SED(SZ:000032)2014-04-28 16:00Financial Performance - The company's operating revenue for 2013 was CNY 1,625,440,937.16, representing a 7.16% increase compared to CNY 1,516,874,572.89 in 2012[17]. - The net profit attributable to shareholders of the listed company decreased by 95.27% to CNY 8,486,832.03 from CNY 179,582,670.71 in the previous year[17]. - The net cash flow from operating activities was negative at CNY -54,597,517.99, a decline of 314.5% compared to CNY 25,453,167.75 in 2012[17]. - Basic earnings per share dropped to CNY 0.04, down 95.27% from CNY 0.77 in 2012[17]. - Total assets at the end of 2013 were CNY 1,501,408,866.53, a decrease of 11.26% from CNY 1,692,009,584.00 at the end of 2012[17]. - The net assets attributable to shareholders of the listed company decreased by 3.62% to CNY 876,744,908.73 from CNY 909,719,940.70 in 2012[17]. - The total profit for the year was 40.1 million RMB, representing a significant decline of 82.77% compared to the previous year[21]. - The company reported a significant increase in net profit excluding non-recurring gains and losses, reaching CNY 3,092,890.16, compared to a loss of CNY -23,195,179.48 in 2012[17]. Dividends and Profit Distribution - The company proposed a cash dividend of CNY 0.30 per 10 shares based on a total share capital of 232,864,320 shares as of December 31, 2013[4]. - The company’s profit distribution plan for 2013 allows for a total distributable profit of CNY 125,898,999.00, with CNY 118,913,069.40 retained for future distribution[73]. - The company declared a cash dividend of CNY 0.30 per 10 shares, totaling CNY 6,985,929.60 for the year 2013, which represents 100% of the total profit distribution[77]. - The cash dividend payout ratio for 2012 was significantly lower at 23.34%, with a total net profit of CNY 179,582,670.71[77]. Strategic Initiatives and Partnerships - The company signed a joint venture agreement with Philips Lighting to invest 100 million RMB in an LED lighting project, marking a strategic shift towards smart lighting solutions[22]. - The company is transitioning from traditional manufacturing to becoming a provider of smart commercial IT solutions, responding to market changes in payment technologies[23]. - The company aims to transform into a modern information service industry, focusing on the "one main and two wings" development strategy, leveraging its strengths in LED lighting, commercial POS terminals, and power technology[62]. - The company plans to establish a joint venture with Philips Electronics China B.V., contributing RMB 70 million for a 70% stake in Shenzhen Zhongdian Sangfei Intelligent Lighting Technology Co., Ltd., which has a total registered capital of RMB 100 million[114]. Innovation and R&D - The company applied for 26 new patents and received 24 new patent authorizations in 2013, reflecting its commitment to innovation[25]. - The company has over 20 patents related to tax control products, enhancing its competitive edge in the market[49]. - The company allocated 50 million RMB for research and development in new technologies for the upcoming fiscal year[163]. Market and Sales Performance - The sales volume of LED lighting products decreased by 51.11% year-on-year, primarily due to reduced demand in overseas markets[28]. - The real estate segment reported a revenue increase of 48.40% year-on-year, attributed to higher income recognition from the subsidiary Wuxi Fuda Real Estate[29]. - The commercial trade sector achieved revenue of ¥1,000.43 million, an increase of 8.56% year-over-year, with a gross margin of 2.76%[39]. - The real estate sector saw revenue of ¥347.94 million, up 48.66% year-over-year, with a gross margin of 50.89%[39]. Financial Management and Risk Control - The company has established a risk control mechanism to ensure the safety and flexibility of its funds, including a risk emergency response plan[101]. - The company has implemented a management system for insider information, with regular registration of undisclosed information provided to major shareholders, ensuring compliance with relevant laws and regulations[173]. - The company’s financial operations are governed by an independent financial department, with a separate accounting system and financial management policies in place[175]. - The company has established a comprehensive internal control system, ensuring effective management across all operational aspects, with the internal control self-assessment report reflecting the current state of the internal control system[173]. Corporate Governance and Shareholder Engagement - The company has a structured approach to assess the performance of senior management, which influences their remuneration[143]. - The company has actively engaged in investor relations, participating in online investor reception activities to discuss governance and future development[153]. - The company held its annual general meeting on June 18, 2013, where all proposed resolutions were approved, including the financial report for the year 2012[156]. - The company conducted two temporary shareholder meetings in 2013, with the first on September 26, approving the election of new board members and the second on October 28, approving the appointment of an auditing firm for the 2013 financial report[157]. Employee and Management Structure - The company employed a total of 1,221 employees at the end of the reporting period, including 28 with master's degrees or higher and 238 with bachelor's degrees[148]. - The company has implemented a performance-linked compensation policy for employees, ensuring that income levels increase moderately with economic growth[149]. - The management team is committed to fulfilling their responsibilities diligently during the transition period[135]. Related Party Transactions - The total amount of related party transactions for the year reached CNY 9,120.95 million, with significant transactions including procurement and service provision[95]. - The pricing for related party transactions was based on market prices, ensuring compliance with fair market practices[94]. - The company confirmed that related party transactions do not affect its independence and do not create dependency on related parties[95]. Audit and Compliance - The audit committee held 5 meetings during the reporting period to review the company's 2013 financial statements and internal control systems[166]. - The company engaged Lixin Certified Public Accountants for the annual financial report and internal control audit, which provided a standard unqualified audit opinion[191]. - The company reported a sound financial condition for 2013, with a standard unqualified opinion from the auditing firm, indicating that the financial statements accurately reflect the company's financial status and operating results[172].