FPT(SZ:300256)2017-03-24 16:00Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the touch screen segment[19]. - The company's operating revenue for 2016 was ¥4,993,936,923.60, representing a 28.54% increase compared to ¥3,885,220,051.24 in 2015[24]. - The net profit attributable to shareholders for 2016 was ¥146,051,894.73, a significant increase of 124.42% from ¥65,078,414.95 in 2015[24]. - The net cash flow from operating activities improved to ¥305,583,473.84 in 2016, a remarkable increase of 828.84% compared to -¥41,927,570.17 in 2015[24]. - The total assets at the end of 2016 reached ¥7,844,117,024.33, marking a 23.31% increase from ¥6,361,494,500.55 at the end of 2015[24]. - The company reported a basic earnings per share of ¥0.2269 for 2016, an increase of 85.83% from ¥0.1221 in 2015[24]. - The total profit was 17,466.35 million yuan, up 134.12% year-on-year[37]. - The net profit attributable to shareholders was 14,605.19 million yuan, reflecting a year-on-year increase of 124.42%[37]. - The company's total assets included CNY 530,461,222.92 in cash and cash equivalents, which decreased slightly by 0.22% from the previous year[89]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 30% growth in that region over the next two years[19]. - The overall market strategy includes potential mergers and acquisitions to enhance product offerings and market share[19]. - The company aims to become a "one-stop solution provider" for smart terminal components, focusing on vertical integration to enhance production efficiency and reduce costs[35]. - The company is focusing on continuous innovation and R&D to adapt to market changes and enhance product quality[49]. - The company aims to strengthen its market presence in the automotive electronics sector, collaborating with international high-end automotive brands[55]. - The company plans to expand its market presence through the establishment of new subsidiaries and joint ventures in the electronic components sector[74]. Research and Development - A focus on technological innovation is evident, with a commitment to invest 8% of annual revenue into R&D for new materials and processes[10]. - Research and development investment amounted to CNY 21,583.68 million, a 54.75% increase from CNY 13,947.33 million in the previous year, representing 4.32% of total operating revenue[54]. - The company is focusing on R&D projects, including the development of capacitive Force Touch technology and graphene fingerprint modules[80]. - The company has a well-structured R&D team with diverse expertise, which is crucial for maintaining its competitive advantage in the technology-intensive industry[46]. - The company plans to continue strengthening its R&D team and increase investment in technology innovation to mitigate risks associated with product upgrades and continuous innovation[134]. Risks and Challenges - The company anticipates a challenging market environment, projecting a potential decline in profit margins by 10% due to increased competition in the window protection screen business[9]. - There is a risk of continuous losses in the window protection screen business, attributed to rising labor costs and raw material prices[9]. - The company has identified management risks associated with rapid growth, emphasizing the need for improved management systems to support expansion[6]. - The company acknowledges the risk of sustained losses in the window protection screen business due to increased competition and rising costs[132]. - The company recognizes the risks associated with rapid growth, including management challenges, and plans to enhance its management capabilities and team structure[127]. Acquisitions and Investments - The company has expanded its product offerings through acquisitions, including the purchase of Shenzhen Lianmao, which enhanced its customer resources and product range[35]. - The company completed a capital increase in Rui Ding Manufacturing, raising its ownership to 80% after an investment of 165.71 million RMB[155]. - The company acquired a 49% stake in Melfas Inc. for 15 million RMB, which has led to operational challenges and risks due to the complexity of the investment project[138]. - The company has made a significant equity investment of ¥15,000,000 in Zhejiang Xinggu Technology Co., Ltd., acquiring 100% ownership[95]. - The company has established several subsidiaries, including the acquisition of a controlling stake in Ruiding Manufacturing, which was included in the consolidated financial statements[72]. Customer and Supplier Relations - Major clients include leading brands such as Huawei, ZTE, Lenovo, and Xiaomi, indicating a strong customer base[45]. - Total sales amount from the top five customers reached ¥2,262,933,758.78, accounting for 45.32% of the annual total sales[75]. - The largest customer contributed ¥1,395,615,622.14, representing 27.95% of the annual total sales[75]. - Total procurement amount from the top five suppliers was ¥1,241,479,197.25, which is 30.78% of the annual total procurement[76]. - The company does not have significant reliance on any single customer or supplier, ensuring stable operations[75][76]. Financial Management and Governance - The company will not distribute cash dividends or issue bonus shares for the fiscal year[11]. - The company has not undergone any changes in fundraising projects during the reporting period[106]. - The company has established a long-term commitment to uphold these agreements without violations[149]. - The company has confirmed that all commitments have been strictly adhered to without any violations reported as of the end of the reporting period[149]. - The company has implemented a restricted stock incentive plan approved by the shareholders' meeting, aimed at aligning employee interests with company performance[161]. Operational Efficiency - The company aims to enhance lean production levels and optimize product structure to improve market competitiveness and adapt to customer needs[131]. - The company has adopted the Amiba management philosophy to enhance cost control and efficiency, aiming to improve overall competitiveness[126]. - The company has begun small-scale production of 3D curved glass covers, which are expected to provide higher gross margins and are already being supplied to products like Huawei smart bands[133]. - The company has implemented a talent strategy and adheres to labor laws to protect employee rights and welfare[185]. Legal and Compliance - There were no significant lawsuits or arbitration matters reported during the fiscal year, indicating a stable legal standing[158]. - The company maintained a good integrity status, with no major debts or court judgments unfulfilled during the reporting period[160]. - The company has not faced any penalties or corrective actions during the reporting period, reflecting compliance with regulations[159]. - The audit firm, Da Xin Accounting Firm, has been retained for 9 years, with an audit fee of 1.3 million RMB for the reporting period[157].