TENGDA CONST.(SH:600512)2016-04-28 16:00Financial Performance - The company reported a net profit attributable to shareholders of -28,696,922.34 RMB for 2015, a decrease of 219.46% compared to the previous year[3]. - Total revenue for 2015 was 2,921,064,908.58 RMB, showing a slight increase of 0.26% from 2014[19]. - The company's cash flow from operating activities was -87,197,120.93 RMB, a decline of 1,307.68% compared to the previous year[19]. - As of the end of 2015, total assets amounted to 5,447,347,580.11 RMB, a decrease of 3.78% from the end of 2014[19]. - The net assets attributable to shareholders increased by 72.34% to 2,017,431,096.38 RMB compared to the previous year[19]. - Basic earnings per share decreased by 200.00% to -0.03 CNY from 0.03 CNY in the previous year[20]. - Diluted earnings per share also decreased by 200.00% to -0.03 CNY from 0.03 CNY in the previous year[20]. - The weighted average return on equity dropped by 3.58 percentage points to -1.52% from 2.06% in the previous year[20]. - Operating profit decreased to CNY -31,477,690.07, a decline of 160.29% due to the sluggish real estate market[42]. - Net profit attributable to the parent company was CNY -28,696,922.34, down 219.46% primarily impacted by the real estate sector[42]. Revenue and Business Segments - The construction engineering business accounted for 78.05% of total revenue, highlighting its significance as the main income source[27]. - The company operates primarily in the Yangtze River Delta and Wuhan regions, with no overseas business currently[28]. - The company's main business model includes construction and financing services, primarily using the BT (Build-Transfer) and PPP (Public-Private Partnership) models, with major projects located in Taizhou, Zhejiang Province[29]. - The real estate business is primarily focused in Taizhou, Yunnan, and Jiangxi, with ongoing projects including residential and commercial properties, and future developments planned for commercial real estate[30]. - The company achieved operating revenue of CNY 2,921,064,908.58, a slight increase of 0.26% compared to the previous year[42]. Cash Flow and Financial Management - The net cash flow from operating activities was -192,985,200.31 CNY in the first quarter, indicating a significant cash outflow[22]. - The company plans to enhance cost management and improve economic benefits of projects through better organization and scientific management[38]. - The company aims to increase the construction and sales efforts of existing real estate projects, focusing on accelerating cash flow[38]. - The company reported a significant increase in financial expenses by 174.27% to CNY 107,201,901.23, impacting overall profitability[44]. - The company’s cash and cash equivalents decreased to CNY 561,640,524.25 from CNY 572,306,225.00, a decline of about 1.15%[169]. Investments and Projects - The total amount of new project orders reached CNY 5.223 billion, marking a record high for the company in new contracts[40]. - 50% of the new project orders were high-margin projects operated under the PPP model[40]. - The company has ongoing major engineering contracts exceeding CNY 50 million, including a contract with Hangzhou Metro Group for CNY 66.68 million[91]. - The company has a contract with Shanghai Pudong Engineering Management Co. for CNY 864.18 million, which is also ongoing[93]. - The company secured contracts for the "Kunming South Yao Xindu Yuncheng Building Project" with bid prices of ¥505.1 million and ¥441.3 million, both with a duration of 867 calendar days[97]. Shareholder and Equity Information - The total share capital at the end of 2015 was 1,018,037,229 shares, an increase of 38.14% from the previous year[19]. - The company completed a non-public offering raising a net amount of CNY 889 million and initiated an 800 million bond issuance[40]. - The company reported a dilution in earnings per share from ¥0.03 to ¥0.004 after issuing 281,096,573 shares at a price of ¥3.21 each[116]. - The company's net asset value per share increased from ¥1.59 to ¥2.03 after the issuance of new shares[116]. - The largest shareholder, Ye Linfu, holds 70,543,760 shares, representing 6.93% of the total share capital, following a change in actual control from Ye Yangyou to Ye Linfu[120]. Risk Management and Future Outlook - The company has outlined potential risks in its future development in the management discussion and analysis section[5]. - The company recognizes the risks of macroeconomic fluctuations, which could adversely affect its overall performance due to the cyclical nature of the construction industry[76]. - The company faces challenges from market segmentation and local protectionism, which complicate its expansion efforts in regions dominated by large local enterprises[77]. - The construction industry is experiencing increased competition with low profit margins becoming a norm, indicating a need for strategic adjustments[71]. - The company will enhance its risk warning mechanisms and evaluate the creditworthiness of project repayment subjects to mitigate financial risks associated with BT and PPP projects[77]. Governance and Management - The company has a governance structure that ensures clear responsibilities and mutual checks among the shareholders' meeting, board of directors, supervisory board, and management[145]. - The company has implemented a complete set of rules and regulations, including shareholder meeting rules and information disclosure management systems, in compliance with relevant laws and regulations[146]. - The company continues to expand its management team with experienced professionals in various roles, enhancing its operational capabilities[136]. - The company emphasizes project management and cost control as key factors for achieving good economic returns, implementing budget management throughout the production process[35]. - The total remuneration paid to all directors, supervisors, and senior management during the reporting period amounted to 9.6177 million yuan (pre-tax)[137].