ZHEJIANG DINGLI(SH:603338)2016-04-08 16:00Financial Performance - Zhejiang Dingli achieved a revenue growth of 28% year-on-year and a net profit growth of 36.72% in 2015, despite a challenging economic environment [4]. - In 2015, the company's operating income reached ¥479,151,198.71, representing a 28% increase compared to ¥374,339,583.11 in 2014 [26]. - The net profit attributable to shareholders was ¥125,734,226.29 in 2015, a 36.72% increase from ¥91,964,405.12 in 2014 [26]. - The company's total assets grew by 120.61% to ¥1,094,930,435.53 at the end of 2015, up from ¥496,310,766.94 in 2014 [26]. - The basic earnings per share increased to ¥0.83 in 2015, a 10.67% rise from ¥0.75 in 2014 [27]. - The company reported a net cash flow from operating activities of ¥112,359,421.56, which is a 30.18% increase from ¥86,308,815.71 in 2014 [26]. - The total profit for the year was CNY 147.63 million, with a year-on-year increase of 37.98% [51]. - The company achieved operating revenue of 479.15 million yuan, a year-on-year increase of 28.00%, with main business revenue of 471.99 million yuan, up 27.89% due to increased market expansion and stable growth in new orders and sales volume [57]. Market Presence and Expansion - The company has established a strong presence in the aerial work platform market, with products sold in over 80 countries, including major markets like the US, Germany, and Japan [5]. - The company plans to continue expanding its market presence in the US, particularly in the rental market for aerial work platforms [5]. - The company successfully entered major international markets, including Germany, Japan, and the United States, selling to over 80 countries and regions [37]. - The company received orders for 1,080 and 1,697 units from The Home Depot and Lowe's respectively, marking significant entry into the U.S. market [52]. - The company aims to enhance its market position by investing in R&D for mid-to-high-end products and establishing a European R&D center [90]. - The "Belt and Road" initiative presents opportunities for the company to expand its overseas business, with participation in international exhibitions to attract new clients [91]. Research and Development - Zhejiang Dingli has developed 43 invention patents and a total of 189 patents, contributing to its position as a leader in research and development within the industry [6]. - The company has established a European R&D center and collaborates with global suppliers to drive innovation [6]. - Research and development efforts led to the establishment of a provincial-level research institute, with the company holding 189 patents, including 43 invention patents [53]. - The company plans to accelerate new product development through its European R&D center and domestic research institute, with the first batch of new products expected to debut in November 2016 [93]. Product Development and Quality Control - The company emphasizes a "zero tolerance for pre-sale defects" and "butler-style after-sales service," ensuring high-quality products and customer satisfaction [8]. - The company is committed to maintaining high standards in product testing and quality control, adhering to international standards [8]. - The company launched a 22-meter self-propelled scissor lift platform, which was recognized as a key product in Zhejiang Province's equipment manufacturing sector [45]. - The company introduced new products suitable for the European market, including a 24-meter engine-powered straight boom lift and a 16-meter battery-driven articulated boom lift, which received positive market feedback [46]. Financial Management and Investments - The company received government subsidies amounting to ¥11,980,023.06, primarily related to IPO and technology project funding [32]. - The company’s financing activities generated a net cash flow of CNY 409.94 million, largely due to funds raised from its initial public offering [56]. - The company has a commitment to comply with national laws and regulations in its financial investment decisions [121]. - The company has a history of successful financial product investments, with returns consistently exceeding expectations [120]. Operational Efficiency and Cost Management - The company has strengthened its procurement process, reducing costs through centralized procurement and establishing long-term partnerships with reliable suppliers [36]. - The company reported a 34.51% increase in operating costs, primarily due to increased sales volume and depreciation from a new facility [56]. - Direct materials cost for the industrial sector increased to 243,322,927.98, accounting for 87.15% of total costs, up from 88.54% year-on-year [66]. - Manufacturing expenses in the industrial sector rose by 62.56% to 25,311,800.32, driven by increased depreciation and amortization from new facilities [66]. Shareholder and Corporate Governance - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed as cash dividends [100]. - In 2015, the company distributed cash dividends amounting to 7.31 million RMB, with a net profit attributable to shareholders of 125.73 million RMB, resulting in a dividend payout ratio of 5.82% [103]. - The company has appointed Lixin Certified Public Accountants (Special General Partnership) as the auditor for the 2015 fiscal year, with an audit fee of RMB 40,000 [113]. - The company has no significant litigation or arbitration matters during the reporting period [115]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 496, with 397 in the parent company and 99 in subsidiaries [161]. - The professional composition includes 327 production personnel, 29 sales personnel, 82 technical personnel, 9 financial personnel, and 49 administrative personnel [161]. - The company has established a performance evaluation and incentive mechanism linking management compensation to business performance [167]. - The company’s board of directors includes members with extensive experience in various industries, enhancing its strategic decision-making capabilities [158].