Wanli New Energy(SH:600847)2016-03-30 16:00Financial Performance - The company reported a net profit of -19,838,057.18 CNY for the year 2015, with cumulative distributable profits amounting to -91,673,319.72 CNY, leading to a proposal of no dividend distribution or capital increase [2]. - Total revenue for 2015 was 248,876,496.47 CNY, representing a 5.45% increase compared to 236,012,845.52 CNY in 2014 [15]. - The net profit attributable to shareholders was -19,812,531.92 CNY, a significant decrease of 995.12% from the previous year's profit of 2,213,383.00 CNY [15]. - The company experienced a cash flow from operating activities of -26,580,648.89 CNY, an improvement from -43,983,198.61 CNY in 2014 [15]. - The basic earnings per share for 2015 was -0.13 CNY, compared to 0.01 CNY in 2014, reflecting a decrease of 1,400% [16]. - The weighted average return on equity was -2.79% for 2015, down 3.1 percentage points from 0.31% in 2014 [16]. - The company reported a total share capital of 158,033,400 shares at the end of 2015, a slight increase of 0.35% from 157,483,400 shares at the end of 2014 [15]. - The company reported a significant decline in cash flow from operating activities, with a net cash outflow of -¥26,580,648.89 compared to -¥43,983,198.61 last year [37]. - The company reported a net profit attributable to shareholders of -19,812,531.92 RMB for 2015, indicating a loss compared to a profit of 2,213,383.00 RMB in 2014 [61]. Operational Highlights - The company achieved operating revenue of CNY 248,876,496.47, an increase from CNY 236,012,845.52 in the previous year [31]. - The company's sales expenses increased by 79.75% to CNY 17,667,532.42, primarily due to a significant rise in product maintenance costs [28]. - Product maintenance expenses surged by 155.10% to CNY 9,147,489.41, impacting overall profitability [31]. - Inventory increased by 34.71% to CNY 80,306,369.24, mainly due to higher work-in-progress in the power division [28]. - The company implemented a dual-channel sales strategy in the southwest region, enhancing sales capabilities and market control [32]. - Four new battery models were developed to meet retail market demands, improving product competitiveness [32]. - The production volume of starter batteries was 1,052,342 units, while sales volume reached 1,060,657 units, indicating a year-on-year increase of 18.00% and 21.29% respectively [40]. Financial Position - Total assets at the end of 2015 were 892,575,853.78 CNY, a slight decrease of 0.09% from 893,363,333.81 CNY at the end of 2014 [15]. - The company reported a total of 158,033,400 ordinary shares after an increase of 550,000 shares [84]. - The company reported a total asset of RMB 892,575,853.78 as of December 31, 2015, a slight decrease from RMB 893,363,333.81 at the beginning of the year [134]. - The company's total liabilities increased to RMB 182,081,329.34 from RMB 180,335,379.49, indicating a rise of about 1.0% [136]. - The company's equity attributable to shareholders decreased to RMB 709,485,517.39 from RMB 711,993,422.01, reflecting a decline of approximately 0.35% [136]. Cash Flow Analysis - The cash flow from financing activities resulted in a net outflow of CNY 8,410,944.46, compared to a net inflow of CNY 41,411,373.95 in the previous year [149]. - The cash and cash equivalents at the end of the year were CNY 56,385,557.57, a decrease from CNY 132,629,389.83 at the beginning of the year [149]. - Cash inflow from sales increased to ¥230,561,466.38 from ¥165,225,308.03, representing a growth of 39.5% year-over-year [151]. - The company reported a total cash decrease of ¥78,362,407.69 during the period, contrasting with an increase of ¥60,347,095.57 in the previous period [151]. Research and Development - Total R&D investment amounted to 1,751,206.23 yuan, representing 0.7% of operating revenue [44]. - Capitalized R&D investment accounted for 81.92% of total R&D expenditure [44]. - Research and development expenses increased by 83.93% to ¥1,751,206.23 from ¥952,100.77 [37]. Shareholder and Governance - The company has engaged Tianjian Accounting Firm for financial and internal control audits, with a remuneration of 400,000 RMB for the financial audit and 200,000 RMB for the internal control audit [63]. - The company has implemented an employee stock incentive plan, granting a total of 524,500 restricted shares to 33 incentive recipients [66]. - The company has not faced any risks of suspension from listing during the reporting period [64]. - The company has fulfilled all commitments made by its controlling shareholders and actual controllers [65]. - The company has a commitment to not transfer 19,073,500 shares acquired through a private placement for 36 months from the listing date, which is set to expire on October 10, 2016 [59]. Risk Management - The company faced significant risks as outlined in the board's report, which should be reviewed for potential impacts on future performance [4]. - The company faces risks related to raw material price fluctuations, particularly lead, which constitutes approximately 70% of production costs [54]. - The company emphasizes the importance of environmental protection and compliance with national standards in its operations [54]. Compliance and Internal Control - The company maintained an effective internal control system, as confirmed by an independent audit, with no significant deficiencies reported [128]. - The company has established a performance-based salary system for senior management, with annual performance bonuses contingent on achieving specific economic indicators [127]. - The company has not reported any mergers or acquisitions in the recent period [106]. Environmental and Social Responsibility - The company has actively fulfilled its social responsibilities, focusing on economic and social benefits [78]. - Environmental protection measures were emphasized, with no reported environmental accidents during the reporting period [79].