SMC(SH:600823)2015-03-25 16:00Financial Performance - The net profit of the parent company for 2014 was CNY 291,352,586.41, with total distributable profits at CNY 384,407,988.60 after deductions[5]. - The company achieved operating revenue of approximately 12.7 billion RMB in 2014, representing a year-on-year increase of 25.09%[31]. - Net profit attributable to shareholders reached approximately 1.89 billion RMB, a growth of 15.15% compared to the previous year[31]. - The basic earnings per share increased to 1.61 RMB, reflecting a 15% rise from 1.40 RMB in 2013[32]. - The company reported a significant decline in cash flow from operating activities, totaling approximately 76.16 million RMB, down 96.95% from the previous year[31]. - The total assets at the end of 2014 were approximately 58.9 billion RMB, marking a 16.91% increase from 2013[31]. - The company achieved property sales revenue of approximately 11.68 billion RMB, with non-property sales contributing 1.02 billion RMB, accounting for 8.1% of total revenue[41]. - The company’s commercial real estate development saw a contract signing amount of approximately 16.03 billion RMB, a 23% increase year-on-year[42]. - The company’s land reserves reached 10.88 million square meters by the end of the year, supporting future development[42]. - The company’s investment properties increased in fair value by approximately 282.7 million RMB during the reporting period[38]. Dividend and Capital Management - A cash dividend of CNY 1.7 per 10 shares (including tax) will be distributed, totaling CNY 199,310,607.46, with a capital reserve conversion of 5 shares for every 10 shares held, resulting in an increase of 586,207,669 shares[5]. - The company aims to distribute cash dividends of RMB 1.70 per 10 shares, totaling RMB 199.31 million, based on a total share capital of 1,172,415,338 shares as of December 31, 2014[98]. - The net profit available for distribution to shareholders for 2014 is RMB 384.41 million after accounting for various deductions[98]. - The company has adjusted its profit distribution policy to prioritize cash dividends, in line with regulatory guidelines[96]. Corporate Governance - The company’s financial report received a standard unqualified audit opinion from the accounting firm[4]. - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[2]. - The company has maintained strict adherence to non-competition agreements with its controlling shareholder, Shimao Real Estate[130]. - The company has not faced any penalties or administrative actions from the China Securities Regulatory Commission during the reporting period[133]. - The company has adjusted its financial reporting in accordance with new accounting standards issued by the Ministry of Finance[134]. - The company’s internal control audit was conducted by the same accounting firm for 20 years, ensuring consistency in financial oversight[132]. - The overall governance structure remains robust, with a focus on maintaining transparency and accountability among board members and management[166]. Business Strategy and Future Plans - The company plans to continue enhancing its operational management capabilities and expand its commercial real estate business in the future[41]. - The company anticipates facing complex macroeconomic conditions and industry challenges in 2015, which may impact operational performance[94]. - The company plans to explore new business models in the children's industry to enhance service quality and operational capabilities[45]. - The company aims to establish itself as a long-lasting enterprise, creating continuous value for society and stable returns for shareholders[92]. - The company plans to achieve contract sales of CNY 17.6 billion and a sales area of 1.34 million square meters in 2015[87]. - The company aims to start construction on 1.16 million square meters and complete 1.33 million square meters in 2015[88]. Shareholder Information - The company’s stock is traded on the Shanghai Stock Exchange under the code 600823[21]. - The total number of shareholders was 32,733, an increase from 28,704 five trading days prior[153]. - The largest shareholder, Peak Win International Limited, holds 558,000,000 shares, representing 47.59% of total shares, with 242,830,000 shares pledged[155]. - Shanghai Shimao Enterprise Development Co., Ltd. is the second-largest shareholder, holding 239,529,474 shares, or 20.43%[155]. Employee and Management Structure - The total number of employees in the parent company is 149, while the total number of employees in major subsidiaries is 2,715, resulting in a combined total of 2,864 employees[178]. - The company has established a talent database focusing on key positions, ensuring a reserve of core technical personnel[174]. - The company provides competitive compensation and benefits, including additional medical insurance and supplementary housing funds, to enhance employee satisfaction[175]. - The company has implemented leadership development programs for senior management, enhancing their management capabilities[180]. - The company has maintained a stable leadership team with no changes in the board composition during the reporting period[166]. Related Party Transactions and Guarantees - The company provided a total guarantee amount of RMB 1.8 billion to its joint ventures, including RMB 1.3 billion to Shaoxing Shimao Investment Development Co., Ltd. and RMB 360 million to Ningbo Shimao New Tengfei Real Estate Co., Ltd.[113]. - The company engaged in related party transactions amounting to RMB 62.19 million, with significant transactions including RMB 12.68 million with Wuxi Shimao New Development Real Estate Co., Ltd. and RMB 8 million with Nantong Shimao New Era Real Estate Development Co., Ltd.[116]. - The company has not provided guarantees to shareholders, actual controllers, or their related parties[121]. - The company has not provided guarantees exceeding 50% of net assets[121]. Stock Options and Incentives - The company has a total of 598 stock options granted that remain unexercised as of the reporting period[106]. - The stock option incentive plan allowed 14 participants to exercise options for a total of 3.9 million shares at a price of CNY 9.60, with 182,000 shares exercised by 7 participants[151]. - The total number of equity incentives granted and exercised by the end of the reporting period is 1.82 million shares[107]. - The fair value of the stock options calculated using the Black-Scholes model indicates a volatility of 31.11% based on the previous year's trading data[109]. Market and Industry Context - In 2014, the total box office revenue in China reached RMB 29.639 billion, a year-on-year increase of 36.15%[44]. - Shimao Cinemas achieved operating revenue of RMB 233 million, a significant year-on-year growth of 57.7%, serving over 6.6 million viewers[44]. - The company opened 17 new cinema locations and added 148 screens, increasing total seating capacity to 23,600[44]. - The company reported a significant increase in revenue from the central China region, with a staggering growth of 2,731.46%[67].