Haixin Foods (SZ:002702)2014-06-06 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.00 CNY per 10 shares to all shareholders based on the total share capital as of December 31, 2013[4]. - The total cash dividend proposed for 2013 is CNY 14,140,000.00, representing 100% of the profit distribution amount[85]. - The cash dividend per 10 shares is set at CNY 1.00 (including tax), based on a total share capital of 141,400,000 shares[85]. - The cash dividend payout ratio increased from 30.07% in 2012 to 41.89% in 2013[83]. - The company has not changed its profit distribution policy during the reporting period and continues to adhere to its established cash dividend policy[79]. Financial Performance - The company's operating revenue for 2013 was CNY 754.48 million, an increase of 2.26% compared to 2012[22]. - The net profit attributable to shareholders decreased by 48.72% to CNY 33.75 million in 2013[22]. - The net cash flow from operating activities was CNY 60.05 million, down 7.8% year-on-year[22]. - The company's weighted average return on equity decreased to 4.29% in 2013, down 12.24% from the previous year[22]. - The main business cost for 2013 was 516.42 million yuan, reflecting a year-on-year increase of 7.9%[39]. Investment and Projects - The company invested CNY 98.56 million in fundraising projects during the year, with a total cumulative investment of CNY 142.03 million by the end of 2013[29]. - The company has established a new production project with an annual capacity of 30,000 tons of fish paste products and meat products[9]. - The company has a commitment to developing a technology research center for fish paste and its products[9]. - The new annual production project for 30,000 tons of fish paste and meat products has a total investment commitment of RMB 12.64 million, with 57.18% of the investment completed by June 30, 2014[64]. - The marketing network construction project has a total investment of RMB 3.62 million, with 38.61% of the investment completed by June 30, 2015[64]. Market and Sales - The company’s marketing network covered 34 provinces and cities, with a total of 16,992 distribution points established[31]. - The company’s main products saw significant growth, with the Hong Kong "Sour Meatball" increasing by 15.5% and the "Soup Fuzhou Fish Ball" by 9%[31]. - The company launched 13 new products in 2013, with key products like the abalone sauce fish balls and mini shrimp dumplings achieving sales of over 10 million yuan[32]. - The company plans to enhance brand building and marketing expenditures to ensure sustainable growth in performance and profits[27]. - The company is focusing on expanding its market presence through e-commerce and B2C/B2B models to enhance sales channels[75]. Risk Management - The company emphasizes the importance of food safety and acknowledges risks related to food safety, human resources, and seasonal fluctuations[12]. - The company has identified several risk factors, including food safety incidents, project delays, and raw material price fluctuations, which could impact future performance[76]. - The company faced challenges from low-price competition in the industry, impacting sales growth and profit margins[27]. Governance and Compliance - The company has established a mechanism for independent directors and external supervisors to provide input on profit distribution plans[95]. - The company has implemented a new insider information registration management system to enhance confidentiality and prevent insider trading, as per the regulations from the China Securities Regulatory Commission[134]. - The company has continuously improved its governance systems since its listing, ensuring transparency in information disclosure and compliance in related transactions[134]. - The company has not received any regulatory measures or administrative penalties during the reporting period[134]. - The company’s financial management system was established in May 2013, aimed at enhancing financial oversight and accountability[133]. Human Resources - As of December 31, 2013, the company had a total of 990 employees, with 53.33% being sales personnel, 20.10% production personnel, and 17.78% management personnel[124]. - The company adjusted employee salaries by 15% in 2013 based on operational performance and industry salary levels[127]. - The training rate for new employees reached 100%, covering company culture, safety knowledge, and other essential training[128]. - A total of 155 employees participated in external training programs in 2013, focusing on management skills and team building[129]. - The company has implemented a fair and competitive compensation management system to enhance employee motivation and competitiveness[127]. Financial Management - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[3]. - The company reported a significant increase in cash and cash equivalents, with a decrease in total assets from 54.31% to 32.72%[49]. - The company received a standard unqualified audit opinion for its financial statements for the year ended December 31, 2013, confirming the accuracy of its financial reporting[157]. - The financial statements fairly reflect the company's financial position and operating results for the year 2013, according to the audit report[162]. - The company has a structured deposit product with a principal of 6,000 million RMB maturing in January 2014, yielding an interest of 27.01 million RMB[57]. Shareholder Information - The total number of shares increased from 70.7 million to 141.4 million after the 2012 profit distribution and capital reserve conversion, resulting in a 100% increase in total shares[101]. - The company’s earnings per share (EPS) for 2012 was 1.146 RMB, which decreased to 0.573 RMB after the increase in share capital[102]. - The number of shareholders increased to 12,446 by the end of the reporting period, up from 9,419 five trading days prior[106]. - The largest shareholder, Teng Yongxiong, holds 23.62% of the shares, with a total of 33.4 million shares[106]. - The company has a policy to ensure that unallocated profits will be used for future development[95].