HAINAN RUBBER GROUP(SH:601118)2014-04-17 16:00Financial Performance - The company achieved a net profit of RMB 166,235,627.61 for the year 2013, with a total distributable profit of RMB 1,096,318,990.16 after accounting for dividends and reserves[6]. - The company reported an opening undistributed profit of RMB 1,148,151,538.43 at the beginning of the year, with a remaining undistributed profit of RMB 1,017,695,558.16 to be carried forward to the next year[6]. - The company's operating revenue for 2013 was CNY 11.695 billion, a slight increase of 0.18% year-on-year[25]. - The net profit attributable to shareholders for 2013 was CNY 156.16 million, a decrease of 47.38% compared to the previous year[25]. - The basic earnings per share for 2013 was CNY 0.0397, down 46.67% from CNY 0.0755 in 2012[23]. - The company reported a net cash flow from operating activities of CNY 350.09 million, a significant increase of 175.58% compared to the previous year[25]. - The total assets at the end of 2013 were CNY 12.017 billion, an increase of 8.00% from the previous year[25]. - The total operating revenue for the current period is CNY 11,694,732,913.16, a slight increase from CNY 11,674,134,793.86 in the previous period, representing a growth of approximately 0.17%[162]. - Net profit for the current period is CNY 161,847,740.48, down from CNY 305,048,849.95, indicating a decline of approximately 47.10%[162]. Dividend Distribution - A cash dividend of RMB 0.20 per share (including tax) is proposed, totaling RMB 78,623,432.00, which represents a cash dividend payout ratio exceeding 30% of the net profit attributable to shareholders[7]. - The company has implemented a cash dividend policy, distributing 0.50 RMB per 10 shares to shareholders for the 2012 fiscal year[73]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongshen Yatou Accounting Firm, affirming the accuracy of its financial statements[5]. - The company is committed to maintaining transparency and compliance with regulatory requirements in its financial disclosures[17]. - The company has no significant litigation or arbitration matters during the reporting period[76]. - The company has no penalties or required rectifications from regulatory authorities during the reporting period[95]. Market and Operational Strategy - The company plans to continue expanding its market presence and product offerings, focusing on high-quality natural rubber products[12]. - The company emphasizes the importance of risk management in its future development strategies, addressing potential market and operational risks[11]. - The company aims to become Asia's largest natural rubber enterprise by the end of the 12th Five-Year Plan, focusing on transitioning from traditional production to modern management[65]. - The company aims to achieve rubber sales of over 700,000 tons in 2014, with a goal of maintaining moderate revenue growth[67]. - The company plans to invest approximately 11.7 billion RMB to meet its operational and investment project funding needs for 2014[69]. Investments and Assets - The company completed investments totaling CNY 821 million in 2013, including CNY 391 million in biological assets and CNY 378.7 million in fixed assets[32]. - The company reported a significant increase in other current liabilities by 379.56%, amounting to CNY 86,746,002.09 from CNY 18,088,750.00[45]. - The company completed the planned rubber plantation update of 73,000 acres, achieving a cumulative total of 196,800 acres[54]. - The company has a total of 351.55 million mu of land use rights for rubber tree planting and other agricultural activities, with annual fees varying based on land classification[79]. Financial Management and Governance - The total compensation for the board members and senior management during the reporting period amounted to 420.65 million CNY before tax[119]. - The highest compensation among the board members was received by Lin Jinting, who earned 46.22 million CNY[118]. - The company has a diverse board with members holding various positions in the agricultural and rubber industries, enhancing its governance structure[120]. - The company maintains independence from its controlling shareholder in business, personnel, assets, organization, and finance, ensuring a complete governance structure[145]. Research and Development - The total R&D expenditure for the year was CNY 6,622,183.80, representing 0.06% of operating revenue[39]. - Research and development investments increased by 12%, focusing on sustainable rubber production technologies[131]. Cash Flow and Financial Position - The company reported a negative net cash flow from operating activities of RMB 0.31 billion and a negative net cash flow from investing activities of RMB 4.40 billion in 2013, while financing activities generated a net cash flow of RMB 7.61 billion (unaudited)[112]. - The company's cash and cash equivalents increased to CNY 1,804,355,610.35 from CNY 1,387,568,509.31, representing a growth of about 30.05%[156]. - Total liabilities increased to CNY 2,808,618,389.60 from CNY 1,929,339,263.76, representing a growth of approximately 45.5%[157]. Shareholder Structure - The total number of shares is 3,931,171,600, with 74.94% being restricted shares and 25.06% being unrestricted shares[100]. - The largest shareholder, Hainan Provincial Agricultural Reclamation Group, holds 2,869,012,024 shares, representing 72.98% of the total shares[107]. - The total number of shareholders at the end of the reporting period is 179,058[107]. Future Outlook - The company plans to enhance its marketing efforts and leverage its brand and customer resources to create new profit growth points through a "product service" business model[68]. - The company acknowledges the potential impact of natural disasters on rubber production and has developed comprehensive disaster prevention plans[70]. - The company anticipates that the natural rubber market prices may remain low and volatile, which could affect its gross margin and operational performance[71].