FUDAN FORWARD(SH:600624)2014-04-18 16:00Financial Performance - The company's operating revenue for 2013 was CNY 951,654,621.40, representing a 9.73% increase compared to CNY 867,237,413.09 in 2012[22]. - The net profit attributable to shareholders for 2013 was CNY 33,712,175.52, which is a 20.12% increase from CNY 28,066,480.04 in 2012[23]. - The basic earnings per share for 2013 was CNY 0.098, reflecting a 20.99% increase from CNY 0.081 in 2012[22]. - The net profit after deducting non-recurring gains and losses was CNY 26,940,627.06, which is a 112.97% increase from CNY 12,649,943.20 in 2012[23]. - The company's net assets attributable to shareholders increased by 2.65% to CNY 594,457,673.28 at the end of 2013, compared to CNY 579,104,667.09 at the end of 2012[23]. - The total revenue for 2013 was 951.7 million RMB, achieving 95.17% of the projected 1 billion RMB, while total costs were 910.8 million RMB, reaching 94.88% of the forecast[52]. - The company reported a decrease of 56.08% in non-recurring gains and losses compared to the previous year, contributing to the overall profit increase[22]. - The company's gross profit margin in the industrial sector was 17.40%, with revenue increasing by 46.92% year-on-year, attributed to higher sales from a subsidiary[55]. Cash Flow and Investments - The net cash flow from operating activities decreased by 159.97% to -CNY 133,355,261.71 in 2013, compared to CNY 222,355,801.55 in 2012[23]. - The investment activities generated a net cash outflow of CNY 126,399,220.36, a 136.49% increase compared to the previous year, due to higher fixed asset purchases[35][36]. - The cash flow from investment activities was -126,399,220.36 RMB, reflecting a 136.49% increase in cash outflows compared to the previous year[45]. - The cash flow from financing activities generated a net inflow of 190,629,501.32 RMB, a significant change from -198,813,774.00 RMB in the previous year, due to increased borrowings[45]. Segment Performance - The pharmaceutical segment generated RMB 680.01 million in revenue, a significant growth of 47.33%, accounting for 71.46% of total revenue[26]. - The software segment reported revenue of RMB 229.65 million, a decline of 8.90%, representing 24.13% of total revenue[28]. - The subsidiary Shanghai Fudan Fuhua Pharmaceutical Co., Ltd. reported a revenue increase of 47.33%, contributing CNY 218,450,500 to the total revenue growth[37]. Future Plans and Strategies - The company plans to issue up to 60 million new shares to raise no more than CNY 429,600,000, with the application approved by the China Securities Regulatory Commission[33]. - The company expects total revenue of CNY 1.05 billion and total costs of CNY 1.01 billion for 2014[80]. - The pharmaceutical division aims to enhance R&D capabilities and expand market share for key products, responding to market changes and cost pressures[81]. - The software division plans to strengthen communication with major clients and expand business cooperation, particularly in the Japanese market[82]. Risk Management and Compliance - The internal control system was improved, enhancing risk management and compliance awareness across the organization[32]. - The company has implemented a foreign exchange hedging management system to mitigate exchange rate risks, focusing on forward foreign exchange contracts with multiple domestic banks[88]. - The company recognizes the risk of rising labor costs in the software outsourcing industry and is actively working to improve employee incentives and efficiency[89]. Corporate Governance and Shareholder Relations - The company has retained the same accounting firm, Lixin CPA, with an audit fee of CNY 1.1 million[106]. - The company held two shareholder meetings during the reporting period, ensuring compliance with legal requirements and actively listening to shareholder opinions[132]. - The company has established an Investor Relations Management System to ensure equal access to information for all shareholders and actively engaged with investors to gather feedback[135]. - The independent auditor issued an unqualified opinion on the financial statements, confirming they fairly reflect the company's financial position as of December 31, 2013[159]. Social Responsibility and Environmental Management - The company has maintained a strong commitment to social responsibility, focusing on employee welfare and environmental protection[95]. - The pharmaceutical subsidiary has maintained compliance with pollution discharge standards, with major pollutants including wastewater and emissions being treated appropriately[97]. - The company has actively participated in public health education initiatives, contributing to community welfare through various charitable activities[96].