Hunan (SH:600476)2017-03-27 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 2,311,558.41 in 2016, compared to a net loss of RMB 39,529,770.11 in 2015[3]. - Total revenue for 2016 was RMB 277,641,410.07, representing a year-on-year increase of 36.74% from RMB 203,040,430.86 in 2015[21]. - The basic earnings per share for 2016 was RMB 0.014, a significant improvement from a loss of RMB 0.245 per share in 2015[22]. - The weighted average return on equity increased to 1.20% in 2016, up by 19.94 percentage points from -18.74% in 2015[22]. - The company reported a negative retained earnings of RMB -112,373,375.77, leading to no profit distribution for the year[3]. - The company reported a net profit margin of 12%, reflecting an improvement from 10% in the previous year[118]. - The net profit attributable to shareholders was RMB 2.31 million, a reduction in loss of RMB 41.84 million compared to the previous year[43]. - The company reported a comprehensive income loss of 39,542,335.05 RMB for the year, indicating a challenging financial performance[179]. Revenue and Contracts - The company achieved an operating revenue of RMB 277.64 million in 2016, representing a year-on-year growth of 36.74%[43]. - Total contracts signed in 2016 amounted to ¥35,573,000, representing a net increase of ¥17,839,000 or 101% compared to 2015[35]. - The system integration business saw a contract amount of ¥226 million in 2016, which is a 76% increase year-on-year[32]. - The company signed contracts worth ¥8,670,000 for smart parcel lockers in 2016, expanding its product line significantly[33]. - The GIS Beidou application business secured contracts totaling ¥12,640,000 in 2016, focusing on logistics industry solutions[32]. Cash Flow and Assets - Cash flow from operating activities showed a net outflow of RMB -31,113,425.92 in 2016, worsening from RMB -20,177,551.08 in 2015[21]. - The company's total assets increased by 4.49% to RMB 353,631,911.18 at the end of 2016, up from RMB 338,440,185.95 at the end of 2015[21]. - The company's cash and cash equivalents increased to CNY 59,663,374.67 from CNY 50,620,813.29, representing a growth of approximately 17.9%[154]. - The ending cash and cash equivalents balance was CNY 54,277,219.40, an increase from CNY 48,435,028.94 at the beginning of the year[169]. Liabilities and Equity - The company's total liabilities increased due to a rise in bank loans, with cash received from loans amounting to CNY 120,000,000.00, a 35.15% increase from the previous year[59]. - The company's total liabilities amounted to CNY 155,534,983.90, up from CNY 147,134,043.30, indicating an increase of about 5.0%[155]. - The total equity attributable to shareholders increased to CNY 198,038,780.05 from CNY 191,227,758.47, reflecting a growth of about 3.9%[156]. Research and Development - The company’s R&D expenditure decreased by 68.69% to RMB 666.66 thousand compared to the previous year[46]. - The company’s R&D expenditure totaled CNY 666,660.77, accounting for 0.24% of total revenue, with 65 R&D personnel representing 19% of the total workforce[56]. - Research and development investments increased by 25%, focusing on innovative technologies in supply chain management[119]. Strategic Initiatives - The company plans to accelerate the development of new products based on internet innovations and big data analytics to enhance market opportunities[35]. - The company aims to strengthen its core competitiveness by focusing on talent development and optimizing management practices[37]. - The company is actively exploring new product applications and technological advancements in the postal sector under the "Technology Prosperity Postal" strategy[77]. - The company plans to enhance its market expansion capabilities through the promotion of self-developed products and the execution of large-scale projects[39]. Governance and Compliance - The company appointed Tianzhi International Accounting Firm as the auditor for the 2016 financial year, with an audit fee of 500,000 RMB[90]. - The internal control audit will also be conducted by Tianzhi International Accounting Firm, with a fee of 150,000 RMB[90]. - The company has a clear governance structure with defined responsibilities among power, decision-making, supervisory, and management bodies[133]. - The company maintained compliance with legal and regulatory requirements in its governance structure[135]. Legal Matters - There are significant litigation and arbitration matters reported for the year[92]. - The company is involved in ongoing litigation regarding unpaid debts, including a case where it is pursuing 3.63 million RMB from the Zhuzhou Xinglian Technology Co., Ltd[93]. - The company has successfully executed a court ruling in its favor for a claim of 496,909 RMB plus interest of 196,775 RMB against Hunan Century Lingyun Information Technology Co., Ltd[93]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,909, down from 16,540 at the end of the previous month[107]. - The company has not disclosed any significant changes in its ordinary share capital structure during the reporting period[105]. - The company has not proposed any cash dividend distribution for 2016 due to negative retained earnings[83].