厦工股份(600815) - 2016 Q4 - 年度财报

Definitions Key terms and abbreviations used throughout the report are defined in this section Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and a summary of its key financial performance over recent years Company Basic Information Xiamen XGMA Machinery Co., Ltd. (XGMA) is a company listed on the Shanghai Stock Exchange with stock code 600815, and its legal representative is Xu Zhenming - Company basic information includes its Chinese name "Xiamen XGMA Machinery Co., Ltd.", stock abbreviation "XGMA", stock code "600815", and legal representative details[13][17] Key Financial Data and Indicators The company's financial condition sharply deteriorated in 2016, reporting a net loss of RMB 2.69 billion attributable to shareholders, a significant increase from RMB 0.999 billion in 2015, leading to a delisting risk warning Key Accounting Data for the Past Three Years (Unit: RMB) | Major Accounting Data | 2016 | 2015 | Current Period vs. Prior Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,241,039,805.84 | 3,067,939,918.52 | 5.64 | | Net Profit Attributable to Shareholders of the Listed Company | -2,689,882,940.78 | -999,781,892.18 | Not Applicable | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-Recurring Gains and Losses | -2,718,890,958.09 | -1,029,021,055.80 | Not Applicable | | Net Cash Flow from Operating Activities | 146,378,462.87 | 211,343,027.06 | Not Applicable | | Net Assets Attributable to Shareholders of the Listed Company | 385,019,930.82 | 3,075,824,584.70 | -87.48 | | Total Assets | 7,663,001,235.87 | 9,517,857,144.51 | -19.49 | Key Financial Indicators for the Past Three Years | Major Financial Indicators | 2016 | 2015 | Current Period vs. Prior Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | -2.80 | -1.04 | Not Applicable | | Weighted Average Return on Net Assets (%) | -155.45 | -27.97 | Not Applicable | 2016 Quarterly Key Financial Data (Unit: RMB) | | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,279,595,818.38 | 664,701,593.37 | 513,514,348.99 | 783,228,045.10 | | Net Profit Attributable to Shareholders of the Listed Company | -73,391,798.80 | -161,915,969.41 | -289,687,441.28 | -2,164,887,731.29 | - Due to the significant loss incurred by the company in 2016, the Board of Directors decided not to distribute profits or convert capital reserves into share capital[4] - As the company's audited net profit has been negative for two consecutive fiscal years, its shares will be subject to a delisting risk warning (*ST), and its corporate bonds will be suspended from trading[6] Business Overview This section outlines the company's main business, operating model, industry conditions, significant asset changes, and core competencies Main Business, Operating Model, and Industry Situation The company's main business involves the R&D, manufacturing, and sales of construction machinery products, including loaders and excavators, operating in a highly cyclical industry closely tied to macroeconomic conditions - The company's main business products cover over a dozen types of complete machines, including loaders, excavators, forklifts, and road machinery, widely used in construction, mining, agriculture, forestry, and water conservancy[29] - The construction machinery industry is highly cyclical, closely related to macroeconomic factors such as national fixed asset investment scale, showing signs of bottoming out and recovery in the second half of 2016 due to stable growth policies[29][30] Significant Changes in Major Assets During the reporting period, the company's major assets underwent significant changes, with accounts receivable and inventory decreasing substantially, while prepayments, other receivables, and other current assets saw large increases Major Asset Changes | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 2,435,904,046.68 | 4,022,906,003.71 | -39.45 | Increase in impairment provision for bad debts in current period | | Prepayments | 226,318,620.45 | 81,176,244.26 | 178.80 | Increase in subsidiary prepayments in current period | | Other Receivables | 227,829,326.53 | 43,536,647.73 | 423.30 | Increase in intercompany receivables from associates and insurance claims in current period | | Inventory | 1,291,580,963.86 | 1,960,995,568.41 | -34.14 | Digestion of National II emission standard inventory machines in current period | | Other Current Assets | 398,410,450.07 | 130,590,776.04 | 205.08 | Increase in wealth