FPT(SZ:300256)2016-06-01 08:20Financial Performance - The company's operating revenue for 2015 was CNY 3,885,220,051.24, representing a 131.49% increase compared to CNY 1,678,385,760.00 in 2014[15]. - The net profit attributable to shareholders for 2015 was CNY 65,078,414.95, a 141.95% increase from CNY 26,897,152.08 in 2014[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 46,827,231.87, reflecting a 155.22% increase from CNY 18,347,911.89 in 2014[15]. - The basic earnings per share for 2015 was CNY 0.24, doubling from CNY 0.12 in 2014[15]. - The total assets at the end of 2015 amounted to CNY 6,361,494,500.55, an increase of 108.94% from CNY 3,044,596,755.39 at the end of 2014[15]. - The net assets attributable to shareholders at the end of 2015 were CNY 3,241,894,843.46, a 100.78% increase from CNY 1,614,681,582.01 at the end of 2014[15]. - The company reported a net cash flow from operating activities of CNY -41,927,570.17, an improvement of 74.04% compared to CNY -161,506,376.85 in 2014[15]. - The weighted average return on net assets for 2015 was 2.82%, up from 1.69% in 2014[15]. Revenue Sources - In 2015, the company's total revenue reached approximately CNY 4.88 billion, with a significant increase in sales from touch display modules, which generated CNY 2.45 billion, up 97.14% year-on-year[24]. - The sales of full-lamination products became the main revenue driver, significantly increasing due to bulk supply to clients like Huawei and HTC[31]. - Domestic sales accounted for 77.98% of total revenue, reflecting a 10.43% increase compared to the previous year[41]. - The full-lamination screen segment generated ¥1,219,901,114.16, marking a 21.94% increase year-on-year[41]. Asset Restructuring - The company completed a major asset restructuring by acquiring Shenzhen Lianmao, which enhanced its product offerings to include precision structural components, thereby expanding its market reach[25]. - The total assets increased significantly due to the consolidation of Shenzhen Lianmao, with total net assets reaching CNY 3.24 billion by the end of 2015, up from CNY 1.61 billion at the beginning of the year[20]. - Shenzhen Lianmao became a wholly-owned subsidiary of the company in July 2015, contributing to significant revenue growth and cash flow changes[61]. - The company completed the acquisition of 100% equity of Shenzhen Lianmao on July 9, 2015, and it became a wholly-owned subsidiary[135]. Research and Development - R&D investment amounted to ¥139,473,287.53, a 71.99% increase from the previous year, representing 3.59% of total revenue[35]. - The company has established a patent portfolio of 181, including 16 invention patents, to strengthen its core competitiveness[35]. - The company is in the R&D phase for multiple new technologies, including sapphire product processing and 3D wearable technology, aimed at improving product yield and cost control[56]. - The company plans to enhance its core technology and product competitiveness through ongoing R&D efforts and exploration of new technologies[57]. Market Strategy - The company aims to leverage its diversified business structure to mitigate risks and meet the diverse demands of the market in the post-smartphone era[25]. - The company plans to enhance its research and development capabilities to explore new products and technologies, aiming to stay ahead in the competitive consumer electronics market[24]. - The company aims to enhance its competitive edge through vertical and horizontal integration, focusing on emerging markets like virtual reality and smart home technologies[94]. - Future strategies include capitalizing on market trends through acquisitions and investments in innovative technologies to drive sustainable growth[95]. Financial Commitments and Risks - The company failed to meet its profit commitments for 2015, with a risk of not achieving future profit commitments for Shenzhen Lianmao, which were set at 80 million, 150 million, 180 million, and 216 million CNY for 2014, 2015, 2016, and 2017 respectively[108]. - The company has committed to implementing effective incentive measures for core technology and business personnel to attract and retain talent[110]. - The company anticipates a potential decline in product profitability due to rising labor costs and competitive pricing pressures, and plans to invest in new technologies to maintain gross margins[105]. - The company recognizes the risk of intensified market competition and aims to enhance quality control and cost management to maintain its competitive edge[102]. Shareholder and Governance - The company has established a commitment to reduce and standardize related party transactions, ensuring fair market practices and compliance with legal requirements[123]. - The company has confirmed that it will not utilize its shareholder status to harm the interests of other shareholders[123]. - The company has reiterated its commitment to uphold shareholder rights and interests throughout its operational and financial activities[124]. - The company has made commitments to avoid any potential competition with its controlling shareholders, ensuring that they will not engage in similar business activities directly or indirectly[125]. Operational Challenges - The smartphone market entered a saturation phase in 2015, leading to increased competition and a decline in the market share of traditional touch module products[133]. - The company faced a significant drop in orders for mid-to-low-end mobile phone structural components due to major clients' global restructuring and product adjustments[133]. - New customer projects began to ramp up in the third quarter of 2015, contributing to delayed expected profits[133]. - The company’s gross profit margin for touch module products decreased due to intensified price competition and market changes[130].