EBEM(SH:603002)2017-03-29 16:00Financial Performance - In 2016, the company's operating revenue was RMB 909,889,780.26, a decrease of 4.31% compared to RMB 950,913,681.04 in 2015[21] - The net profit attributable to shareholders was RMB 26,679,217.72, down 57.12% from RMB 62,219,751.24 in the previous year[21] - The basic earnings per share decreased by 60.00% to RMB 0.04 from RMB 0.10 in 2015[22] - The company's total revenue for Q4 was 245,441,834.19 RMB, showing a growth of approximately 8.5% compared to Q3's revenue of 230,144,905.87 RMB[24] - The net profit attributable to shareholders for Q4 was 7,627,316.93 RMB, which is a decrease of 66.9% from Q3's net profit of 2,309,507.13 RMB[24] - The company achieved a net profit of CNY 26,679,217.72, a decrease of 57.12% compared to the previous year[51] - Total revenue for the reporting period was CNY 909,889,780.26, down 4.31% year-on-year, primarily due to a decline in product prices[54][58] - The company's net profit decreased by CNY 35,540,533.52, reflecting a decline of 57.12% due to increased operational costs and low price margins[54] - The gross profit margin for the epoxy resin segment was 11.40%, with a slight decrease of 0.72 percentage points compared to the previous year[60] - The company's net profit margin for 2016 was approximately 2.9%, reflecting a decrease from the previous year's margin[197] Assets and Liabilities - The total assets at the end of 2016 were RMB 1,510,760,456.36, an increase of 12.39% from RMB 1,344,219,026.02 in 2015[21] - The equity attributable to shareholders increased to CNY 1,028,337,004.67 from CNY 979,370,741.39, reflecting a growth of 5%[191] - The company's total liabilities increased to CNY 482,423,451.69, compared to CNY 364,848,284.63, marking a rise of 32.3%[191] - The asset-liability ratio increased to 31.93%, up 4.79 percentage points from the previous year[54] Cash Flow - The cash flow from operating activities was RMB 54,093,171.59, a significant increase of 246.06% compared to a negative cash flow of RMB 37,035,261.20 in 2015[21] - The net cash flow from operating activities for 2016 is 54,093,171.59 CNY, an increase of 91,128,432.79 CNY compared to -37,035,261.20 CNY in 2015[69] - The net cash flow from investing activities is -46,373,504.90 CNY, a decrease of 331,630,072.79 CNY compared to 285,256,567.89 CNY in 2015[69] - The net cash flow from financing activities is 11,522,805.69 CNY, an increase of 30,522,805.69 CNY compared to -19,000,000.00 CNY in 2015[70] Research and Development - Research and development expenses increased by 6.97% to CNY 32,878,969.62, with the company filing for 3 new patents during the reporting period[57][52] - The company holds 19 invention patents and has 7 invention patents under review, along with 69 non-proprietary technologies in use[41] - The company is actively involved in the research and development of new products to enhance its market position in the epoxy resin industry[30] - The total R&D investment for the period is 32,878,969.62 CNY, representing 3.61% of operating revenue[67] Market and Sales - The average selling price of epoxy resin decreased by 9.96% year-on-year, impacting the company's profitability[49] - The sales volume of epoxy resin increased by 4,157 tons, representing a growth rate of 6.3% compared to the previous year[49] - The company has accumulated nearly 3,000 customers, with approximately 1,000 customers transacting during the reporting period[40] - The domestic epoxy resin market's main downstream consumption is concentrated in coatings (43%), electronics (27%), and composite materials (23%) with imports primarily serving high-end markets[107] Environmental and Compliance - The company invested CNY 13 million in environmental protection measures, including the installation of active carbon adsorption equipment[52] - The company is committed to maintaining high environmental standards and has implemented VOC online monitoring to ensure compliance with regulations[112] - The company has not faced any major litigation or arbitration matters during the reporting period[125] - The company has no penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[173] Profit Distribution - The company plans to distribute a cash dividend of RMB 0.22 per share, totaling approximately RMB 13,517,057.40, which represents 50.67% of the net profit attributable to shareholders[5] - The company has maintained a positive profit distribution condition, with no plans to withhold cash dividends despite having distributable profits[121] - The company has a clear and complete decision-making process for profit distribution, ensuring compliance with its articles of association[119] Corporate Governance - The company has engaged Tianzhi International Accounting Firm for its financial and internal control audits, with a remuneration of RMB 400,000 for the audit services[124] - The independent auditor confirmed that the financial statements fairly represent the company's financial position as of December 31, 2016[187] - The board of directors held a total of 9 meetings during the year, with 8 conducted via communication methods[182] - The company has established a compensation and assessment committee to evaluate senior management based on operational performance and industry salary levels[184] Shareholder Information - The total number of shareholders increased from 33,628 to 34,634 during the reporting period[150] - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., held 253,702,000 shares, representing 41.32% of the total shares, with a decrease of 61,298,000 shares during the period[153] - The company has a total of 4,170,000 shares granted under stock incentives, with a total compensation of 756.07 million RMB for executives during the reporting period[165]