Sinomach Auto(SH:600335)2016-04-13 16:00Financial Performance - In 2015, the company's operating revenue was CNY 64.16 billion, a decrease of 28.98% compared to CNY 90.34 billion in 2014[16]. - The net profit attributable to shareholders was CNY 480.64 million, down 43.79% from CNY 855.10 million in the previous year[16]. - Basic earnings per share for 2015 were CNY 0.7664, down 44.67% from CNY 1.3852 in 2014[17]. - The weighted average return on equity decreased to 9.08%, down 9.93 percentage points from 19.01% in 2014[17]. - The company achieved sales revenue of 64.2 billion RMB, with a net profit attributable to shareholders of 480 million RMB, indicating a year-on-year decline in both revenue and profit[33]. - The company's operating income decreased by 28.98% compared to the previous year, amounting to approximately 64.16 billion RMB[41]. - The net profit attributable to shareholders decreased to ¥480.64 million from ¥855.10 million, a decline of around 44% year-over-year[183]. - Total operating revenue decreased to ¥64.16 billion from ¥90.34 billion, a decline of approximately 29% year-over-year[182]. - Net profit fell to ¥379.96 million from ¥781.79 million, representing a decrease of approximately 51% year-over-year[182]. Cash Flow and Assets - The net cash flow from operating activities was CNY 9.24 billion, a significant improvement from a negative cash flow of CNY 3.57 billion in 2014[16]. - The net cash flow from operating activities improved significantly to approximately 9.24 billion RMB, compared to a negative cash flow of 3.57 billion RMB in the previous year[42]. - The net cash flow from operating activities for the year 2015 was ¥9,236,490,463.59, a significant improvement compared to a net outflow of ¥3,568,148,503.85 in the previous year[187]. - Cash and cash equivalents at the end of 2015 decreased to ¥3,171,856,924.91 from ¥4,871,231,273.66, reflecting a decline of about 34.8%[188]. - The company's total assets at the end of the period were ¥28.83 billion, with cash and cash equivalents decreasing by 32.3% to ¥3.66 billion[53]. - Total assets decreased to 28.815 billion RMB from 34.530 billion RMB[174]. - Total liabilities decreased from 29.18 billion to 23.13 billion, a reduction of approximately 20.6%[175]. - Current liabilities decreased from 28.84 billion to 22.07 billion, a decline of about 23.4%[175]. Market Position and Strategy - The company maintained its leading market share in the import automotive wholesale business despite a challenging market environment, with a significant decline in the import automotive market, where sales dropped by 10.7%[25]. - The company is positioned as the only multi-brand automotive comprehensive service provider in the industry, with a robust service chain covering the entire import process[28]. - The management expressed confidence in the future of the import automotive market, anticipating recovery driven by urbanization and consumer demand for low-emission and personalized vehicles[32]. - The company aims to leverage its strong brand and financing capabilities to navigate the adverse market conditions and pursue future growth opportunities[31]. - The company is actively exploring the "Internet+" strategy, establishing online sales channels and collaborating with e-commerce platforms for vehicle sales[39]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.20 per 10 shares and issue bonus shares at a ratio of 10:5, totaling CNY 388.83 million in dividends[2]. - The company distributed a cash dividend of 2.00 RMB per 10 shares for the 2014 fiscal year, totaling 125,429,138 RMB[73]. - For the 2015 fiscal year, the company plans to distribute a cash dividend of 1.20 RMB per 10 shares, amounting to 75,257,482.80 RMB[74]. - The cash dividends for 2014 and 2015 represent 14.67% and 15.66% of the net profit attributable to shareholders, respectively[74]. Financial Management and Governance - The company has established a clear dividend policy that allows minority shareholders to express their opinions and protect their rights[73]. - The company has committed to ensuring the independence of its subsidiary, Ding Sheng Tian Gong, post-major asset restructuring[76]. - The company has implemented a robust decision-making process for dividend distribution, ensuring transparency and accountability[73]. - The company has maintained compliance with its commitments regarding asset restructuring and related party transactions[76]. - The company has established Guoqi Finance as a non-bank financial institution approved by the China Banking Regulatory Commission to provide financial services to its subsidiaries[78]. Operational Efficiency and Cost Management - The company is expanding its port infrastructure, with a storage area exceeding 700,000 square meters and the establishment of five independent maintenance workshops and 14 PDI inspection lines by the end of 2015[35]. - The total cost of automotive wholesale and trade services was ¥49.38 billion, a decrease of 34.71% year-over-year, indicating a significant reduction in operational costs[46]. - The company sold 194,178 vehicles, representing a year-over-year decrease of 28.87%, with inventory levels also down by 14.77%[45]. - The company aims to enhance operational efficiency and create greater value through innovative operational models while exploring new business areas for profit growth[64]. Human Resources and Management - The company has a total of 4,169 employees, with 2,915 in business roles, 873 in management, and 381 in finance and auditing[131]. - The company has implemented a training plan for 2015, including leadership training and skill development for employees[133]. - The management team includes individuals with extensive experience in the automotive trade and finance sectors[124]. - The board of directors consists of members with diverse backgrounds in management consulting, finance, and automotive industries[124]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[3]. - The company’s risk reserves increased to CNY 262,650,962.07, indicating a proactive approach to risk management and financial prudence[197]. Debt and Financing - The company completed the issuance of bonds totaling 1,000 million, with a total face value not exceeding 2,000 million approved for public issuance[100]. - The bond "16 Guoqi 01" has a term of 5 years, with an interest rate of 3.5%, and interest payments made annually[151]. - Total bank credit facilities amounted to 58.6 billion RMB, with 21.2 billion RMB utilized[162]. - The company raised 1 billion RMB through the issuance of bonds, with 999.5 million RMB allocated to repay bank loans, aligning with the fundraising plan disclosed[153].