XJEC(SZ:000400)2014-04-22 16:00Financial Performance - The company achieved operating revenue of ¥7,154,625,534.18, an increase of 8.21% compared to the previous year[34]. - Net profit attributable to shareholders reached ¥522,911,742.68, reflecting a growth of 57.5% year-on-year[34]. - The net cash flow from operating activities increased by 63.14% to ¥811,901,957.36, driven by expanded business scale and increased receivables[40]. - Total assets at the end of the year amounted to ¥8,290,920,937.11, a 19.71% increase from the previous year[34]. - The gross profit margin improved, with operating costs rising by only 8.14% against the revenue growth of 8.21%[38]. - The company reported a significant reduction in financial expenses by 41.21%, attributed to loan repayments and optimized financing structure[38]. - The company reported a cash dividend of 67,221,820.60 CNY for the year 2013, which represents 12.86% of the net profit attributable to shareholders[84]. - The company’s net profit attributable to shareholders for 2013 was 522,911,742.68 CNY, with a total distributable profit of 927,766,721.12 CNY[84]. Shareholder Information - The company plans to distribute a cash dividend of 1 RMB per 10 shares and issue 3 bonus shares for every 10 shares held, along with a capital reserve conversion of 2 shares for every 10 shares[6]. - The company plans to issue 2 bonus shares for every 10 shares held, in addition to the cash dividend, based on a total share capital of 672,218,206 shares[85]. - The largest shareholder, Xuchang Group Co., Ltd., holds 19.38% of the shares, amounting to 95,312,386 shares, with an increase of 21,995,166 shares during the reporting period[116]. - The second largest shareholder, Ping An Trust Co., Ltd., holds 5% of the shares, totaling 24,572,087 shares, with an increase of 4,685,866 shares[116]. - The top ten shareholders include several investment funds, with the largest being the Invesco Great Wall Blue Chip Equity Fund, holding 3.97% or 19,500,000 shares[116]. Market and Competition - Market competition remains a concern, with increased pressure from both domestic and international competitors in the power distribution sector[15]. - The company faces risks related to policy changes that could impact its operations in the power distribution and control equipment manufacturing industry[14]. - The company has faced risks from market competition and raw material price fluctuations, which could impact its operating performance[77][78]. - The company is a leading player in the domestic power transmission and transformation equipment industry, but competition from both domestic and international firms is intensifying[77]. Research and Development - The company’s R&D expenditure was ¥303,256,013.22, a slight increase of 0.45% compared to the previous year, indicating ongoing investment in product development[40]. - The company has a strong research and innovation capability, focusing on providing integrated solutions and has established a vibrant product innovation mechanism[67]. - The company successfully launched several new products, including the world's first NIS-R environmentally friendly gas-insulated switchgear[35]. Risk Management - The company is exposed to raw material price fluctuations, which significantly affect its production costs, particularly for steel and non-ferrous metals[16]. - The company emphasizes unified procurement strategies to mitigate raw material price risks and enhance scale efficiency[16]. - The company has established a risk management plan to ensure the safety of deposits with China Power Financial Co., Ltd.[96]. Internal Control and Governance - The company conducted a comprehensive evaluation of its internal control system, ensuring compliance with legal and regulatory requirements[155]. - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2013, in all material respects[179]. - The board of directors is responsible for the establishment and effective implementation of internal controls, with the supervisory board overseeing this process[176]. - The company has implemented various internal management systems, including rules for shareholder meetings and information disclosure, to enhance governance and accountability[181]. Auditor and Compliance - The company has engaged Ruihua Certified Public Accountants for auditing services during the reporting period[24]. - The company’s financial report received a standard unqualified audit opinion, affirming the fair presentation of its financial statements[184]. - The current auditor, Ruihua Certified Public Accountants, has been engaged for 2 years, with an audit fee of 700,000 CNY[101]. Employee and Management - The company employed a total of 5,169 staff, including 2,785 technical personnel, 1,469 production staff, and 671 sales personnel[149]. - The company has a strong educational background among employees, with 2,074 holding bachelor's degrees, 454 with master's degrees, and 25 with doctoral degrees[149]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 8.163 million yuan[142]. - The company has implemented a position salary system for its directors and senior management, with remuneration based on performance evaluation and completion of annual targets[142]. Strategic Direction - The company aims to become an international first-class high-end intelligent energy equipment manufacturer and system solution provider[74]. - The company aims to expand its market presence and enhance its product offerings through strategic initiatives and potential acquisitions[124]. - In 2014, the company plans to accelerate the development of modern industries and enhance technological innovation, focusing on high-end equipment research and development[76].