DAHAO TECHNOLOGY(SH:603025)2016-04-24 16:00Financial Performance - In 2015, the company's operating revenue was CNY 621,726,993.10, a decrease of 6.30% compared to CNY 663,515,656.88 in 2014[17]. - The net profit attributable to shareholders was CNY 185,317,466.09, down 15.34% from CNY 218,902,325.48 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 173,948,491.93, reflecting a decline of 19.93% from CNY 217,243,876.61 in 2014[17]. - The net cash flow from operating activities was CNY 214,560,862.54, a decrease of 15.90% compared to CNY 255,121,401.81 in 2014[17]. - Basic earnings per share decreased by 21.82% to CNY 0.43 compared to CNY 0.55 in the previous year[18]. - The weighted average return on equity dropped to 14.75%, a decrease of 11.69 percentage points from 26.44% in the previous year[18]. - Total profit for the period was 214.56 million RMB, down 15.65% compared to the previous year[49]. - The company reported a total comprehensive income of CNY 187,158,423.05, a decrease of 16.1% from CNY 223,162,702.39 in the previous year[190]. Assets and Liabilities - As of the end of 2015, the total assets amounted to CNY 1,582,276,617.68, an increase of 56.50% from CNY 1,011,017,520.86 in 2014[17]. - The total liabilities rose to CNY 168,863,603.73, up 44.7% from CNY 116,719,456.15 in the previous year[188]. - The company's total current assets reached CNY 1,271,361,461.01, up from CNY 696,484,454.00, indicating a growth of about 83.5%[184]. - The cash and cash equivalents increased to CNY 321,703,531.38 from CNY 300,697,945.65, showing a rise of approximately 7.3%[184]. Market Position and Shareholder Information - The company holds approximately 80% market share in the domestic embroidery machine control system market[26]. - The total share capital at the end of 2015 was 447,000,000 shares, up 12.88% from 396,000,000 shares in 2014[17]. - The company proposed a cash dividend of CNY 4.0 per 10 shares, totaling CNY 178,800,000 to be distributed to shareholders[2]. - The company has established a cash dividend policy, committing to distribute at least 50% of the annual distributable profits in cash to shareholders over the next three years following its IPO[99]. Research and Development - The company has developed industry-leading core technologies in multi-thread real-time embedded operating systems and programmable logic devices[31]. - Research and development expenses amounted to 59.19 million RMB, representing 9.52% of total operating revenue[58]. - The company is committed to innovation and R&D, aligning with the "Made in China 2025" initiative to drive product manufacturing[48]. - The company aims to enhance its core competitiveness through technological innovation and strategic alliances, focusing on the integration of IoT technology in sewing equipment manufacturing[91]. Operational Risks and Market Challenges - There were no significant risks that materially affected the company's operations during the reporting period[5]. - The company emphasized the importance of monitoring potential risks, including industry fluctuations and international market changes[5]. - The overall industry faces significant downward pressure due to reduced domestic demand and high inventory levels, impacting profitability[63]. - The company faces risks from fluctuations in downstream industries and international market changes, which could adversely affect its performance[93][94]. Corporate Governance and Management - The company has a stable and experienced core management team, which is crucial for accurately grasping industry development trends and technological directions[41]. - The governance structure complies with the Company Law and relevant regulations, ensuring independence and no interference from the controlling shareholder in operational decisions[156]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance practices[157]. - The company has established a performance management and compensation system that links employee remuneration to performance outcomes, enhancing motivation and accountability[161]. Employee and Social Responsibility - The total number of employees in the parent company is 427, and in major subsidiaries, it is 181, resulting in a total of 608 employees[152]. - The company actively engaged in social responsibility activities, including support for underprivileged families[112]. - The company maintained a focus on improving employee welfare and training, contributing to employee growth alongside the company's development[112].