DAWEI(SZ:002213)2014-01-13 16:00Financial Performance - Total revenue for 2011 was CNY 277,363,660.90, an increase of 7.87% compared to CNY 257,136,367.15 in 2010[20] - Operating profit decreased by 20.14% to CNY 36,851,189.04 from CNY 46,145,350.85 in the previous year[20] - Net profit attributable to shareholders was CNY 33,820,248.59, down 16.22% from CNY 40,369,979.55 in 2010[20] - The company reported a total profit of CNY 42,407,737.43, a decrease of 10.18% from CNY 47,214,482.72 in 2010[20] - The net profit after deducting non-recurring gains and losses was CNY 33,236,362.62, down 16.93% from CNY 40,009,997.32 in 2010[20] - Basic earnings per share decreased by 20.00% to CNY 0.16 in 2011 from CNY 0.20 in 2010[23] - Diluted earnings per share also fell by 20.00% to CNY 0.16 in 2011 compared to CNY 0.20 in 2010[23] - The gross profit margin for the electric retarder segment was 32.80%, down 4.30% from the previous year due to rising raw material costs[118][126] - Total operating expenses increased by 9.57% year-on-year to 577,111,738.30 CNY, with income tax expenses rising by 25.69% due to a tax rate increase from 11% to 24% for a subsidiary[130] Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 6,155,771.46, a decline of 117.77% compared to CNY 34,636,554.18 in 2010[20] - Net cash flow from operating activities per share dropped significantly by 117.65% to CNY -0.03 in 2011 from CNY 0.17 in 2010[23] - The net cash flow from investing activities decreased by 167.64% to -28,905,184.07 RMB, as cash outflows exceeded inflows[150] - The net cash flow from financing activities increased by 191.41%, with cash inflows of 17,638,987.46 RMB[150] - The company's liquidity ratios showed a slight decline, with the current ratio at 2.51 and the quick ratio at 2.14[146] Assets and Liabilities - Total assets increased by 8.57% to CNY 426,930,190.49 at the end of 2011, up from CNY 393,237,609.54 at the end of 2010[21] - Total liabilities rose by 8.29% to CNY 126,487,032.06 from CNY 116,799,010.50 in 2010[21] - Shareholders' equity attributable to the parent company increased by 8.51% to CNY 299,958,847.63 from CNY 276,438,599.04 in the previous year[21] Shareholder Information - The total number of shareholders at the end of the reporting period is 18,323, an increase from 17,945 at the end of the previous month[34] - The top two shareholders, Ling Zhaowei and Zhang Huimin, hold 20.38% and 20.18% of shares respectively, with Ling Zhaowei having 41,983,500 shares and Zhang Huimin holding 41,580,000 shares[34] - The company has no controlling shareholder holding more than 50% of the shares, and the major shareholders have not changed during the reporting period[37] - The total number of shares outstanding remained at 206,000,000 with no new shares issued during the year[27] Management and Governance - The company has a diverse management team with various backgrounds in engineering, finance, and management, contributing to its operational effectiveness[46][50] - The company’s board of directors includes individuals with extensive experience in finance and engineering, enhancing strategic decision-making capabilities[44][47] - The board of directors consists of 7 members, including 3 independent directors, adhering to legal requirements and actively participating in training to enhance governance standards[60] - The company has implemented various internal control systems, including a financial management system and an investor relations management system, to ensure transparency and accountability[58] - The company has established clear governance structures and operational guidelines to ensure transparency and accountability in decision-making processes[87] Internal Controls and Audits - The company has established a comprehensive internal control system that covers various business processes, ensuring compliance with legal, comprehensive, and cost-effectiveness principles[80] - The audit committee held five meetings in 2011 to review the company's internal control system and financial status, concluding that there were no significant deficiencies[101] - The internal audit department conducted audits based on the annual audit work plan and issued corresponding audit reports, fulfilling its supervisory role[101] - The independent directors believe that the company has established a relatively complete internal control system that is effectively executed[98] Research and Development - Research and development expenditure for 2011 was 12,987,400 CNY, accounting for 4.68% of total operating income of 276,363,700 CNY[140] - The company plans to continue increasing R&D investment to develop new products that meet diverse market demands[166] Market and Operational Risks - The company identified market risks due to its reliance on a single product line, which limits its ability to withstand industry fluctuations[168] - The company faces operational risks from fluctuating raw material prices and competitive pricing strategies in the automotive industry, leading to a decline in gross margin[168] Future Plans and Strategies - The company plans to enhance its management level and optimize product delivery processes to improve product quality and reduce operational costs[166] - The company aims to strengthen its market presence in the truck sector by exploring effective sales models and enhancing service resources[166] - The strategic committee approved initiatives aimed at ensuring the company's sustainable development and established a vision, mission, and core values for the organization[181]