JSZY(SH:600770)2015-05-29 16:00Financial Performance - The company reported a net profit of -90,634,577.36 RMB for the year 2014, resulting in a total distributable profit of -556,481,900.76 RMB at year-end[2]. - Due to the negative distributable profit, the company proposed no profit distribution or capital reserve transfer for 2014[2]. - The company has faced significant financial challenges, as indicated by the negative net profit and distributable profit figures[2]. - The company achieved a revenue of 714,583,223.21 CNY in 2014, representing a 92.35% increase compared to 371,505,877.61 CNY in 2013[23]. - The net profit attributable to shareholders was 41,530,195.23 CNY in 2014, a significant recovery from a loss of 679,323,025.99 CNY in 2013[23]. - The basic earnings per share improved to 0.034 CNY in 2014 from a loss of 0.61 CNY in 2013[24]. - The company's total assets increased by 29.34% to 6,568,813,356.12 CNY at the end of 2014, up from 5,078,726,939.61 CNY at the end of 2013[23]. - The net cash flow from operating activities decreased by 28.15% to 413,040,192.44 CNY in 2014, compared to 574,879,881.72 CNY in 2013[23]. - The company reported a weighted average return on equity of 1.06% in 2014, recovering from -24.22% in 2013[25]. Risk Management and Compliance - The report includes a risk statement cautioning investors about the uncertainties related to future plans and development strategies[3]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties during the reporting period[4]. - The company has maintained compliance with decision-making procedures regarding external guarantees, with no violations reported[4]. - The company’s financial report has been audited by Lixin Accounting Firm, which issued a standard unqualified opinion[4]. - The company has a commitment to transparency, with detailed disclosures in its annual report regarding potential risks and financial performance[8]. Business Development and Expansion - The company has undergone several changes in its business scope since its listing in 1996, expanding into areas such as integrated circuit design and new energy products[18]. - The company is actively exploring new development opportunities in the mobile internet sector to enhance profitability and overall strength[32]. - The company constructed a new 12.5MW photovoltaic power station in Bucharest, Romania, which successfully connected to the grid in December 2014[32]. - The company’s photovoltaic power stations in Italy generated a total of 19,416,350 KWH in 2014[33]. - The company reported significant project revenues from various solar power projects, including $24.29 million from the Xinjiang project and $25.49 million from the New Jersey project[34]. Investment and Financial Strategy - The company is focusing on optimizing its investment strategy by managing existing investments and seeking quality projects under the principle of "promoting investment through exit"[43]. - The company reported an investment income of ¥208,611,288.58, a significant increase of 425.43% from ¥39,702,742.64 in the previous year, attributed to gains from stock disposals by a subsidiary[56]. - The company completed a non-public offering of A-shares in May 2014, which was approved by the China Securities Regulatory Commission[57]. - The company has a total of RMB 5,024.51 million in unutilized raised funds, which are stored in the dedicated fund account[92]. - The company is actively exploring applications for thin-film solar cell products in different fields to enhance production line value[92]. Acquisitions and Partnerships - The company acquired 55% equity of Shanghai Liangcai Information Technology Co., Ltd. for RMB 71.8 million[136]. - The company acquired 55% equity of Shanghai Haoxuan Information Technology Co., Ltd. for RMB 21.5 million[136]. - The company invested RMB 102 million to hold 51% equity in Beijing Xianjing Le Network Technology Co., Ltd.[136]. - The company acquired 68.24% equity of the asset package from Beijing Zhangshang Feixun Technology Co., Ltd. and others for RMB 330.03 million[136]. - The company signed an agreement with Korea Zhouxing Engineering Co., Ltd. for compensation of RMB 51.5 million for production losses[143]. Market Trends and Future Outlook - The company is experiencing rapid growth in the wireless detection and mobile communication sectors, with an annual growth rate of 40%-50%[69]. - The domestic photovoltaic industry is expected to experience rapid development due to favorable policies from the government[100]. - The company plans to enhance its internet lottery sales system and improve user experience to increase user retention[105]. - The company aims to explore new business models and expand new lottery channels in response to industry changes[105]. - The company plans to optimize and upgrade its industry structure while strengthening technological innovation and team building to enhance core competitiveness[108]. Shareholder and Corporate Governance - The total number of shares increased from 1,104,600,000 to 1,300,000,000 after the issuance of 195,400,000 new shares[169]. - The company’s total share capital structure now consists of 1,104,600,000 unrestricted shares and 195,400,000 restricted shares[174]. - The largest shareholder, Nantong Zongyi Investment Co., Ltd., holds 321,323,958 shares, accounting for 24.72% of the total shares[178]. - The company has no other corporate shareholders holding more than 10% of shares as of the end of the reporting period[184]. - The total remuneration for the reporting period for the board members and senior management was 298.2 million RMB[188].