AVIC SAC(SH:600760)2016-04-25 16:00Financial Performance - In 2015, the company achieved operating revenue of CNY 1.697 billion, a decrease of 32.89% compared to the previous year, primarily due to the ongoing economic downturn and product structure adjustments [22]. - The net profit attributable to shareholders of the listed company was a loss of CNY 220.8 million, a decline of 56.89% year-on-year, mainly due to operational losses and impairment provisions for bad debts and long-term inventory by subsidiaries [22]. - The basic earnings per share for 2015 was -CNY 0.64, a decrease of 56.10% from -CNY 0.41 in 2014 [21]. - The company reported a net cash flow from operating activities of CNY 100.8 million, an increase of 54.93% compared to the previous year [20]. - The company sold a total of 32,009 units, generating revenue of CNY 1.697 billion, with a total loss of CNY 336 million [36]. - The company reported a net loss of CNY 524,043,501.47, compared to a loss of CNY 303,247,589.02 in the previous year, indicating a worsening of approximately 73% [154]. - The company's total equity at the end of the reporting period was 660,493.05 million RMB, with a decrease of 82,969.18 million RMB compared to the previous year [179]. Assets and Liabilities - As of the end of 2015, total assets amounted to CNY 2.55 billion, down 18.31% from the previous year [20]. - The company's net assets attributable to shareholders were CNY 393.5 million, a decrease of 36.98% compared to the end of 2014 [20]. - Total liabilities were reported at CNY 2,039,278,510.55, down from CNY 2,311,575,762.39, indicating a reduction of about 11.8% [154]. - The company's cash and cash equivalents decreased to CNY 154,461,023.92 from CNY 230,477,949.11, representing a decline of approximately 33% [152]. - Accounts receivable fell to CNY 152,047,198.14 from CNY 272,624,649.16, a decrease of around 44% [152]. - Inventory levels decreased to CNY 376,735,257.62 from CNY 516,432,165.70, reflecting a reduction of about 27% [152]. Revenue and Sales - Domestic revenue decreased by 33.33% to CNY 1.642 billion, while international revenue fell by 27.28% to CNY 7.78 million [42]. - Sales of micro-cars decreased by 22.80% year-on-year, with 21,482 units sold, primarily due to economic downturn and product restructuring [36]. - The specialized vehicle segment saw a significant decline of 35.45% in sales, totaling 10,527 units, impacted by macroeconomic conditions [36]. - The overall production of specialized vehicles in the industry decreased by 27.3% year-on-year, highlighting a challenging market environment [30]. Strategic Initiatives - The company implemented a brand strategy aimed at enhancing product recognition and transitioning to an "Internet+" marketing approach to expand its reach [35]. - Cost control measures were emphasized, including procurement management improvements and production efficiency initiatives to reduce inventory and capital occupation [35]. - The company aims to leverage its competitive advantages through resource integration and vertical technology capabilities to enhance its market position [33]. - The company plans to shift its strategic focus entirely to the special vehicle industry, aiming to create a comprehensive value chain in technology R&D, manufacturing, and trade services [75]. Research and Development - Research and development expenses rose by 21.09% to CNY 38.12 million, reflecting the company's commitment to innovation [38]. - Total R&D investment amounted to CNY 38.12 million, representing 2.25% of operating revenue, with 251 R&D personnel making up 6.52% of the total workforce [49]. Corporate Governance - The company has established a comprehensive and effective corporate governance system in accordance with relevant laws and regulations [134]. - The independent auditor issued a standard unqualified opinion on the effectiveness of the company's internal controls related to financial reporting [145]. - The company maintained independence from its controlling shareholder, Jin Cheng Group, with no interference in decision-making or operations [144]. Legal and Compliance - The company has faced a delisting risk warning due to consecutive losses in 2014 and 2015 [6]. - The company received a notice from the China Securities Regulatory Commission regarding an investigation into its major shareholders for suspected violations of securities laws due to stock reduction activities [92]. - The company is currently involved in 8 ongoing lawsuits with a total contract amount of CNY 33,460,735.42 and penalty fees amounting to CNY 5,236,352.53 [91]. Employee and Social Responsibility - The total number of ordinary shareholders at the end of the reporting period was 91,630, down from 94,961 at the end of the previous month [108]. - The company provided assistance to 46 financially challenged employees, distributing a total of 99,000 yuan in support funds [103]. - The company organized 102 individuals for voluntary blood donation and provided 30,000 yuan in poverty alleviation funds to assist local villages [103].