ZHEJIANG SHIBAO(SZ:002703)2016-03-24 16:00Financial Performance - The company achieved operating revenue of RMB 837,719,325.84, representing a year-on-year increase of 3.26%[29]. - The net profit attributable to shareholders was RMB 53,540,843.43, an increase of 23.44% compared to the previous year[42]. - The gross profit margin for the main business was 25.73%, down from 26.69% in 2014, primarily due to a decrease in product prices[41]. - The company reported a net cash flow from operating activities of RMB 75,760,490.13, a decrease of 14.61% compared to the previous year[29]. - Total operating revenue for 2015 was CNY 837,719,325.84, representing a year-on-year increase of 3.26% compared to CNY 811,241,906.13 in 2014[45]. - The automotive parts and components manufacturing segment accounted for 99.10% of total revenue, with revenue of CNY 830,146,184.07, up 3.23% from the previous year[45]. - The steering systems and components product line generated CNY 783,996,478.42 in revenue, reflecting a 3.58% increase year-on-year[50]. - The company reported a significant increase in investment income, reaching ¥36,911,657.53, compared to ¥30,000,000.00 in the previous period[175]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares based on a total share capital of 315,857,855 shares as of December 31, 2015[4]. - The company distributed cash dividends of RMB 31,585,785.50 in 2015, which accounted for 58.99% of the net profit attributable to ordinary shareholders of RMB 53,540,843.43[86]. - The total distributable profit for 2015 was RMB 38,340,439.31, with cash dividends representing 100% of the profit distribution[87]. Risks and Challenges - The accounts receivable at the end of the reporting period amounted to RMB 326,068,000, representing 38.92% of the operating revenue, highlighting a high level of credit risk[10]. - The company faces risks related to product quality, as any defects could lead to recalls and negatively impact brand reputation and financial performance[6]. - The company is exposed to risks from fluctuations in raw material prices, which can significantly affect production costs and pricing strategies[9]. - The company anticipates a decline in return on equity in the short term due to rapid capital expansion from new projects[16]. Investment and R&D - The company’s R&D expenditure reached RMB 37,068,550.73, reflecting a year-on-year increase of 9.54%[41]. - The company is focused on developing intelligent driving solutions and has accumulated over 30 years of experience in the automotive industry[37]. - The company plans to increase investment in smart driving technology development, expecting significant growth in sales and net profit in 2016, despite a slowdown in the overall automotive market[78]. - Research and development investment rose to CNY 37,068,550.73, a 9.54% increase from CNY 33,841,224.75 in 2014, representing 4.42% of total operating revenue[56]. Financial Management - The company raised a total of RMB 706.72 million through a non-public offering, with a net amount of RMB 658.16 million after deducting underwriting and related fees[63]. - As of December 31, 2015, the company had a remaining balance of RMB 370.99 million in raised funds, which includes net interest income from bank deposits[64]. - The company has temporarily supplemented working capital with RMB 20 million of idle raised funds, which will continue to be used for investment projects[68]. - The company plans to continue expanding its financial management strategies to enhance returns[103]. Corporate Governance - The company has established a cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring transparency and protection of minority shareholders' rights[82][83]. - The actual controller of the company is Zhang Shiquan, who is also the chairman and general manager[115]. - The company has a diverse board of directors with members holding various prestigious positions and accolades, enhancing its governance structure[120]. - The company has maintained independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finances[149]. Market Presence and Strategy - The company is expanding its overseas market presence, which has begun to show results with bulk exports, although international political changes could pose risks[14]. - The company has engaged in discussions for a potential acquisition of a controlling stake in a German peer, which was later terminated due to economic uncertainties but has resumed negotiations[77]. - The company is focusing on the innovation, quality, and efficiency of components for new energy vehicles and smart connected vehicles, responding to market trends[75]. Employee and Management - The total number of employees at the end of the reporting period was 1,764, with production personnel constituting 64.11% of the workforce[130]. - The average salary for senior management was CNY 464,000 per person, while the average salary for all employees was CNY 74,200 per person[132]. - The management team is focused on long-term growth strategies, including market expansion and potential mergers and acquisitions to enhance competitiveness[126].