management products purchased in current period | Core Competitiveness Analysis The company's core competitiveness stems from its diverse product range, strong R&D capabilities, comprehensive global marketing network, and long-standing brand value - The company boasts a rich product portfolio, including over a dozen types of complete machines such as loaders and excavators, meeting diverse user and working condition demands[33] - The company possesses a technological R&D advantage, with a national-level technology center and postdoctoral workstation, and has established "industry-university-research" cooperation with universities and research institutes, achieving significant breakthroughs in intelligent electric drive control systems for construction machinery in 2016[33][34] - The company has built a global marketing network, comprising over 200 dealers and 700 sales and service outlets[34] - The "XGMA" brand, with over sixty years of history, has been honored as a "China Well-Known Trademark," demonstrating significant brand advantage[35] Management Discussion and Analysis This section discusses the company's operational performance, key business activities, and future development outlook, including strategies and risks Management Discussion and Analysis In 2016, the company focused on "transformation and innovation, efficiency improvement," advancing technological innovation and strategic transformation, achieving progress in new business areas, strengthening sales channels, and enhancing cost control - The company continuously promotes technological innovation, with steady progress in intelligent projects and some intelligent products already sold; established an underground space development company to explore new businesses; secured 17 new orders for shield tunneling machines; and made progress in environmental protection machinery business[37][38][39] - The company strengthened sales channel integration, added 21 new dealers, and expanded direct sales and leasing business models, with 226 direct sales products generating RMB 115 million in revenue in 2016[40][41] - The company intensified efforts to recover accounts receivable and clear inventory, reducing net accounts receivable by RMB 1.587 billion and net inventory by RMB 669 million at year-end compared to the beginning of the period[41][42] - The company implemented integration and streamlining, simplifying organizational structure, diverting over 1,600 employees throughout the year, and compressing excess capacity[42] - The company strengthened cost and expense management, with personnel expenses decreasing by 20.5% year-on-year and financial expenses decreasing by 10.53% year-on-year[42] Key Operating Performance During the Reporting Period In 2016, the company achieved operating revenue of RMB 3.241 billion, a 5.64% increase, but incurred a substantial net loss of RMB 2.69 billion attributable to the parent company, primarily due to a RMB 1.786 billion provision for bad debts on accounts receivable 2016 Key Operating Data | Indicator | Amount (RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 3,241,039,805.84 | 5.64 | | Net Profit Attributable to Parent Company Owners | -2,689,882,940.78 | Not Applicable | | Net Accounts Receivable | 2,436,000,000 | -39.45 | | Net Inventory | 1,292,000,000 | -34.14 | Income Statement and Cash Flow Statement Major Item Changes | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,241,039,805.84 | 3,067,939,918.52 | 5.64 | | Administrative Expenses | 486,484,025.17 | 327,235,405.71 | 48.66 | | Asset Impairment Losses | 2,059,281,270.18 | 602,108,932.65 | 242.01 | | Investment Income | -39,869,257.67 | 5,518,966.23 | -822.40 | - The primary reason for the company's significant loss in 2016 was the provision of RMB 1.786 billion for bad debts on external accounts receivable, impacting the current period's net profit attributable to the parent company by RMB 1.518 billion[58] Production and Sales Analysis | Main Product | Production Volume | Sales Volume | Inventory Volume | Production Volume Change YOY (%) | Sales Volume Change YOY (%) | Inventory Volume Change YOY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Machinery Products | 6,053 Units | 9,021 Units | 2,022 Units | 0.27 | 12.06 | -59.48 | R&D Investment | Item | Amount/Ratio | | :--- | :--- | | Current Period Expensed R&D Investment | 121,225,019.04 RMB | | Total R&D Investment as % of Operating Revenue | 3.74% | | R&D Personnel