Shenqi(SH:600613)2014-04-28 16:00Financial Performance - In 2013, the company achieved a net profit of 113.1283 million RMB, with a net profit attributable to shareholders of 115.4 million RMB[6]. - The company's operating income for 2013 reached ¥929,184,150.45, representing an increase of 88.4% compared to the previous year[29]. - Net profit attributable to shareholders for 2013 was ¥111,540,028.32, up 51.9% year-on-year[30]. - The net profit excluding non-recurring gains increased by 604.43% year-on-year, primarily due to profits from newly added subsidiaries[32]. - Basic and diluted earnings per share for 2013 were both ¥0.29, reflecting a 20.83% increase from the previous year[32]. - The weighted average return on net assets increased by 2.11 percentage points year-on-year, driven by profits from newly added subsidiaries[33]. - The total profit reached CNY 137.21 million, reflecting a growth of 53.89% compared to the previous year[40]. - The company reported a significant increase in cash inflow from operating activities, which reached RMB 1,019,099.7 thousand, up 87.15% year-on-year[56]. - The total comprehensive income for 2013 was CNY 113,096,571.14, up from CNY 74,844,691.64 in the previous year, marking a growth of 51.1%[194]. Profit Distribution and Retained Earnings - The company did not distribute profits in 2013 due to negative retained earnings of 67.9056 million RMB after carrying forward 57.0854 million RMB from the previous year[7]. - The company has a negative retained earnings situation, which has led to no capital reserve conversion to share capital in 2013[7]. - The company has not issued any cash dividends in the reporting period due to negative retained earnings in the parent company's financial statements, despite achieving profitability in the consolidated financial statements[94]. - The company has a profit distribution policy that requires a minimum of 30% of the average distributable profit over the last three years to be distributed in cash dividends during profitable years[94]. - The cash dividend policy emphasizes a minimum distribution of 80% of profits during mature stages without major capital expenditures[91]. Business Operations and Strategy - The company has undergone several changes in its main business focus since its listing, with a current emphasis on investment management primarily in the pharmaceutical sector[21]. - The company plans to continue expanding its market presence and developing new products to sustain growth[32]. - The company aims to become a leading player in the domestic pharmaceutical industry, focusing on modern traditional Chinese medicine as part of its strategic development[59]. - The company anticipates that the grassroots medical market will grow faster than the overall market in the next 3-5 years[83]. - The company will focus on product innovation and marketing strategies to adapt to market changes and regulatory pressures[87]. Research and Development - The company reported a significant increase in R&D expenditure, totaling CNY 15.58 million, a rise of 1,149.93% year-on-year[42]. - The total R&D expenses for the year 2013 amounted to RMB 15,579,727.86, representing 0.87% of net assets and 1.68% of operating revenue[56]. Assets and Liabilities - Total assets at the end of 2013 were ¥1,995,432,632.54, an increase of 188.62% compared to the previous year[31]. - The company's total assets amounted to CNY 1,690,441,090.30, compared to CNY 220,003,564.94 at the beginning of the year, reflecting a substantial increase[190]. - Total liabilities at the end of 2013 were CNY 89,035,773.29, slightly down from CNY 90,808,911.64 at the start of the year[191]. Corporate Governance - The company's board of directors and management have confirmed the accuracy and completeness of the annual report[5]. - The company has established a comprehensive quality assurance system to ensure the safety and quality of its pharmaceutical products[100]. - The company maintains a transparent communication platform with investors to ensure fair access to information and protect their rights[99]. - The board of directors consists of 9 members, including 3 independent directors, complying with relevant laws and regulations[161]. Shareholder Information - The total share capital increased from 147,904,998 shares to 445,059,690 shares after issuing 251,741,492 shares for asset acquisition and 45,413,200 shares for fundraising[122]. - Major shareholders include Guizhou Magic Investment Co., holding 24.59% with 109,418,017 shares, and Guizhou Magic Investment Management Co., holding 16.48% with 73,334,955 shares[132]. - The total number of shareholders at the end of the reporting period was 23,174, compared to 19,288 in the five trading days prior to the report[131]. Compliance and Legal Matters - The company did not face any penalties or criticisms from the China Securities Regulatory Commission during the reporting period[117]. - The company participated in a lawsuit regarding equity transfer disputes, which has been resolved with the Shanghai High People's Court rejecting the application for retrial[102]. - The supervisory board found no actions damaging to the interests of the company or its investors during its oversight activities[170]. Employee and Management Structure - The company employed a total of 2,046 staff, with 10 holding master's degrees, 938 holding university degrees (including associate degrees), and 1,098 with high school education or below[156]. - The total compensation for the board members during the reporting period amounted to 148.98 million yuan, with an average of 27.64 million yuan per member[145]. - The company has implemented targeted training programs for employees to enhance their skills and support overall business development[156].