AURORA(SH:600666)2016-03-10 16:00Financial Performance - The net profit attributable to the parent company for 2015 was CNY 300,612,304.36, with a distributable profit of CNY 503,201,165.38 after accounting for retained earnings[2]. - The company's operating revenue for 2015 was CNY 1,150,836,949.17, an increase of 85.77% compared to CNY 619,504,470.10 in 2014[20]. - Net profit attributable to shareholders increased by CNY 168,908,775.37, up 128.25% from CNY 131,703,528.99 in the previous year[21]. - The net cash flow from operating activities rose by CNY 129,833,998.70, an increase of 88.06% compared to CNY 147,434,974.29 in 2014[21]. - Total assets increased by CNY 3,851,316,794.77, a growth of 194.98% from CNY 1,975,198,189.64 in 2014, primarily due to goodwill from the acquisition of a new company[21]. - The net assets attributable to shareholders increased by CNY 1,425,876,275.85, up 206.97% from CNY 688,919,135.08 in 2014[21]. - Basic earnings per share rose to CNY 0.50, a 72.41% increase from CNY 0.29 in 2014[24]. - The weighted average return on net assets decreased by 1.19 percentage points to 19.97% compared to 21.16% in 2014[24]. Asset Restructuring - The company completed a major asset restructuring, acquiring 100% of New航科技 for CNY 153 million, enhancing its market position[7]. - The registered capital of the company increased to CNY 767,078,900 following the asset restructuring[6]. - The company received unconditional approval for its major asset restructuring from the China Securities Regulatory Commission[6]. - The company completed a significant asset restructuring on April 21, 2015, acquiring 100% of the equity of New航科技, thereby expanding its main business to include the R&D, design, production, and sales of precision processing equipment for hard and brittle materials[34]. - The company completed a significant asset restructuring, acquiring 100% of New航科技, which enhanced its product offerings and extended its industrial chain[48][52]. Research and Development - The company has committed to increasing R&D investment to enhance competitiveness and ensure sustainable development[2]. - The company increased its R&D expenditure by 106.79% to RMB 52,942,479.63, reflecting a commitment to innovation[59]. - The company’s R&D efforts are focused on developing high-precision grinding and polishing equipment for various industries, including optics and semiconductors[35]. - The company is focusing on increasing its R&D capabilities, particularly in sapphire growth and processing technologies, to optimize production processes and support technological upgrades[91]. Market Position and Strategy - The company is in a high growth phase, emphasizing capital investments for optimizing industrial layout and promoting external expansion[2]. - The company’s sapphire market share is expected to grow, particularly in consumer electronics, with IDC predicting global smartphone shipments to reach approximately 1.435 billion units in 2016 and 1.86 billion units by 2019[38]. - The company is positioned within the electronic device manufacturing industry, specifically focusing on sapphire crystal materials, which are supported by national industrial policies[37]. - The company anticipates continued growth in the sapphire application market, particularly in mobile devices and wearable technology[38]. - The company is transitioning from a single crystal furnace equipment supplier to a comprehensive sapphire solution provider, enhancing profitability and customer loyalty[53]. Financial Management and Investments - The company raised RMB 1,010,999,984.00 through a private placement, with 87.24% of the funds allocated to projects by December 31, 2015[53]. - The company reported a significant increase in cash flow from financing activities, totaling RMB 1,282,137,870.09, a 373.40% rise from the previous year[59]. - The company has established a relationship of control and ownership with its controlling shareholders, Left Hongbo and Chu Shuxia[195]. - The company has engaged in cash asset management, with a total of 55 million RMB and 100 million RMB entrusted to financial institutions for management, yielding returns of 108,726 RMB and 82,007 RMB respectively[146]. Shareholder Relations and Dividends - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profits to be distributed as cash dividends annually, ensuring stable returns for investors[105]. - The company proposed not to distribute profits for the fiscal year 2015, citing ongoing capital investments and the need to retain earnings for future development[108]. - The company’s board of directors will adjust the shareholder return plan based on actual conditions and feedback from shareholders and independent directors[106]. - The company is committed to ensuring long-term benefits for shareholders while maintaining sustainable and healthy development[114]. Risks and Challenges - The company is subject to various risks as outlined in the management discussion and analysis section of the report[5]. - The company faces risks related to industry demand fluctuations, which could lead to overcapacity and intensified competition; it plans to expand its customer base and application fields to mitigate this risk[94]. - The company reported that as of the end of 2015, accounts receivable amounted to 410.38 million yuan, representing 20.52% of current assets and 6.96% of total assets, indicating potential risks of bad debts[100]. - The company’s inventory value at the end of 2015 was 358.2 million yuan, accounting for 35.82% of current assets and 12.14% of total assets, which poses a risk of inventory write-downs[101]. Corporate Governance and Compliance - The company has established a comprehensive internal control system to prevent insider trading and protect shareholder assets[151]. - The company is committed to maintaining communication with shareholders, especially minority shareholders, regarding profit distribution plans[124]. - The company has no significant litigation or arbitration matters during the reporting period[131]. - The company has no record of any significant changes in controlling shareholders during the reporting period[194].