First(SH:603806)2017-03-29 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth[128]. - The company’s total revenue for the reporting period was approximately 10,403.58 million RMB, with a slight decrease of 0.22% compared to the previous year[95]. - The company achieved an annual revenue of CNY 3,951.61 million, representing an 18.57% increase year-on-year, with EVA film sales contributing CNY 3,411.51 million, up 16.72%[39]. - The company’s operating revenue for 2016 was CNY 3,951,607,265.23, an increase of 18.57% compared to 2015[18]. - The net profit attributable to shareholders increased by 30.97% to CNY 847,735,895.32 in 2016, driven by higher EVA film product profitability[20]. - The net profit attributable to shareholders was CNY 847.74 million, up 30.97% year-on-year, while the net profit excluding non-recurring gains and losses increased by 34.60% to CNY 774.33 million[45]. - The basic earnings per share rose to CNY 2.11, reflecting a growth of 31.06% from the previous year[19]. - The weighted average return on equity increased by 2.71 percentage points to 18.81% in 2016[19]. - The company reported a net profit margin of 12%, up from 10% in the previous quarter[200]. Dividend Policy - The company plans to distribute a cash dividend of 10 CNY per 10 shares, totaling 402 million CNY for the year 2016[4]. - The company has established a profit distribution policy ensuring that at least 10% of the distributable profits will be allocated as dividends each year from 2014 to 2016[116]. - For the year 2016, the company plans to distribute a cash dividend of 10 RMB per 10 shares, amounting to 402,000,000 RMB, which represents 47.42% of the net profit attributable to ordinary shareholders[119]. - The cash dividend policy has not been adjusted as of the report date[118]. - The company aims to maintain a cash dividend proportion of no less than 20% of the total profit distribution during the specified period[116]. - The company has committed to transparency in its dividend distribution decisions to protect investor interests[116]. Operational Highlights - The company sold 467 million square meters of EVA film in 2016, corresponding to an installed capacity of approximately 35GW, marking a historical high[28]. - The company completed the construction of a project to produce 180 million square meters of EVA solar cell film, significantly enhancing production capacity[28]. - The company’s photovoltaic power station project generated 780,000 kWh of electricity, yielding a revenue of CNY 2.74 million during the reporting period[42]. - The company’s subsidiary in Thailand acquired olefin film assets from Dow Chemical for USD 8 million, facilitating the expansion of its overseas operations[43]. - The company’s international revenue grew by 39.41%, surpassing domestic revenue growth[53]. - The company’s EVA film production and sales volumes increased by 23.31% and 24.79% respectively compared to the previous year, achieving a sales rate of 100.05%[55]. Research and Development - The company’s research and development investments continue to grow, focusing on enhancing existing products and exploring new materials[34]. - The company’s R&D expenditure rose by 31.83% to CNY 148.15 million, reflecting increased investment in innovation[47]. - The company made significant progress in R&D projects, including the development of white EVA film and low water vapor transmission TF products[63]. - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[128]. - The company plans to strengthen its R&D and market share in high-value-added adhesive film products, such as white EVA and olefin films[100]. Financial Position - Total assets at the end of 2016 reached CNY 5,496,516,603.71, a 13.68% increase from 2015[18]. - The company’s fixed assets increased by CNY 296.89 million, a growth of 74.57%, primarily due to the completion of the 180 million square meters EVA solar cell film project and the acquisition of assets from Dow Chemical in Thailand[33]. - The company’s intangible assets increased by 41.56% to ¥138,493,641.26, primarily due to land purchases in Thailand[69]. - The company’s cash flow from operating activities decreased by 29.06% to CNY 295,087,958.88, primarily due to changes in payment methods for imported materials[20]. - The company’s investment activities generated a net cash outflow of CNY 517.23 million, significantly higher than the previous year[48]. Governance and Compliance - The company received a standard unqualified audit report from Tianjian Accounting Firm[7]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[7]. - The company has not violated decision-making procedures for external guarantees[6]. - The company has not recognized revenue from the Xiacheng District Administrative Center rooftop distributed photovoltaic power generation project during the reporting period[83]. - The company has not disclosed any significant related party transactions during the reporting period[142]. Market Outlook - The company anticipates a slowdown in the growth rate of new photovoltaic installations in 2017, with domestic additions projected between 20-30 GW[32]. - The company is positioned to maintain its leading status in the photovoltaic encapsulation materials sector by leveraging its technological, scale, and brand advantages[32]. - The competitive landscape for back sheets is intense, with significant price declines and a predominance of fluoropolymer back sheets in China[97]. - The photovoltaic industry is subject to policy fluctuations, and the company will monitor industry trends to adjust its operational plans accordingly[106]. Employee and Social Responsibility - The company emphasizes environmental protection and has implemented effective management of "three wastes" during production[153]. - The company actively participates in social welfare activities, including donations to various charitable causes and organizing blood donation events for five consecutive years[154]. - The company has established a comprehensive employee training and promotion mechanism, ensuring regular health check-ups for employees[154]. - The company has implemented a performance evaluation system to ensure effective training and development of employees[182]. Shareholder Information - The largest shareholder, Lin Jianhua, holds 85,638,000 shares, representing 21.30% of the total shares[162]. - The second largest shareholder, Lin An Foster Industrial Investment Co., Ltd., holds 226,290,000 shares, accounting for 56.29% of the total shares[162]. - The total number of ordinary shareholders increased from 18,483 to 19,047 during the reporting period, reflecting a growth of approximately 3.06%[160]. - The company has committed to share restrictions, as detailed in the report's section on important matters[170].