Jin Feida Intends To Send Cash Of 0.20 Yuan For Every 10 Shares.

Jin Feida (002239) Company 1-12 months, 2011

Overall operating condition

Since the outbreak of the international financial crisis in 2008, the severe environment faced by our garment production and export enterprises has not been significantly improved.

On the one hand, the consumption ability of the European and American markets has dropped sharply, on the other hand, the domestic production costs have risen sharply.

In 2011, the prices of clothing raw materials and accessories did not continue to rise sharply last year, but they are still at a high level.

With the increase of wages, processing fees and RMB appreciation, the profit margins of garment processing industry have been further compressed.

After three consecutive years of adjustment, the company's continuous decline in performance has been curbed.

Order signing and execution

The company is resolutely carrying out the mode of "production by sales", and its main customers are mostly well-known clothing importers and large commodity sellers.

The overall situation of the reporting period and the current orders is relatively stable, and no single order of significant amount has been signed.

During the reporting period, sales expenses increased by 13.17% over the previous year, mainly because of the expansion of domestic businesses and the development of new customers. The management fees increased by 21.71% over the previous year, mainly because of the company's investment in the acquisition of Kaxi mining equity at the end of 2011, paying the intermediary fees for auditing, assessment and lawyers; and the financial expenses decreased by 400.89% compared with the same period last year, mainly because of the increase in interest rates of banks, the increase in interest income generated by the company's unused raised funds and its own funds, and the income tax expense dropped by 108.95%, mainly due to the loss of the parent company and the deferred income tax.

During the reporting period, the increase in the proportion of sales expenses and management expenses to operating profits was due to the decrease in operating profits during the reporting period.

During the reporting period, the business activities generated by the company

During the reporting period, the net cash flow generated by the company's financing activities increased by 102.28% over the same period last year because of the absence of new financing matters during the reporting period and the decrease in cash dividends allocated by companies in 2010.

During the reporting period, the balance of cash and cash equivalents at the end of the year was 3.59% lower than that in the same period last year, as a result of the increase in the construction payment of the company's construction projects.

The profitability of the core assets of the company has not changed, nor has there been any reduction in the profitability of the core assets of the substitute assets or assets upgrading, so there is no major impairment problem.

The balance of accounts receivable increased by 13.75% at the end of the year compared with the beginning of the year. The main reason was that the company developed domestic processing business vigorously in the second half of 2011, and the slow withdrawal of payments resulted in an increase in the balance of accounts receivable.

The number of prepaid accounts decreased by 40.58% over the beginning of the year, mainly due to the reasonable use of the sales credit of the suppliers during the reporting period and the timely settlement of the purchase cost.

Inventories fell 8.51% from the beginning of the year, mainly due to the strengthening of inventory management and the sale of some inventory materials during the reporting period.

The company's inventory assets consist mainly of raw materials, products and inventory commodities, of which 99.61% of raw materials, products, inventory commodities and processed materials are accounted for.

During the reporting period, the company accounts receivable increased by 13.75%, mainly in the second half of 2011, vigorously developing domestic processing business, the slow withdrawal of payments, resulting in an increase in accounts receivable balance.

During the reporting period, the year-end accounts payable increased by 33.09% over the beginning of the year, mainly owing to the fact that the works for the collection projects had not yet been settled.

During the reporting period, by strengthening management, the inventory turnover rate of the company has been greatly improved, and the turnover rate of accounts receivable is relatively stable.

2012 annual business plan

In 2012, the company will firmly grasp the main business of garment, relax the pace of reform in order, procurement and sales, enhance the vitality and innovation ability of enterprises, and strive to achieve greater growth in the sales revenue and profits of garment business.

At the same time, increase investment outside garment business, actively cultivate new profit growth points, and create better development space for the company.

Utilization of raised funds (unit: 10000 yuan)

The expansion project of 5 million 300 thousand sets of middle and top grade garment production lines: the total amount of commitment capital invested by the company is 106 million 372 thousand yuan, and the accumulated investment amount as at the end of the year is 52 million 478 thousand and 200 yuan, and the profit achieved in the reporting period is 0 yuan.

The capital increase is used in the expansion project of 3 million 900 thousand (set) middle and top grade garment production lines: the total commitment investment amount of raising funds is 80 million 158 thousand yuan, and the accumulated investment amount as at the end of the year is 0 yuan, and the profit achieved in the reporting period is 0 yuan.

The capital increase is used in the expansion project of 1 million 200 thousand (sets) middle and top grade garment production lines: the total amount of commitment capital invested is 60 million 21 thousand yuan, and the accumulated investment amount as at the end of the year is 60 million 21 thousand yuan, and the profit achieved in the reporting period is 3 million 605 thousand and 300 yuan.

The plan for profit distribution in 2011 is: to distribute dividends to all shareholders by 0.20 yuan (including tax) per 10 shares at the end of 2011 as the base of the total share capital of 201000000 shares, with a total dividend of 4020000 yuan.

The remaining profits are pferred to the next year.

In 2011, the company did not convert capital reserve into capital stock.