Jereh Group(SZ:002353)2014-03-28 16:00Dividend and Share Capital - The company plans to distribute a cash dividend of 2.5 RMB per 10 shares to all shareholders, based on the total share capital as of February 17, 2014[6]. - The company will increase its share capital by 5 shares for every 10 shares held, using capital reserves[6]. - The cash dividend for 2013 amounted to RMB 159,980,747.75, representing 16.24% of the net profit attributable to shareholders in the consolidated financial statements[125]. - The company plans to distribute a cash dividend of RMB 2.5 per 10 shares (including tax), totaling RMB 15,998.07 million, with no bonus shares issued[126]. - The total number of shares will increase from 639,922,991 to 959,884,487 shares after a capital increase of 5 shares for every 10 shares held[129]. - The cash dividend policy mandates that at least 20% of profit distribution should be in cash during the growth phase of the company[126]. - The company’s cash dividend distribution in 2012 was CNY 68.89 million, at CNY 3.0 per 10 shares[123]. Financial Performance - The company's operating revenue for 2013 was CNY 3,700,232,671.50, representing a year-on-year increase of 55.21% compared to CNY 2,384,029,702.70 in 2012[23]. - The net profit attributable to shareholders of the listed company reached CNY 985,191,332.54, a 53.17% increase from CNY 643,202,645.16 in the previous year[23]. - The net cash flow from operating activities was CNY 509,701,686.99, showing a significant increase of 191.78% compared to CNY 174,686,445.89 in 2012[23]. - The basic earnings per share for 2013 was CNY 1.65, up 52.78% from CNY 1.08 in 2012[23]. - The total assets at the end of 2013 were CNY 6,890,921,179.04, reflecting a 47.12% increase from CNY 4,683,847,249.41 at the end of 2012[23]. - In 2013, the company achieved total revenue of 368,570.68 million CNY, a 55.10% increase from 237,538.24 million CNY in 2012[49]. - The company reported a net profit for 2013 of CNY 80,540.93 million, reflecting a growth of 53.47% from CNY 52,479.82 million in 2012[79]. Revenue Sources and Growth - The revenue from oilfield specialized equipment manufacturing was CNY 259,145.25 million, accounting for 70.31% of the main business income, with a year-on-year growth of 69.38%[35]. - The revenue from oilfield engineering technical services increased by 87.90% to CNY 39,396.21 million, representing 10.69% of the main business income[35]. - The company experienced a significant increase in orders for oilfield specialized equipment due to active oil and gas investments in China and developing countries[32]. - The company is focusing on integrated oilfield services, with qualitative breakthroughs in completion integrated services and oilfield environmental services[31]. - The company plans to continue expanding its market presence, particularly in regions such as South America, Russia, and Central Asia[32]. Investment and Capital Expenditure - The company invested CNY 277,995,871.48 in external equity, a 17.64% increase from the previous year[61]. - The company has achieved a cumulative investment of $31,428.4 million across all committed projects[69]. - The total investment commitment for the fracturing equipment expansion project is $7,000 million, with a completion rate of 99.78% as of June 30, 2011, and cumulative benefits realized amounting to $26,365.31 million[69]. - The company reported a significant investment of CNY 11,631.62 million in the Canadian oilfield development project, with a cumulative actual investment of CNY 28,965.12 million, achieving 94.40% project progress[82]. Risks and Challenges - The company emphasizes the importance of accurate financial reporting and acknowledges potential investment risks related to oil price volatility and geopolitical issues[14]. - The company’s financial performance is subject to risks associated with talent shortages and management team development[14]. - The company has faced risks including significant fluctuations in oil and gas prices, which can impact exploration and development spending[110]. - The energy service segment experienced rapid revenue growth in 2013, although net profit declined for three consecutive years, indicating challenges in profitability despite increased scale[78]. Corporate Governance and Compliance - The company has not reported any changes in its main business since its listing, indicating stability in its operations[20]. - The company has not reported any violations in the management of raised funds, with a total of CNY 169,246.7 million raised and CNY 163,450.71 million utilized by the end of the reporting period[66]. - The company has not faced any administrative penalties during the reporting period[128]. - The company has maintained strict compliance with commitments made by major shareholders regarding share transfer restrictions, with no violations reported[162]. Research and Development - Research and development expenses increased by 53.41% to 20,395.39 million CNY, representing 5.51% of total revenue[45]. - The company is focusing on R&D for drilling and completion equipment, with new products like the "small well site large operation" fracturing truck launched in October 2013[44]. - The company plans to expand its product chain, focusing on drilling and completion equipment, as well as natural gas engineering and equipment[87]. Market Position and Strategy - The company holds over 40% market share in the domestic oilfield completion and production equipment manufacturing sector[87]. - The company is pursuing an internationalization strategy, with significant gains in the South American market and a moderate recovery in the North American market[94]. - The company aims to establish a self-sufficient oilfield service technology system through continuous innovation and international cooperation[98]. Shareholder Information - Major shareholders include Sun Weijie with 24.9% (27,370,050 shares), Wang Kunxiao with 17.19% (102,608,350 shares), and Liu Zhenfeng with 14.13% (84,371,409 shares)[196][197]. - The total number of shareholders at the end of the reporting period was 11,678, compared to 18,367 five trading days before the report[196]. - The company has not proposed or implemented any share increase plans during the reporting period[200].