ZHEFU(SZ:002266)2014-04-08 16:00Financial Performance - The company's operating revenue for 2013 was CNY 796,151,249.80, representing a decrease of 13.95% compared to CNY 925,191,526.30 in 2012[24]. - The net profit attributable to shareholders for 2013 was CNY 91,462,747.68, down 28.38% from CNY 127,713,024.10 in the previous year[24]. - Basic earnings per share decreased by 52.94% to CNY 0.08 from CNY 0.17 in 2012[24]. - The weighted average return on net assets was 4.69%, down from 9.77% in the previous year[24]. - The company reported a net profit of 91.46 million yuan for the period[52]. - The revenue from hydropower generator sets reached ¥674,438,209.27, a decrease of 14.02% compared to the previous year[56]. - The company reported a net profit of 70,158,615.67 RMB for 2013, with a distributable profit of 556,794,288.03 RMB as of December 31, 2013[104]. Cash Flow and Assets - The net cash flow from operating activities was negative CNY 100,969,530.18, a decline of 222.76% compared to a positive CNY 82,247,978.44 in 2012[24]. - The company’s cash and cash equivalents at the end of the period were 621.85 million yuan, with a net increase of 473.40 million yuan during the period[37]. - The company's cash and cash equivalents increased to ¥726,071,377.38, representing 17.11% of total assets, up from 8.12% the previous year[57]. - The total assets at the end of 2013 were CNY 4,244,488,383.25, an increase of 69.71% from CNY 2,501,021,880.81 at the end of 2012[24]. - The inventory level increased to ¥995,184,112.47, which is 23.45% of total assets, down from 27.27% the previous year[57]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Jilong Ruixin Company for 760 million yuan, which holds 38% of Shanghai Ersan Siwu Network Technology Co., Ltd.[38]. - The company established a wholly-owned subsidiary in Canada and acquired oil and gas assets for 12 million Canadian dollars[38]. - The company invested 60 million yuan to establish Zhejiang Fu Microfinance Company, with a registered capital of 200 million yuan[39]. - The company has acquired several firms, including Huadu Company and Linhai Electric, enhancing its market position and operational capabilities[64]. - The company plans to invest CNY 250 million in Zhejiang Linhai Zhefu Electric Co., with an initial contribution of CNY 50 million already made[80]. Research and Development - The company's R&D investment for the period was 67.79 million yuan, an increase of 9.67% year-on-year[37]. - The total R&D expenditure amounted to 67.79 million yuan, representing a year-on-year increase of 9.67%, accounting for 8.51% of the annual operating revenue[50]. - The company has invested 100 million RMB in research and development for new technologies in renewable energy[161]. Strategic Direction and Market Expansion - The company is focusing on strategic investments in emerging fields, particularly in the internet and cultural media sectors[33][35]. - The company plans to further expand into the internet and emerging industries, leveraging its resource integration capabilities[64]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2015[161]. - The strategic direction includes a transformation towards "Big Energy + Internet" to mitigate cyclical risks in the power equipment industry[93]. Shareholder and Governance - The company has not made any changes to its controlling shareholders during the reporting period[20]. - The company maintained a cash dividend policy, distributing at least 20% of the annual distributable profit as cash dividends, with a cumulative distribution of at least 30% over three years[100]. - The company has not experienced any changes in its controlling shareholder during the reporting period[147]. - The company’s controlling shareholder increased its stake in the company, demonstrating confidence in its future performance[127]. Risk Management and Compliance - The company has indicated that future performance may be affected by macroeconomic conditions and market situations, highlighting investment risks[13]. - The company has implemented a comprehensive internal control system to ensure compliance with corporate governance standards[178]. - The company has not received any regulatory measures requiring rectification from supervisory authorities during the reporting period[178]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, and finances[179]. Employee and Management Structure - The company has a total of 1,557 employees, including 882 production personnel, 104 sales personnel, 334 technical personnel, 36 financial personnel, and 230 administrative personnel[172][173]. - The company provides various training programs annually to enhance employee skills and efficiency, covering areas such as operational skills and safety management[175]. - The company has undergone significant management changes, with multiple directors and senior executives leaving or being appointed in March 2014 due to organizational restructuring[169]. Financial Management and Fundraising - The total fundraising amount reached CNY 134,805.04 million, with CNY 37,935.78 million invested during the reporting period[73]. - The company has announced a fundraising plan to issue short-term financing bonds with a scale of no more than RMB 500 million, aimed at supporting operational activities and repaying bank loans[134]. - The company is utilizing part of its idle raised funds to temporarily supplement working capital, indicating financial management strategies[129].