LK(SH:600388)2015-04-17 16:00Profit Distribution and Financial Performance - The profit distribution proposal for the year includes a stock dividend of 5 shares for every 10 shares held and a cash dividend of 3.3 RMB per 10 shares, totaling 141,114,600 RMB in cash distribution[2]. - The total profit available for distribution amounts to 354,924,600 RMB, with retained earnings of 1,243,914,428.81 RMB carried forward to future years[2]. - The company’s total capital reserve after the proposed share capital increase will be 522,464,616.60 RMB[2]. - The company reported a net profit of 7,168.08 million, indicating a strong performance in its core business areas[67]. - The company reported a net profit of RMB 466,987,730.65 for 2014, with a net profit attributable to shareholders of RMB 463,414,694.98[84]. - The company achieved actual sales revenue of ¥6.03 billion in 2014, exceeding the target of ¥5.8 billion, with a net profit of ¥463 million[49]. - The company’s total revenue from the main business increased by 23.32% year-on-year, reaching ¥6.03 billion, while the gross profit margin was 23.32%[52]. - The company reported a total dividend distribution of CNY 188,489,150, compared to CNY 145,176,994 in the previous year, reflecting an increase of about 30%[184]. Revenue and Growth - The company's operating revenue for 2014 reached approximately ¥6.03 billion, an increase of 8.23% compared to ¥5.57 billion in 2013[25]. - The company’s operating revenue for the current period reached CNY 6,026,663,646.83, an increase of 8.23% compared to CNY 5,568,211,847.21 from the previous year[37]. - The revenue from the environmental protection equipment manufacturing segment was ¥5.81 billion, with a gross margin of 23.02%, reflecting an increase of 11.56% in gross margin compared to the previous year[52]. - The export revenue surged by 106.82% to ¥698.08 million, indicating strong international demand[55]. - The company plans to achieve a main business revenue of 6.5 billion yuan in 2015, with operating costs controlled around 5.1 billion yuan and three expenses limited to approximately 900 million yuan[74]. Cash Flow and Financial Health - Cash flow from operating activities surged to approximately ¥495.33 million, marking a remarkable increase of 516.60% compared to ¥80.33 million in 2013[25]. - The net cash flow from operating activities for the year was CNY 495,332,648, a significant increase from CNY 80,332,509 in the previous year, representing a growth of 517%[183]. - The company's cash and cash equivalents increased by 68.90% to ¥1.65 billion, primarily due to faster collection of receivables and the issuance of medium-term notes[58]. - The ending cash and cash equivalents balance was CNY 1,347,356,464, up from CNY 685,693,840, representing an increase of approximately 96%[184]. Assets and Liabilities - The total assets of the company at the end of 2014 were approximately ¥11.44 billion, representing a growth of 34.05% from ¥8.54 billion at the end of 2013[25]. - Total assets increased to CNY 11,441,410,155.61 from CNY 8,535,014,843.11, representing a growth of approximately 34.5% year-over-year[172]. - Total liabilities rose to CNY 8,197,499,891.73, up from CNY 5,673,800,755.99, indicating a year-over-year increase of about 44.5%[172]. - The company has a strong focus on reducing liabilities, with a notable decrease in short-term borrowings from CNY 336,203,120.00 to CNY 203,688,333.60, a reduction of approximately 39.2%[172]. Research and Development - Research and development expenses amounted to CNY 247,134,943.37, representing 4.10% of operating revenue and 7.62% of net assets[47]. - The company invested 35 million RMB in its subsidiary for the regeneration of denitration catalysts, indicating a focus on enhancing its technological capabilities[69]. - The company is investing in R&D, allocating 100 million RMB towards the development of new technologies in environmental protection[132]. Market Position and Strategy - The company has undergone a transformation from focusing solely on electrostatic precipitators to becoming an innovative environmental engineering company offering dust removal, desulfurization, denitrification, material transportation, and power plant engineering[20]. - The company maintains a leading position in the dust removal industry, with significant market share increases in desulfurization and denitrification sectors[62]. - The company is targeting to capture key projects in ultra-clean emissions, particularly in underdeveloped sectors like industrial boilers, metallurgy, and petrochemicals[75]. - The company plans to leverage its unique technical advantages in the dust removal sector to achieve breakthroughs in large unit projects[76]. Corporate Governance and Compliance - The company emphasizes the importance of risk awareness regarding future plans and development strategies, advising investors to consider potential risks[10]. - The company has established a comprehensive internal control system, continuously improving its effectiveness[148]. - The company strictly adheres to corporate governance regulations, ensuring the protection of shareholders' rights and interests[146]. - The audit committee communicated effectively with external auditors during the annual audit process, ensuring compliance and oversight[154]. Shareholder Structure and Equity Incentives - The total number of shareholders at the end of the reporting period was 53,570, down from 61,783 five trading days prior[120]. - The largest shareholder, Fujian Dongzheng Investment Co., Ltd., holds 73,410,056 shares, representing 17.17% of total shares, with 57,500,000 shares pledged[122]. - The company has a consistent equity incentive plan with 48,000 shares allocated to several other employees, indicating a broad-based incentive strategy[118]. - The company has established a long-term employee stock ownership plan that will be implemented in ten phases from 2014 to 2023[109].