FDM(SZ:002196)2014-02-19 16:00Financial Performance - The company's operating revenue for 2013 was CNY 487,208,511.29, an increase of 2.43% compared to CNY 475,652,317.24 in 2012[22] - The net profit attributable to shareholders decreased by 73.33% to CNY 5,438,176.30 from CNY 20,389,322.53 in the previous year[22] - The net profit after deducting non-recurring gains and losses fell by 95.12% to CNY 742,967.62 from CNY 15,210,980.08 in 2012[22] - The total profit for 2013 was RMB 5,971,340.06, a decrease of 75.39% year-over-year[32] - The net profit attributable to the parent company was RMB 5,479,419.31, down 73.13% from the previous year[32] - The net profit for the year was 54.38 million yuan, a decrease of 73.33% compared to the previous year[41] - The total profit for the year was 5.66 million yuan, down 76.66% from the previous year[41] Cash Flow and Assets - The net cash flow from operating activities increased by 72.77% to CNY 77,403,236.48 compared to CNY 44,802,011.87 in 2012[22] - The net cash flow from operating activities increased by 76.78% to RMB 79,492,164.17 compared to the previous year[32] - The company's cash and cash equivalents increased by 578.82% to ¥186,608,266.90, mainly due to the inflow from targeted fundraising[54] - Total assets at the end of 2013 were CNY 903,119,007.24, a 34.05% increase from CNY 673,711,677.01 at the end of 2012[22] - The company's current assets totaled CNY 573,951,155.43 at the end of 2013, up from CNY 398,610,389.57 at the beginning of the year, indicating a growth of about 44%[191] - Cash and cash equivalents increased significantly to CNY 237,761,419.88 from CNY 47,274,222.77, reflecting a growth of approximately 403%[191] - The company's total liabilities decreased to CNY 286,323,632.19 from CNY 374,280,553.64, a reduction of about 23%[195] - Shareholders' equity rose to CNY 616,795,375.05 from CNY 299,431,123.37, marking an increase of approximately 106%[195] Business Development and Strategy - The company established a wholly-owned subsidiary in Vietnam, which has entered the mass production phase, focusing on micro-special motors and sewing machines[33] - The automotive micro-special motor business became a new growth point in 2013, successfully supplying to well-known brands like FAW-Volkswagen[34] - The company has developed a 20-45KW series electric motor for electric vehicles, with five utility model patents applied for and one invention patent accepted[35] - The company is undergoing an asset restructuring plan to acquire Shenzhen Gaoke Run Electronics Co., Ltd., aiming to enhance its competitive advantage in the new energy vehicle sector[38] - The company is focusing on the development of electric vehicle drive systems, aiming to become a leading player in this market[91] - The company plans to invest in projects to produce 100,000 electric vehicle drive systems and 6,000 servo-controlled special sewing machines[93] Risks and Challenges - The company faces risks from raw material price fluctuations, which accounted for 81.31% of the main business costs in 2013[12] - Labor costs have been rising, which may negatively impact the company's profitability despite efforts to improve efficiency through technological innovation[12] - The company is facing risks from potential adverse changes in government policies regarding electric vehicles, which could negatively affect its drive motor system business[98] - Approximately 80% of the company's main business costs are attributed to raw materials, making it vulnerable to price fluctuations, which could impact profit margins[97] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares to all shareholders[4] - A cash dividend of CNY 1.0 per 10 shares (including tax) was proposed, totaling CNY 14,928,867.30, which represents 274.52% of the net profit attributable to shareholders in 2013[105] - The remaining undistributed profit for the year 2013 is CNY 54,991,221.68, which will be carried forward to the next year[106] - The cash dividend distribution policy for 2013 accounted for 100% of the total profit distribution[106] - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of CNY 17,358,750.00 in both 2011 and 2012[105] Governance and Compliance - The company has committed to fulfilling its social responsibilities while ensuring shareholder rights and interests are protected[107] - The company has maintained compliance with all commitments made to minority shareholders[129] - The company did not face any penalties or corrective actions during the reporting period[132] - The company has established a comprehensive governance structure in compliance with the Company Law and Securities Law, including various internal regulations to ensure proper operation and healthy development[159] - The company received a standard unqualified audit opinion from Tianjian Accounting Firm for the financial statements for the year ended December 31, 2013[182] Employee and Management Information - The company employed a total of 1,216 staff, including 961 production personnel, 32 sales personnel, 118 technical personnel, 18 financial personnel, and 87 administrative personnel[156] - The remuneration for the chairman, Zhang Min, was 2.344 million CNY, while the total remuneration for the board secretary, Hu Hong, was 1.668 million CNY[153] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 86.26 million CNY from the company and 180 million CNY from shareholder units, totaling 266.26 million CNY[153] Market Outlook - The automotive parts industry in China has a market space exceeding RMB 2 trillion, with an annual demand for automotive parts reaching RMB 80 billion[88] - The textile and garment industry in China is expected to maintain a rapid growth trend, driving demand for sewing machinery[86] - The automotive market in China is projected to grow at a stable rate of 8-10% in the next decade[88]