TECON(SZ:002100)2014-04-18 16:00Financial Performance - The company's operating revenue for 2013 was CNY 3,724,760,232.88, representing an increase of 11.94% compared to CNY 3,327,313,393.33 in 2012[26] - The net profit attributable to shareholders of the listed company reached CNY 169,797,437.94, a significant increase of 57.2% from CNY 108,011,991.72 in the previous year[26] - The net profit after deducting non-recurring gains and losses was CNY 163,137,925.26, up 71.6% from CNY 95,067,929.94 in 2012[26] - The basic earnings per share increased to CNY 0.42, a 50% rise from CNY 0.28 in 2012[26] - The total assets at the end of 2013 were CNY 2,876,400,746.04, reflecting a growth of 13.82% from CNY 2,527,066,933.35 in 2012[26] - The net assets attributable to shareholders of the listed company increased by 40.3% to CNY 1,694,618,653.35 from CNY 1,207,819,822.17 in 2012[26] - The weighted average return on equity was 11.94%, an increase of 2.68% from 9.26% in 2012[26] - The company achieved a net profit of CNY 169.80 million in 2013, representing a 57.20% increase compared to the previous year[38] - Total operating revenue for 2013 was CNY 3.72 billion, an increase of 11.83% year-on-year[40] Cash Flow and Investments - The net cash flow from operating activities was CNY 90,606,336.63, showing a decrease of 67.96% compared to CNY 282,804,990.07 in the previous year[26] - The company reported a net cash flow from operating activities of CNY 90.61 million, a decrease of 67.96% from the previous year[40] - Operating cash inflow totaled ¥4.03 billion, a 19.03% increase from the previous year, while operating cash outflow increased by 26.96% to ¥3.94 billion[56] - Investment cash outflow increased by 92.03% to ¥270.00 million, leading to a net cash flow from investment activities of -¥241.57 million[57] - Financing cash inflow rose by 36.4% to ¥1.02 billion, resulting in a net cash flow from financing activities of ¥39.84 million[57] Business Segments and Operations - The company's R&D investment rose to CNY 60.37 million, reflecting a growth of 6.35% from 2012[40] - The feed business in the Northwest region recorded sales of 49,190 tons, up 15.36% year-on-year[40] - The pharmaceutical business achieved sales revenue of CNY 73.32 million, a significant increase of 320% compared to the previous year[40] - The total feed production volume was 822,210 tons, reflecting a year-on-year increase of 6.84%[42] - The gross profit margin for the feed segment was 9.02%, with revenue from feed reaching approximately ¥2.63 billion, a 16.56% increase year-on-year[60] - The total revenue for the veterinary medicine segment reached ¥541,577,371.37, showing a significant increase of 63.5% compared to the previous year[61] - The revenue from the feed additives segment was ¥88,640,296.30, reflecting a growth of 6.48% year-over-year[61] Risks and Challenges - The company faces risks related to raw material price fluctuations, livestock diseases, and price volatility in livestock products, which could impact its performance[13][14][15] - The company faces risks from raw material price fluctuations, particularly for corn and soybean meal, which could adversely affect feed business performance[123] - The feed industry is undergoing significant adjustments, with predictions that over 30% of small and medium-sized feed enterprises may exit the market in the next five years due to increased industry standards[97] - The rising production costs in the feed industry are squeezing profit margins, with a notable decline in profit rates compared to the 1980s and 1990s[98] Shareholder and Governance - The company plans to distribute a cash dividend of CNY 1.20 per 10 shares (including tax) to all shareholders[5] - The cash dividend for 2013 was set at 1.20 RMB per share, amounting to a total distribution of 52,099,085.28 RMB, which represents 30.68% of the net profit attributable to shareholders[137] - The company maintained a stable profit distribution policy, ensuring a balance between shareholder interests and sustainable development[131] - The company has a comprehensive governance structure, ensuring the protection of shareholder rights and promoting effective communication with investors[138] - The company is committed to a stable profit distribution policy, planning to distribute at least 10% of the annual distributable profits in cash to shareholders[170] Future Outlook and Strategy - The company will focus on expanding its core business in feed and veterinary biological products, enhancing its core competitiveness and risk resistance[118] - The company aims to achieve a feed production and sales volume of 1 million tons within 2 years, entering the ranks of large feed enterprises nationwide[118] - The company is focusing on developing low-nitrogen and low-phosphorus environmentally friendly feed products, which have significant market potential[102] - The company is preparing to adopt advanced production technologies to improve efficiency and reduce processing losses[104] - The company has ongoing projects with a total planned investment of 1.787 billion yuan, of which 1.4104 billion yuan has been invested to date[95] Related Party Transactions - The estimated total amount of related party transactions for 2013 was CNY 250 million, with actual transactions amounting to CNY 193 million[156] - The company engaged in daily related party transactions with its subsidiaries, which are essential for normal operations[156] - The company has maintained a stable relationship with its related parties, ensuring no adverse impact on its independence[156]