LNCD(SH:600739)2016-03-28 16:00Financial Performance - In 2015, the company's operating revenue was approximately CNY 9.14 billion, a decrease of 1.07% compared to CNY 9.24 billion in 2014[18]. - The net profit attributable to shareholders was CNY 514.5 million, down 36.71% from CNY 812.97 million in the previous year[18]. - The net profit after deducting non-recurring gains and losses increased by 84.52% to CNY 1.49 billion from CNY 808.38 million in 2014[18]. - The basic earnings per share decreased by 41.47% to CNY 0.3419 from CNY 0.5841 in 2014[19]. - The weighted average return on net assets was 3.19%, a decrease of 3.34 percentage points from 6.53% in the previous year[19]. - The company reported a net profit of 474,250,316.13 RMB for 2015, down 50.9% from 965,014,937.76 RMB in the previous year[199]. - Total revenue for 2015 was CNY 9,139,997,459.73, a decrease of 1.07% from CNY 9,238,557,842.14 in the previous year[198]. - Total operating costs increased to CNY 9,660,081,831.74, up 4.23% from CNY 9,267,810,581.63 in 2014[198]. Assets and Liabilities - The company's total assets reached CNY 26.61 billion, reflecting a growth of 31.22% compared to CNY 20.28 billion at the end of 2014[18]. - Total liabilities reached CNY 7.93 billion, up from CNY 5.39 billion, indicating a rise of 47.0%[193]. - Total owner's equity increased to CNY 18.69 billion, up from CNY 14.89 billion, representing a growth of 25.0%[193]. - Current assets rose to CNY 7.68 billion, compared to CNY 4.52 billion in the previous year, marking a 70.0% increase[191]. - Cash and cash equivalents significantly increased to CNY 2.76 billion from CNY 1.01 billion, reflecting a growth of 172.8%[191]. - Short-term borrowings surged to CNY 1.64 billion, compared to CNY 277.19 million in 2014, an increase of 490.5%[192]. - Long-term equity investments grew to CNY 12.73 billion from CNY 8.51 billion, a rise of 49.5%[192]. Business Segments - The biopharmaceutical segment is experiencing strategic growth opportunities, driven by increasing demand for high-quality human vaccines due to rising income levels and changes in national population policies[27]. - The biopharmaceutical segment generated a sales revenue of 943 million RMB, with a total profit of 542 million RMB, maintaining industry leadership[35]. - The company expanded its oil and electricity business, achieving sales revenue of 2.4 billion RMB, a significant year-on-year increase of 290%[34]. - The energy development segment faced challenges, reporting a sales revenue of 101 million RMB and a total profit loss of 1.48 billion RMB due to the suspension of operations[38]. - The pharmaceutical retail segment, 成大方圆, opened 129 new stores, bringing the total to 1,054 stores, marking the highest number of openings in five years[35]. Investment and Acquisitions - The company plans to raise up to CNY 5.38 billion through a private placement to fund the acquisition of a 3 billion share stake in China United Insurance Holdings[2]. - The company completed a major asset restructuring by acquiring 3 billion shares of China Insurance, enhancing its financial service capabilities[34]. - The company acquired a 19.595% stake in China Insurance in December 2015, expanding its financial services portfolio[28]. Research and Development - Research and development expenses totaled approximately 53.98 million RMB, accounting for 0.59% of total revenue, with 78 R&D personnel representing 3.2% of the total workforce[49][50]. - The company invested 5,398 million RMB in R&D, accounting for 5.65% of its operating revenue, which is in line with high-tech enterprise recognition requirements[68]. - The company holds a total of 28 patents, with 3 patents granted in 2015, indicating a focus on enhancing competitive advantage through intellectual property[63]. - The company is advancing several vaccine projects, including the bivalent hemorrhagic fever vaccine and the quadrivalent chicken embryo influenza vaccine, which are currently in the production application phase[69]. Risk Management and Compliance - The company has outlined potential risks in its future development strategies, urging investors to be cautious[3]. - The company recognizes the potential risks from macroeconomic factors and industry policies, which could impact its profitability and competitive position[97]. - The company has maintained a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[111]. - The company strictly adhered to information disclosure regulations, enhancing communication with investors through various platforms[169]. Shareholder Information - The total number of ordinary shares increased from 1,429,709,816 to 1,529,709,816 shares, reflecting an increase of 100,000,000 shares[128]. - The largest shareholder, Liaoning Chengda Group Co., Ltd., holds 169,889,039 shares, representing 11.11% of total shares[137]. - The company’s stock was suspended from trading from July 8, 2015, to December 15, 2015, during the major asset restructuring process[121]. - The company did not propose a cash dividend for 2015 due to the acquisition of 3 billion shares of China United Insurance Holdings for 8.2 billion RMB, leading to a significant funding gap[108]. Corporate Governance - The company has maintained a governance structure that complies with the requirements of the "Code of Corporate Governance for Listed Companies" and has revised its internal regulations accordingly[167]. - The company held 15 board meetings during the year, with 2 in-person and 13 via communication methods[171]. - Independent directors did not raise any objections to the board's proposals during the reporting period[172]. - The audit committee ensured effective communication with the accounting firm and supervised the internal control system, providing guidance on key tasks[173].