GTC(SZ:000589)2014-04-28 16:00Financial Performance - The company's operating revenue for 2013 was CNY 6,477,666,651.76, a decrease of 1.8% compared to CNY 6,596,599,409.39 in 2012[23] - The net profit attributable to shareholders for 2013 was CNY 173,644,760.27, representing a 35.45% increase from CNY 128,202,874.93 in 2012[23] - The net profit after deducting non-recurring gains and losses was CNY 150,016,217.54, an increase of 82.79% compared to CNY 82,069,855.99 in 2012[23] - Basic earnings per share for 2013 were CNY 0.36, up 38.46% from CNY 0.26 in 2012[23] - The company's net profit for 2013 was approximately 174.35 million yuan, with a proposed cash dividend distribution amounting to 13.4% of the net profit attributable to shareholders[97] Cash Flow and Investments - The net cash flow from operating activities was CNY 159,146,115.07, a significant decrease of 85.23% from CNY 1,077,662,516.97 in 2012[23] - The company's cash flow from operating activities decreased by 85.23% to CNY 159,146,115.07, primarily due to increased bank acceptance bill settlements[34] - The company’s investment activities generated a net cash outflow of CNY 204,464,622.84, a decrease of 34.67% compared to the previous year[34] - The total cash inflow from investment activities decreased by 58.80% to 172,006,002.33 yuan, mainly due to a reduction in short-term investments[52] Assets and Liabilities - Total assets at the end of 2013 were CNY 7,571,528,166.75, an increase of 12.42% from CNY 6,735,268,856.04 at the end of 2012[23] - The net assets attributable to shareholders at the end of 2013 were CNY 2,380,925,086.50, a 6.41% increase from CNY 2,237,415,596.86 at the end of 2012[23] - The total liabilities increased, with short-term borrowings reaching 2,489,664,559.04 yuan, accounting for 32.88% of total assets[58] - The company’s asset-liability ratio was 68.51% as of December 31, 2013, indicating a relatively high level of financial risk[84] Market and Production - The company produced 6.006 million tires in 2013, an increase of 6.35% year-on-year, and sold 5.922 million tires, up 9.91%[38] - The company plans to produce 6.5 million tires in 2014, an increase of 8.23% compared to 2013, and aims to sell 6.5 million tires, representing a growth of 9.76% from the previous year[78] - The company faced a utilization rate of production capacity below expectations due to insufficient market demand, influenced by global economic downturns[69] - The company anticipates that the international tire market demand will remain sluggish for a period due to the ongoing recovery from the financial crisis[76] Research and Development - Research and development expenditure for the year was 200,509,500.00 yuan, representing 8.42% of the company's net assets and 3.10% of operating revenue[48] - The company has developed and launched several new tire products, including all-steel radial tires and special off-road tires, which have received positive market feedback[61] - The company is progressing with the technical renovation project for all-steel radial tires, with 90% of auxiliary facilities completed by the end of the reporting period[36] Shareholder and Dividend Information - The board of directors has proposed a cash dividend of CNY 0.47584 per 10 shares for shareholders[5] - The cash dividend payout ratio was 100%, with a total cash dividend of ¥23,263,929.12 distributed to shareholders[98] - The company plans to issue 286,560,000 A-shares, increasing the total share capital to 775,464,304 shares[98] Corporate Governance and Compliance - The company has established a robust internal control system to protect the rights of stakeholders[99] - The company maintains compliance with the corporate governance regulations set by the China Securities Regulatory Commission[168] - The audit committee confirmed that the financial statements for the year ended December 31, 2013, fairly reflect the company's financial position and operating results[179] - The company has not faced any significant litigation or arbitration matters during the reporting period[105] Employee and Management Information - As of December 31, 2013, the company had 8,818 employees, including 7,366 production personnel and 956 technical personnel[162] - The company emphasizes a salary policy that prioritizes performance-based pay and aims to align employee salary growth with the company's operational development[163] - The total remuneration paid to the company's directors, supervisors, and senior management during the reporting period amounted to 3.6311 million yuan[156] Future Outlook and Strategy - The company plans to continue focusing on market expansion and product development as part of its future strategy[13] - The company intends to enhance its product quality and competitiveness through technological and management innovations, focusing on improving the cost-performance ratio of its products[78] - The company plans to utilize self-owned funds, bank loans, and direct financing to meet the funding needs for its operational plans[79]