DAHAO TECHNOLOGY(SH:603025)2017-01-23 16:00Financial Performance - In 2016, the company's operating revenue reached ¥689,539,575.09, representing a year-on-year increase of 10.91% compared to ¥621,726,993.10 in 2015[22]. - The net profit attributable to shareholders was ¥238,756,730.24, up 28.84% from ¥185,317,466.09 in 2015[22]. - The basic earnings per share increased to ¥0.53, a rise of 23.26% from ¥0.43 in 2015[23]. - The weighted average return on equity improved to 16.19%, an increase of 1.44 percentage points from 14.75% in 2015[23]. - The total profit reached 276.16 million yuan, an increase of 28.71% compared to the previous year[49]. - The company's operating revenue for 2016 was approximately ¥689.54 million, representing a year-on-year increase of 10.91% compared to ¥621.73 million in 2015[58]. - The total assets at the end of 2016 were ¥1,657,638,723.99, reflecting a 4.76% increase from ¥1,582,276,617.68 at the end of 2015[22]. - The cash flow from operating activities was ¥243,418,864.26, which is a 13.45% increase compared to ¥214,560,862.54 in 2015[22]. - The company reported non-recurring gains of ¥31,362,036.35 in 2016, significantly higher than ¥11,368,974.16 in 2015[28]. - The total revenue for the year was 257.4 million, with no year-on-year growth reported[148]. - The company reported a net profit margin of 735.6 million, indicating a stable financial performance[148]. Dividend Policy - The profit distribution plan for 2016 proposes a cash dividend of 4.5 RMB per 10 shares, totaling 201,150,000 RMB to be distributed to shareholders[5]. - 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[111]. - In 2016, the company distributed a cash dividend of RMB 0.4 per share, totaling RMB 178.8 million (including tax) based on a total share capital of 447 million shares[111]. - The cash dividend distribution ratio has been consistent, with 2016 showing a payout ratio of 84.25% of net profit attributable to ordinary shareholders[113]. - The company plans to enhance shareholder returns by potentially increasing cash dividend ratios or implementing stock profit distributions[111]. - The company has not proposed any cash profit distribution plan for the reporting period, despite having positive distributable profits[114]. Market Position and Operations - The company maintained a dominant market position in the domestic embroidery machine control system market, with an approximate market share of 80% in 2016[33]. - The company operates under a customized development and order production model, catering to the specific technical requirements of machinery manufacturers[34]. - The demand for mechatronic products is steadily increasing due to the rising need for automation and information technology in the sewing and knitting equipment sector[36]. - The company has developed industry-leading core technologies, including multi-head and multifunctional embroidery machines[37]. - The company has established a comprehensive service system, including pre-sales, sales, and after-sales support, to enhance customer satisfaction[45]. - The company has a strong R&D capability, continuously launching new products to meet domestic and international market demands[38]. - The company has reduced inventory levels, with a reported decrease of 9.58% in inventory among major industry players[49]. - The average number of heads per embroidery machine has increased compared to the previous year, despite a decline in overall production[48]. Risks and Challenges - The company reported no significant risks affecting its operations during the reporting period, with potential risks including fluctuations in downstream industries and international market changes[9]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[7]. - The company faces risks from downstream industry fluctuations that could lead to performance declines due to macroeconomic slowdowns affecting demand[106]. - The company is exposed to international market risks, as its products are significantly impacted by global political and economic conditions, affecting export sales[108]. - The company has faced operational performance volatility risks due to its high business concentration in embroidery machine control systems, despite efforts to diversify its product offerings[109]. Corporate Governance and Compliance - The audit report for the company was issued by Beijing Xinghua Accounting Firm, confirming a standard unqualified opinion[4]. - The financial report is guaranteed to be true, accurate, and complete by the company's management team[2]. - There are no major lawsuits or arbitration matters reported for the year[120]. - The company has not faced any risks of suspension or termination of listing during the reporting period[120]. - The integrity status of the company and its controlling shareholders remains good, with no significant debts unpaid[120]. - The company has not reported any significant deficiencies in internal controls during the reporting period[178]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting to all shareholders[167]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 29,933[135]. - The largest shareholder, Beijing Yiqing Holdings Co., Ltd., holds 136,884,392 shares, accounting for 30.62% of total shares[137]. - The second-largest shareholder, Zheng Jianjun, holds 65,498,400 shares, representing 14.65% of total shares[137]. - The company has not issued any convertible bonds during the reporting period[132]. - The company has no significant changes in the shareholding structure of directors and senior management during the reporting period[146]. Employee and Social Responsibility - The company actively engages in social responsibility activities, including support for underprivileged families[134]. - The company emphasizes employee welfare and training, aiming for mutual growth with employees[134]. - The company has established a comprehensive training plan aimed at enhancing operational skills and overall employee quality[159]. - The total remuneration for directors, supervisors, and senior management from the company amounted to 7.356 million yuan (pre-tax) during the reporting period[153]. Research and Development - The company’s R&D expenditure for 2016 was approximately ¥63.19 million, reflecting a 6.76% increase from ¥59.19 million in 2015[58]. - Research and development expenses amounted to ¥63.19 million, accounting for 9.16% of total revenue, with 193 R&D personnel, representing 34% of the total workforce[67]. - The company will continue to increase R&D investment, focusing on independent innovation and deep cooperation to drive product manufacturing[104].