2013 performance Overview:
The results for the year ended December last year were announced, with a net profit of HK $183 million, up 24.51% year-on-year; earnings per share of HK19.93 cents; and final interest of 5.50 cents. During the period, turnover was HK $629 million, up 29.36% year-on-year, and gross profit was HK $341 million, up 29.68% year-on-year. Excluding non-recurrent items, net profit rose 35.3 per cent year-on-year to HK $199 million.
1. The reasons for the delay in fixed asset investment?
The plant construction and expansion capacity was originally scheduled to be completed at the end of last year (with an investment of about 100 million yuan), but now it can only be completed in the second quarter of this year, mainly because it takes longer than expected on issues such as approval progress and communication.
two。 The development of new technology.
In order to adapt to the traditional engineers who want to make noodles, the company has developed the application of new technology (thremal bonding overla, hot adhesive cover technology), which is more advanced than the traditional technology, but it is not as good as the company's latest technology (internal regeneration process). There have been some application cases and the market response is better.
In addition, the company is developing cold recycling technology, focusing on highway roadbed construction, and the project is expected to mature by the end of the year. At the same time, Yingda's own highway doctor college has been set up to re-educate important decision-makers in the industry, hoping to expand the market scale and influence.
3. More accounts receivable, negative operating cash flow?
As of the reporting date, the company's operating cash flow in 2013 was negative 30 million. However, 2 Jan received 65 million HKD receivables, and after adjustment, the operating cash flow can be changed from positive or negative 30 million to positive 35 million. Accounts receivable has increased a lot, and the receipt of more than 100 million payments has been delayed by one month, and the actual situation is better than the financial report. The total accounts receivable in the 2013 financial report was 549 million HKD. Due to calendar factors, the bank was cash-strapped and delayed, and 120 million has been recovered so far. Xinjiang 40 million will be received in April, and Xuzhou Municipal 20 million will be recovered in April. The Tongliao project will be recycled in Yanzhou in late April.
4. Accounts receivable service industry and equipment are how much, more than 1 year accounts receivable basically extended to more than 2 years, these are expected to continue?
Equipment collection is relatively fast, service collection is relatively slow. In terms of proportion, accounts receivable for equipment account for 20%, and project accounts for 80%. The equipment AR is usually recovered within 1 year. Engineering services will be slower. 70% of the money for engineering services will be recovered relatively quickly, and the remaining 30% will be for a period of more than one year to two years. As the gross profit level of the company's business is relatively high, reaching about 70%, the 70% of the rebate has already covered the cost and will not affect the normal operation of the company, and the remaining 30% of the accounts receivable will mainly occupy the company's cash flow. (if a bad debt is formed) will depress the profit level.
5. What is the company's franchise plan?
When selling to the leasing company and JV, the company still has a good right to know about the equipment, and the equipment is more professional and needs professional maintenance. Now Yingda gives the equipment to the lessee, which will be reflected in the profit faster, but if it rents it itself, it will be relatively slow. JV management is more complex than leasing companies, companies try to choose large enterprises to do JV.
6.2014 operational objectives, offshore expansion, AR targets.
AR improvements start with the selection of contracts and do not sign projects that are unpredictable for recovery. Growth in 2013 is not ideal, growth in 2014 will be ideal. This year, we will strengthen team management, road doctor team college and attract talents. Overseas companies are in contact with companies in a number of countries.