NBSS(SH:600884)2014-04-21 16:00Financial Performance - The net profit of the parent company for 2013 was CNY 60,168,130.17, with a total distributable profit of CNY 546,301,209.74 after accounting for reserves and dividends[7]. - The company reported a significant increase in retained earnings, totaling CNY 516,801,387.41 at the beginning of the year[7]. - In 2013, the company achieved operating revenue of CNY 4,047.92 million, a year-on-year increase of 7.78%[36]. - The net profit attributable to shareholders was CNY 183.79 million, up 15.70% from the previous year[36]. - The net profit after deducting non-recurring gains and losses reached CNY 145.25 million, representing an 80.11% increase year-on-year[36]. - The company's cash flow from operating activities was negative at CNY -126.69 million, compared to a positive CNY 64.57 million in 2012[36]. - The company's basic earnings per share were CNY 0.447, an increase of 15.70% from CNY 0.387 in 2012[36]. - The company reported a weighted average return on equity of 5.16%, a slight decrease of 0.02 percentage points from the previous year[36]. - The company reported a net profit of RMB 183,789,079.40 for the year 2013, with operating cash flow at -RMB 126,687,538.77[117]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, amounting to CNY 24,651,494.82 in total dividends payable[7]. - The cash dividend distribution plan for 2013 is set at RMB 0.6 per 10 shares, subject to shareholder approval[117]. - The company has maintained a cash dividend policy that requires at least 30% of the average distributable profit over the last three years to be distributed in cash during profitable years[116]. - The average distributable profit for the last three years (2011-2013) is calculated to be RMB 53,012,223.60, with cumulative dividends of RMB 49,302,989.64 in 2011 and 2012[116]. Business Operations - The company has maintained its core business operations without any changes since its listing[24]. - The company has expanded its business scope to include lithium-ion battery materials manufacturing and processing[23]. - The lithium battery materials business generated CNY 216.39 million in revenue, a growth of 28.92% compared to the previous year[42]. - The gross profit from the company's clothing business decreased, with a revenue of CNY 172.59 million, down 4.25% year-on-year[37]. - The company divested its less profitable lithium-ion battery precursor business, receiving CNY 2.38 million from the first installment of the equity transfer[42]. - The company’s financing leasing subsidiary, Fuyin Financing Leasing, commenced operations, contributing to new revenue streams[59]. - The company has established a comprehensive product system in the lithium battery materials sector, including various types of cathode and anode materials[84]. - The company has implemented a multi-brand and internationalization strategy in its clothing business, enhancing its market position[83]. Research and Development - The company’s research and development expenditure increased by 27.97% to 96.17 million yuan, indicating a focus on enhancing product quality and innovation[54]. - The total R&D expenditure was CNY 96,165,045.86, accounting for 2.73% of net assets and 2.38% of operating revenue[67][68]. - The company has established a research and development team for lithium battery materials, including a postdoctoral workstation, enhancing collaboration with universities and research institutions[87]. - The company plans to strengthen its research and development capabilities and increase investment in cutting-edge material technologies[105]. Market and Competition - The company’s anode material business achieved a revenue of 672.63 million yuan, a year-on-year increase of 13.32%, while net profit attributable to shareholders decreased by 12.37% to 62.11 million yuan due to intensified market competition[44]. - The electrolyte business reported a revenue of 171.23 million yuan, a year-on-year decline of 18.13%, with net profit attributable to shareholders decreasing by 2.96% to 31.49 million yuan[45]. - The company anticipates challenges in the apparel sector due to weak consumer demand and the impact of e-commerce on traditional retail channels[109]. - The company expects to face risks related to raw material price fluctuations and potential underperformance in the electric vehicle market[111]. Corporate Governance - The company has a standard unqualified audit report issued by Lixin Certified Public Accountants[7]. - The company has not received any penalties or public reprimands from the China Securities Regulatory Commission or stock exchanges during the reporting period[143]. - The company’s governance structure includes independent directors who contribute to its strategic oversight, ensuring compliance and accountability[164]. - The company is actively involved in corporate governance, with regular meetings to review and approve key management appointments and strategies[167]. Investments and Financing - The company has invested RMB 682.78 million in Zhejiang Chouzhou Commercial Bank, holding an 8.07% equity stake, with a book value of RMB 872.04 million[92]. - The company issued bonds totaling RMB 7.5 billion with a coupon rate of 5.96%, maturing in 7 years, and began trading on March 26, 2014[71][72][73]. - The company plans to issue up to RMB 800 million in corporate bonds to optimize its debt structure and supplement working capital[150]. - The company has established a financing leasing subsidiary with a registered capital of RMB 100 million, holding a 70% stake[144]. Employee and Talent Management - The total number of employees in the parent company is 48, while the main subsidiaries employ 9,087, resulting in a total of 9,135 employees[172]. - The company has 118 employees with a master's degree or above, 809 with a bachelor's degree, 2,207 with a college diploma, 3,623 with high school or vocational education, and 2,378 with junior high school or below[172]. - The company implements a salary policy combining annual and monthly salary systems, with senior and middle management on an annual salary and grassroots employees on a monthly salary[173]. - The performance evaluation of senior management is based on the completion of annual financial budgets, operational indicators, and management goals[173]. Risk Management - The company emphasizes the establishment and effective implementation of internal controls to ensure compliance and asset security[200]. - The company acknowledges the inherent limitations of internal controls, which may affect their effectiveness over time[200]. - The company faced risks related to investment business expansion and post-investment management due to uncertainties in the domestic securities market and macroeconomic conditions[112]. - The company has experienced increasing pressure in post-investment management due to the growth in financing leasing and factoring business, necessitating effective risk control measures[112].