HIKING(SH:600735)2016-04-06 16:00Financial Performance - In 2015, the company's operating revenue was CNY 1,311,862,571.15, a decrease of 2.27% compared to 2014[17]. - The net profit attributable to shareholders was CNY 39,152,748.98, down 32.16% from the previous year[17]. - The basic earnings per share decreased by 32.18% to CNY 0.1041 in 2015[18]. - The weighted average return on equity fell to 5.85%, a decrease of 3.52 percentage points from 2014[19]. - The net cash flow from operating activities increased by 46.10% to CNY 124,580,921.81[17]. - The total assets at the end of 2015 were CNY 910,515,071.70, showing a slight decrease of 0.0034% from 2014[17]. - The company reported a net profit of CNY 3,915.27 million for the year, primarily impacted by non-recurring expenses totaling approximately CNY 6.12 million[19]. - The company's net assets attributable to shareholders increased by 7.88% to CNY 694,736,511.36 at the end of 2015[17]. - The company's total revenue for 2015 was CNY 1,311.86 million, with a total profit of CNY 91.44 million, resulting in a debt-to-asset ratio of 20.54%[124]. - The net profit for the year 2015 was CNY 58,602,070.63, a decrease of 23.2% compared to CNY 76,191,791.75 in the previous year[198]. Market and Industry Analysis - In 2015, the global wig market faced challenges, with a decline in exports to the U.S. due to inventory destocking and a sluggish European economy, leading to a general downturn in the market[33]. - China accounted for 78% of global wig exports in 2013, but competition from Southeast Asia and Africa has been increasing since 2013, further weakening China's production capacity[34]. - The reduction of the tax rebate rate for wig products from 15% to 9% in early 2015 has significantly impacted the profitability of Chinese wig manufacturers[36]. - The company’s main business revenue from wig exports in 2015 was 881.82 million RMB, an increase of 2.05% compared to 2014 (864.10 million RMB)[57]. - The gross profit margin for wig exports in 2015 was 28.09%, a decrease of 1.33 percentage points from 2014[57]. - The company's textile and apparel export revenue in 2015 was 327.60 million RMB, a decline of 4.50% compared to 2014 (343.05 million RMB)[57]. Corporate Governance and Compliance - The company reported a standard unqualified audit opinion from Zhongtianyun Accounting Firm[5]. - The company has no violations in decision-making procedures for providing guarantees[4]. - The company has no non-operating fund occupation by controlling shareholders and their related parties[4]. - The company has not encountered any issues related to the occupation of funds or the progress of debt recovery during the reporting period[109]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal standing[112]. - The company has engaged a domestic accounting firm for auditing services, with a remuneration of 550,000 RMB and an audit term of 8 years[110]. Shareholder Information - The company is controlled by Shandong Lujin Import and Export Group Co., Ltd., which is its major shareholder[8]. - The largest shareholder, Shandong Lujin Import and Export Group Co., Ltd., holds 191,718,252 shares, accounting for 50.99% of total shares[140]. - The top five customers contributed a total of ¥354,800,997.59, accounting for 27.04% of the total revenue, with the largest customer generating ¥141,212,699.35, or 10.76% of total revenue[64]. - The total number of ordinary shareholders at the end of the reporting period was 25,126, a decrease from 35,036 at the end of the previous month[138]. Strategic Initiatives and Future Outlook - The company plans to maintain its leading position in the international trade of hair products, aiming to stabilize revenue and net profit among domestic peers[91]. - The company intends to shift its production bases and procurement channels to Southeast Asia and Africa to optimize costs while maintaining customer retention[92]. - The company aims to enhance its competitiveness in the North American market by leveraging the synergies of its overseas subsidiaries and reducing management costs[91]. - The company is focusing on market expansion and new product development as part of its strategic initiatives for future growth[197]. - The company has entered the health industry by establishing "Qingdao Libai Health Biotechnology Co., Ltd." and "Shandong Xinhua Jin Changsheng Elderly Care Operation Co., Ltd." to form a dual business model focusing on health care[90]. Employee and Operational Management - The company has implemented a transparent employee recruitment process with a 100% labor contract signing rate and timely payment of employee benefits[124]. - The company has established a training program for its executives and employees, including both internal and external training sessions[169]. - The company has a comprehensive training plan for employees, ensuring continuous development and adherence to safety and quality standards[124]. - The company employed a total of 1,695 staff, with 1,099 in production, 208 in sales, and 94 in technical roles[167]. Dividend Policy - The company did not meet the profit distribution conditions and will not distribute cash dividends for 2015[3]. - The cash dividend policy requires that the cumulative distributable profits of the parent company must be positive for dividends to be distributed[101]. - The company has a commitment to distribute at least 10% of profits in cash dividends when conditions are met, with the possibility of increasing this percentage if cash flow is good and there are no major investment plans[108]. - The company has not made any adjustments or changes to its dividend policy in recent years[102].