Shede Spirits (SH:600702)2014-03-18 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 11,774,193.80 in 2013, a decrease of 96.82% compared to RMB 369,857,619.98 in 2012[6]. - Operating revenue for 2013 was RMB 1,418,591,744.29, down 27.60% from RMB 1,959,461,529.21 in 2012[27]. - The basic earnings per share dropped to RMB 0.0349 in 2013, a decline of 96.82% from RMB 1.0965 in 2012[25]. - The company's net cash flow from operating activities was RMB 104,121,113.21, a decrease of 74.04% compared to RMB 401,046,937.73 in 2012[27]. - The total investment income dropped by 75.86% to 4,770,942.67 CNY, primarily due to a decline in profits from the associated company Sichuan Tianma Glass Co., Ltd.[44]. - The total profit for 2013 was CNY 49,473,981.02, down from CNY 496,847,442.52 in 2012, reflecting a decline of about 90.05%[155]. - The company's financial expenses decreased to CNY 19,454,646.58 in 2013 from CNY 35,686,375.35 in 2012, a reduction of about 45.49%[155]. Assets and Liabilities - Total assets at the end of 2013 were RMB 3,407,895,808.43, a decrease of 1.60% from RMB 3,463,319,160.99 at the end of 2012[27]. - The company reported a net asset attributable to shareholders of RMB 2,238,807,323.08 at the end of 2013, a decrease of 4.26% from RMB 2,338,342,129.28 at the end of 2012[27]. - Current liabilities totaled CNY 1,102,172,289.50, an increase from CNY 1,082,459,069.79 in the previous year[150]. - The total liabilities as of December 31, 2013, were CNY 1,104,697,002.06, compared to CNY 1,082,654,903.96 in the previous year[150]. Cash Flow - The company's operating cash inflow for 2013 was CNY 1,966,073,251.52, down from CNY 2,320,258,677.22 in the previous year, a decrease of approximately 15.26%[157]. - The total operating cash outflow was 1,120,334,994.12 RMB, compared to 1,032,237,285.81 RMB in the previous year[160]. - The ending cash and cash equivalents balance was 99,887,435.85 RMB, down from 132,758,411.84 RMB at the beginning of the year[160]. Sales and Marketing - Sales volume of liquor decreased by 24.15% to 31,896.60 tons, and production volume dropped by 20.72% to 33,024.70 tons[38]. - Sales expenses rose significantly by 56.67% to ¥443,730,253.03, indicating increased marketing efforts[42]. - The company is focusing on mid-range and low-end market segments, launching new products to enhance market presence[32]. Research and Development - The company increased its R&D expenditure by 78.73% to ¥14,453,268.61, reflecting a focus on product innovation[36]. - Research and development expenses totaled 14,453,268.61 CNY, representing 0.65% of net assets and 1.02% of operating revenue, with a year-on-year increase of 78.73%[46]. - The company plans to enhance product quality and safety through ongoing R&D projects, particularly in the pharmaceutical sector[46]. Shareholder Information - The company plans to distribute a cash dividend of RMB 0.20 per 10 shares, totaling RMB 6,746,000.00 to shareholders[6]. - The total number of shareholders at the end of the reporting period was 47,075, compared to 51,431 five trading days prior[94]. - The controlling shareholder, Sichuan Tuopai Shede Group Co., Ltd., holds 29.85% of the shares, totaling 100,695,768 shares, with a decrease of 6,746,000 shares during the reporting period[95]. Corporate Governance - The company has implemented a robust internal control system to ensure compliance with relevant laws and regulations[117]. - The board of directors consists of 9 members, including 3 independent directors with expertise in finance, law, and other areas[118]. - The company actively engages with stakeholders to balance interests and promote sustainable development[118]. Future Outlook - The company plans to enhance product innovation, brand building, and market expansion, requiring additional working capital[71]. - The company expects a main business revenue of CNY 1.7 billion and total operating costs of CNY 1.6 billion for 2014[71]. - The company has set a performance guidance for 2014, targeting a revenue growth of 12% and a net profit increase of 15%[106].