CHIXIA DEVELOPMENT(SH:600533)2017-04-21 16:00Financial Performance - The company achieved a net profit of ¥231,121,349.08 for the year 2016, with a 10% legal surplus reserve of ¥23,112,134.91 deducted[2]. - Total revenue for 2016 was ¥2,895,865,810.02, representing a 49.52% decrease compared to ¥5,736,640,329.66 in 2015[16]. - The net profit attributable to shareholders was ¥195,387,402.83, which is a 5.20% increase from ¥185,728,083.75 in the previous year[16]. - The company reported a net cash flow from operating activities of -¥2,325,094,887.72, a significant decline compared to ¥1,540,195,422.76 in 2015[16]. - The company reported a net profit margin of 32.24% for the year 2016[84]. - The company reported a total revenue of 2.904 billion yuan in 2016, a year-on-year decrease of 49.45%, while the net profit was 180 million yuan, an increase of 1.85%[40]. - The total comprehensive income for the year was ¥53.84 million, a significant decrease from ¥272.54 million in the previous year[160]. - The company reported a basic earnings per share of CNY 0.1861, up from CNY 0.1769 in the previous year, indicating a growth of 1.1%[157]. Assets and Liabilities - The total assets at the end of 2016 amounted to ¥14,019,565,016.56, reflecting a 4.11% increase from ¥13,466,627,241.32 in 2015[16]. - The company's total liabilities reached CNY 10,048,466,980.39, compared to CNY 9,350,648,238.25 at the start of the year, indicating a rise in leverage[150]. - The company's cash and cash equivalents decreased to CNY 1,151,859,086.81 from CNY 2,277,363,558.56, reflecting a significant reduction in liquidity[148]. - The company's inventory stood at CNY 9.51 billion, with ongoing construction projects covering an area of 386,300 square meters and planned but not yet started projects covering 771,600 square meters[41]. - The company’s long-term borrowings increased to CNY 3,096,100,000.00 from CNY 2,151,200,000.00, reflecting a strategy to finance growth through debt[150]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of ¥0.6 per 10 shares, totaling ¥63,000,000.00[2]. - The company distributed dividends amounting to CNY 52,500,000.00 during the year[170]. - The total number of ordinary shareholders increased from 55,450 to 56,457 during the reporting period, reflecting a growth of approximately 1.8%[107]. - The largest shareholder, Nanjing Qixia Construction Group, holds 360,850,600 shares, representing 34.37% of the total shares[109]. Market and Industry Position - The company aims to expand its operations in the real estate sector, focusing on residential product development in cities like Nanjing, Suzhou, and Wuxi[27]. - The company is positioned in a market where the concentration of large real estate firms is increasing, with the market share of billion-yuan firms rising from 14.4% in 2015 to 20.5% in 2016[29]. - In Jiangsu province, the total residential sales area grew by 23.2% in 2016, indicating a robust market environment for the company[29]. - The company has been recognized as one of the top 10 responsible real estate developers in China, reflecting its commitment to sustainable development[27]. Operational Performance - The company’s real estate development business achieved revenue of CNY 2.76 billion, a decrease of 50.79% compared to the previous year[43]. - The gross profit margin for the main real estate development business was 20.96%, an increase of 5.42% year-on-year[40]. - The company achieved a contract sales amount of 1.278 billion yuan during the reporting period, down from 2.706 billion yuan in the previous year, with a contract sales area of 102,000 square meters, compared to 177,200 square meters in the previous year[34]. - The company’s projects in Nanjing and Wuxi are expected to meet development needs for the next 3 to 4 years due to their strong profitability[41]. Cash Flow and Financing Activities - Cash flow from operating activities turned negative at -¥2,325,094,887.72, a decrease of 250.96% compared to the previous year, attributed to reduced cash received from sales and increased cash payments for land purchases[56]. - Cash flow from financing activities increased to ¥1,486,211,340.07, a significant improvement from -¥402,914,085.96 in the previous year, due to increased bank borrowings[56]. - The company received approvals from Jiangsu Provincial Government and China Banking Regulatory Commission for the asset acquisition on December 14 and December 16, 2015[95]. Risk Management and Compliance - The company has outlined potential industry and operational risks in its report, advising investors to be cautious[4]. - The company recognizes the potential risks from policy changes and market fluctuations, particularly in the real estate sector[80]. - The company has not faced any major litigation or arbitration matters during the reporting period[89]. - The company has continued to engage Zhonghui Certified Public Accountants for financial and internal control audits, with fees of RMB 550,000 and RMB 150,000 respectively for the previous year[88]. Corporate Governance - The company held 1 annual general meeting and 2 temporary general meetings during the reporting period, ensuring compliance with relevant regulations[130]. - The board of directors held 12 meetings during the reporting period, fulfilling their responsibilities and maintaining the rights of all shareholders[130]. - The company has maintained independence from its controlling shareholder, with no instances of fund or asset occupation by the major shareholder[131]. - The company has established a performance evaluation mechanism for senior management, linking assessments to compensation[138].