First(SH:603806)2016-08-17 16:00Financial Performance - The company's basic earnings per share increased by 64.18% to CNY 1.10 compared to CNY 0.67 in the same period last year[17]. - The company's net profit attributable to shareholders grew by 63.97%, driven by increased sales of its main product, EVA film[18]. - Operating revenue rose by 27.46% year-on-year, primarily due to the expanded sales volume of EVA film[18]. - The weighted average return on net assets increased by 3.15 percentage points to 10.05%[17]. - The diluted earnings per share also rose by 64.18% to CNY 1.10, reflecting the overall profit increase[17]. - The company's net profit after deducting non-recurring gains and losses increased by 68.29%[18]. - The company reported a decrease in asset impairment provisions compared to the previous period, contributing to profit growth[18]. - The company achieved operating revenue of ¥1,935,259,478.41, representing a 27.46% increase compared to the same period last year[21]. - Net profit attributable to shareholders reached ¥441,860,124.23, marking a 63.97% year-over-year growth[21]. - The net profit after deducting non-recurring gains and losses was ¥409,394,793.04, up 68.29% from the previous year[21]. Cash Flow and Investments - The net cash flow from operating activities decreased by 55.43%, amounting to a reduction of CNY 114.52 million, mainly due to guarantees and advance payments[18]. - The company's cash flow from operating activities was ¥92,087,607.90, a decrease of 55.43% compared to the same period last year[29]. - The company has cumulatively purchased financial products amounting to 5,087.76 million RMB and has recovered 5,674.65 million RMB in principal, with actual income of 23.31 million RMB during the reporting period[44]. - The total amount of raised funds is 1,571.05 million RMB, with 525.16 million RMB used during the reporting period and a cumulative usage of 836.04 million RMB, leaving 735.01 million RMB unutilized[46]. - The company has invested 240.92 million RMB in the annual production of 180 million square meters of EVA solar cell film project, achieving 100% of the planned progress[47]. - The company has also invested 14.56 million RMB in the photovoltaic materials research and development center project, which is 100% in line with the planned progress[52]. Revenue and Sales - Sales of EVA film significantly increased, contributing to the overall revenue growth, with EVA film sales reaching ¥173,940,400.00, a 27.49% increase year-over-year[21]. - Domestic revenue amounted to ¥1,610,833,339.61, reflecting a year-on-year increase of 25.35%, while international revenue grew by 34.66% to ¥309,722,943.63[36]. - The company's main business is concentrated in the photovoltaic industry, with revenue from EVA film reaching ¥1,739,403,981.08 and a gross margin of 34.64%[34]. - The gross margin for the photovoltaic sector increased by 1.28 percentage points compared to the previous year, reaching 34.11%[33]. - The revenue from the backsheet product was ¥130,608,352.12, with a gross margin of 31.12%, despite a decrease in year-on-year growth[33]. Research and Development - Research and development expenses rose by 34.89% to ¥63,916,427.05, reflecting the company's commitment to innovation[29]. - The R&D capabilities were enhanced with the official launch of the "Zhejiang Foster New Materials Research Institute," providing advanced facilities and increased funding for innovation[37]. - The company is actively pursuing new business areas in the new materials sector to achieve rapid growth[21]. Strategic Expansion - The company is accelerating the construction of new material projects, including photosensitive dry film and aluminum-plastic composite film, with expected scale production in the second half of the year[24]. - The company invested $8 million to acquire assets from Dow Chemical in Thailand, indicating a strategic expansion into overseas operations[25]. - The company established a wholly-owned subsidiary in Thailand, increasing its registered capital from $5 million to $16.8 million[38]. - The acquisition of Dow's olefin film assets is anticipated to improve the company's leading position in photovoltaic packaging materials and facilitate overseas business expansion[64]. Shareholder and Equity Information - The company distributed a cash dividend of RMB 281.4 million to shareholders based on the 2015 annual profit distribution plan[58]. - The company has a total of 402 million shares outstanding, with a cash dividend of RMB 7 per 10 shares[58]. - The total number of shares held by the top shareholder, Lin Jianhua, is 85,638,000, representing 21.30% of the total shares[91]. - The largest shareholder, Lin An Foster Industrial Investment Co., Ltd., holds 226,290,000 shares, accounting for 56.29% of the total shares[91]. Corporate Governance and Compliance - The company has retained Tianjian Accounting Firm as its auditing institution for the fiscal year 2016[83]. - The company has maintained compliance with corporate governance standards as per the relevant laws and regulations[84]. - There were no significant related party transactions reported during the period[68]. - The company has not reported any penalties or rectifications involving its directors, supervisors, or senior management[84]. Financial Position and Assets - The total assets at the end of the reporting period were ¥5,102,738,935.43, reflecting a 5.54% increase from the end of the previous year[21]. - The total current assets as of June 30, 2016, amounted to RMB 4,205,040,616.34, showing an increase from RMB 4,133,969,814.17 at the beginning of the period[100]. - The company's total liabilities and equity structure reflects a stable financial position, with a focus on maintaining liquidity and asset growth[100]. - Owner's equity reached ¥4,431,948,160.97, compared to ¥4,268,540,012.02, showing an increase of about 3.8%[102]. Taxation and Financial Policies - The company benefits from a reduced corporate income tax rate of 15% for the years 2014 to 2016 due to its recognition as a high-tech enterprise[196]. - The company has confirmed a deferred tax asset based on the expectation of sufficient taxable income to offset deductible temporary differences, with a review of the asset's carrying value at the balance sheet date[195]. Accounting Policies - The company adheres to accounting standards, ensuring that financial statements accurately reflect its financial position and performance[142]. - The company employs specific accounting policies for bad debt provisions, fixed asset depreciation, intangible asset amortization, and revenue recognition[146]. - The company recognizes financial assets or liabilities when it becomes a party to the financial instrument contract, measuring them initially at fair value[151].