NCIC(SZ:002246)2014-03-27 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.50 per 10 shares (including tax) and to increase capital by 5 shares for every 10 shares held as of December 31, 2013[4]. - In 2013, the company distributed a cash dividend of 0.30 RMB per 10 shares, totaling 8.2737 million RMB[95]. - The proposed profit distribution for 2013 includes a cash dividend of 0.50 yuan per 10 shares, totaling 13,789,551.20 yuan, with a total share capital of 275,791,024 shares[100]. - The company has established a cash dividend policy, ensuring that at least 10% of the distributable profit is distributed as cash dividends annually[92]. - The company is in a growth phase and plans to maintain a minimum cash dividend ratio of 20% during profit distributions[100]. Financial Performance - The company achieved operating revenue of CNY 2,012,662,292 in 2013, a decrease of 2.82% compared to the previous year[26]. - Net profit attributable to shareholders was CNY 48,521,094.74, down 7.86% year-on-year[26]. - Basic earnings per share decreased by 25.93% to CNY 0.2[26]. - Operating profit decreased by 46.18% to CNY 33,211,700[32]. - The company's main business revenue for the reporting period was 2,003.02 million yuan, a decrease of 1.89% compared to 2,041.57 million yuan in the previous year[56]. Market and Competition - The company faces market risks due to intensified competition in the nitrocellulose market, leading to suppressed product prices, and a shrinking demand in traditional industrial pump markets[10]. - The company will implement a differentiated market strategy to strengthen its marketing system and capture incremental market opportunities[10]. - The company has a market share of over 40% in the flue gas desulfurization pump market and 70% in the phosphate fertilizer pump sector[67]. - The domestic market share for smoke desulfurization pumps exceeds 40%, while the market share for phosphate fertilizer pumps is around 70%[80]. - The demand for smoke desulfurization pumps is expected to grow by approximately 20% in 2014 due to national air pollution control initiatives[83]. Acquisitions and Investments - The company acquired 90% of Xiangyang 525 Pump Co., Ltd. in August 2013, expanding its business scope to include the production and sales of corrosion-resistant industrial pumps and valves[17]. - The acquisition of 90% equity in a pump company was successfully executed, enhancing the company's market position[26]. - The company completed a non-public offering of 7.79 million shares at CNY 7.12 per share, raising a total of CNY 554 million[26]. - The company completed the acquisition of a 25.99% and 39.66% stake in Xiangyang 525 Pump Industry Co., Ltd. in August 2013, with a total investment of ¥30.20 million[71]. - The company completed a private placement of 77.9 million shares at a price of 7.12 RMB per share, increasing total shares from 197,891,024 to 275,791,024, a growth of 39.36%[126]. Research and Development - A total of 47 new pump types and 33 modified pump types were developed during the year, with orders exceeding CNY 50 million[28]. - The company filed 27 patents and was granted 20 patents, including 7 invention patents[29]. - The company is developing a new dual-material pump for desulfurization applications, which is expected to improve product lifespan and market share[47]. - The company has initiated research on the densification of nitrocellulose, which will enhance production efficiency and automation[47]. - The company plans to strengthen R&D capabilities through collaboration with academic institutions and improve the innovation capacity of its R&D team[85]. Environmental Management - The company is actively pursuing energy-saving and emission-reduction initiatives, with all pollution indicators meeting national standards[11]. - The company is committed to enhancing its environmental management system in response to stricter national environmental regulations[11]. - The company reported a stable operation of its environmental protection facilities, ensuring compliance with pollution discharge standards[11]. - The company is committed to environmental management and aims to enhance clean production technologies to meet stricter regulations[88]. - The company has recognized risks including environmental regulations, with a focus on managing customer credit and monitoring receivables[87][88]. Financial Position and Cash Flow - The net cash flow from operating activities was CNY 511,550.15, a significant decrease of 99.65% compared to the previous year due to a reduction in government subsidies received[51]. - Total cash inflow from operating activities was CNY 1,767,575,651.83, down 12.48% year-on-year, while cash outflow was CNY 1,767,064,101.68, a decrease of 5.63%[49]. - The company's cash and cash equivalents increased by CNY 1,773,022.85, reversing a previous decrease of CNY 12,274,427.05[49]. - The company's inventory increased by CNY 30,686,000, up 21.2% year-on-year, due to increased raw material procurement[52]. - The company's total assets as of December 31, 2013, amounted to CNY 1,678,699,898.35, an increase from CNY 1,604,842,857.01 at the beginning of the year, reflecting a growth of approximately 4.6%[200]. Corporate Governance - The company has engaged in multiple related party transactions, ensuring that all prices are fair and in the interest of all shareholders[111]. - The company maintains independence from its controlling shareholder, ensuring that its operations and decision-making processes are not influenced[163]. - The company has established a fair and transparent performance evaluation and incentive mechanism for directors and senior management[166]. - The company conducted five shareholder meetings during the reporting period, ensuring compliance with legal requirements and proper governance[163]. - The company has a structured remuneration decision-making process involving the remuneration and assessment committee[144]. Employee and Management Structure - The total number of employees in Sichuan North Nitrocellulose Co., Ltd. is 2,159, with 1,591 in production, 218 in sales, and 200 in technical roles[149]. - The employee composition shows that 74% are production personnel, 10% are sales personnel, and 9% are technical personnel[152]. - The educational background of employees indicates that 61% have a high school education or below, while 19% hold a college degree and 1% have a master's degree[154]. - The company emphasizes a competitive salary structure based on performance, aiming to motivate employees and enhance productivity[156]. - Sichuan North Nitrocellulose Co., Ltd. has implemented a systematic training program to improve employee skills and adapt to company development needs[157].