Long Ping High-Tech(SZ:000998)2014-06-24 16:00Financial Performance - The company achieved a total revenue of ¥1,884,716,266.51 in 2013, representing a year-over-year increase of 10.52%[34]. - Net profit attributable to shareholders reached ¥186,276,827.67, an increase of 8.90% compared to the previous year[34]. - The net profit after deducting non-recurring gains and losses was ¥83,667,075.19, reflecting a growth of 10.31% year-over-year[34]. - The net cash flow from operating activities was ¥246,920,747.64, up 17.95% from the previous year[34]. - The company’s total assets at the end of 2013 were ¥3,832,779,803.72, a 6.71% increase from the previous year[34]. - The company’s weighted average return on equity decreased by 0.32 percentage points to 14.62%[34]. - The company reported a significant increase in long-term equity investments, rising to ¥294,714,722.00, which accounted for 7.69% of total assets[65]. - The company reported a net profit for 2013, although specific figures were not disclosed, indicating a focus on enhancing shareholder returns[118]. Shareholder Returns - The company plans to distribute a cash dividend of 1 RMB per 10 shares (including tax) and to increase capital by converting reserves, with a bonus issue of 10 shares for every 10 shares held[6]. - The company reported a net profit attributable to the parent company of RMB 186,276,827.67 for the year 2013, with a cash dividend distribution of RMB 49,805,000, representing 26.74% of the net profit[103][104]. - The company’s cash dividend policy mandates a minimum of 10% of the distributable profit to be distributed as cash dividends annually, with a cumulative distribution of at least 30% of the average annual distributable profit over the last three years[104]. - The company has maintained a high cash dividend ratio, exceeding regulatory requirements, and has been recognized for its commitment to shareholder returns[108]. Business Operations - The company has been involved in the cultivation, breeding, promotion, and sales of hybrid rice and vegetables, as well as the research and production of new pesticides and fertilizers[21]. - The company’s main business scope includes high-tech agricultural crop seeds and seedlings, with a focus on hybrid rice and vegetables[21]. - The company’s business operations include the import and export of agricultural products and related technologies[21]. - The company is gradually exiting non-seed industry investments, having transferred shares in several underperforming subsidiaries and taken measures to mitigate operational risks[39]. - The company plans to focus on its core seed business while gradually exiting the agricultural chemical and real estate sectors[34]. Market Position and Competition - The company was recognized as the leading enterprise in China's seed industry, ranking first in the sector[34]. - The company faces significant risks including seed production sensitivity to weather, high inventory levels in the seed industry, and uncertainties in new product development and market acceptance[13]. - As of the end of the reporting period, the three target companies met their performance commitments for 2013, but there are uncertainties regarding their ability to meet future commitments due to increasing market competition[14]. - The seed industry is experiencing a supply surplus, with an effective total supply of hybrid rice seeds at approximately 420 million kg against a demand of about 295 million kg in 2013[89]. Research and Development - The company established a national research network platform, including 6 rice breeding stations and 7 corn breeding stations, enhancing its commercial breeding system[36]. - The company led the establishment of Huazhi Biotechnology, focusing on gene positioning, cloning, and protection of key traits in backbone parents, as well as the development of molecular markers and high-throughput detection technologies[2]. - The company had 14 new varieties approved during the reporting period, with 37 varieties from the Academy of Sciences passing various trials, ranking first among all research institutions and seed companies in China[2]. - The company plans to enhance its R&D capabilities to support its five-year development goals, focusing on high-throughput and standardized breeding[56]. Subsidiaries and Investments - The subsidiary Longping Seed Industry reported a total revenue of 521,181,411 yuan and a net profit of 173,615,271 yuan for the year[80]. - Anhui Longping's revenue for 2013 was 553,599,560.85 yuan, representing an increase from 503,718,357.36 yuan in the previous year[81]. - The company’s subsidiary set up a research institute with a registered capital of RMB 10 million, with an initial investment of RMB 5 million, included in the consolidated financial statements[96]. - The company has invested in various funds, including a total of 1,240,000 yuan in the China Europe CSI 300 fund, resulting in a loss of 50,864.06 yuan[75]. Corporate Governance - The company has established a robust governance structure with multiple independent directors across different sectors[181]. - The company has a strong commitment to corporate governance, with clear procedures for remuneration decisions[182]. - The company has maintained compliance with corporate governance standards as per the Company Law and relevant regulations, ensuring no discrepancies were found[190]. - The company emphasized the importance of independent directors in maintaining corporate governance and transparency[199]. Risk Management - The company faces significant risks including seed production sensitivity to weather, high inventory levels in the seed industry, and uncertainties in new product development and market acceptance[13]. - The company is actively managing its debt obligations as part of its financial strategy, although specific figures were not disclosed[119]. - The company is exploring potential mergers and acquisitions to expand its market reach and capabilities[118]. Social Responsibility - The company provided a total donation of 362,770 yuan to aid earthquake relief efforts in Ya'an, Sichuan Province[110]. - The company emphasizes social responsibility while expanding its hybrid rice industry[110]. - The company has conducted nearly 70 agricultural technology training sessions, benefiting over 3,000 officials and technicians from more than 80 countries[110]. Asset Restructuring - The company initiated a major asset restructuring process, with stock suspension starting on May 3, 2013, and resuming on July 6, 2013[137]. - The restructuring was approved by the China Securities Regulatory Commission on December 27, 2013, with the transfer of equity completed[138]. - The company completed a major asset restructuring, which did not have a significant impact on its asset-liability structure[156]. - The company issued 82,250,000 shares for the acquisition of minority interests in subsidiaries, increasing total shares from 415,800,000 to 498,050,000[145].