GOHIGH(SZ:000851)2014-03-17 16:00Business Focus and Strategy - The company reported a significant change in its main business focus, shifting to enterprise information services and IT sales by the end of the reporting period[19]. - The company plans to enhance its business sustainability and profitability by optimizing its asset structure and integrating internal and external resources[34]. - The company has focused on expanding three key business segments to improve profitability and sustainable development capabilities[34]. - The company aims to explore new business avenues, including internet lottery services, as part of its e-commerce strategy[37]. - The company plans to focus on enterprise information services, targeting key industry markets such as education, finance, broadcasting, and mining[98]. - The company is actively pursuing market expansion strategies, particularly in the information technology sector[120]. - The company is actively exploring new business opportunities in mobile internet and e-commerce, particularly in internet lottery and insurance agency services[99]. Financial Performance - The company's operating revenue for 2013 was ¥6,198,358,597.83, representing a year-on-year increase of 34.25%[32]. - The net profit attributable to shareholders was ¥52,176,395.94, a significant increase of 108.66% compared to the previous year[32]. - The net cash flow from operating activities reached ¥150,421,427.04, showing a remarkable improvement of 511.3% year-on-year[32]. - The company's total assets increased by 53.39% to ¥5,507,345,220.01 at the end of 2013[32]. - The basic earnings per share increased by 40.81% to ¥0.1011, reflecting the company's improved financial performance[32]. - The gross profit margin for the year was impacted by a 35.86% increase in operating costs, which totaled ¥5,885,282,681.14[33]. Investments and Acquisitions - The company acquired a 36.351% stake in Beijing Gaoyang Jiexun Information Technology Co., Ltd. for a total consideration of RMB 269 million, which includes a cash payment of RMB 169 million and a capital increase of RMB 100 million[123]. - The company plans to issue shares to acquire the remaining equity of Gaoyang Jiexun, pending board and regulatory approvals[126]. - The company has invested in multiple IT sales and enterprise information technology businesses, with significant stakes in various subsidiaries[62]. - The company reported a total investment of RMB 107,943.4 million in various projects, with a significant focus on e-commerce and digital media[78]. Research and Development - Research and development expenses rose by 116.16% to ¥51,742,627.81, driven by increased investment in new and ongoing projects[33]. - Research and development expenditures were increased to enhance the company's core competitiveness, focusing on IP communication products and IoT technology[47]. - R&D expenditure accounted for 0.83% of operating revenue, up from 0.52% year-on-year, an increase of 0.32%[48]. Corporate Governance and Management - The company’s financial report has been confirmed as true, accurate, and complete by its management team[4]. - The company’s board of directors has ensured that all members attended the meeting to review the annual report[5]. - The company has not changed its accounting policies or estimates compared to the previous year, ensuring consistency in financial reporting[102]. - The company has established an insider information registration management system and has not found any instances of insider trading[195]. Shareholder and Stock Information - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company’s stock is listed on the Shenzhen Stock Exchange under the code 000851[16]. - The company has cumulatively distributed cash dividends of 30.96 million yuan over the past three years, reflecting a commitment to shareholder returns[110]. - The total number of shareholders at the end of the reporting period was 76,655, an increase from 76,024 prior to the report date[170]. Risks and Challenges - The company has not reported any major risks in its operations for the year[12]. - The company faces challenges in its enterprise information services due to limited product competitiveness and outdated marketing models[94]. - The company anticipates a significant change in cumulative net profit from the beginning of the year to the next reporting period, potentially resulting in a loss[90]. Operational Highlights - The company has maintained its controlling shareholder status since the completion of its asset restructuring in 2003, with no changes reported[19]. - The company has engaged Lixin Certified Public Accountants for auditing services during the reporting period[20]. - The company has established a strong marketing network with branches in most provinces, enhancing its competitive advantage[59]. - The company has not reported any overdue principal or interest from entrusted financial management[75].