Whirlpool (China) (SH:600983)2015-04-23 16:00Financial Performance - The company achieved a net profit of ¥293,624,134.63 for the year 2014, with a proposed cash dividend of ¥0.50 per share, totaling ¥38,321,950.00 to be distributed to shareholders [2]. - The company plans to retain ¥225,939,771.17 as undistributed profits after the dividend distribution [2]. - The company's operating revenue for 2014 was CNY 5,504,826,211.31, representing a 3.37% increase compared to CNY 5,325,324,267.84 in 2013 [26]. - The net profit attributable to shareholders decreased by 19.04% to CNY 293,624,134.63 from CNY 362,658,996.50 in the previous year [26]. - Basic earnings per share decreased by 25.00% to CNY 0.51 from CNY 0.68 in 2013 [28]. - The company reported a net cash outflow from operating activities of CNY 217,411,977.44, contrasting with a net inflow of CNY 566,490,213.68 in 2013 [182]. - The company incurred sales expenses of CNY 1,135,576,069.45, a slight increase from CNY 1,099,761,513.46 in 2013 [180]. - The comprehensive income for the current period amounts to 293,624,134.63 [186]. Shareholder Information - The total share capital at the end of 2014 was 766,439,000 shares [2]. - The company underwent a significant shareholding change, with Whirlpool (China) Investment Co., Ltd. becoming the largest shareholder, holding 51% of the total shares [21]. - The company distributed a cash dividend of 0.50 RMB per 10 shares for the 2014 fiscal year, totaling 38,321,950 RMB, which is 13.05% of the net profit [82]. - The total number of shares increased to 766,439,000 after the issuance of 233,639,000 new shares, representing a 44.5% increase in total shares [109]. - Whirlpool (China) Investment Co., Ltd. holds 51% of the shares, making it the controlling shareholder with 390,884,200 shares [118]. Assets and Liabilities - The company's total assets increased by 30.47% to CNY 7,395,507,523.16 from CNY 5,668,522,804.89 in 2013 [27]. - The company's total liabilities decreased to RMB 3,294,068,212.05 from RMB 3,745,813,681.57, indicating a reduction of about 12.1% [178]. - The company's equity increased significantly, with total equity reaching RMB 4,101,439,311.11, up from RMB 1,922,646,123.11, marking an increase of approximately 113.1% [178]. - Cash and cash equivalents increased by 151.59% year-over-year, primarily due to significant funds raised from a non-public stock issuance [57]. - The company's accounts receivable rose to RMB 702,194,158.80 from RMB 288,746,976.35, representing an increase of about 143.5% [177]. Business Operations - The main business includes the production and sales of washing machines, refrigerators, microwaves, and air purifiers, among other products [19]. - The company launched several innovative products, including a unique slanted drum washing machine and smart air purifiers, to strengthen its market position [36]. - The company plans to expand its presence in tier-three and tier-four markets while enhancing its e-commerce channels to boost sales [36]. - The company’s strategic focus includes adjusting product structure and enhancing e-commerce and TV shopping platforms to adapt to market pressures [50]. - The company aims to achieve a sales revenue of 6.4 billion RMB and a net profit of 413 million RMB for the year 2015 [75]. Research and Development - Research and development expenses increased slightly by 1.38% to CNY 165,738,070.20 from CNY 163,484,962.56 in 2013 [38]. - The company launched 476 new product development projects, including 17 new platform projects and 36 major modifications [45]. - A total of 228 technology patents were filed in 2014, including 81 invention patents, showcasing the company's commitment to innovation [60]. - The core technology team consists of 338 members, with over 300 directly engaged in R&D, indicating a strong focus on innovation [142]. Strategic Partnerships and Agreements - The company completed a non-public stock issuance, raising a total of approximately ¥1.97 billion [49]. - The company signed a management agreement with Guangdong Whirlpool for a management fee of RMB 1 million per year, effective from January 24, 2014, for a period of 36 months [86]. - The company entered into a 50% equity custody agreement with Whirlpool (Hong Kong) Limited for Hisense Whirlpool (Zhejiang) Electric Co., Ltd. to address potential competition issues in the washing machine and refrigerator sectors [86]. - Whirlpool Group plans to integrate the microwave business of Guangdong Whirlpool into the company within 36 months after the completion of the issuance, based on fair market prices [96]. Compliance and Governance - The company received a standard unqualified audit report from Huapu Tianjian Accounting Firm [3]. - The company’s governance structure complies with the requirements of the Company Law and the China Securities Regulatory Commission [151]. - The company has implemented the ORACLE ERP system to enhance information system management, which has improved operational efficiency across various business segments [162]. - The company maintained effective internal control over financial reporting as confirmed by the internal control audit report issued by Huapu Tianjian Accounting Firm for the year 2014 [163]. Market Risks and Challenges - The company has described potential risks in its future development in the board report section [8]. - The company is facing risks from market competition, cost fluctuations, management integration challenges, and potential policy changes affecting exports [77]. - The company is responding to industry trends such as consumption upgrades and urbanization, which are expected to positively impact demand for home appliances [72].