CHINT ELECTRICS(SH:601877)2014-03-21 16:00Financial Performance - The company achieved a net profit of CNY 1,441,980,512.80 for the year 2013, with an increase in retained earnings to CNY 1,508,706,968.56 after profit distribution[5]. - Net profit attributable to shareholders reached RMB 1.54 billion, an increase of 22.21% compared to the previous year[22]. - The company reported a net profit of approximately 1.54 billion RMB for 2013, with a cash dividend payout ratio of 65.30%[68]. - The company achieved a revenue of RMB 11.96 billion in 2013, representing a year-on-year growth of 11.71%[22]. - The basic earnings per share (EPS) for 2013 was RMB 1.53, reflecting a growth of 21.43% from 2012[23]. - The total operating revenue for the period reached ¥11,956,507,239.13, an increase of 11.7% compared to ¥10,703,163,376.13 in the previous period[143]. - Net profit for the period was ¥1,691,032,133.57, representing a growth of 20.7% from ¥1,401,091,863.25 year-on-year[143]. Dividends and Shareholder Returns - A cash dividend of CNY 6 per 10 shares was distributed to shareholders, totaling CNY 603,000,000.00, and an additional CNY 4 per 10 shares was distributed later, totaling CNY 402,000,000.00[5]. - The company plans to distribute a cash dividend of CNY 6 per 10 shares based on the existing share capital of 1,008,018,000 shares, amounting to CNY 604,810,800.00[6]. - The company distributed cash dividends of 6 RMB per 10 shares for the 2012 fiscal year, totaling 603 million RMB, and 4 RMB per 10 shares for the first half of 2013, totaling 402 million RMB[67]. - The company plans to distribute cash dividends of 6 RMB per 10 shares for the 2013 fiscal year, totaling approximately 604.81 million RMB, pending shareholder approval[68]. Cash Flow and Financial Position - The company's cash flow from operating activities was RMB 637.71 million, a significant decrease of 74.98% year-on-year[29]. - The net cash flow from operating activities decreased by 74.98% to CNY 637,711,952.63 compared to the previous year, primarily due to increased use of bank acceptance bills for settlements[38]. - The company's total assets at the end of 2013 were RMB 11.01 billion, up 11.18% from the previous year[22]. - The company's total assets decreased by 49.92% in cash and cash equivalents, amounting to CNY 1,986,479,386.23[45]. - The company reported a significant increase in retained earnings, reaching CNY 1,650,623,536.24, up from CNY 1,245,524,563.17, which is an increase of about 32.5%[137]. - The total cash and cash equivalents at the end of 2013 were ¥1,404,114,957.07, down from ¥3,127,836,481.26 at the end of the previous year[153]. Operational Highlights - The company produced 65.82 million low-voltage electrical products, marking a 15.37% increase in production volume year-on-year[30]. - New product sales increased by 35.6% during the reporting period[32]. - The total operating revenue for the low-voltage electrical business was CNY 11,738,049,213.02, with a year-on-year increase of 11.26%[43]. - The company completed 98 smart electrical product development projects, 56 measurement instrument projects, and 15 home smart electrical projects in 2013, obtaining a total of 173 patents[47]. Research and Development - Research and development expenses increased by 15.90% to RMB 455.44 million in 2013[29]. - The total R&D expenditure for the period was CNY 455,436,360.05, accounting for 8.08% of net assets and 3.81% of operating revenue[37]. Market and Strategic Outlook - The company aims to enhance its international brand presence and expand into emerging markets, particularly in the Middle East, Africa, and Southeast Asia[61]. - The smart grid construction is projected to enter a rapid growth phase, with market growth rates of 20-25% for smart substations and over 30% for smart distribution networks in the next five years[58]. - The company plans to achieve a sales revenue growth of 12% and a net profit growth of 13% in 2014, with new product sales expected to increase by over 50%[62]. - Future guidance indicates a strategic shift towards renewable energy solutions, aligning with global market trends[95]. Governance and Compliance - The company has a standard unqualified audit report issued by Tianjian Certified Public Accountants[4]. - The company has not faced any major lawsuits or arbitration issues during the reporting period[69]. - The company emphasizes strict compliance with information disclosure regulations, ensuring all shareholders have equal access to information[115]. - The independent directors have not raised any objections to board resolutions or other matters during the reporting period[120]. Employee and Management Information - The company has over 10,000 employees, with rising labor costs in the Yangtze River Delta region posing a risk to production costs[65]. - The total remuneration for directors, supervisors, and senior management in 2013 amounted to 8.182 million yuan[105]. - The company has implemented a performance-based remuneration system for senior management, which includes a basic salary and performance incentives[105]. Risks and Challenges - The company faces risks from raw material price fluctuations, with over 80% of total product costs attributed to materials like copper, silver, and steel[64]. - The company has outlined potential risk factors affecting its future development in the board report[10]. - The company is committed to enhancing energy efficiency and environmental protection in response to national policies, which may impact product design and production[65].