LK(SH:600388)2016-04-27 16:00Financial Performance - The company's operating revenue for 2015 was CNY 7,390,960,490.82, representing a 22.64% increase compared to CNY 6,026,663,646.83 in 2014[21] - The net profit attributable to shareholders for 2015 was CNY 560,148,716.64, a 20.87% increase from CNY 463,414,694.98 in 2014[21] - The net profit after deducting non-recurring gains and losses was CNY 518,955,730.65, which is a 36.68% increase from CNY 379,681,641.68 in 2014[21] - The net cash flow from operating activities reached CNY 1,014,778,279.81, showing a significant increase of 104.87% compared to CNY 495,332,647.96 in 2014[21] - The total assets at the end of 2015 were CNY 13,515,116,962.08, an 18.12% increase from CNY 11,441,410,155.61 at the end of 2014[21] - The net assets attributable to shareholders increased to CNY 3,565,159,779.79, a 13.33% rise from CNY 3,145,726,299.03 in 2014[21] - The basic earnings per share for 2015 was CNY 0.52, reflecting a 20.93% increase from CNY 0.43 in 2014[22] - The diluted earnings per share also stood at CNY 0.52, consistent with the basic earnings per share[22] - The weighted average return on net assets was 16.75%, an increase of 1.08 percentage points from 15.67% in 2014[22] Cash Flow and Investments - The company reported a significant increase in revenue from dust removal equipment and supporting facilities, totaling CNY 4,018,889,337.59, with a gross margin of 25.47%[69] - The company’s cash flow from operating activities reached 1,014,778,279.81 RMB, a significant increase of 104.87% compared to the previous year[68] - The net cash inflow from operating activities increased by CNY 520 million, a growth of 104.87%, primarily due to an increase in new contracts and projects, with a 20.42% rise in advance payments[76] - The net cash outflow from investing activities was CNY 87.42 million, a decrease of 180.87% compared to the previous period, mainly due to the disposal of Guangzhou Development stocks and compensation received for the demolition of an old factory amounting to CNY 103 million[76] - The net cash outflow from financing activities was CNY 371 million, a decline of 603.25%, primarily due to the repayment of bank loans and the previous issuance of CNY 300 million in medium-term notes[76] Technological Advancements - The company has developed advanced technologies in air pollution control, achieving international leading levels in several product categories, including electric dust collectors and flue gas desulfurization systems[33][36] - The company has successfully implemented over 200 sets of LJ series flue gas circulating fluidized bed dry desulfurization devices, ranking first in the world[37] - The company has achieved significant technological breakthroughs, including the development of the world's largest dry desulfurization project for steel sintering[37] - The company’s electric bag composite dust removal technology has been recognized as world-leading, with applications in all 1000MW ultra-large power generation units[36] - The company has established a national-level enterprise technology center and various research institutions, enhancing its R&D capabilities in air pollution control technologies[53] Market and Business Expansion - The company has expanded its business into new areas such as BOT environmental projects and overseas engineering contracts[33] - The company is focusing on expanding its market presence in the air pollution control sector, particularly in small industrial boiler emissions management[94] - The company plans to capitalize on the national initiative for ultra-low emissions in coal-fired power plants, with an expected completion of retrofitting approximately 580 million kilowatts by 2020[82] - The overall industry is experiencing a strategic opportunity period due to ongoing air pollution control initiatives, with significant upgrades and renovations required in coal-fired power plants[94] - The company anticipates accelerated and expanded ultra-low emission renovations across various regions, driven by stringent environmental regulations[95] Shareholder and Dividend Policies - The company plans to distribute a cash dividend of CNY 1.6 per 10 shares, totaling CNY 171,048,000.00, based on a total share capital of 106,905,000 shares[4] - The company has established a cash dividend policy ensuring that cumulative cash distributions over three years will not be less than 30% of the average distributable profit[106] - The company plans to distribute profits in cash amounting to no less than 30% of the average distributable profits over the next three years, subject to annual profit conditions and future funding plans[111] Employee and Management Structure - The company has a strong talent pool, including top experts and overseas researchers, contributing to its technological innovation capabilities[51] - The company employs 1,126 R&D personnel, accounting for 17.91% of the total workforce[75] - The company’s management team includes experienced professionals with tenures ranging from 11 to 16 years, ensuring stability in leadership[141] - The company has appointed independent directors with diverse backgrounds, enhancing governance and oversight[143] - The company implemented a second employee stock ownership plan during the reporting period, effectively incentivizing senior management[160] Financial Health and Stability - The company received a standard unqualified opinion from the auditor regarding its internal control over financial reporting[162] - The company maintained effective internal financial reporting controls as of December 31, 2015, according to the internal control audit report[162] - The total liabilities and equity at the end of the period reached CNY 3,664,088,906.97, showing a robust financial position[192] - The company’s total assets at the end of the period were CNY 3,664,088,906.97, indicating a stable asset base[192] - The company’s retained earnings decreased by CNY 141,259,640.33, which may impact future dividend distributions[193]