as % of Total Company Headcount | 10.1% | Company's Discussion and Analysis of Future Development Looking ahead, the company anticipates a stable recovery in the construction machinery industry in 2017, focusing on upgrading its main business and strategically transforming into new industries while addressing various risks - Company development strategy: Accelerate the upgrade of construction machinery business, focusing on core products and intelligent manufacturing; simultaneously implement strategic transformation to develop new industries and explore new growth points[73] - Key measures for the 2017 operating plan include: channel consolidation, business model upgrading, accelerating product intelligence and industrialization, aggressive debt collection and integration, lean management for cost reduction, optimizing overseas agent channels, and promoting investment transformation[74][75][76][77] - The company faces major risks including: - Policy Risk: Changes in macroeconomic policies and fixed asset investment growth rates[78] - Market Risk: Large market saturation and intense homogeneous competition[79] - Cost Risk: Fluctuations in raw material prices and rising labor costs[80] - Receivables Management Risk: Increased risk of customer defaults and difficulty in recovering receivables[80] Significant Matters This section details important corporate events, including profit distribution, audit report explanations, major litigation, related party transactions, and other significant disclosures Proposed Profit Distribution or Capital Reserve Conversion Plan for Ordinary Shares Due to significant losses in 2015 and 2016, the company has not conducted any profit distribution or capital reserve conversion into share capital for the past three years Three-Year Dividend Distribution Plan | Dividend Year | Bonus Shares per 10 Shares (Shares) | Cash Dividend per 10 Shares (RMB) (Tax Incl.) | Capitalization from Reserves per 10 Shares (Shares) | Cash Dividend Amount (Tax Incl.) | | :--- | :--- | :--- | :--- | :--- | | 2016 | 0 | 0 | 0 | 0 | | 2015 | 0 | 0 | 0 | 0 | | 2014 | 0 | 0 | 0 | 0 | Company's Explanation on the Auditor's "Non-Standard Opinion Audit Report" Grant Thornton Certified Public Accountants issued an unqualified audit opinion with an emphasis of matter paragraph for the company's 2016 financial report, highlighting concerns about continuous losses, negative working capital, and significant bad debt provisions - Emphasis of Matter in Audit Report: 1. The company has incurred losses for two consecutive years, with a loss of RMB 2.69 billion in 2016, and total current liabilities exceeding total current assets by RMB 1.294 billion, indicating uncertainty regarding its ability to continue as a going concern[87] 2. A provision for bad debts of RMB 1.786 billion was made for accounts receivable in 2016, significantly impacting operating performance[87] - Board of Directors' countermeasures: Strengthen market sales, promote product upgrades and technological innovation, continue resource integration, implement lean management, accelerate global expansion, and drive investment transformation; the company has also secured sufficient bank credit lines (approximately RMB 3.565 billion unused) and plans to sell some equity to improve liquidity[88][89] Significant Litigation and Arbitration Matters During the reporting period, the company initiated numerous sales contract dispute lawsuits against various dealers to recover accounts receivable, with total principal claims exceeding RMB 2 billion, most cases still in the first-instance stage Selected Significant Litigation Cases (Unit: RMB) | Defendant | Cause of Action | Claimed Principal Amount | Case Progress | | :--- | :--- | :--- | :--- | | Inner Mongolia XGMA Machinery Co., Ltd. | Sales Contract Dispute | 244,896,667.36 | First instance not yet ruled | | Changchun XGMA Shunda Machinery Co., Ltd. et al. | Sales Contract Dispute | 261,295,856.00 | First instance not yet ruled | | Xinjiang XGMA Machinery Sales Co., Ltd. | Sales Contract Dispute | 154,589,453.41 | First instance not yet ruled | | Sichuan Jieli Machinery Equipment Co., Ltd. et al. | Sales Contract Dispute | 438,817,488.51 | Mediation | Significant Related Party Transactions The company's 2016 daily related party transactions primarily involved purchasing goods and receiving services from affiliates, as well as deposit and loan activities with an affiliated financial company Key