HX GROUP(SH:600851)2015-04-29 16:00Financial Performance - In 2014, the company achieved a net profit attributable to shareholders of RMB 290,932,918.64, a significant increase of 344.90% compared to RMB 65,392,909.05 in 2013[2]. - The total operating revenue for 2014 was RMB 1,110,193,673.88, representing a decrease of 12.00% from RMB 1,261,643,887.53 in 2013[26]. - The basic earnings per share for 2014 was RMB 0.2410, a rise of 344.65% from RMB 0.0542 in 2013[27]. - The weighted average return on equity increased to 6.99% in 2014, up by 4.76 percentage points from 2.23% in 2013[27]. - The company reported a net cash flow from operating activities of RMB 31,335,340.67 in 2014, a recovery from a negative cash flow of RMB 35,552,710.16 in 2013[26]. - The company achieved operating revenue of 1.11 billion RMB in 2014, a year-on-year decrease of 12%[36]. - The net profit attributable to shareholders reached 291 million RMB, representing a year-on-year increase of 345%[36]. - Total assets increased to 7.27 billion RMB, up 66% year-on-year, while net assets rose to 5.33 billion RMB, an increase of 78%[36]. Segment Performance - The textile segment reported operating revenue of 527 million RMB, with a net loss of 24.72 million RMB, a year-on-year increase in loss of 186%[37]. - The pharmaceutical segment generated operating revenue of 568 million RMB, with a net profit of 27.69 million RMB, reflecting a year-on-year growth of 21%[37]. - Financial investments yielded a net income of 427.54 million RMB, a year-on-year increase of 207%[38]. Asset Management - The company reduced its stake in Changjiang Securities by 52.7 million shares, significantly improving operational liquidity[38]. - The asset disposal loss from non-current assets was 39.5 million RMB in 2014, compared to a gain of 189.31 thousand RMB in 2013[30]. - The company received government subsidies amounting to 5.69 million RMB, up from 1.76 million RMB in 2013[30]. - The fair value of available-for-sale financial assets increased by 2.65 billion RMB, impacting profit by 504.80 million RMB[33]. Research and Development - Research and development expenses amounted to RMB 16.56 million, an increase of 59.57% year-on-year[41]. - The company plans to focus on enhancing research and development capabilities to adapt to stricter regulatory policies in the pharmaceutical industry[73]. - The company has increased its R&D investment, but faces challenges due to longer drug approval cycles and higher investment risks[75]. Shareholder Information - The company reported a total of 122,158 shareholders at the end of the reporting period, with 80,687 holding A shares and 41,471 holding B shares[98]. - The largest shareholder, Shanghai Songjiang Dongjing Industrial Company, holds 90,613,819 shares, accounting for 7.51% of total shares[101]. - The company does not have a controlling shareholder, as the largest shareholder's stake is below 50%[105]. Governance and Compliance - The company is committed to improving internal controls and governance to ensure compliance with operational standards[74]. - The company has not received any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[89]. - The company executed new accounting standards starting July 1, 2014, which included seven revised accounting standards impacting financial reporting[90]. Future Strategies - The company aims to continue structural adjustments in the plush industry and has made progress in product market expansion and production line upgrades in the pharmaceutical sector[60]. - The company plans to adopt a dual strategy of "external expansion + internal adjustment" over the next three to five years to enhance management and seize new investment opportunities[72]. - The company plans to enhance infrastructure and optimize resource utilization as part of its future development strategy[104]. Financial Position - The company's total assets increased to CNY 7,349,980,237.24 from CNY 4,354,540,878.67, representing a growth of approximately 69%[166]. - Total liabilities rose to CNY 1,255,955,315.55, compared to CNY 702,322,294.15, indicating an increase of about 79%[166]. - The equity attributable to shareholders increased to CNY 6,094,024,921.69 from CNY 3,652,218,584.52, reflecting a growth of approximately 67%[166]. Employee Information - The number of employees in the parent company was 120, while the total number of employees in major subsidiaries was 2,188, resulting in a combined total of 2,308 employees[126]. - The company has established a compensation policy that includes fixed and performance-based pay, with performance pay linked to company and individual performance[127]. Cash Flow - Cash inflow from operating activities totaled CNY 1,363,459,856.40, while cash outflow was CNY 1,332,124,515.73, resulting in a positive net cash flow[175]. - The net cash flow from financing activities was CNY -247,499,952.51, worsening from CNY -149,754,004.31 in the previous year, indicating increased financing costs[175].