Zhejiang Longsheng(SH:600352)2017-04-17 16:00Financial Performance - In 2016, the company achieved a net profit of ¥866,043,545.58, with a 10% statutory surplus reserve of ¥86,604,354.56 deducted[3]. - The undistributed profits at the end of 2016 amounted to ¥1,211,701,478.26 after distributing dividends of ¥487,999,779.00 in June 2016[3]. - The profit distribution plan for 2016 proposes a cash dividend of ¥2.00 per 10 shares (tax included)[3]. - The company's operating revenue for 2016 was approximately ¥12.36 billion, a decrease of 16.82% compared to ¥14.85 billion in 2015[20]. - The net profit attributable to shareholders for 2016 was approximately ¥2.03 billion, down 24.35% from ¥2.68 billion in 2015[20]. - The basic earnings per share for 2016 was ¥0.6237, reflecting a decline of 25.47% from ¥0.8369 in 2015[21]. - The total assets at the end of 2016 reached approximately ¥39.94 billion, an increase of 48.66% from ¥26.86 billion at the end of 2015[20]. - The net cash flow from operating activities for 2016 was negative at approximately -¥6.08 billion, compared to positive cash flow of ¥1.63 billion in 2015[20]. - The company reported a weighted average return on equity of 13.76% for 2016, down 7.33 percentage points from 21.09% in 2015[21]. - The company experienced a significant decrease in net profit after deducting non-recurring gains and losses, which was approximately ¥1.14 billion, down 31.37% from ¥1.66 billion in 2015[20]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[6]. - The report indicates that the company is committed to ensuring the accuracy and completeness of its financial reports[2]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. - The company has not reported any significant issues regarding the occupation of funds or overdue receivables during the reporting period[145]. - The company has maintained compliance with all court judgments and has no outstanding debts that are overdue[153]. Risks and Future Outlook - The company has outlined potential risks in its future development in the report[5]. - The company is committed to diversifying its business by expanding into real estate and other sectors to enhance future performance[129]. - Future plans include expanding aniline production capacity to 100,000 tons per year and phenol production capacity to 50,000 tons per year over the next five years[129]. - The company aims to achieve a global dye production capacity of 350,000 tons per year through technological upgrades and environmental governance improvements[129]. - The company plans to enhance investment in environmental protection, converting risks into opportunities through the development of eco-friendly products[133]. Research and Development - The company completed 16 R&D projects in 2016, with 13 projects yielding results and 11 ongoing projects[34]. - The R&D expenditure for the current period was approximately CNY 548.07 million, a decrease of 4.91% compared to the previous year[42]. - Zhejiang Longsheng is investing 200 million RMB in R&D for new technologies in dye production, aiming for a 30% reduction in production costs by 2019[194]. - The company has launched a new eco-friendly dyeing technology, which is expected to reduce water usage by 30%[159]. Environmental and Social Responsibility - The company has reduced wastewater discharge by over 70% and solid waste discharge by over 90% through clean production integrated technology in the disperse dye segment[74]. - The company has a comprehensive emergency response system in place to handle environmental incidents[173]. - The company invested a total of RMB 624 million in environmental protection facilities from 2014 to 2016, focusing on upgrading and transformation[172]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 161,755, an increase from 151,107 at the end of the previous month[180]. - The top shareholder, 阮水龙, holds 389,653,992 shares, representing 11.98% of the total shares[182]. - The company has a total of 60,000,000 shares under lock-up conditions, which will be released on March 26, 2018[183]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest three shareholders alone holding over 32%[182]. Legal Matters - The company has ongoing significant litigation regarding patent infringement, with a ruling requiring the defendant to cease production and pay damages of RMB 5 million, with an additional ruling for RMB 7 million in damages pending[149]. - A subsidiary of the company has been fined RMB 20 million for environmental pollution, with RMB 10 million already prepaid to the court[149]. - The company is facing a claim for environmental remediation costs amounting to RMB 24.28 million from the Jiangsu Environmental Protection Association, with the court yet to schedule a hearing[149]. Financial Management - The company reported a total of RMB 605,608.34 million in financial assets measured at fair value, with a net gain of RMB 15,350.79 million from changes in fair value[122]. - The company has engaged in various wealth management products, with a total investment of CNY 100 million in a floating income product yielding 0.24%[162]. - The company has a total of CNY 50,000 million in a floating income product with a yield of 783%[162]. - The total amount of guarantees provided by the company demonstrates its commitment to supporting its business operations[158]. Market Position and Strategy - The company holds a leading position in the global specialty chemicals market, with an annual dye production capacity of 300,000 tons and a strong market presence[71]. - The company is focusing on expanding its service business, which saw a revenue increase of 19.58% to approximately CNY 147.13 million[44]. - The company is exploring international markets, with plans to enter Southeast Asia by mid-2017[159]. - The company has established sales networks in over 20 provinces in China, focusing on key regions such as Zhejiang, Jiangsu, Guangdong, and Sichuan[109].