SFH(SH:600615)2014-03-27 16:00Financial Performance - In 2013, the company achieved a net profit of CNY 16,540,830.89, resulting in a total distributable profit of CNY -228,211,669.83 after offsetting previous losses[6]. - The company will not distribute profits or increase capital reserves for the year 2013 due to negative distributable profits[6]. - The company achieved total operating revenue of CNY 76,590,859.60 in 2013, an increase of 20.92% compared to CNY 63,341,766.97 in 2012[26]. - Net profit attributable to shareholders reached CNY 16,540,830.89, a significant increase of 1,829.85% from CNY 857,106.14 in the previous year[26]. - The company reported a net cash flow from operating activities of CNY 693,981.98, a turnaround from a negative cash flow of CNY -11,020,946.54 in 2012[26]. - The company reported a significant increase in cash received from other operating activities, rising by 169.60% to ¥688,125,268.58[36]. - The company reported a net profit of 34 million RMB for the year 2013, with a commitment to compensate if the net profit falls below 34 million RMB[62]. - The net profit for the current period was CNY 16,540,830.89, compared to a net profit of CNY 18,677,232.06 in the previous year, indicating a decline of approximately 6.1%[137]. - The net profit for the year was CNY 9,575,927.90, showing a decrease compared to the previous year[145]. Business Operations - The company has undergone significant changes in its main business since its establishment, shifting from educational and sports supplies to real estate development and sales from 2007 to 2013[19]. - The company disposed of its real estate subsidiary, resulting in no revenue from real estate sales, which previously accounted for 42.37% of total costs[34]. - The company acquired a 50% stake in Chongqing Magnesium Technology Co., marking a strategic shift in its business operations[30]. - The acquisition of Chongqing Magnesium Technology Co., Ltd. enhances the company's competitive edge in the automotive parts sector, supplying major clients like Volkswagen and Ford[46]. - The company has completed its exit from the real estate industry, paving the way for future business transformation[51]. - The company plans to continue focusing on market expansion and new product development to drive future growth[125]. Shareholder Information - The company’s major shareholder changed to Longxin Holdings, which now holds 24.38% of the total shares after recent equity transfers[21]. - The total number of shares outstanding is 188,020,508, with 186,810,008 shares being freely tradable[67]. - The largest shareholder, Longxin Holdings Limited, holds 24.38% of the shares, totaling 45,837,331 shares[70]. - The second-largest shareholder, Shanghai Yuyuan (Group) Co., Ltd., holds 2.02% with 3,790,000 shares[70]. - The company transferred 3,770,000 shares to Longxin Holdings, representing 20.05% of the total share capital, at a price of 12 RMB per share[151]. - After the share transfer, Longxin Holdings became the largest shareholder, holding 24.38% of the total share capital[152]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The company’s financial report has been confirmed for accuracy and completeness by its management team[4]. - The company has not reported any significant errors in its annual report disclosures during the reporting period[107]. - The financial statements for the year ended December 31, 2013, were audited by Tianjian Accounting Firm, receiving a standard unqualified opinion[109]. - The company has no penalties or criticisms from the China Securities Regulatory Commission during the reporting period[64]. Risk Management - The company has faced various risks including policy, industry, operational, and financial risks, which are detailed in the board report[11]. - The company has implemented a robust internal control system to ensure compliance and manage operational risks, as per the requirements of relevant regulations[105]. - The company has addressed potential competition risks with its controlling shareholder by transferring the 100% equity of its real estate subsidiary[102]. Employee Information - The company has a total of 172 employees, with 46 in the parent company and 126 in major subsidiaries[86]. - The professional composition of employees includes 86 production personnel, 5 sales personnel, 5 technical personnel, 7 financial personnel, 14 administrative personnel, and 55 others[87]. - The company has implemented regular professional training for directors, supervisors, and senior management, as well as for employees based on departmental needs[88]. Financial Position - The company's total assets decreased by 0.52% to CNY 622,584,140.78 at the end of 2013, down from CNY 625,814,349.23 in 2012[26]. - The total liabilities increased to CNY 146,796,566.07 from CNY 140,904,006.58, representing an increase of about 4.2%[117]. - The company's total equity decreased from CNY 484,910,342.65 to CNY 475,787,574.71, indicating a decline of approximately 1.3%[117]. - Cash and cash equivalents decreased by 94.28% to ¥22,900,614.02, primarily due to investments in trust financial products[44]. - The total owner's equity at the end of the year was CNY 484,910,342.65, down from CNY 530,589,259.42 at the beginning of the year[144]. Governance - The company has established a comprehensive set of governance systems to enhance operational compliance and transparency[95]. - The board of directors consists of 9 members, including 3 independent directors, complying with relevant laws and regulations[93]. - The company has maintained independence from its controlling shareholder in various operational aspects, ensuring autonomous management capabilities[102]. - The company respects the rights of all stakeholders, including shareholders, creditors, employees, and customers, promoting mutual benefits[95]. Investment and Capital Management - The company plans to focus on investment opportunities and seek appropriate timing for investments in the future[76]. - The company has committed to avoid any business competition with its controlling shareholder, Longxin Holdings, during its tenure[61]. - The company plans to continue its focus on capital management and risk mitigation strategies moving forward[138].