HAC(SH:600202)2017-04-24 16:00Financial Performance - In 2016, the company reported a net profit attributable to shareholders of -181,179,289.94 RMB, with distributable profits available for shareholders amounting to 91,079,572.58 RMB after adding the beginning retained earnings of 272,258,862.52 RMB[3]. - The company's operating revenue for 2016 was ¥264.89 million, a decrease of 65.02% compared to ¥757.26 million in 2015[19]. - The net profit attributable to shareholders was -¥181.18 million in 2016, a decline of 1,398.89% from a profit of ¥13.95 million in 2015[19]. - The basic earnings per share for 2016 was -¥0.4726, down 1,398.35% from ¥0.0364 in 2015[20]. - The total assets decreased by 23.50% to ¥1.91 billion at the end of 2016 from ¥2.50 billion at the end of 2015[19]. - The company reported a net cash flow from operating activities of ¥258.10 million in 2016, recovering from -¥67.22 million in 2015[19]. - The gross margin for the main business was 5.27%, a decrease of 14.41 percentage points year-on-year, primarily due to intense market competition and declining order prices[46]. - The total operating revenue for the year 2016 was CNY 264,894,277.45, a decrease of approximately 65.0% compared to CNY 757,259,219.66 in the previous year[145]. - The net loss for 2016 was CNY 181,179,289.94, compared to a net profit of CNY 13,948,741.43 in 2015, indicating a significant decline in profitability[146]. - The total comprehensive income for 2016 was CNY -181,207,030.51, a stark contrast to CNY 13,974,727.41 in 2015, highlighting the overall financial downturn[146]. Dividend Policy - The company plans not to distribute dividends for 2016 due to losses and tight financial conditions, opting to carry forward the distributable profits to 2017 for working capital[3]. - The proposed profit distribution plan for 2016 includes no dividend distribution due to the company's financial constraints, with available profits carried over to 2017 for working capital[73]. - The company emphasizes cash dividends in its profit distribution policy, prioritizing cash dividends when conditions allow[70]. - The company has committed to a cash dividend incentive plan for its management and core technical personnel, based on a certain percentage of cash dividends[75]. Market and Operational Risks - The company faces significant market risks due to a slowdown in domestic electricity demand and reduced thermal power projects, which adversely affects its development[5]. - To mitigate market risks, the company aims to enhance product R&D and innovation, expand product applications, and increase its domestic market share while pursuing international business expansion[5]. - Financial risks are heightened by high accounts receivable and inventory levels, leading to increased refinancing and interest rate risks[5]. - The company is exposed to exchange rate risks related to foreign currency assets and liabilities from large air-cooled equipment export contracts[6]. - The company faces market risks due to the correlation with national economic growth and reduced domestic electricity demand[67]. Financial Management and Strategy - The company will implement a financial warning analysis mechanism and strengthen cash flow management to address financial risks[5]. - To manage exchange rate risks, the company plans to utilize trade financing tools and forward foreign exchange contracts[6]. - The company reduced its bank loans to CNY 791.74 million, a decrease of 21.59% from the previous year, reflecting improved financial management[35]. - The company is in the process of divesting non-profitable subsidiaries, including an 8.7% stake in a guarantee company and a 37.5% stake in an electromechanical equipment company[38]. - The company plans to accelerate the sale of non-core assets to improve cash flow and financial stability[66]. Research and Development - The company continues to focus on the design, manufacturing, and sales of high, medium, and low-pressure air coolers, with no significant changes in its main business[28]. - The company launched several major technology innovation projects, including the development of new hollow aluminum alloy shutters and high-efficiency multi-tube expansion machines[36]. - The company's research and development expenses were CNY 198.96 million, down 8.27% from the previous year, reflecting a focus on cost control[41]. - The company has invested ¥291,669,999.20 in the National Power Station Air Cooling System R&D Center, achieving a completion rate of 109%[58]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Zhongshen Yatai Certified Public Accountants[2]. - The company has maintained its auditor, Zhongshui Yapat Accounting Firm, for eight years, indicating stability in its financial oversight[81]. - The company has established a robust investor relations management system, enhancing communication with investors through multiple channels[121]. - The internal control audit report indicates that the company maintained effective financial reporting internal controls as of December 31, 2016[129]. - The company complied with the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange for information disclosure, ensuring transparency and fairness for all investors[121]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 36,985, an increase from 33,289 at the end of the previous month, representing a growth of approximately 11.1%[95]. - The largest shareholder, Harbin Industrial Investment Group Co., Ltd., held 130,449,385 shares, accounting for 34.03% of total shares[97]. - The company maintained a stable capital structure with no changes in the total number of ordinary shares during the reporting period[93]. - The company has no strategic investors or general legal entities among the top ten shareholders[99]. Employee and Management Information - The total number of employees in the parent company is 680, with a combined total of 713 employees including major subsidiaries[114]. - The company paid a total of 3.7583 million yuan in remuneration to all directors, supervisors, and senior management during the reporting period[111]. - The company trained a total of 167 employees in 2016, enhancing their professional skills and overall quality[116]. - The total remuneration for the chairman and general manager is reported at 54.28 million RMB[104]. Legal and Regulatory Matters - The company is currently undergoing arbitration proceedings related to a dispute with Ansaldo Energia S.p.A, which remains unresolved[82]. - There are no major litigation or arbitration matters reported for the current year, suggesting a stable legal standing[82]. - The company has not reported any significant deficiencies in internal control during the reporting period[129].