HX GROUP(SH:600851)2014-04-21 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 65,392,909.05 in 2013, representing a 26.36% increase compared to RMB 51,752,514.52 in 2012[8]. - Total revenue for 2013 was RMB 1,261,643,887.53, a decrease of 3.79% from RMB 1,311,355,214.56 in 2012[25]. - Basic earnings per share for 2013 were RMB 0.0542, up 26.34% from RMB 0.0429 in 2012[26]. - Net profit attributable to shareholders was RMB 65.39 million, an increase of 26.4% from RMB 51.75 million in 2012, primarily due to a gain of RMB 70.90 million from the sale of Longjiang Securities stocks[31]. - The company reported a total comprehensive income of CNY 111,847,377.54, down from CNY 358,808,171.39 in the previous year[124]. - The company reported a net profit of 66,033,477.98 RMB for the year, compared to a loss in the previous year, indicating a turnaround in profitability[137]. Assets and Liabilities - The company's net assets attributable to shareholders increased by 3.85% to RMB 2,991,420,217.64 at the end of 2013, compared to RMB 2,880,390,584.06 at the end of 2012[25]. - The total assets of the company at the end of 2013 were RMB 4,388,665,933.93, a slight increase of 0.91% from RMB 4,349,112,045.54 in 2012[25]. - Total liabilities decreased to CNY 1,173,065,279.14 from CNY 1,236,986,008.29, showing a reduction of about 5.1%[119]. - The company's equity attributable to shareholders increased to CNY 2,991,420,217.64 from CNY 2,880,390,584.06, marking an increase of approximately 3.9%[120]. Cash Flow - The company reported a net cash flow from operating activities of RMB -35,552,710.16 in 2013, a significant decrease from RMB 34,000,168.36 in 2012, reflecting a 204.57% decline[25]. - Cash flow from operating activities showed a net outflow of CNY 35,552,710.16, compared to a net inflow of CNY 34,000,168.36 in the previous year[130]. - The net cash flow from financing activities was -187,889,121.74 RMB, worsening from -90,675,726.76 RMB in the previous year, highlighting increased financial strain[134]. Dividends and Shareholder Returns - The company plans to not distribute cash dividends or issue bonus shares for the year 2013[8]. - The company distributed dividends totaling 8,372,760.00 RMB, reflecting a commitment to returning value to shareholders despite financial challenges[138]. Operational Segments - The textile segment's main business revenue decreased by RMB 23.45 million, a decline of 5.3%, while the pharmaceutical segment's revenue increased by RMB 30.90 million, a growth of 6.1%[30][36]. - The pharmaceutical segment received multiple GMP certifications in 2013, indicating a focus on regulatory compliance and product quality[34]. Management and Governance - The company has a diverse management team with members holding various educational backgrounds, including master's degrees and professional qualifications[91]. - The company’s board includes independent directors with significant experience in finance and economics, contributing to robust governance practices[93]. - The company has maintained stable leadership with no changes in key management positions reported during the year[90]. Risks and Challenges - The company has outlined potential risks in the long plush industry and pharmaceutical sector in its report[13]. - The long plush fabric industry is characterized by intense competition and seasonal consumption, with a notable trend towards personalized consumer demand, leading to increased operational challenges[64]. - The pharmaceutical sector faces rising production costs and regulatory pressures, but is expected to grow above GDP levels due to increased government investment and demographic changes[65]. Investments and Acquisitions - The company sold 14.1 million shares of Longjiang Securities at an average price of RMB 10.17 per share, generating an investment income of RMB 103 million[33]. - The company is exploring potential mergers and acquisitions to enhance its market position and diversify its product offerings[143]. Employee and Compensation - The company has established a performance evaluation and incentive mechanism linking senior management's remuneration to company performance and individual achievements[102]. - The total remuneration for all directors, supervisors, and senior management was 3.2829 million yuan[95]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the enterprise accounting standards, ensuring accuracy and completeness[151]. - The company recognizes cash flows in foreign currency at the spot exchange rate on the transaction date for income and expenses, with exchange rate fluctuations separately disclosed in the cash flow statement[3.6.2].