Related Party Purchases and Sales (Unit: RMB) | Related Party | Related Transaction Content | Current Period Amount | | :--- | :--- | :--- | | Xiamen Yinhua Machinery Co., Ltd. | Purchase of Goods | 24,066,331.20 | | Xiamen Haiyi Logistics Co., Ltd. | Receipt of Services | 21,347,052.27 | | Xiamen XGMA Heavy Industry Co., Ltd. | Sale of Goods | 3,067,269.23 | Related Party Deposit and Loan Business (Unit: RMB) | Item | Related Party | Year-End Balance | Current Period Interest | | :--- | :--- | :--- | :--- | | Deposits | Xiamen Haiyi Group Finance Co., Ltd. | 275,362,667.48 | 3,508,025.34 (Income) | | Loans | Xiamen Haiyi Group Finance Co., Ltd. | 380,000,000.00 | 15,711,324.69 (Expense) | Explanation of Other Significant Matters A significant overseas order of approximately USD 100 million negotiated in 2015 could not be fulfilled due to severe economic crisis in Zimbabwe, with only about RMB 10 million executed to date - Due to the severe economic crisis in Zimbabwe, a significant overseas order of approximately USD 100 million negotiated by the company in 2015 cannot be fulfilled, with only about RMB 10 million executed to date[147] Changes in Ordinary Shares and Shareholder Information This section details the company's ordinary share capital, shareholder structure, and information on the controlling shareholder and actual controller Shareholder and Actual Controller Information During the reporting period, the company's total ordinary shares and share capital structure remained unchanged, with 55,149 shareholders at year-end, and Xiamen Haiyi Group Co., Ltd. remaining the controlling shareholder Top Ten Shareholders' Shareholding | Shareholder Name | Period-End Shareholding Quantity | Proportion (%) | | :--- | :--- | :--- | | Xiamen Haiyi Group Co., Ltd. | 393,022,859 | 40.98 | | Xiamen XGMA Heavy Industry Co., Ltd. | 69,993,067 | 7.30 | | Li Guihe | 5,045,715 | 0.53 | - The company's controlling shareholder, Xiamen Haiyi Group Co., Ltd., and its concerted party, Xiamen XGMA Heavy Industry Co., Ltd., collectively hold 48.28% of the company's shares[158][159] - The original plan for Xiamen SASAC to gratuitously transfer 54% equity of Haiyi Group to AVIC Industry was terminated on April 13, 2017, thus the company's actual controller remains unchanged[165][166] Information on Preferred Shares This section confirms the absence of preferred shares for the company during the reporting period Preferred Shares Information The company had no preferred shares during the reporting period - The company has no preferred shares[168][169] Directors, Supervisors, Senior Management and Employees This section provides details on the shareholdings and remuneration of directors, supervisors, and senior management, as well as overall employee information Shareholding Changes and Remuneration During the reporting period, the shareholdings of the company's directors, supervisors, and senior management remained unchanged, with their total pre-tax remuneration from the company amounting to RMB 3.0081 million Selected Directors, Supervisors, and Senior Management Remuneration (Unit: RMB 10,000) | Name | Position | Total Pre-Tax Remuneration from the Company During the Reporting Period | | :--- | :--- | :--- | | Xu Zhenming | Chairman | 42.35 | | Bai Feiping | Director, President | 40.43 | | Chen Tiansheng | Executive Vice President | 34.65 | | Total | / | 300.81 | Employee Information of Parent Company and Major Subsidiaries As of the end of the reporting period, the company and its major subsidiaries had a total of 2,801 employees, with production personnel constituting the largest group, and most employees holding junior college degrees or below Employee Professional Structure | Professional Category | Number of People | | :--- | :--- | | Production Personnel | 1,243 | | Sales Personnel | 260 | | Technical Personnel | 283 | | Financial Personnel | 39 | | Administrative Personnel | 322 | | Management Personnel | 131 | | Other Personnel | 523 | | Total | 2,801 | Corporate Governance This section outlines the company's adherence to corporate governance standards, the functioning of its board and committees, and internal control effectiveness Corporate Governance Related Matters During the reporting period, the company operated in strict compliance with relevant laws and regulations, maintaining a sound corporate governance structure, with all committees fulfilling their duties and an unqualified internal control