SXN(SH:600661)2016-03-29 16:00Financial Performance - In 2015, the company achieved a net profit attributable to shareholders of RMB 60,101,195.67, a decrease of 4.72% compared to RMB 63,081,240.25 in 2014[3]. - The company's operating income for 2015 was RMB 1,165,203,304.99, showing a slight decrease of 0.03% from RMB 1,165,602,169.47 in the previous year[18]. - Basic earnings per share decreased by 7.31% to RMB 0.2320 from RMB 0.2503 in the previous year[19]. - The company reported a significant increase of 64.06% in net profit attributable to shareholders after deducting non-recurring gains and losses, reaching RMB 51,636,005.28[18]. - The company achieved an operating revenue of 1.165 billion RMB and a net profit attributable to shareholders of 60.10 million RMB in 2015[30]. - The company reported a significant reduction in financial expenses by 57.58%, amounting to CNY 10.33 million, due to decreased bank loans and interest expenses[36]. - The net profit for 2015 was CNY 20,726,278.47, down 60.6% from CNY 52,530,469.79 in 2014[186]. - The total comprehensive income for the period was CNY -51,999,394.13, contrasting with CNY 139,864,043.28 in the previous period[191]. Cash Flow and Investments - The net cash flow from operating activities increased by 27.17% to RMB 250,705,269.66 from RMB 197,142,452.54 in 2014[18]. - The net cash flow from investment activities was negative at CNY 257.79 million, a decline of 211.38% year-on-year, mainly due to investments in an education industry investment fund[48]. - The net cash flow from financing activities decreased by 79.88% to CNY -54.61 million, attributed to the absence of previous year’s targeted fundraising[48]. - Cash inflow from operating activities totaled CNY 1,418,315,359.87, compared to CNY 1,374,978,761.95 in the previous period[193]. - Cash outflow from investing activities was CNY 277,323,082.09, up from CNY 115,065,440.38 in the previous period[194]. Assets and Liabilities - The total assets of the company as of December 31, 2015, were RMB 1,860,851,222.89, reflecting an 8.00% increase from RMB 1,722,979,098.27 at the end of 2014[18]. - The company's total liabilities amounted to CNY 954,738,452.61, up from CNY 791,821,823.46, indicating an increase of about 20.6%[177]. - The company's total equity totaled CNY 748,162,235.84, down from CNY 800,161,629.97 in the previous year[184]. - The company's inventory decreased to CNY 78,489,077.44 from CNY 92,970,727.49, reflecting a decline of about 15.6%[175]. Business Strategy and Growth - The company plans to raise up to 1 billion RMB through a private placement to expand its K12 education business and seize opportunities in vocational education[33]. - The company is actively pursuing mergers and acquisitions in the education sector, having established an education industry investment fund to identify suitable projects[33]. - The K12 education segment remains the largest contributor to the company's revenue, with a focus on both offline and online education[27]. - The company is expanding its international education and vocational training offerings, with plans for new campuses and partnerships with higher vocational institutions[32]. - The company aims to achieve a revenue of 1.25 billion RMB in 2016, with expected costs of 1.157 billion RMB[67]. Shareholder and Governance - The company did not propose any profit distribution for the year due to negative retained earnings as of December 31, 2015[3]. - The cumulative undistributed profits of the parent company remained negative as of December 31, 2015, leading to no profit distribution or capital reserve increase for the year[76]. - The company has committed to avoiding and minimizing related party transactions to protect the interests of shareholders[78]. - The company’s board of directors has consistently reviewed and approved profit distribution plans, demonstrating governance and accountability[76]. - The company operates independently from its controlling shareholder, maintaining autonomy in business and financial matters[154]. Employee and Management - The total number of employees in the parent company is 28, while the main subsidiaries employ 3,571, resulting in a total of 3,599 employees[150]. - The company has implemented a salary system that combines base salary with performance-based incentives, linking employee income to company performance[151]. - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to 3.3217 million yuan[146]. - The company has a diverse board with members having extensive experience in various sectors, including education, finance, and management[140]. Compliance and Audit - The company’s financial reports are audited by Lixin Certified Public Accountants, ensuring transparency and compliance with regulations[76]. - The company maintained effective internal control over financial reporting as confirmed by the audit conducted by Lixin Accounting Firm[169]. - The audit committee and other specialized committees have fulfilled their responsibilities without raising any objections during the reporting period[164]. - The company has not encountered any incidents of insider information leakage during the reporting period[158].