NGL(002836)2017-03-09 16:00Financial Performance - The company's operating revenue for 2016 was CNY 268,312,232.90, representing a 10.05% increase compared to CNY 243,800,197.72 in 2015[16]. - The net profit attributable to shareholders for 2016 was CNY 50,310,682.44, a 37.68% increase from CNY 36,540,703.87 in the previous year[16]. - The net cash flow from operating activities reached CNY 110,288,057.47, showing a significant increase of 108.69% compared to CNY 52,847,417.84 in 2015[16]. - The basic earnings per share for 2016 was CNY 0.84, up 37.70% from CNY 0.61 in 2015[16]. - Total assets at the end of 2016 amounted to CNY 550,360,164.20, a 59.80% increase from CNY 344,395,781.35 at the end of 2015[16]. - The net assets attributable to shareholders increased to CNY 395,497,502.92, reflecting a 56.00% growth from CNY 253,530,944.54 in 2015[16]. - The company reported a net profit excluding non-recurring gains and losses of CNY 48,311,116.03, which is a 32.44% increase from CNY 36,476,959.65 in 2015[16]. - The company reported a significant increase in revenue, achieving a total of 90 million yuan for the year 2016[116]. Cash Dividends - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, with no bonus shares issued[6]. - In 2016, the company distributed cash dividends totaling 16 million yuan, which is 31.80% of the net profit attributable to shareholders[105]. - The cash dividend per 10 shares for 2016 was set at 2 yuan (including tax), based on a total share capital of 80 million shares[107]. - The cash dividend payout ratio for 2015 was 82.10%, with a total cash dividend of 30 million yuan[105]. - The cash dividend policy is in compliance with the company's articles of association and has been transparently executed[102]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with amounts of 36 million yuan in 2014 and 30 million yuan in 2015[105]. - The remaining undistributed profit as of December 31, 2016, was 102.65 million yuan, which will be carried forward to future periods[107]. - The company has a clear and structured decision-making process for profit distribution, ensuring the protection of minority shareholders' rights[102]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during significant capital expenditure phases[106]. Operational Efficiency - The company has implemented lean production management to reduce operating costs and improve production efficiency[44]. - The company has developed advanced printing technologies, including a high-speed inline coding system that significantly improves production efficiency[38]. - The company has a robust production capacity with multiple leading printing production lines, enabling it to meet large-scale and diverse customer demands efficiently[31]. - The company has implemented a comprehensive quality control system, ensuring high standards in product quality across all production stages[31]. - The company has established strong partnerships with major tobacco companies across several provinces, including Zhejiang, Yunnan, and Guangdong, enhancing its market presence[25]. Research and Development - The company is focusing on enhancing its R&D capabilities and aims to establish a national-level technology center and high-tech enterprise status[41]. - R&D investment increased by 19.88% to ¥7,051,569.17 in 2016, accounting for 2.63% of operating revenue[67]. - The number of R&D personnel rose by 61.54% to 42 in 2016, representing 11.54% of the workforce[67]. - The company has accumulated 29 patents, demonstrating its commitment to innovation and technological advancement in the packaging industry[33]. - The company is currently developing several technologies, including gravure wire drawing technology and seamless positioning composite wiring, aimed at improving production efficiency and reducing costs[66]. Market and Sales - The company reported a 9.91% increase in revenue from cigarette labels, totaling CNY 267.09 million, which accounted for 99.54% of total revenue[49]. - The Southwest region contributed 59.36% of total revenue, with a year-on-year increase of 5.61%[49]. - The company signed a major sales contract with Hongta Group worth ¥153,126,900, effective from January 1, 2016, to December 31, 2017[54]. - The top five customers accounted for 91.35% of the total annual sales, with Yunnan Tobacco Group being the largest customer at ¥110,419,829.44, or 41.15% of total sales[62]. - The company reported a significant increase in sales in the Central China region, with a growth rate of 189.06% year-on-year[52]. - Sales volume of cigarette labels increased to 53.3 million boxes, a year-on-year growth of 15.27%[53]. - The inventory level decreased by 47.26% to 2.31 million boxes, indicating improved sales efficiency[53]. Governance and Compliance - The company has a strong governance structure with a mix of experienced professionals in key positions, enhancing its operational effectiveness[171]. - The company has maintained independence in business, assets, personnel, and financial aspects from its controlling shareholders[197]. - The company held 4 shareholder meetings and 8 board meetings during the reporting period, ensuring compliance with governance regulations[196]. - The company has established an independent financial department with dedicated personnel[200]. - A complete and independent financial accounting system is in place, ensuring standardized financial practices[200]. - The company independently makes financial decisions and is responsible for its own profits and losses[200]. - Independent bank accounts are maintained, with no shared accounts with controlling shareholders[200]. - The company operates as an independent taxpayer, fulfilling tax obligations without mixed taxation with shareholder entities[200]. Shareholder Information - The company completed its initial public offering (IPO) of 20,000,000 shares, increasing total shares from 60,000,000 to 80,000,000[147]. - The IPO was approved by the China Securities Regulatory Commission and the shares began trading on December 29, 2016[148]. - The company’s total share capital after the IPO is 80,000,000 shares, with 25% being unrestricted shares[150]. - The largest shareholder, Yize Holdings Limited, holds 64.77% of the shares, totaling 51,816,000 shares[158]. - Chaozhou Nantian Caiyun Investment Co., Ltd. is the second-largest shareholder with a 10.23% stake, equivalent to 8,184,000 shares[158]. - The actual controllers of the company, Zhang Hongqing and Meng Xue, are both Canadian nationals and hold 100% of Yize Holdings Limited[161]. - The company has no preferred shares outstanding during the reporting period[165]. - The company has not reported any shareholding changes or financial compensation for its directors and supervisors during the reporting period[175]. Employee Management - The total number of employees in the company is 364, with 238 in the parent company and 126 in major subsidiaries[190]. - The company has a professional composition of 227 production personnel, 6 sales personnel, 42 technical personnel, 11 financial personnel, and 78 administrative personnel[190]. - The total pre-tax remuneration for senior management during the reporting period is 149.29 million CNY, with the highest individual remuneration being 44.75 million CNY for the general manager[188]. - The company has implemented a performance-based remuneration system for its senior management, linking bonuses to the achievement of annual operational goals[179]. - The company plans to enhance employee training through systematic programs and external educational opportunities[193]. - The company adheres to national laws regarding employee compensation and has established a salary system based on job roles and skills[191]. Risk Management - The company does not foresee any significant risks affecting its normal operations[6]. - The company acknowledges risks related to tobacco industry policies, including increased taxes and expanded smoking bans, which may impact cigarette sales and, consequently, label sales[95]. - Management and human resource risks are recognized, with plans to attract professional talent and improve management capabilities[96].