Luxin Co.,(SH:600783)2016-04-28 16:00Financial Performance - The net profit attributable to the parent company for 2015 was CNY 224.08 million, with a total distributable profit of CNY 1.36944 billion[2]. - The company's operating revenue for 2015 was CNY 190,698,989.18, a decrease of 18.79% compared to CNY 234,834,678.65 in 2014[18]. - The net profit attributable to shareholders for 2015 was CNY 224,081,397.64, down 25.71% from CNY 301,633,826.29 in 2014[18]. - The basic earnings per share for 2015 was CNY 0.30, a decline of 26.83% compared to CNY 0.41 in 2014[19]. - The weighted average return on equity decreased to 6.67% in 2015, down 2.84 percentage points from 9.51% in 2014[19]. - The net profit after deducting non-recurring gains and losses was CNY 322,979,826.27, an increase of 7.14% from CNY 301,457,292.39 in 2014[18]. - The company reported a net profit decrease, leading to an EBITDA of 428.64 million RMB, down 8.42% from 468.07 million RMB in 2014[146]. - The net cash flow from operating activities was -128,295,795.63 RMB, an improvement from -149,035,387.94 RMB in the previous period, indicating a reduction in cash outflow[173]. Dividend Distribution - The proposed cash dividend is CNY 0.1 per share, totaling CNY 74.44 million to be distributed to shareholders[2]. - The cash dividend distribution for 2015 was approved at the annual general meeting, with a payout of 1.0 RMB per 10 shares, amounting to 74,435,929.40 RMB[79]. - The company has committed to maintaining stable cash dividend returns to investors, reflecting its focus on shareholder value[77]. - The remaining distributable profits will be carried forward to future distributions, indicating a strategy for long-term shareholder returns[77]. Assets and Liabilities - The total assets at the end of 2015 amounted to CNY 5,318,590,915.61, reflecting a 5.15% increase from CNY 5,058,278,989.34 in 2014[18]. - Total liabilities increased to CNY 1,743,323,912.82, up from CNY 1,645,333,955.28, representing a growth of approximately 5.95%[160]. - Current liabilities totaled CNY 242,449,171.84, a decrease from CNY 255,126,534.81, indicating a reduction of about 4.67%[160]. - Non-current liabilities rose to CNY 1,500,874,740.98 from CNY 1,390,207,420.47, reflecting an increase of approximately 7.93%[160]. - Total equity reached CNY 3,575,267,002.79, compared to CNY 3,412,945,034.06, marking an increase of about 4.77%[160]. Investment Activities - The company invested in 25 projects throughout the year, with a total investment amount of 423 million RMB[36]. - The company completed a partial divestment of listed project company stocks, recovering a total of 405 million RMB and achieving a divestment gain of 350 million RMB[36]. - The company reported an increase in undistributed profits to CNY 1,369,444,431.07 from CNY 1,264,089,198.06, reflecting a growth of approximately 8.25%[160]. - The company received 603,811,839.38 RMB from investment recoveries, up from 493,132,669.98 RMB in the previous year, indicating a strong recovery in investment returns[173]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the report[4]. - The company has implemented a comprehensive risk control system, including annual risk identification assessments and the issuance of management guidelines to mitigate investment risks[38]. - The company faces risks from macroeconomic changes that could impact fundraising and investment progress, particularly during economic slowdowns[71]. - Increased competition in the venture capital industry poses risks to investment decision-making and project selection, potentially leading to investment losses[73]. Corporate Governance - The management team guarantees the accuracy and completeness of the annual report[4]. - The company emphasizes compliance with commitments regarding the independence of its operations and the avoidance of related party transactions[82]. - The company has appointed Ruihua Certified Public Accountants as the auditor for a three-year term, with an audit fee of RMB 1.3 million[84]. - The board of directors has approved a stock buyback program, aiming to repurchase up to 100 million RMB worth of shares to enhance shareholder value[118]. Employee and Management - The total remuneration for directors and senior management during the reporting period amounted to 400.84 million RMB[117]. - The company has established a comprehensive salary and performance evaluation system to ensure the achievement of operational goals[125]. - The company has implemented a training plan to enhance employee skills and knowledge, including various training programs and continuing education[126]. - The number of employees in the parent company is 468, while the total number of employees in the parent company and major subsidiaries is 539[124]. Market and Economic Environment - The overall economic environment has led to increased competition in the abrasive tools industry, with many companies facing production halts or reductions[65]. - The venture capital market is expected to remain active in 2016, driven by the "mass entrepreneurship and innovation" trend, despite challenges from economic transformation and market volatility[65]. - The company plans to adopt a more cautious investment strategy, focusing on early-stage investments and mergers and acquisitions in response to market conditions[65].