013 will be RMB 96,070,950.71, which will be carried forward to the next fiscal year[81]. - The company emphasizes a sustainable cash dividend policy, aiming for at least 30% of the net profit attributable to shareholders to be distributed as cash dividends annually[80]. Corporate Governance and Compliance - The independent directors confirmed that the profit distribution plan complies with legal regulations and considers the company's profitability and cash flow[82]. - The company maintained effective internal control systems, with no significant deficiencies identified in financial reporting as of the evaluation report date[135]. - The company’s internal control audit was conducted by Zhonghua Accounting Firm, which issued a standard unqualified opinion on the effectiveness of internal controls for the 2013 financial report[137]. - The company’s governance structure complies with the requirements of the Company Law and relevant regulations from the China Securities Regulatory Commission[127]. - The company’s annual financial report was audited and confirmed by registered accountants from Zhonghua Accounting Firm, ensuring compliance with accounting standards[140]. Employee and Management Information - The company had a total of 2,184 employees, with 632 in production, 923 in sales, 183 in technical roles, 86 in finance, and 360 in administration[123]. - Total remuneration for all directors, supervisors, and senior management amounted to 12.134363 million yuan[120]. - The company employs a performance-based salary system to attract and retain talent, ensuring alignment with overall strategic goals[125]. - The company has no changes in directors, supervisors, or senior management during the reporting period[121]. - The company’s board members and senior management have maintained their shareholdings without any changes during the reporting period[118]. Risks and Challenges - The company faces risks from increasing competition in the jewelry market, with both domestic and international brands entering the market[78]. - The company aims to improve operational efficiency and reduce costs in response to the challenging market conditions[162]. - The company is exploring potential mergers and acquisitions to enhance its competitive position in the market[162]. Financial Position and Assets - The total assets of the company were reported at RMB 3,177,065,915.67, a decrease from RMB 3,177,065,915.67 in the previous year, indicating stability in asset management[159]. - The total liabilities decreased to RMB 5,469,054,586.80 from RMB 5,707,942,557.22, reflecting a reduction of approximately 4.18%[151]. - The company's equity increased to RMB 3,868,404,369.42, compared to RMB 3,177,065,915.67 in 2012, marking a growth of around 21.73%[151]. - The company's inventory stood at RMB 5,020,328,613.06, a decrease from RMB 5,277,262,256.21, which is a decline of about 4.87%[148]. - The total liabilities to equity ratio improved to approximately 1.42 from 1.80 in the previous year, indicating a stronger financial position[151].