HX GROUP(SH:600851)2016-04-25 16:00Financial Performance - In 2015, the company achieved a net profit attributable to shareholders of RMB 157,430,118.58, a decrease of 45.89% compared to RMB 290,932,918.64 in 2014[2]. - The company's operating revenue for 2015 was RMB 1,051,820,178.86, down 5.26% from RMB 1,110,193,673.88 in 2014[18]. - The net cash flow from operating activities was negative RMB 117,880,560.27, a significant decline from positive RMB 31,335,340.67 in 2014[18]. - The total assets at the end of 2015 were RMB 6,044,342,463.10, a decrease of 16.81% from RMB 7,265,711,536.56 in 2014[18]. - The company's net assets attributable to shareholders decreased by 14.13% to RMB 4,574,393,741.57 from RMB 5,327,380,205.93 in 2014[18]. - Basic earnings per share for 2015 were RMB 0.1304, down 45.89% from RMB 0.241 in 2014[19]. - The weighted average return on equity was 3.17%, a decrease of 3.82 percentage points from 6.99% in 2014[20]. - The company reported a total revenue of 1.052 billion RMB in 2015, a decline of 5.26% year-on-year, with operating costs at 800 million RMB, down 9.18%[41]. - The company achieved a net profit of 157.43 million RMB in 2015, exceeding the budget target by 50.6%, but down 45.9% from 2014's net profit of 290.93 million RMB, primarily due to a decrease in the sale of Changjiang Securities[33]. - The company reported a net loss of 3.69 million RMB from its subsidiary in the textile manufacturing sector[62]. Cash Flow and Investments - The net cash flow from operating activities showed a significant recovery, moving from -CNY 55.66 million in the first quarter to CNY 33.48 million in the fourth quarter[21]. - The company reported a significant increase in cash flow from the disposal of fixed assets, with net cash received amounting to 86.55 million yuan, a 1845.54% increase compared to the previous period[53]. - The net cash flow from investment activities decreased by 57.44% to ¥209.06 million from ¥491.20 million in the previous year[44]. - The total cash inflow from investment activities was significantly impacted by a drop in investment income received, which fell from 525,461,421.73 RMB to 95,751,236.17 RMB[159]. - The company received 240,334,654.36 RMB in borrowings, a decrease from 566,027,495.15 RMB in the previous year[159]. Dividends and Shareholder Returns - The company proposed a cash dividend of RMB 0.7 per 10 shares, totaling RMB 84,493,968.44[2]. - The company distributed cash dividends of approximately 120 million RMB in July 2015, marking the first dividend payout since 2007[34]. - In 2015, the company distributed cash dividends of 0.70 RMB per 10 shares, representing a payout ratio of 53.67% of net profit attributable to shareholders[76]. - The total amount of profit distribution to owners decreased by RMB 120,705,669.20, indicating a reduction in shareholder returns during the reporting period[170]. Business Segments and Operations - The company has a diversified business model, including textile production, pharmaceutical manufacturing, financial investments, and industrial property leasing[29]. - The textile segment generated revenue of 525 million RMB with a net loss of 28.56 million RMB, while the pharmaceutical segment reported revenue of 586 million RMB and a net profit of 14.68 million RMB, down 42.3%[41]. - The pharmaceutical sector is stable, with the company’s controlled pharmaceutical enterprises having established certain product brands and sales channels[29]. - The company is focusing on the integration and transformation of its textile segment and advancing clinical research for its biotechnology projects[72]. Risks and Future Outlook - The company has outlined potential risks in its future development strategy, advising investors to be cautious[3]. - The company faces risks in the pharmaceutical sector, including policy risks, product quality risks, and R&D risks, which could impact its market position[71]. - The company plans to focus on market expansion and new product development to improve future performance[152]. - The company aims to optimize its textile segment to achieve profitability and expand its pharmaceutical, industrial real estate, and financial investment sectors[70]. Corporate Governance and Management - The company emphasizes compliance and internal control to improve operational efficiency and safeguard shareholder interests[72]. - The company has established a mechanism linking senior management compensation to company performance and individual achievements[126]. - The company strictly adheres to corporate governance regulations, ensuring independent operation of the board and supervisory committee[125]. - The company has a diverse leadership team with experience in various sectors, including government and engineering, which may enhance strategic decision-making[109]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 94,992, an increase from 87,727 at the end of the previous month, representing an increase of approximately 8.9%[91]. - The largest shareholder, Shanghai Songjiang Dongjing Industrial Company, held 82,082,000 shares, accounting for 6.80% of the total shares, with a decrease of 8,531,819 shares during the reporting period[93]. - The company does not have a controlling shareholder, as the largest shareholder's stake is below 50%[98]. Financial Position and Assets - The total assets at the end of the reporting period is RMB 5,299,173,430.48, down from RMB 6,094,024,921.69 at the beginning of the year, reflecting a decrease of approximately 13.06%[167]. - The total liabilities decreased from ¥1,725,588,307.63 to ¥1,241,193,359.56, representing a reduction of about 28.0%[145]. - The company’s total liabilities and shareholders' equity as of December 31, 2015, were not disclosed in the provided documents[138]. - The company’s ability to continue as a going concern is assessed as good, with no significant doubts regarding its operational viability in the next 12 months[175].