GON(SZ:002768)2016-02-24 16:00Financial Performance - The company's operating revenue for 2015 was ¥750,033,994.44, representing a 9.85% increase compared to ¥682,788,444.80 in 2014[18]. - The net profit attributable to shareholders for 2015 was ¥72,237,516.92, which is a 15.01% increase from ¥62,807,194.42 in 2014[18]. - The net profit after deducting non-recurring gains and losses was ¥70,474,422.83, up 15.91% from ¥60,798,541.90 in 2014[18]. - The company's total assets increased by 44.25% to ¥997,775,907.97 at the end of 2015, compared to ¥691,720,359.68 at the end of 2014[18]. - The net assets attributable to shareholders rose by 122.59% to ¥714,764,447.67 at the end of 2015, up from ¥321,113,617.80 at the end of 2014[18]. - The basic earnings per share for 2015 was ¥1.03, a slight decrease of 1.90% from ¥1.05 in 2014[18]. - The weighted average return on equity decreased to 13.95% in 2015 from 21.68% in 2014, a decline of 7.73%[18]. - The net cash flow from operating activities was negative at -¥83,156,167.12, a significant decrease of 443.02% compared to ¥24,242,435.51 in 2014[18]. Revenue Sources and Growth - The sales of modified plastic particles increased by 27.04%, contributing significantly to revenue growth, amounting to CNY 463,490,181.05[38]. - The revenue from the Yangtze River Delta region grew by 21.26%, reaching CNY 249,462,875.13, indicating strong regional performance[38]. - The company's revenue for the manufacturing sector reached ¥741.48 million, with a year-on-year increase of 9.74%[41]. - Sales volume of modified plastic particles increased by 14.69% to 47,487 tons, while sales volume of modified plastic products decreased by 12.85% to 7,212 million pieces[42]. Cash Flow and Financing - The company reported a net cash flow from operating activities of CNY 37,867,089.40 in Q4, indicating a recovery in cash generation[22]. - The total cash and cash equivalents increased by 3781.97% to ¥109.75 million, mainly due to successful fundraising efforts[50]. - The company reported a significant increase in financing cash inflow by 503.81% to ¥380.40 million, attributed to the successful completion of fundraising[50]. - The total cash inflow from financing activities reached 380,400,000.00 CNY, a substantial increase compared to 63,000,000.00 CNY in the prior year, reflecting strong capital raising efforts[181]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of ¥2.00 per 10 shares (including tax) to all shareholders[5]. - A cash dividend of ¥2.00 per 10 shares (including tax) was proposed, totaling ¥16,000,000.00 (including tax), which represents 22.15% of the net profit attributable to ordinary shareholders[79]. - The company plans to increase its share capital by issuing 20 additional shares for every 10 shares held, resulting in a total increase of 160,000,000 shares[78]. - Major shareholder Wang Aiguo holds 70% of the company's shares and intends to maintain his holdings for 36 months after the IPO, with no plans to reduce his stake during this period[84]. Research and Development - Research and development investment amounted to ¥23.74 million, representing 3.17% of total revenue, an increase from 3.04% in the previous year[46]. - The company plans to enhance its R&D capabilities by establishing a national-level engineering technology center, focusing on high-performance modifications of plastic materials[67]. - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[138]. Market and Competitive Environment - The company faced pressures from a declining real estate market, impacting the home appliance sector, which is a key customer base[27]. - The company has a significant growth potential in the modified plastics sector, leveraging its industry position despite a sluggish domestic economy and a downturn in the real estate market[66]. - The company is exposed to market risks due to changes in the operating environment of downstream customers, particularly in the home appliance and automotive sectors[71]. Governance and Compliance - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance, ensuring no competitive or dependency relationships exist[151]. - The company has established legal commitments to avoid conflicts of interest and ensure equal rights among shareholders[86]. - The company’s governance practices align with the regulatory requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[150]. Employee and Management Information - The total number of employees is 704, with 53.41% aged 30 or below[148]. - The average salary for executives is CNY 170,700 per person, while the average salary for all employees is CNY 51,700 per person[148]. - The company has a strong leadership team with extensive experience in various sectors, including engineering and finance, enhancing its operational capabilities[141]. Internal Control and Audit - The company reported no significant deficiencies in internal control related to financial reporting, with zero major or important deficiencies identified[163]. - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming the fair presentation of the financial statements[165]. - The company maintained effective internal controls over financial reporting as of December 31, 2015, according to the internal control audit report[163].