SXBN(SH:600831)2014-03-20 16:00Financial Performance - The company achieved operating revenue of RMB 2.03 billion in 2013, representing a year-on-year growth of 17.85%[21]. - The net profit attributable to shareholders was RMB 137 million, a decrease of 2.22% compared to the previous year[28]. - The company's total assets increased by 12.50% to RMB 4.50 billion at the end of 2013[22]. - The total liabilities rose by 16.59% to RMB 2.80 billion, resulting in an asset-liability ratio of 62.11%[22][23]. - The company reported a net cash flow from operating activities of RMB 828 million, an increase of 6.83% from the previous year[29]. - The basic earnings per share decreased by 2.25% to RMB 0.2432[23]. - The company reported a total revenue of RMB 3,697.60 million for the year, with a net profit of RMB -301.58 million, indicating a significant loss compared to the previous year[63]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2013, representing a year-on-year growth of 12%[133]. - The net profit for 2013 was CNY 98,706,810.56, down 21.1% from CNY 125,130,441.34 in 2012[192]. Business Transformation - The company has undergone a significant business transformation, shifting its focus from the home appliance industry to media, specifically cable television network operations[17]. - The company’s main business now focuses on cable television network operations, having exited the advertising agency business in 2008[17]. - The company is focusing on the development of interactive television services to meet diverse consumer demands and strengthen its competitive edge in the market[68]. Investments and Acquisitions - The company acquired 51% of GuoDian Tongfang for 13.69 million CNY, completing the registration by March 10, 2014[51]. - The company invested 2.87 million CNY in Jinma Media, holding a 55% stake, and 2 million CNY in Broadcasting Program Company, holding a 22.22% stake[51]. - The company has completed the acquisition of a 51% stake in Guangdian Tongfang, which will be consolidated into the company's financial statements starting from 2014[64]. - The company plans to invest 1.2 billion CNY in 2014 for network construction, user terminal equipment, platform maintenance, and diversification development[74]. Cash Flow and Financial Management - The net cash flow from investment activities was CNY -936.24 million, a decrease from CNY -802.86 million in the previous year, indicating increased cash outflows[30]. - The company’s financing activities generated a net cash flow of CNY 41.08 million, down 36.62% from CNY 64.82 million in the previous year, primarily due to loan repayments and dividend distributions[38]. - The company reported a significant increase in inventory, which rose to CNY 83,184,952.42 from CNY 69,788,897.09, reflecting a growth of approximately 19.1%[179]. - Cash flow from operating activities generated a net amount of RMB 828,673,923.56, an increase from RMB 775,679,979.23 in the prior period[185]. Shareholder Returns - The company plans to distribute a cash dividend of 0.10 CNY per 10 shares based on a total share capital of 563,438,537 shares as of December 31, 2013[5]. - The company has revised its cash dividend policy to ensure reasonable returns to investors while maintaining sustainable development[78]. - The company did not distribute any cash dividends in 2012 and 2011, with cash dividends of RMB 0.40 and RMB 0.30 per 10 shares in those years respectively[82]. Risks and Challenges - The company has detailed potential risks including policy, competition, and investment risks in its report[11]. - The company anticipates challenges in achieving its revenue and net profit targets due to tax policy adjustments affecting certain business segments starting from August 1, 2013[39]. - The company is exposed to policy risks, including uncertainties regarding tax policies and the integration of provincial network companies[75]. - The company is facing intensified competition from various media formats and must adapt to diverse user viewing preferences[76]. Operational Highlights - The company added 646,000 cable TV users, bringing the total to 6.21 million users by the end of 2013[27]. - The number of online personal broadband users reached 405,000, with a net increase of 202,000 users in 2013[27]. - The company launched a "high-definition interactive upgrade project" to enhance service offerings and market competitiveness[26]. - The company developed 393,000 new high-definition interactive users, bringing the total to 621,000, and introduced new content and applications, enhancing user experience[31]. Corporate Governance - The company’s board of directors has approved the annual report, ensuring its accuracy and completeness[5]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[109]. - The independent directors did not raise any objections to company matters during the reporting period[154]. Employee and Management Information - The total number of shareholders increased from 59,704 to 63,063 during the reporting period, indicating growing investor interest[122]. - The number of employees in the parent company was 5,155, while the total number of employees in the parent company and major subsidiaries was 5,857[143]. - The total hours of outsourced labor amounted to 61,600 hours, with total payments for outsourced labor reaching CNY 1,841,518.97[148]. Future Outlook - The company aims to achieve operating revenue of 2.28 billion CNY in 2014, with expected operating costs, expenses, and taxes of 2.18 billion CNY, targeting a net profit of 100 million CNY[72]. - Future guidance estimates a revenue target of 1.8 billion RMB for 2014, reflecting a growth rate of 20% compared to 2013[133]. - The company plans to expand its market presence by entering two new provinces in 2014, aiming for a 15% increase in market share[133].