GREE(SZ:000651)2014-04-24 16:00Financial Performance - The company achieved total operating revenue of CNY 118.63 billion in 2013, representing a year-on-year increase of 19.44%[18] - The net profit attributable to shareholders reached CNY 10.87 billion, up 47.31% compared to the previous year[18] - Basic earnings per share were CNY 3.61, reflecting a growth of 46.15% year-on-year[18] - The company's total assets increased by 24.3% to CNY 133.70 billion by the end of 2013[18] - The company reported a gross profit margin of 34.09% for its home appliance manufacturing segment, reflecting a 6.82% increase compared to the previous year[33] - The company reported a significant increase in retained earnings, which rose to RMB 25.40 billion from RMB 17.57 billion, reflecting a growth of 45.0%[163] - The company reported a net profit of CNY 5,986,905,538.79, with a total distributable profit of CNY 11,793,650,274.21 after accounting for previous undistributed profits[77] - The company reported a cash dividend payout ratio of 41.50% for 2013, compared to 40.76% in 2012[81] Market Position - The market share of the company's central air conditioning in China was 15.7%, leading the market by 4.5 percentage points over the second competitor[23] - The company maintained its position as the top producer and seller of household air conditioners, with production and sales exceeding the second competitor by 1.19 million units and 1.19 million units respectively in 2013[23] - Gree Electric Appliances aims to achieve a sales revenue of 140 billion CNY in 2014, with an average annual growth of 20 billion CNY in subsequent years[49] - The company aims to maintain its leading position in the household air conditioning market by focusing on product line development and energy-saving technologies, including inverter technology and advanced sensors[53] Innovation and Development - The company launched several innovative products, including the world's first photovoltaic direct-drive variable frequency centrifugal chiller system, which was recognized as internationally leading technology[26] - The company is focusing on self-development, independent innovation, and brand ownership as part of its future development strategy[49] - The company emphasizes a strategy of "innovation" focusing on four key areas: technological innovation, management innovation, channel innovation, and talent cultivation[51] - The company is committed to developing energy-efficient and environmentally friendly products, with a focus on high-end technologies such as dual-stage compression and heat recovery systems[54] - The company is dedicated to investing in research and development, with a principle of "unlimited investment based on demand" for technological innovation[58] Financial Management - The net cash flow from operating activities was CNY 12.97 billion, a decrease of 29.55% from the previous year[18] - The company's weighted average return on equity was 35.77%, an increase from 31.38% in the previous year[18] - The company has implemented risk management measures for derivative investments, including strict limits on hedging quantities[44] - The company’s derivative investments are deemed feasible and controllable in terms of risk, contributing to its competitive advantage[44] - The company reported a significant increase in sales expenses, which rose to RMB 22.51 billion from RMB 14.63 billion, a 54% increase[165] Corporate Governance - The company has maintained a continuous relationship with the auditing firm for 11 years, paying an audit fee of 3.1 million CNY for the 2013 fiscal year[92] - The company’s governance structure complies with relevant laws and regulations, ensuring accurate and timely information disclosure[134] - The audit committee communicated effectively with external auditors regarding the audit plan and financial statements, ensuring the accuracy of the financial reports[138] - The board of directors has established a performance evaluation system for senior management based on various criteria including morality, ability, diligence, and performance[144] Employee Management - The company has a total of 72,150 employees as of December 31, 2013[122] - Employee training coverage reached 100% in 2013, with over 10,500 training sessions conducted throughout the year[130] - The average satisfaction rate for training participants was 91.8%, with internal lecturers conducting an average of 14 sessions each[130] - The company emphasizes the importance of employee training and welfare, ensuring all employees receive at least one week of training annually[72] Investment and Assets - The total amount of raised funds was CNY 319,528.70 million, with CNY 278,498.71 million invested by the end of 2013[45] - The company has committed to using raised funds for specific projects without any changes to the investment plans[45] - The total assets of the units included in the internal control evaluation accounted for 99% of the total assets in the consolidated financial statements[146] - The company reported a significant increase in cash and cash equivalents, which rose to RMB 38.54 billion, compared to RMB 28.94 billion at the beginning of the period, marking an increase of 33.3%[163] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[165] - The company aims to enhance its workforce by improving recruitment and training processes, aiming to increase the timely rate of talent placement[55] - The company has established an information technology committee to enhance business management processes and improve operational efficiency[27]