BOMESC(SH:603727)2017-04-19 16:00Financial Performance - The company achieved a net profit of CNY 17,616,817.13 for the fiscal year 2016, with total distributable profits amounting to CNY 207,109,815.18 by year-end[2]. - The company's operating revenue for 2016 was CNY 2,684,425,831.62, representing a year-on-year increase of 17.04% compared to CNY 2,293,504,363.51 in 2015[20]. - The net profit attributable to shareholders for 2016 was CNY 233,022,036.06, which is a 6.30% increase from CNY 219,211,639.24 in 2015[20]. - The net cash flow from operating activities reached CNY 776,263,836.21 in 2016, a significant increase of 260.71% compared to CNY 215,204,240.60 in 2015[20]. - The total assets of the company at the end of 2016 were CNY 3,415,486,786.64, reflecting a 39.49% increase from CNY 2,448,576,180.11 in 2015[20]. - The basic earnings per share for 2016 was CNY 1.29, up 3.20% from CNY 1.25 in 2015[21]. - The weighted average return on equity for 2016 was 19.07%, down 5.28 percentage points from 24.35% in 2015[21]. - The company's net assets attributable to shareholders increased by 136.58% to CNY 2,389,212,249.69 at the end of 2016, compared to CNY 1,009,888,456.60 at the end of 2015[20]. - The net profit after deducting non-recurring gains and losses for 2016 was CNY 226,060,482.32, an increase of 6.67% from CNY 211,929,193.59 in 2015[20]. - The company reported a total share capital of 234,145,000 shares at the end of 2016, which is a 33.46% increase from 175,445,000 shares at the end of 2015[20]. Dividend Distribution - A cash dividend of CNY 3 per 10 shares (including tax) is proposed, totaling CNY 70,243,500.00 in cash dividends to be distributed[2]. - The total number of shares for dividend distribution is based on 234,145,000 shares as of the end of 2016[2]. - The company has not indicated any plans for stock dividends or capital reserve transfers in the current profit distribution proposal[2]. - The cash dividend distribution represents 30.14% of the net profit attributable to ordinary shareholders in the consolidated financial statements for 2016[94]. - The company emphasizes a stable and continuous profit distribution policy, prioritizing cash dividends while allowing for stock dividends under certain conditions[90]. - The company has a policy to distribute at least 10% of the annual distributable profits as cash dividends, with a minimum of 20% of the cash distribution in each instance[90]. Business Operations and Strategy - The company has a strong focus on high-end clients in the marine oil and gas development, mining, and natural gas liquefaction sectors, with no major changes in its main business scope during the reporting period[29]. - The oil and gas industry is expected to maintain steady growth in global demand, supported by historical trends and economic recovery, with oil and gas projected to remain dominant energy sources for the next 30 years[30][33]. - The company has successfully delivered projects such as the Wheatstone LNG and Yamal LNG, receiving high recognition from clients for its safety and quality management[34]. - The company has established a strong international market presence, serving clients in over 20 countries, including Australia, Brazil, and the Middle East, which helps mitigate industry volatility[36]. - The company has been proactive in the natural gas liquefaction sector, having signed contracts worth 118,742.56 million and 32,656.28 million USD for the Wheatstone and Yamal LNG projects, respectively[37]. - The company plans to expand its modular construction capabilities into the heavy oil processing sector, aiming for more orders in this area[46]. Research and Development - The company’s R&D investment totaled 101,951,076.98 CNY, accounting for 3.80% of total revenue, with 188 R&D personnel representing 23.18% of the total workforce[61][62]. - The company completed 26 R&D projects in 2016, focusing on large-scale marine oil and gas equipment design and manufacturing, with a total product development cycle of 12 months[64]. - The company aims to enhance its technological innovation capabilities in marine and land oil and gas engineering through ongoing R&D efforts[64]. Financial Management and Investments - The total cost for the current period is 2,016,378,059.35 CNY, an increase from 1,794,325,641.83 CNY in the same period last year, reflecting a growth in project-related costs due to increased workload and material costs[57]. - The company’s financial management includes entrusted wealth management, although specific details were not disclosed in the report[109]. - The company has a total of 138,870,000 RMB in financial products maturing between December 22 and December 27, 2016, reflecting strong investment activity[112]. - The company has ongoing contracts with major partners, including Bechtel International Inc. for a total of 2,138,225,335.26 RMB related to the Wheatstone LNG plant[114]. Corporate Governance and Compliance - The company has established a comprehensive internal control management system to ensure compliance and protect shareholder rights[122]. - The company emphasizes environmental protection and employee health and safety as part of its operational priorities[122]. - The company has independent directors with diverse backgrounds, enhancing governance and oversight[158]. - The management team includes individuals with extensive experience in various sectors, contributing to strategic decision-making[160]. - The company has maintained a consistent management team with no changes in shareholding or significant remuneration fluctuations[155]. Social Responsibility - The company has committed to social responsibility initiatives, particularly in education, emphasizing the importance of knowledge and education in community development[116]. - The company provided financial assistance of 406,000 RMB to support 96 impoverished students in 2016[119]. - The company established the Tianjin University Bomaike Scholarship Fund with an investment of 256,000 RMB to aid 66 students[117]. - The company aims to continue its commitment to education and social responsibility initiatives in the future[121].