COOEC(SH:600583)2017-03-20 16:00Financial Performance - In 2016, the company's operating revenue was approximately CNY 11.99 billion, a decrease of 25.98% compared to CNY 16.20 billion in 2015[18]. - The net profit attributable to shareholders was CNY 1.32 billion, down 61.43% from CNY 3.41 billion in the previous year[18]. - The basic earnings per share decreased to CNY 0.30, a decline of 61.04% from CNY 0.77 in 2015[19]. - The cash flow from operating activities was CNY 3.29 billion, down 9.31% from CNY 3.63 billion in 2015[18]. - The company reported a revenue of RMB 11.992 billion for 2016, a year-on-year decline of 25.98%, with net profit dropping by 61.43% to RMB 1.315 billion due to the impact of low oil prices[60]. - Operating costs amounted to 10.10 billion RMB, down 10.03% from the previous year, reflecting reduced overall workload and project cancellations[62]. - The company achieved an annual revenue of 11.992 billion RMB and a net profit of 1.315 billion RMB for the reporting period[43]. Assets and Liabilities - The total assets at the end of 2016 were CNY 29.81 billion, a decrease of 5.19% from CNY 31.44 billion in 2015[18]. - The company reported a net asset attributable to shareholders of CNY 23.16 billion, an increase of 0.78% from CNY 22.98 billion in 2015[18]. - Total assets at the end of 2016 amounted to 29.811 billion RMB, with net assets of 23.155 billion RMB and a debt-to-asset ratio of 22%[43]. - The company has a cash balance exceeding 10.2 billion RMB at the end of the reporting period, including 3.6 billion RMB in purchased bank wealth management products[43]. International Expansion - The company has expanded its international market presence, securing contracts worth approximately ¥18.6 billion in overseas projects[29]. - The company’s overseas revenue reached nearly 60% of total revenue, reflecting a significant increase in international project execution capabilities[43]. - The company has established three overseas subsidiaries in the Middle East, securing projects worth over RMB 1.2 billion, including the Qatar NFA EPC project, marking its first independent contract in the region[50]. - The Dangote project in Nigeria represents the company's first large-scale project in West Africa, valued at over RMB 1 billion, focusing on offshore structure installation and pipeline laying[51]. Research and Development - The company has conducted 75 large-scale research projects in various technical fields, including deepwater and underwater technologies, contributing to its competitive edge in the market[57]. - Research and development expenses totaled 703.95 million RMB, a decrease of 23.12% year-on-year, representing 5.87% of operating revenue[74]. - The company is actively involved in the development of new technologies and products to enhance its competitive edge in the market[168]. Cost Management and Efficiency - The company has achieved 3 billion RMB in cost savings through its "Three New and Three Simplifications" initiative, which focuses on new technologies, materials, and processes[54]. - The company implemented cost-cutting measures, resulting in a 10% reduction in operational expenses, improving overall profitability[169]. - The gross margin improved to 30%, up from 28% in the previous year, reflecting better cost management and pricing strategies[172]. Dividend Policy - The company has a cash dividend policy that stipulates a minimum distribution of 10% of the net profit attributable to shareholders each year, provided certain conditions are met[110]. - In 2016, the company distributed a cash dividend of 1.00 RMB per share, amounting to 44,213.55 million RMB, which is 33.61% of the net profit attributable to shareholders[114]. - The company has not made any adjustments to its cash dividend policy in 2016, maintaining a consistent approach to shareholder returns[109]. Risk Management - The company did not face any significant risks that could materially affect its operations during the reporting period[5]. - The company faces risks from prolonged low international oil prices, which could lead to reduced industry investment and increased market competition[103]. - The company has implemented measures to control exchange rate risks, including incorporating these risks into contract pricing and using financial instruments for hedging[105]. Corporate Governance - The company appointed Lixin Accounting Firm as its financial and internal control audit institution for the year 2016, replacing the previous firm that had served for 10 years[122]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements[188]. - The company held two shareholder meetings in 2016, approving key proposals including profit distribution and the election of directors[186]. Social Responsibility - The company has actively engaged in social responsibility activities, including volunteer work and donations to local schools and charities[144]. - The company reported a total of CNY 82.77 million invested in poverty alleviation and social responsibility initiatives, benefiting 12 registered impoverished individuals[147]. - The company has established a charitable fund of CNY 3.5 million, donating CNY 105,000 annually to support early childhood education[145].