Whirlpool (China) (SH:600983)2018-05-16 16:00Financial Performance - In 2017, the company reported a net profit of -96,975,651.32 RMB, a decrease of 134.24% compared to the previous year[5]. - The company's operating revenue for 2017 was 6,364,091,904.60 RMB, reflecting a decline of 6.05% from 2016[22]. - The cash flow from operating activities decreased by 64.76% to 373,962,881.35 RMB in 2017[22]. - The total assets at the end of 2017 were 8,477,526,622.53 RMB, down 5.59% from the previous year[22]. - The basic earnings per share for 2017 was -0.13 RMB, a decrease of 135.14% compared to 2016[23]. - The company experienced a significant drop in net profit attributable to shareholders, with a decrease of 757.91% in net profit excluding non-recurring gains and losses[24]. - The weighted average return on net assets was -2.44% in 2017, a decrease of 8.45 percentage points from the previous year[23]. - In 2017, the company's revenue was 6.364 billion yuan, a year-on-year decrease of 6.05%[42]. - The net profit for 2017 was -97 million yuan, a year-on-year decline of 134.24%, with a net profit of -488 million yuan after deducting non-recurring gains and losses[42]. Operational Challenges - The company identified rising raw material costs and declining sales prices as key factors impacting profitability[24]. - The company faced challenges in 2017, including rising raw material costs and accounting errors, which significantly impacted its operational quality[42]. - Operating costs increased by 4.95% to ¥5,052,353,077.15, primarily due to rising raw material costs[51]. - The company reported a significant increase in financial expenses by 308.90% due to exchange rate impacts[51]. - The company experienced a significant increase in asset impairment losses, which rose to CNY 124,983,391.45 from CNY 48,995,189.56, an increase of 155.5%[183]. Strategic Initiatives - The company has taken measures to improve internal controls and sales management following previous accounting errors[9]. - The company has established a global R&D center in Hefei, which integrates local management culture with Whirlpool's corporate culture to enhance innovation[34]. - The company is responding to the "Made in China 2025" strategy by launching smart factory projects, with the first smart factory commencing production in November 2017[37]. - The company aims to enhance its competitive edge through talent development, brand positioning, and technological innovation, leveraging over a century of user data[36]. - The company launched several high-end new products in 2017, including the "Light Touch" washing machine, to enhance profitability and cater to consumer demand for quality[40]. Financial Management and Compliance - The company received a warning letter from the China Securities Regulatory Commission regarding errors in regular reports and significant internal control deficiencies[90]. - The company has taken corrective measures in response to the regulatory issues raised by the China Securities Regulatory Commission[90]. - The company has implemented comprehensive internal control measures, particularly in sales, marketing finance, and logistics, to strengthen management mechanisms and ensure compliance[91]. - The company is committed to enhancing compliance education and training for employees to ensure legal and regulatory adherence in operations[91]. - The company has revised its accountability management measures to clarify responsibilities and handling of violations[91]. Environmental Responsibility - The company has been recognized as an environmentally friendly enterprise in Hefei, reflecting its commitment to environmental management and compliance with ISO14001 standards[104]. - The company has established an emergency response plan for environmental incidents, detailing procedures and responsibilities for effective management[106]. - The company reported a total of 292,400 tons of wastewater discharged, with an average concentration of chemical oxygen demand at 85 mg/L, resulting in a total discharge of 24.85 tons[112]. - The average concentration of ammonia nitrogen in the discharged wastewater was 13.4 mg/L, leading to a total discharge of 3.92 tons, which is below the permitted limits[112]. - The company’s major pollutant emissions are below the total amount specified in the pollution discharge permit, ensuring compliance with relevant standards[112]. Shareholder Information - The total number of ordinary shareholders increased from 23,339 to 24,880 during the reporting period[118]. - The largest shareholder, Whirlpool (China) Investment Co., Ltd., holds 51.00% of the shares, totaling 390,884,200 shares[120]. - The company has a total of 233,639,000 shares under lock-up conditions, which cannot be transferred within 36 months from the date of new share registration[123]. - The controlling shareholder is Whirlpool (China) Investment Co., Ltd., established on February 23, 2005, with a registered capital of 2 billion RMB[124]. - The actual controller is Whirlpool Corporation, founded on August 10, 1955[126]. Human Resources and Management - The company has seen significant leadership changes, with several key executives, including the former CEO and CFO, resigning in 2017[137]. - The company has implemented a competitive salary system based on macroeconomic conditions and operational performance, aiming to attract and retain talent[144]. - The company has established a comprehensive training system, including a 2.0 version curriculum covering marketing, professional skills, and leadership[145]. - The total hours of outsourced labor amounted to 6,220,602 hours, with total payments for outsourced labor reaching CNY 88.66 million[146]. - The company has strengthened its internal control systems to address identified deficiencies and enhance operational management[150].