Hexing(SH:603556)2017-04-07 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 521,232,281.30 in 2016, after deducting a statutory surplus reserve of RMB 44,114,538.62, resulting in a total distributable profit of RMB 477,117,742.68[2]. - The company's operating revenue for 2016 was approximately ¥2.18 billion, representing a year-over-year increase of 9.02% compared to ¥2.00 billion in 2015[19]. - Net profit attributable to shareholders for 2016 was approximately ¥521.23 million, reflecting a 20.26% increase from ¥433.41 million in 2015[19]. - The basic earnings per share for 2016 was ¥1.81, up 16.77% from ¥1.55 in 2015[20]. - The company's total assets at the end of 2016 reached approximately ¥5.27 billion, a significant increase of 121.44% from ¥2.38 billion at the end of 2015[19]. - The weighted average return on equity for 2016 was 26.21%, down 3.31 percentage points from 29.52% in 2015[20]. - The company generated approximately ¥499.38 million in cash flow from operating activities in 2016, an increase of 8.96% from ¥458.30 million in 2015[19]. - The company reported a net profit of approximately ¥159.17 million in Q4 2016, the highest quarterly profit for the year[22]. - The total revenue for 2016 was RMB 2.1808 billion, an increase of 9.02% year-on-year[39]. - The company invested RMB 163.58 million in research and development, accounting for 7.5% of total revenue[39]. Shareholder Information - The total share capital at the end of 2016 was 37,334,000 shares, with a proposed cash dividend of RMB 2.6 per 10 shares, amounting to a total cash distribution of RMB 97,068,400.00[2]. - The company raised RMB 2.1178 billion from its initial public offering, with a share price of RMB 23.63[33]. - Shareholders of Hai Ju Investment have committed not to transfer or manage their shares for 36 months post-listing, with automatic extension if stock price falls below the issue price for 20 consecutive trading days[90]. - Actual controllers Zhou Liangzhang and Li Xiaoqing have pledged no direct or indirect reduction of company shares for two years post-lockup, with a minimum selling price equal to the issue price[91]. - The largest shareholder, Zhejiang Haixing Holding Group, holds 49.39% of the shares[113]. Risk Management - The company has disclosed potential risks in its annual report, advising investors to pay attention to the risks outlined in the "Discussion and Analysis of Operating Conditions" section[5]. - The company is facing market risks due to potential changes in government policies and economic conditions in overseas markets, which could significantly impact its operations[81]. - The company is enhancing its overseas legal and financial management teams to mitigate risks associated with international operations[40]. - The company faces risks in managing overseas operations due to varying policy, cultural, and language environments, which may complicate internal control[82]. International Expansion - The company has expanded its international presence by providing comprehensive solutions for global power customers, including microgrid and distributed energy system designs[29]. - The company established subsidiaries in over 10 countries, providing services to more than 80 countries, including 36 countries along the "Belt and Road" initiative[40]. - The company has a presence in over 80 countries and regions, with exposure to multiple currencies, making it susceptible to exchange rate fluctuations[81]. - The company plans to focus on microgrid and IoT product development, including EMS, BMS, and PCS systems, to enhance its competitive advantage in the microgrid sector[77]. Research and Development - The company has over 500 engineering and technical personnel dedicated to R&D in smart electricity and IoT technologies[39]. - Research and development expenses increased by 47.01% to CNY 163,581,575.45, indicating a strong focus on innovation[44]. - The company expanded its research capabilities by establishing new research branches in Shenzhen, Wuhan, and Nanjing[57]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency and sustainability[128]. Corporate Governance - Ernst & Young Hua Ming LLP issued a standard unqualified audit report for the company, confirming the accuracy and completeness of the financial statements[4]. - The company has maintained a good integrity status during the reporting period, with no unfulfilled court judgments or significant overdue debts[95]. - The company has a structured governance framework, including a board of directors and various specialized committees to ensure effective decision-making and oversight[139]. - In 2016, the board of directors held 8 meetings, with 7 conducted in a combined format of in-person and communication methods[144]. Employee Management - The total number of employees in the parent company and major subsidiaries is 1,240, with 1,021 in the parent company and 219 in subsidiaries[135]. - The professional composition includes 250 production personnel, 155 sales personnel, 598 technical personnel, 44 financial personnel, and 193 administrative personnel[135]. - The company has established a fair and competitive compensation system, ensuring that average annual income exceeds regional and industry averages during economic upturns[136]. - Employee training emphasizes a combination of on-the-job and off-the-job training, focusing on continuous development and skill transmission[137]. Financial Position - The company's total assets as of December 31, 2016, were RMB 5.2728 billion, with net assets of RMB 4.1828 billion[39]. - The total liabilities increased to CNY 1,090,007,417.15, compared to CNY 780,333,203.69, reflecting a rise of about 39.7%[154]. - The total equity attributable to shareholders increased to CNY 4,182,811,154.46 from CNY 1,600,864,498.46, reflecting a growth of approximately 161.5%[154]. - The company has maintained a healthy liquidity position with current assets totaling CNY 4,659,999,570.09 compared to current liabilities of CNY 833,570,908.71, resulting in a current ratio of approximately 5.6[152].