audit report issued - The company strictly adheres to the requirements of the "Company Law," "Securities Law," and other relevant laws and regulations, improving its corporate governance structure to ensure standardized operations[193] - The company's Board of Directors has four specialized committees: Strategy and Investment, Audit, Nomination, and Remuneration and Appraisal; during the reporting period, each committee performed its duties normally and provided professional opinions and suggestions[197][198][199] - Grant Thornton Certified Public Accountants issued an unqualified internal control audit report for the company, affirming that the company maintained effective internal controls over financial reporting in all material respects[203] Information on Corporate Bonds This section provides details on the company's outstanding corporate bonds, credit ratings, and key financial indicators related to debt Corporate Bonds Information The company has one outstanding corporate bond, "12 XGMA Bond," maturing on June 18, 2017, with a year-end balance of RMB 1.43 billion, and its credit rating was downgraded to AA- in June 2016 Corporate Bond Basic Information | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (RMB Billion) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen XGMA Machinery Co., Ltd. 2012 Corporate Bond | 12 XGMA Bond | 122156 | 2012-6-18 | 2017-6-18 | 1.43 | 5% | - On June 24, 2016, United Credit Ratings Co., Ltd. adjusted the company's long-term corporate credit rating from AA to AA-, with a stable outlook[210] Key Financial Indicators for the Past 2 Years | Major Indicator | 2016 | 2015 | Current Period vs. Prior Year Change (%) | | :--- | :--- | :--- | :--- | | Asset-Liability Ratio | 93.54% | 66.62% | 40.40 | | EBITDA to Total Debt Ratio | -35.08% | -12.40% | Not Applicable | | Interest Coverage Ratio | -13.37 | -4.48 | Not Applicable | - As of the end of 2016, the company had obtained a total credit line of RMB 7.144 billion from various banks and financial companies, with RMB 3.434 billion utilized[216] Financial Report This section presents the company's audited financial statements, including the audit report and summaries of the balance sheet, income statement, and cash flow statement Audit Report Grant Thornton Certified Public Accountants (Special General Partnership) issued an unqualified audit opinion with an emphasis of matter paragraph for the company's 2016 financial statements, highlighting concerns about continuous losses, negative working capital, and significant bad debt provisions - The audit opinion type is "unqualified opinion with an emphasis of matter paragraph"[219] - Emphasis of Matter content: 1. The company has incurred losses for two consecutive years, with a loss of RMB 2.69 billion in 2016, and total current liabilities exceeding total current assets by RMB 1.294 billion, indicating uncertainty regarding its ability to continue as a going concern[224] 2. A provision for bad debts of RMB 1.786 billion was made for accounts receivable in 2016, significantly impacting operating performance[224] Financial Statements In 2016, the company's financial condition significantly deteriorated, with total assets decreasing by 19.5% to RMB 7.663 billion, liabilities increasing to RMB 7.168 billion, and a net loss of RMB 2.69 billion despite a slight increase in operating revenue Consolidated Balance Sheet Summary (Unit: RMB) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 7,663,001,235.87 | 9,517,857,144.51 | | Total Liabilities | 7,167,712,437.77 | 6,341,072,606.95 | | Total Equity Attributable to Parent Company Owners | 385,019,930.82 | 3,075,824,584.70 | Consolidated Income Statement Summary (Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 3,241,039,805.84 | 3,067,939,918.52 | | Total Operating Costs | 6,054,882,490.35 | 4,259,833,741.13 | | Including: Asset Impairment Losses | 2,059,281,270.18 | 602,108,932.65 | | Operating Profit | -2,852,182,815.51 | -1,187,477,535.22 | | Net Profit Attributable to Parent Company Owners | -2,689,882,940.78 | -999,781,892.18 | Consolidated Cash Flow Statement Summary (Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 146,378,462.87 | 211,343,027.06 | | Net Cash Flow from Investing Activities | -247,421,510.10 | -78,446,740.35 | | Net Cash Flow from Financing Activities | 46,240,016.67 | -356,304,127.41 | Reference Documents Catalog This section lists all supplementary documents available for reference