NBSS(SH:600884)2015-04-10 16:00Financial Performance - The net profit of the parent company for 2014 was CNY 305,207,510.73, with a total distributable profit of CNY 796,336,474.58 after accounting for the statutory surplus reserve and dividends payable[3]. - The company reported a revenue of CNY 3,658,990,601.44 for 2014, a decrease of 9.61% compared to 2013, primarily due to the divestment of the knitting business[26]. - Net profit attributable to shareholders was CNY 348,420,726.41, representing a significant increase of 89.58% year-on-year, largely driven by investment gains from the sale of part of the stake in Ningbo Bank[33]. - The company’s net profit after deducting non-recurring gains and losses was CNY 128,809,221.54, down 11.32% from the previous year, attributed to a decline in main business profits[33]. - The company’s total assets increased by 22.59% year-on-year to CNY 9,165,718,402.16 as of the end of 2014[26]. - The company’s net assets attributable to shareholders increased by 31.90% to CNY 4,243,186,760.66 at the end of 2014[26]. - The company’s basic earnings per share rose to CNY 0.848, an increase of 89.58% compared to 2013[27]. - The company reported a net profit attributable to shareholders of RMB 348,420,726.41 for the year 2014, while the operating cash flow was negative at RMB -403,236,826.79[133]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.80 per 10 shares, amounting to a total of CNY 32,868,659.76 in dividends for the year[3]. - The company’s cash dividend for 2014 was set at CNY 0.8 per 10 shares, amounting to a total of CNY 32,868,659.76, which represents 9.43% of the net profit attributable to shareholders[129]. - Cumulative cash dividends from 2011 to 2013 amounted to CNY 73,954,484.46, exceeding the average distributable profit of CNY 53,012,223.60 for the same period by over 30%[128]. - The company’s profit distribution policy emphasizes a stable return to investors, with a minimum cash distribution of 30% of the average distributable profit over the last three years[127]. Business Operations - The company has maintained its main business operations without significant changes since its listing, focusing on clothing, knitted products, and lithium-ion battery materials[20]. - The company has not experienced any changes in its controlling shareholder since its listing[21]. - The company has a standard unqualified audit report issued by Lixin Certified Public Accountants[2]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in its reports[4]. - The company has established a joint venture, Inner Mongolia Qingshan Bus Co., Ltd., with a registered capital of 29.5 million yuan, marking its entry into the new energy vehicle sector[44]. Market and Competition - The company is actively expanding its international market presence, with notable partnerships established with ATL, BYD, LISHEN, and LG in the cathode materials business[39]. - The company is facing challenges such as overcapacity and intense competition in the lithium battery new energy business[107]. - The company’s cathode materials business achieved a revenue of 146,858.23 million yuan in 2014, a year-on-year increase of 14.90%, while net profit attributable to shareholders was 2,011.35 million yuan, a decrease of 48.37% due to intensified competition and declining sales prices[39]. - The anode materials business reported a revenue of 76,288.82 million yuan, up 13.42% year-on-year, with net profit attributable to shareholders at 5,835.28 million yuan, down 6.05% due to increased provisions for inventory and accounts receivable[40]. Research and Development - The company has made significant progress in new product development, focusing on high-capacity, long-cycle, low-expansion, fast-charging, and high-power products in the anode materials segment[40]. - The company is focusing on the development of new lithium battery materials, with multiple new products entering trial production or mass production during the reporting period[67]. - R&D expenditure for the year was CNY 4,472,063.82, a decrease of 35.51% compared to the previous year[51]. - The company has a strong R&D capability with 4 national 863 technology achievements and numerous patents, supported by nearly 20 PhDs[84]. Financial Management - The company’s total liabilities increased due to the issuance of new bonds[170]. - The company’s internal control department conducts regular checks on management levels and asset conditions to mitigate financial risks associated with increasing receivables[121]. - The company has established a post-investment management department to enhance oversight of both normal and abnormal projects, ensuring better asset management[121]. - The company’s entrusted financial management balance at the end of the period was RMB 8.1 million[99]. Employee Management - The total number of employees in the parent company and major subsidiaries is 3,059, with 53 in the parent company and 3,006 in subsidiaries[196]. - The company has a total of 61 key technical personnel in the lithium battery materials field, with 30+ patents successfully applied for[195]. - The employee composition includes 1,685 production personnel, 244 sales personnel, and 268 technical personnel[196]. - The company implements a salary system combining annual and monthly salaries, with performance evaluations based on net asset return rate for industry companies[197]. Corporate Governance - The company held its annual shareholder meeting on May 12, 2014, approving the election of the eighth board of directors and the eighth supervisory board members[190]. - The company has not granted any stock incentives to directors, supervisors, or senior management during the reporting period[191]. - The total remuneration for the reporting period for the chairman and general manager, Zhuang Wei, was 861,900 CNY[187]. - The company has a long-term commitment to avoid engaging in competitive business activities with its controlling shareholder, Shanshan Group[155].