NINGBO FUDA(SH:600724)2017-03-28 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 127,358,519.71 in 2016, a significant recovery from a net loss of RMB 1,158,430,154.43 in 2015[2]. - Operating revenue for 2016 was RMB 5,558,897,089.99, representing a 102.40% increase compared to RMB 2,746,493,376.84 in 2015[17]. - The net cash flow from operating activities increased by 64.20% to RMB 1,101,735,160.00 from RMB 670,956,845.48 in the previous year[17]. - The basic earnings per share for 2016 was RMB 0.0881, recovering from a loss of RMB 0.8015 per share in 2015[19]. - The weighted average return on net assets was 5.0493% in 2016, a significant improvement from -37.5378% in 2015[19]. - The company reported a total profit of CNY 555 million, compared to a loss of CNY 968 million in the previous year[31]. - The company reported a net profit attributable to the parent company of RMB 127,358,519.71 for the year 2016, while the parent company itself had a net loss of RMB 220,418,948.59[80]. - The total distributable profit for the parent company at year-end was negative RMB 1,358,052,842.21, leading to no profit distribution or capital reserve transfer for the year[80]. - The company reported a total comprehensive income of ¥270,780,000.20, recovering from a comprehensive loss of ¥1,116,435,141.61 in the previous year[181]. Assets and Liabilities - The total assets decreased by 12.74% to RMB 15,492,590,149.87 from RMB 17,755,516,471.20 in 2015[18]. - The company's total assets reached CNY 15.493 billion, with inventory accounting for CNY 10.123 billion, representing 64.78% of total assets[31]. - The debt-to-asset ratio was 77.84%, reflecting a 5.18% increase from the previous year[31]. - The company's total liabilities decreased by 71.10% for non-current liabilities due within one year, amounting to ¥262,599,268.56 from ¥908,599,268.56 in the previous year[52]. - Total assets decreased from CNY 17.76 billion at the beginning of the year to CNY 15.49 billion by year-end, a decline of approximately 12.85%[175]. - Total liabilities decreased from CNY 14.56 billion to CNY 12.06 billion, a reduction of approximately 17.19%[176]. Revenue Sources - The commercial real estate segment generated revenue of CNY 814 million, accounting for 14.64% of total revenue, with a net profit contribution rate of 192.91%[31]. - Residential property sales reached 3.681 billion RMB, accounting for 66.22% of the company's total revenue, an increase of 275.23% year-on-year[32]. - Cement sales totaled 4.2231 million tons, generating revenue of 1.064 billion RMB, which is 19.14% of total revenue, with a net profit of 105 million RMB, up 48.86% year-on-year[33]. Costs and Expenses - The operating costs increased to approximately 3.748 billion RMB, reflecting a 110.21% rise compared to the previous year[39]. - The total cost of land for real estate sales reached ¥798,661,585.49, accounting for 33.14% of total costs, a significant increase of 439.59% compared to the previous year's ¥148,013,875.86[45]. - The manufacturing costs for cement sales amounted to ¥117,227,918.67, representing 14.46% of total costs, which is an increase of 48.38% from the previous year's ¥79,003,178.88[45]. - The company reported a 44.45% increase in selling expenses, totaling ¥215,844,508.05, compared to ¥149,427,257.24 in the previous year[47]. Risks and Challenges - The company has outlined various risks including policy, industry, operational, and financial risks in its report[4]. - The company acknowledges the increasing difficulty and risk in operations due to intensified competition and the need for structural optimization in capital and assets[68]. - The company has identified risks related to declining profit margins in the real estate industry and the need for strategic adjustments in response to market changes[75]. - The company is facing challenges in the commercial real estate sector due to macroeconomic adjustments and increased competition from e-commerce and local businesses[70]. Governance and Management - The company has established a comprehensive governance mechanism to enhance decision-making and operational efficiency[34]. - The company is committed to improving information disclosure and internal controls to enhance operational standards and governance[74]. - The company has engaged Lixin Zhonglian Certified Public Accountants for auditing services, with a fee of RMB 800,000 for the year[84]. - The company has a management agreement with Ningbo Urban Investment, generating a revenue of RMB 9.21 million from asset management services[93]. Employee and Management Structure - The total number of employees in the parent company is 18, while the main subsidiaries employ 2,185, resulting in a total of 2,203 employees[131]. - The professional composition of employees includes 602 production personnel, 51 sales personnel, 237 technical personnel, 75 financial personnel, 153 administrative personnel, and 1,085 others[131]. - The company has implemented a performance-based salary system, linking salary adjustments to company performance, employee performance, years of service, and work attitude[132]. - The company’s management structure includes various experienced professionals from different sectors, enhancing its operational capabilities[126]. Financing Activities - The company successfully issued RMB 750 million in non-public corporate bonds with a coupon rate of 3.85% on August 18, 2016[100]. - The company raised 4,526,000,000.00 RMB in borrowings during 2016, down from 6,002,000,000.00 RMB in the previous year[187]. - The company received a total credit limit of 7.974 billion RMB from financial institutions, with 5.712 billion RMB utilized by the end of December 2016[165]. - The company maintained a loan repayment rate of 100% and an interest payment rate of 100% during the reporting period[163]. Shareholder Information - The largest shareholder, Ningbo Urban Construction Investment Holding Co., Ltd., holds 1,112,148,455 shares, representing 76.95% of the total shares[115]. - The total number of ordinary shareholders increased from 34,413 to 35,813 during the reporting period[113]. - The company does not have any shareholders holding more than 10% of shares other than the controlling shareholder[122].