WOLONG ELECTRIC(SH:600580)2017-05-31 16:00Financial Performance - The company's operating revenue for 2016 was ¥8,913,936,672.36, a decrease of 5.91% compared to ¥9,473,632,174.40 in 2015[24]. - Net profit attributable to shareholders was ¥253,408,117.19, down 29.69% from ¥360,394,069.76 in 2015[24]. - The basic earnings per share decreased by 38.71% to ¥0.1989 from ¥0.3245 in 2015[25]. - The cash flow from operating activities was ¥94,415,722.08, a significant decline of 89.02% compared to ¥860,275,906.53 in 2015[24]. - The total assets increased by 14.23% to ¥16,081,739,660.77 from ¥14,078,358,312.24 at the end of 2015[24]. - The gross profit margin for the first to fourth quarters was 24.77%, 22.10%, 21.16%, and 16.48%, respectively, indicating a downward trend[27]. - Non-recurring gains and losses totaled ¥172,320,891.14 for 2016, compared to ¥23,655,093.87 in 2015[31]. - The company's core business of motor and control accounted for 79.93% of total revenue in 2016, up from 72.58% in 2015[64]. - The net profit attributable to shareholders of the parent company was RMB 253 million, down 29.69% year-on-year[62]. - The company's total revenue in 2016 reached 865,993.23 million RMB, with significant contributions from low-voltage motors and drives, which accounted for 37.80% of total revenue[153]. Dividends and Share Capital - In 2016, the company proposed a cash dividend of 0.3 CNY per 10 shares based on a total share capital of 1,288,899,586 shares[6]. - The company plans to carry forward the remaining distributable profits to the next year, with no capital reserve fund conversion to share capital for 2016[6]. - The cash dividend distribution plan for 2016 included a stock dividend of 0.3 shares for every 10 shares held[144]. - The company has a cash dividend policy, distributing 0.7 yuan per 10 shares, totaling approximately 90.22 million yuan in cash dividends for the reporting period[143]. Acquisitions and Investments - The company signed a share transfer agreement to acquire 13.2 million shares of Nanyang Explosion-proof Group for a total transaction price of 1.12 billion RMB in May 2016[47]. - The company acquired 84.91% of Rongxin Transmission, 80.01% of Rongxin High-tech, and 90.00% of Rongxin Control for a total transaction price of 21,980.00 million RMB in June 2016[47]. - The company invested in a new energy vehicle powertrain industrialization project on a land area of 103,323 square meters in Shaoxing, Zhejiang Province[110]. - The company plans to transfer 92.5% of its subsidiary Yinchuan Transformer Co., Ltd. to Xiamen Hongxiang Electric Power Equipment Co., Ltd. for 1.08225 billion RMB, with 70% paid in shares and 30% in cash[113][114]. Market and Competition - The company faced intense competition in the high-voltage motor and drive markets, leading to a decrease in sales prices and volumes[25]. - The global total electricity consumption in 2016 was 20.9 trillion kWh, with industrial electricity accounting for 43% and residential and commercial electricity for 48.1%[43]. - The production of AC motors in China was 277 million kW, a decrease of 1.27% compared to the previous year[44]. - The export value of electric motors from China in 2016 was 9.604 billion USD, a year-on-year decrease of 3.8%, accounting for approximately 10% of the global market share[44]. - The company is experiencing intense competition in the micro and small motor sectors, with many domestic competitors due to lower entry barriers[136]. Research and Development - The company successfully completed the R&D of ultra-high-efficiency motor series and new high-voltage frequency converters, enhancing its capability in large power drive system supply[42]. - The company increased its R&D expenditure by 11.74% to 315 million RMB, focusing on motor and drive control technologies[73]. - The total R&D expenditure amounted to ¥315,425,324.62, representing 3.54% of the operating revenue[92]. - The company has 1,012 R&D personnel, accounting for 7.14% of the total workforce[92]. - The company has established research and development centers in China, Europe, and Japan, focusing on leading technologies in motor and control[59]. Financial Management and Assets - The company has a commitment to ensuring the accuracy and completeness of its financial reports, as stated by its management[5]. - The total amount of guarantees provided by the company during the reporting period, excluding guarantees to subsidiaries, was RMB 39,650,000[172]. - The company reported a public value change profit of ¥205,778.9 million for 2016, with income tax expenses of ¥30,888.3 million[162]. - The company transitioned the measurement of investment properties from cost to fair value, with retrospective adjustments affecting the 2016 financial statements by ¥219,229,181.46[98]. - The company’s total assets grew from 14.078 billion RMB in 2015 to 16.082 billion RMB in 2016, representing an increase of approximately 14.2%[197]. Environmental and Social Responsibility - The company has established an EHS (Environmental, Health, and Safety) policy aiming for 100% compliance in waste gas and wastewater discharge, with specific targets for safety incidents and health metrics[180]. - The company reported no major environmental issues during the reporting period and continues to implement measures for pollution control[180]. - The company has a plan for targeted poverty alleviation, with specific initiatives in place for the year[177]. - The company has maintained normal operation of its environmental protection facilities, including 1 wastewater treatment plant and 13 lead fume dust collectors[184]. Future Outlook and Strategy - The company aims to become the global leader in the motor industry, focusing on motor and control product lines through two five-year plans[131]. - The company plans to continue its "dual-wheel drive" strategy, focusing on improving internal operational efficiency while seeking acquisition targets in the motor drive control sector[67]. - The company is gradually divesting non-core businesses to provide momentum for its core business development[131]. - The company is investing in technology development trends, including energy-efficient technologies and integrated control systems for motors[134]. - The company emphasizes the importance of talent acquisition for its global operations, aiming to build an international management team[139].