FENGLE SEED(SZ:000713)2016-06-12 16:00Financial Performance - The company's operating revenue for 2015 was CNY 1,112,655,608, representing a decrease of 19.30% compared to CNY 1,378,800,048 in 2014[14]. - The net profit attributable to shareholders of the listed company was CNY 30,434,443.23, a decline of 50.08% from CNY 60,968,414.12 in the previous year[14]. - The net profit after deducting non-recurring gains and losses was CNY 13,737,047.86, an increase of 171.90% compared to CNY 5,052,197.56 in 2014[14]. - The net cash flow from operating activities decreased by 54.62% to CNY 112,718,785.42 from CNY 248,397,277.61 in 2014[14]. - Basic earnings per share decreased by 50.10% to CNY 0.1018 from CNY 0.2040 in the previous year[16]. - Total assets at the end of 2015 were CNY 1,862,867,094, a decrease of 1.38% compared to CNY 1,888,971,512 at the end of 2014[16]. - The company reported a significant increase in hybrid rice seed varieties, with a focus on varieties suitable for various regions, including the introduction of "丰两优一号" for late rice planting in multiple provinces[26]. - The company highlighted the adaptability of its rice varieties, such as "丰两优香一号," which is suitable for mid-rice planting in several provinces, indicating a broad market reach[26]. - The company is expanding its product line with new varieties like "镇稻18" and "镇糯19," targeting specific regions for early and late rice planting, which reflects strategic market expansion efforts[27]. - The company achieved sales revenue of CNY 1,112,655,608.79, a decrease of 19.30% compared to the previous year, primarily due to a strategic shift towards high-margin products[37]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.2 per 10 shares to all shareholders based on a total share capital of 298,875,968 shares as of December 31, 2015[5]. - The cash dividend for 2015 represents 100% of the profit distribution total, indicating a strong commitment to returning value to shareholders[99]. - The cash dividend for 2014 was 0.30 CNY per 10 shares, totaling 8,966,279.04 CNY, which represented 14.71% of the net profit attributable to shareholders[99]. - The company has maintained a consistent cash dividend policy over the past three years, with clear and transparent communication to shareholders[96]. - The company did not propose a capital reserve transfer to increase share capital for the year 2015, maintaining a focus on cash dividends instead[99]. Business Operations and Strategy - The main business includes seed production and agricultural chemicals, with key products being hybrid rice and corn seeds[25]. - The company is actively researching and developing new agricultural technologies to improve crop yields and resilience, which is crucial for maintaining competitive advantage in the market[27]. - The company plans to enhance its market presence by introducing new products tailored to regional agricultural needs, thereby increasing its market share in the seed industry[27]. - The company is exploring potential mergers and acquisitions to strengthen its position in the agricultural sector and expand its product offerings[27]. - The company aims to innovate marketing strategies and optimize distribution channels to increase market share[90]. Research and Development - The total R&D investment for 2015 was approximately ¥38.36 million, which is 3.45% of the operating revenue, down from 3.65% in 2014, indicating a decrease of 23.86%[55]. - The company has established a comprehensive breeding research system with a testing network covering major agricultural ecological regions in China, totaling 1,572 acres[32]. - The company has participated in 12 provincial and national-level scientific projects, including 7 national projects, and has obtained numerous technological achievements and patents[33]. - The company reported a total of 14 new crop varieties through independent research and development, including 5 rice varieties and 1 corn variety, contributing to stable growth in corporate efficiency[55]. Financial Management and Governance - The company has committed to improving the quality of information disclosure, ensuring its accuracy, timeliness, and completeness[105]. - The company will maintain real-time communication with investors through various platforms to enhance mutual understanding and trust[105]. - The company has maintained a consistent cash dividend policy over the past three years, with clear and transparent communication to shareholders[96]. - The independent directors have fulfilled their responsibilities effectively, ensuring that minority shareholders' rights are protected[96]. - The company’s decision-making processes and internal controls were reviewed and found to be effective, with no major issues reported[191]. Challenges and Market Conditions - The company faces significant challenges, including macroeconomic pressures and increased competition in the agricultural sector[86]. - The company plans to enhance management levels and implement strategic performance projects in 2016[89]. - The agricultural chemical sector will focus on optimizing production bases and expanding the market for seed coating agents[90]. Shareholder Structure and Control - The largest shareholder, Hefei Construction Investment Holding Group Co., Ltd., holds 34.11% of the shares, totaling 101,941,200 shares[152]. - The company has not experienced any changes in its controlling shareholder during the reporting period[156]. - The actual controller has not undergone any changes during the reporting period[159]. - The top ten unrestricted shareholders do not have any known relationships or agreements that would classify them as acting in concert[154]. Audit and Compliance - The audit committee confirmed the independence and objectivity of the auditing firm Dahuah Accounting Firm during the annual audit process[188]. - The internal control audit report received a standard unqualified opinion, indicating no significant deficiencies in financial reporting[195]. - The financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2015[200]. - The company has no significant litigation or arbitration matters during the reporting period[114].