CTS Logistics(SH:603128)2014-04-18 16:00Financial Performance - The company achieved an operating revenue of RMB 8.53 billion in 2013, representing a year-on-year increase of 13.99%[39]. - Net profit attributable to shareholders was RMB 81.32 million, up 6.73% compared to the previous year[39]. - The basic earnings per share decreased by 4.76% to RMB 0.20 from RMB 0.21 in 2012[33]. - The weighted average return on equity fell to 6.4%, a decrease of 1.6 percentage points from 2012[33]. - The company's revenue for the current period reached ¥8.53 billion, a year-on-year increase of 13.99% compared to ¥7.49 billion in the same period last year[51]. - The cost of goods sold increased to ¥8.07 billion, reflecting a 14.44% rise from ¥7.05 billion in the previous year[51]. - The supply chain trade business generated ¥3.98 billion in revenue, marking a significant growth of 48.08% compared to ¥2.69 billion last year[53]. - Operating cash flow was negative at ¥224.63 million, worsening by 30.50% from a loss of ¥172.13 million in the previous year[51]. - The company reported a significant decrease in financing cash flow, down 59.15% to ¥200.11 million from ¥489.89 million last year[51]. - The company recorded a net cash outflow of 43.45 million RMB from investment activities, a decrease of 19.88% compared to the previous year[81]. Business Operations - The company’s main business has not changed since its listing[28]. - The company’s controlling shareholder has not changed since its listing[29]. - The company expanded its core business with air freight volume increasing by 6.04% and sea freight volume by 1.32%[40]. - The supply chain trade business revenue grew significantly by 48.08% year-on-year[40]. - The company established 6 new wholly-owned subsidiaries in key cities, enhancing its service network[44]. - A new integrated information system for cross-border logistics is set to launch in July 2014, supporting operational needs[46]. - The company is focusing on strategic growth in supply chain trade and logistics services, indicating potential for future revenue increases[56]. - The company plans to enhance its international engineering logistics and third-party warehousing logistics capabilities to improve profitability[92]. - The company has increased its focus on optimizing customer structure in international sea freight to enhance gross profit margins[94]. - The company is enhancing its core businesses: international air transport, international sea transport, and supply chain trade, to increase market share and profitability[188]. Investments and Capital Management - The company raised a total of RMB 666 million from its initial public offering, with a net amount of RMB 609.82 million after deducting issuance costs[121]. - As of the end of the reporting period, the company has utilized RMB 44.695 million of the raised funds, leaving RMB 17.438 million unutilized[121]. - The company has committed to investing RMB 50 million in various projects, with a total of RMB 28.695 million actually invested by the end of the reporting period[128]. - The company invested 25.13 million RMB in the construction of a logistics center, contributing to future core competitiveness[81]. - The company has implemented an effective incentive mechanism, including a stock option plan in 2013, to maximize shareholder value[115]. Risk Management - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantive commitments to investors, highlighting investment risks[10]. - The company is facing risks related to macroeconomic fluctuations, which could impact international trade volumes and logistics demand[200]. - The company is committed to improving its internal control systems to mitigate risks and ensure sustainable development[197]. Audit and Compliance - The company received a standard unqualified audit report from Dahua Certified Public Accountants[8]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[11]. - The company has not violated any decision-making procedures in providing guarantees[11]. Shareholder Returns - The company plans to distribute a dividend of RMB 0.85 per share for the fiscal year 2013, totaling RMB 34 million based on 40 million shares outstanding[9]. Market Position - The company holds 100% indirect ownership of various subsidiaries engaged in comprehensive cross-border logistics services, indicating a strong market presence[177]. - The competitive landscape of the cross-border logistics industry is characterized by a "tripartite" structure, with traditional state-owned enterprises, emerging private logistics firms, and foreign logistics companies all vying for market share[185].