Zhejiang Longsheng(SH:600352)2015-03-30 16:00Financial Performance - In 2014, the company achieved a net profit of RMB 897,958,893.21, with a statutory surplus reserve of RMB 89,795,889.32, resulting in an undistributed profit of RMB 984,185,457.90 at year-end[3]. - The company reported an increase in undistributed profits from RMB 588,546,255.11 at the beginning of the year to RMB 984,185,457.90 by year-end[3]. - The company achieved total revenue of CNY 15,149,985,953.20, representing a year-on-year growth of 7.55%[28]. - The net profit attributable to shareholders reached CNY 2,533,285,751.24, an increase of 87.77% compared to the previous year[28]. - The basic earnings per share rose to CNY 1.6580, reflecting an increase of 82.52% year-on-year[26]. - The weighted average return on equity increased by 8.78 percentage points to 24.97%[26]. - The company's total operating income reached ¥18,579,973,129.33, a 29.09% increase compared to ¥14,393,535,726.29 in the previous year, primarily due to strong dye sales performance[56]. - The company reported a total revenue of 607,458.23 million RMB with a net profit of 33,114.16 million RMB from Zhejiang Longsheng Dyeing Chemical Co., Ltd.[79]. Profit Distribution - The profit distribution plan includes a cash dividend of RMB 5.00 per 10 shares (tax included) and a capital reserve conversion of 10 shares for every 10 shares held[3]. - The company maintained a consistent dividend policy, reflecting its commitment to returning value to shareholders[3]. - In 2014, the company proposed a cash dividend of 5.00 RMB per 10 shares, amounting to 813,332,965.00 RMB (before tax), which represents 32.11% of the net profit attributable to shareholders[92]. Business Diversification and Strategy - The company has diversified from a single dye business to a multinational group focusing on dyes, intermediates, and superplasticizers, with inorganic chemicals and real estate as supplementary businesses[19]. - The company completed a significant acquisition of Dystar, becoming its controlling shareholder, which has enhanced its market position in the dye industry[19]. - The company aims to diversify and internationalize its product and business lines, targeting to become a "world-class specialty chemicals production service provider"[55]. - The company is focusing on integrating its business model with financial services through e-commerce to create a supply chain financial ecosystem[83]. - The company is actively pursuing market expansion through strategic acquisitions and partnerships, as evidenced by multiple transactions throughout 2014[100][101][103]. Research and Development - Research and development expenses rose by 25.67% to CNY 567,739,312.01, compared to CNY 451,753,597.17 last year[39]. - In 2014, the company implemented 88 new product development projects and completed 25 patent applications, showcasing its strong R&D capabilities[66]. - New product development initiatives are underway, with an investment of 60 million allocated for R&D in the upcoming fiscal year[151]. - The company aims to enhance its product line through continuous internal R&D investment and external acquisitions, aspiring to become a world-class special chemical production service provider[67]. Environmental Initiatives - The company is the only one in the industry achieving zero emissions in its production process, amidst increasing regulatory pressure on pollution[36]. - The company has invested over 400 million RMB in environmental upgrades in recent years, significantly improving its waste treatment capabilities[94]. - The MVR system implemented by the company has effectively reduced wastewater discharge by over 70% and solid waste by over 90%[94]. - The company will enhance its environmental protection efforts, aiming for "zero emissions" and developing eco-friendly products[88]. Financial Position and Investments - Cash and cash equivalents decreased by 5.60% to approximately CNY 1.60 billion, accounting for 6.96% of total assets[62]. - Accounts receivable increased by 35.45% to approximately CNY 2.66 billion, representing 11.53% of total assets, attributed to rapid growth in dye sales[62][63]. - Inventory rose by 19.54% to approximately CNY 5.26 billion, making up 22.83% of total assets[62]. - Long-term equity investments increased by 37.58% to approximately CNY 271 million, due to higher profits from associated companies[62][63]. - The company has a total of 231,393.00 million RMB allocated for non-public fundraising projects, with 81,351.79 million RMB invested this year[80]. Corporate Governance - The company has established a performance evaluation and incentive mechanism for directors and senior management, promoting fairness and transparency[175]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements[173]. - The supervisory board is composed of 3 members, with 2 representing shareholders and 1 representing employees, meeting legal standards[174]. - The company has implemented a comprehensive internal control system, ensuring compliance with regulatory requirements[175]. - An independent audit by Tianjian Accounting Firm confirmed the effectiveness of the company's internal controls over financial reporting as of December 31, 2014, issuing a standard unqualified opinion[190]. Market Outlook - The company anticipates steady growth in the dye industry, with China's dye production accounting for approximately 60% of the world's total output[81]. - The demand for intermediates, particularly para-phenylenediamine, is expected to increase significantly, with the market for para-cresol projected to become the largest consumption market for para-phenylenediamine in the coming years[82]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[151]. Shareholder Information - The total number of shareholders at the end of the reporting period was 63,286, down from 84,143 five trading days prior[140]. - The largest shareholder, Ruan Shuilong, holds 194,826,996 shares, representing 12.73% of the total shares[142]. - The total number of shares held by the top ten shareholders includes significant pledges, with Ruan Weixing pledging 33,300,000 shares[142]. - The actual controllers of the company are Ruan Shuilong, Ruan Weixiang, and Xiang Zhifeng, all of whom are Chinese nationals[144].