BIO-CHEM(SH:603360)2017-04-23 16:00Financial Performance - The company achieved a consolidated net profit of ¥97,945,999.65 for the year 2016, representing a significant increase of 71.39% compared to the previous year[3]. - Total operating revenue for 2016 was ¥389,433,985.09, reflecting an 18.73% increase from ¥327,991,416.10 in 2015[21]. - The net cash flow from operating activities reached ¥119,767,902.83, which is a 61.77% increase compared to ¥74,035,564.97 in 2015[21]. - The company's total assets as of December 31, 2016, amounted to ¥626,367,873.82, a 14.25% increase from ¥548,252,387.80 at the end of 2015[21]. - The net assets attributable to shareholders of the listed company increased by 27.26% to ¥458,889,228.75 at the end of 2016, up from ¥360,595,037.05 in 2015[21]. - Basic earnings per share increased by 71.93% to CNY 0.98 in 2016 compared to CNY 0.57 in 2015[22]. - The weighted average return on equity rose to 23.98%, an increase of 6.70 percentage points from 17.28% in 2015[22]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of ¥93,064,938.11, which is a 73.16% increase from the previous year[21]. Dividends and Shareholder Returns - The company plans to distribute a total of ¥133,340,000 in cash dividends to shareholders, amounting to ¥10 per 10 shares (including tax)[3]. - In 2016, the company distributed cash dividends amounting to approximately 133.34 million RMB, representing 135.68% of the net profit attributable to ordinary shareholders[95]. - The company has established a cash dividend policy, committing to distribute at least 20% of the annual distributable profit as cash dividends, provided the net profit is positive[93]. Operational Highlights - The company’s main business focuses on the research, production, and sales of isothiazolinone-based industrial biocides, which are widely used across various industries[31]. - The production model is based on a "sales-driven production" approach, allowing for flexible manufacturing to meet customer-specific requirements[32]. - The company has established long-term stable partnerships with over 500 domestic clients and nearly 100 international clients, including major multinational corporations[36]. - The company has become the largest producer of isothiazolinone biocides in Asia, indicating a strong market position[65]. - The production capacity for isothiazolinone products exceeded 10,000 tons, establishing the company as a leading player in this niche market[35]. Research and Development - Research and development expenses increased by 33.80% to ¥13,791,914.15, highlighting the company's commitment to innovation[43]. - The company has developed 11 invention patents, showcasing its strong technological innovation capabilities[35]. - The company plans to increase R&D investment, aiming to enhance the proportion of R&D expenses in sales revenue over the next three years[85]. - The company will continue to improve its internal talent development and recruitment mechanisms to enhance its R&D capabilities and management strength[86]. Market and Sales Performance - The sales volume of CIT/MIT products increased by 18.60% compared to the previous year, reaching 16,545.58 tons[48]. - The gross profit margin for the South China region was 56.24%, with a revenue increase of 27.01% year-over-year[46]. - The company reported a significant increase in sales from the North America region, with a revenue of approximately 25.64 million, up by 29.03%[46]. - The company’s OIT product sales grew significantly, driven by increased demand from both new and existing customers[47]. Financial Position and Cash Flow - The company's cash and cash equivalents rose to ¥114,085,492.19, representing 18.21% of total assets, a 326% increase from the previous period[58]. - The total cash and cash equivalents at the end of the period increased to CNY 113,983,167.53 from CNY 26,655,372.89, marking a substantial increase of approximately 327.5%[170]. - The net cash flow from investment activities improved by 72.03%, reducing the outflow to ¥2,898,673.93[57]. - The financial expenses decreased significantly by 78.32%, totaling 1.77 million compared to the previous year[53]. Governance and Compliance - The board of directors confirmed the accuracy and completeness of the annual report, ensuring no false records or misleading statements[5]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. - The company has not violated any decision-making procedures for providing guarantees[5]. - The company has not encountered any non-standard audit opinions during the reporting period[101]. - The company has not reported any significant litigation or arbitration matters during the fiscal year[104]. Shareholder Structure and Management - The total number of ordinary shareholders at the end of the reporting period was 7, compared to 17,261 at the end of the previous month[113]. - The company completed its initial public offering of 33.34 million shares, increasing the total share capital from 100 million to 133.34 million shares[111]. - The top ten shareholders include Tongyun Investment and Sanxin Investment, each holding 38,666,667 shares, representing 38.67% of the total shares[115]. - The company has maintained a stable management team with no changes in shareholding among the directors and supervisors[125]. Risks and Challenges - The company recognizes risks such as intensified domestic market competition and potential core technology leakage, which could adversely affect production and sustainable development[89]. - The company is committed to adhering to environmental regulations and has implemented strict operational standards to mitigate environmental risks associated with its production processes[89]. Accounting and Financial Reporting - The company has maintained a stable accounting policy, ensuring compliance with relevant accounting standards[194]. - The company’s financial statements reflect a strong commitment to continuous operation without significant doubts regarding its operational capability[192]. - The company’s accounting currency is Renminbi, ensuring consistency in financial reporting[197].