EASTCOM(SH:600776)2014-04-21 16:00Financial Performance - The net profit of the parent company for 2013 was CNY 58,451,793.70, with a proposed cash dividend of CNY 0.60 per 10 shares, totaling CNY 75,360,003.84[6] - Basic earnings per share for 2013 was CNY 0.154, representing a 0.58% increase compared to CNY 0.153 in 2012[20] - The weighted average return on net assets for 2013 was 7.216%, a decrease of 0.242 percentage points from 7.458% in 2012[20] - The company reported a total distributable profit of CNY 77,192,866.22 at the end of 2013, after accounting for previous year’s dividends[6] - The company achieved a revenue of 3,437,220,265.62 RMB in 2013, representing a year-on-year growth of 4.21%[26] - Net profit attributable to shareholders was 193,717,111.51 RMB, a slight increase of 0.58% compared to the previous year[26] - The financial electronic industry saw a revenue increase of 19% and profit growth of 23%, driven by strong sales of self-developed products[26] - The wireless cluster industry experienced a significant decline in revenue, down 64% year-on-year, totaling 37,060,000 RMB due to market challenges[32] - The company’s net profit tax expenses increased by 265% due to higher profits from subsidiaries[40] - The company reported a total profit of ¥238,954,936.56, which is an increase from ¥200,859,872.00 in the previous period[155] - The company’s total comprehensive income for the current period was ¥208,396,017.32, up from ¥192,482,046.89 in the previous period[156] Cash Flow and Investments - The company's operating cash flow was negative at -189,588,568.97 RMB, a decline of 258.02% compared to the previous year[31] - Cash flow from operating activities showed a net outflow of ¥189,588,568.97, compared to a net outflow of ¥52,954,451.09 in the previous period[161] - Cash outflow from investing activities totaled CNY 733,215,927.44, an increase of 64.2% compared to CNY 446,576,945.72 in the previous year[166] - Net cash flow from investing activities was CNY -3,961,526.90, a significant decline from CNY 229,822,158.26 in the previous year[166] - The company paid dividends and profits amounting to CNY 101,103,899.73, slightly increasing from CNY 100,480,005.12 in the previous year[166] Assets and Liabilities - Total assets at the end of 2013 were 3,439,765,070.39 RMB, a slight increase of 0.66% from the previous year[26] - The company’s net assets attributable to shareholders increased by 3.69% to 2,742,757,446.60 RMB by the end of 2013[26] - The company reported a total current assets of CNY 2,721,766,706.70 as of December 31, 2013, an increase from CNY 2,400,002,691.93 at the beginning of the year, reflecting a growth of approximately 13.4%[149] - The company’s long-term equity investments decreased to CNY 294,243,034.65 from CNY 510,414,506.48, a decline of approximately 42.3%[149] - The company’s total liabilities decreased to CNY 550,068,447.65 from CNY 639,824,357.57, a decrease of about 13.98%[150] Research and Development - Research and development expenses were 138,150,593.95 RMB, a marginal increase of 0.24% year-on-year[31] - The total R&D expenditure was CNY 138,150,593.95, accounting for 4.02% of total revenue and 4.78% of net assets[39] - The company has established a two-level R&D system with multiple national and provincial technology centers and post-doctoral workstations[97] - The company plans to deepen key technology cooperation and accelerate independent research and development of core technologies to enhance its overall solution capabilities in the financial industry[76] Shareholder and Equity Information - The company has a total of 1,256,000,064 shares, with 956,000,064 A shares and 300,000,000 B shares[184] - The largest shareholder, Putian Oriental Communication Group Co., Ltd., holds 48.13% of the shares, totaling 604,573,970 shares[95] - The total number of equity incentives granted during the reporting period was 12,560,000[84] - The total number of equity incentives that became invalid during the reporting period was -240,000[84] - The company has a total of 367,880,508.17 RMB in equity investments, with a decrease of 216,171,471.83 RMB compared to the beginning of the year, reflecting a significant reduction in investment value[51] Management and Governance - The company appointed Ruihua Certified Public Accountants as its auditing firm for the 2013 fiscal year[88] - The company emphasizes the importance of experienced leadership in driving future growth and market expansion[104] - The company has established a comprehensive internal control system in compliance with the Company Law and Securities Law, enhancing governance structure and operational norms[125] - The board of directors held a total of 8 meetings during the year, with 2 conducted in person and 6 via communication methods[134] - The company actively participates in training programs to enhance management capabilities and decision-making skills[121] Market and Strategic Outlook - The company aims for growth in both revenue and profit in its financial electronics and wireless cluster industries in 2014, focusing on market expansion and technological innovation[72] - The company is set to capitalize on the market opportunities presented by the 4G rollout, aiming for steady revenue and profit growth[74] - The financial electronics sector will focus on enhancing service offerings and transitioning to a comprehensive financial service provider, aiming to become a new profit growth point[72] - The company plans to continue its focus on expanding its market presence and developing new technologies in the upcoming year[176] Social Responsibility - The company actively participates in social responsibility initiatives, including poverty alleviation and disaster relief efforts, enhancing its social image[80]