XGD(SZ:300130)2014-04-14 16:00Financial Performance - The company's operating revenue for 2013 was CNY 499,177,767.74, representing a 0.83% increase compared to CNY 495,075,044.67 in 2012[18]. - Operating profit decreased by 41.7% to CNY 22,310,613.40 in 2013 from CNY 38,266,973.23 in 2012[18]. - The total profit for 2013 was CNY 56,599,098.77, down 16.9% from CNY 68,111,240.28 in the previous year[18]. - Net profit attributable to shareholders was CNY 54,940,058.49, an 8.68% decrease from CNY 60,160,444.91 in 2012[18]. - Basic earnings per share for 2013 were CNY 0.48, a decrease of 9.43% from CNY 0.53 in 2012[18]. - The weighted average return on equity was 5.45% in 2013, down from 6.28% in 2012[18]. - The company reported a net profit of CNY 54,940,058.49 for the current period, a decrease of 8.76% compared to the previous period's net profit of CNY 60,160,444.91[22]. - Total revenue for the company reached CNY 49,917.78 million, reflecting a year-on-year growth of 0.83%[34]. - The total profit for the period was CNY 5,659.91 million, which represents a decline of 16.90% compared to the previous year[34]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to CNY 35,329,141.02, a 191.23% increase from a negative cash flow of CNY -38,725,834.44 in 2012[18]. - The company's total assets increased by 2.29% to CNY 1,252,877,050.22 at the end of 2013, compared to CNY 1,224,882,262.42 at the end of 2012[18]. - Total liabilities decreased by 8.89% to CNY 216,942,029.62 in 2013 from CNY 238,122,676.79 in 2012[18]. - The company's asset-liability ratio improved to 17.32% in 2013, down from 19.44% in 2012[18]. - The company's cash and cash equivalents at the end of 2013 were RMB 683,052,556.30, accounting for 54.52% of total assets, a decrease of 2.74% from the previous year[56]. Research and Development - The company achieved a significant increase in R&D investment, improving product quality and reducing return rates through enhanced management processes[34]. - Research and development expenses totaled CNY 76.76 million, accounting for 15.38% of operating revenue, reflecting a focus on innovation[46]. - In 2013, the total R&D expenditure was RMB 76,757,353.10, an increase of 1.94 percentage points compared to the same period in 2012, with a higher proportion allocated to new products and technologies[50]. - The R&D team consists of 242 members, accounting for 23.54% of the total workforce, indicating a strong focus on innovation[170]. Market and Business Strategy - The company plans to enhance its overseas market expansion efforts, having established an international business department to focus on this area[29]. - The company is investing in high-end talent to improve its capabilities in internet business and technology development, addressing potential risks in meeting market demands[28][31]. - The company plans to actively seek merger and acquisition opportunities to enter the internet business sector[49]. - The company aims to adapt its project targets based on market changes to enhance project implementation progress[62]. - The company plans to enhance its talent acquisition strategy to optimize human resource allocation and improve per capita efficiency[94]. Risks and Challenges - The company is facing a significant risk regarding the acquisition of 100% equity in Fantasi, which may not be finalized due to pending agreements and regulatory approvals[25][26]. - The company reported total accounts receivable of RMB 197.36 million in 2013, with third-party clients accounting for 21.79% of this amount, indicating a potential risk in receivables recovery[98]. - The company faces risks related to the potential failure of the acquisition of Fantasy Technology and the inability to adapt to internet business trends[97][99]. - The company recognizes the ongoing need for high-end talent familiar with internet operations and product development to drive innovation[107]. Shareholder and Governance - The company aims to distribute cash dividends of RMB 1.00 per share for 2013, totaling RMB 11,430,000.00, which represents 20.8% of the net profit attributable to shareholders[118]. - The company has established a cash dividend policy ensuring that the cumulative cash dividends over three years will not be less than 30% of the average distributable profit during that period[116]. - The company strictly adhered to insider information management regulations, with no instances of insider trading detected among its directors and senior management[121]. - The company has implemented a confidentiality protocol during investor communications to protect sensitive information[120]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[128]. Employee and Management - The company employed a total of 1,028 staff as of December 31, 2013, with 23.54% in R&D, 26.66% in marketing, 42.41% in supply chain, and 7.39% in functional roles[170]. - The total compensation for directors, supervisors, and senior management in 2013 amounted to 3.096 million, with the highest individual compensation being 39 million for the deputy general manager[166]. - The management team includes experienced professionals, with the general manager having over 12 years of experience in the industry[162]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, which is continuously improved[176]. Compliance and Regulatory - The company has not experienced any regulatory penalties or required rectifications during the reporting period[121]. - The company maintains independence from its controlling shareholder, ensuring autonomous operations[174]. - The company has implemented a system for accountability regarding significant errors in annual report disclosures[180]. - The audit opinion for the financial statements was a standard unqualified opinion, issued on April 14, 2014[183].