GCS tech(SZ:002453)2014-03-10 16:00Financial Performance - The company's operating revenue for 2013 was CNY 1,121,667,679.57, representing a 7.44% increase compared to CNY 1,044,015,398.04 in 2012[25]. - The net profit attributable to shareholders for 2013 was CNY 47,025,259.85, a decrease of 35.47% from CNY 72,873,412.42 in 2012[25]. - The net cash flow from operating activities was CNY 33,850,972.21, down 12.38% from CNY 38,634,747.13 in the previous year[25]. - The total assets at the end of 2013 amounted to CNY 1,803,216,536.65, an increase of 43.44% from CNY 1,257,150,845.53 at the end of 2012[25]. - The net assets attributable to shareholders increased by 59.79% to CNY 1,165,285,841.83 at the end of 2013, compared to CNY 729,276,533.30 at the end of 2012[25]. - The basic earnings per share for 2013 was CNY 0.18, a decrease of 40% from CNY 0.30 in 2012[25]. - The company achieved operating revenue of 1,121.67 million CNY in 2013, an increase of 7.44% compared to the previous year[34]. - The net profit attributable to shareholders was 47.03 million CNY, a decrease of 35.47% year-on-year[34]. - Total assets increased by 43.44% to 1,803.22 million CNY[34]. Investment and Financing - The company has raised funds through a non-public offering to finance four investment projects, which are expected to positively impact the company's strategic development and operational scale[14]. - The company raised 466 million CNY through a non-public stock issuance of 45.65 million shares for project construction[30]. - The total amount of raised funds is 46,596.45 million RMB, with 21,789.93 million RMB utilized during the reporting period[66]. - The company has invested 8,645.77 million RMB directly into fundraising projects and replaced 13,144.16 million RMB of self-owned funds[66]. - The total cash inflow from financing activities increased by 110.23% to ¥997,088,791.69, primarily due to non-public stock issuance[48]. Risk Management - The company faces operational management risks due to rapid expansion and increased complexity from new subsidiaries, which may affect efficiency and performance if not managed properly[14]. - Safety production risks are present due to the handling of flammable and explosive chemicals, and the production of toxic gases, despite having safety measures in place[14]. - The company acknowledges potential market risks related to the demand and pricing fluctuations of its expanded product capacities post-investment[14]. - The company faces potential risks related to environmental protection and may need to increase investments in compliance with stricter future regulations[16]. - The management of accounts receivable is critical as the company expands into domestic and international markets, with a focus on maintaining control over receivables[16]. - The company is at risk of losing tax benefits if it fails to meet the standards for high-tech enterprises or if national policies change[16]. Product Development and R&D - The company is involved in the production of fine chemicals, which is a strategic focus in the global chemical industry[10]. - The company has developed various products, including AKD and amino acid protecting agents, which are essential in the paper and pharmaceutical industries[11]. - R&D expenditure increased by 17.21% to 23.08 million CNY, supporting new product development[35]. - The company has developed a new production process for AKD, reducing reliance on imports and enhancing domestic production capabilities[57]. - The company plans to continue developing new products and technologies in the chemical manufacturing sector[75]. Market Expansion - The company is actively expanding its market presence and product offerings, which may include new technologies and products in the future[14]. - The company has established strong partnerships with major clients in the paper and pharmaceutical industries, including international firms like Bayer and SK Group[61]. - Domestic sales accounted for CNY 716.2 million, representing a 12.12% increase compared to the previous year, while international sales reached CNY 343.1 million, up by 6.58%[51]. Corporate Governance and Compliance - The company has established a quality management system to enhance customer satisfaction and protect the rights of suppliers and customers, adhering to fair procurement practices[95]. - The company has implemented a comprehensive human resources management system, detailing regulations on recruitment, training, and performance evaluation[94]. - The company has established a harmonious labor relationship by listening to employee feedback through a representative assembly[94]. - The company has maintained strict adherence to commitments made regarding competition and fund usage[114]. - The company has established a comprehensive internal control system to ensure compliance with laws and regulations, enhancing the quality of financial reporting and operational management[180]. Shareholder Returns - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to all shareholders based on the total share capital as of December 31, 2013[5]. - The proposed cash dividend for 2013 is 0.5 CNY per 10 shares (including tax), totaling 14,282,500 CNY, with no bonus shares issued[90]. - The cash dividend payout ratio for 2013 is 30.37% of the net profit attributable to shareholders[91]. - The company’s profit distribution policy is in compliance with the latest regulations from the China Securities Regulatory Commission[90]. - The company has maintained a positive retained earnings balance, allowing for consistent dividend distributions[93]. Subsidiary Performance - Tianhe Chemical, a subsidiary, reported total assets of CNY 207.79 million and net profit of CNY 15.99 million[72]. - Shandong Tianan Chemical, another subsidiary, had total assets of CNY 586.26 million and a net loss of CNY 0.38 million[72]. - Nantong Nabaiyuan Chemical, a subsidiary, reported total assets of CNY 259.29 million and net profit of CNY 4.31 million[72]. - Suzhou Zhongke, a subsidiary, had total assets of CNY 14.42 million and a net loss of CNY 1.59 million[74]. Employee Management - The company employs approximately 185 staff with higher education, contributing to its R&D and technical service capabilities, which supports its competitive edge in product development[59]. - The educational background of employees shows that 77% have less than a college degree, while only 2% hold a master's degree or higher[157]. - The company has no retired employees requiring financial support as of December 31, 2013[159]. Strategic Acquisitions - The company acquired 100% equity of Suzhou Tianli Raw Materials in May 2013, marking a significant step towards integrating raw material production[77]. - The acquisition of Tianli Raw Material Pharmaceutical allows the company to strengthen its strategic position in the pharmaceutical industry[104]. - The company is in the process of acquiring the remaining 39.5% equity of Zhongke Tianma, which will lead to its absorption and merger[107]. Safety and Environmental Responsibility - The company has maintained a good safety record in production, adhering to GMP quality systems and environmental health and safety standards[96]. - The company has not experienced any major environmental pollution incidents and complies with national and local environmental protection standards[96]. - The company emphasizes employee rights protection, conducting regular health check-ups and providing necessary safety training and protective equipment[94].