Bossco(SZ:300422)2017-03-09 16:00Financial Performance - The company's operating revenue for 2016 was CNY 828,969,071.31, representing a 64.26% increase compared to CNY 504,673,304.37 in 2015[27]. - The net profit attributable to shareholders for 2016 was CNY 62,678,930.72, up 45.79% from CNY 42,991,961.20 in 2015[27]. - The basic earnings per share for 2016 was CNY 0.4896, an increase of 38.27% from CNY 0.3541 in 2015[27]. - The total assets at the end of 2016 reached CNY 2,297,566,090.91, a 120.49% increase from CNY 1,042,039,375.55 in 2015[27]. - The net assets attributable to shareholders increased by 170.07% to CNY 997,128,484.88 in 2016 from CNY 369,207,173.12 in 2015[27]. - The company reported a net cash flow from operating activities of CNY -55,899,021.85, an improvement of 25.36% compared to CNY -74,889,171.28 in 2015[27]. - The weighted average return on equity for 2016 was 11.84%, down from 13.11% in 2015[27]. - The company's total share capital as of the last trading day before disclosure was 142,351,370 shares[27]. Revenue Breakdown - In 2016, the total revenue from environmental comprehensive governance reached CNY 820.31 million, a significant increase of 65.0% compared to CNY 496.99 million in 2015[39]. - Water pollution control revenue was CNY 391.59 million, up 71.2% from CNY 228.56 million in 2015[39]. - The revenue from water supply surged to CNY 212.11 million, compared to CNY 27.95 million in 2015, marking a growth of 659.5%[39]. - The revenue from soil remediation increased significantly by 2865.09%, reaching CNY 101.39 million, indicating strong growth in this segment[124]. - The company's revenue from environmental comprehensive governance was ¥820,313,602.90, accounting for 98.96% of total revenue, with a year-on-year growth of 65.06%[113]. Investment and Capital Management - The company plans to distribute a cash dividend of 0.60 CNY per 10 shares and to increase capital stock by 15 shares for every 10 shares held, pending shareholder approval[3]. - The company completed a non-public offering of shares with a financing scale of 550 million RMB, aimed at funding various PPP projects and supplementing working capital[58]. - The company has significantly enhanced its brand recognition and market share through effective management and a strong technological foundation since its listing[65]. - The company has established multiple project companies across various locations to enhance its domestic business layout and market share[63]. - The company has reported a significant increase in project investments, reflecting its commitment to expanding its operational capacity and market presence[120]. Research and Development - The company invested 28.17%, 32.76%, and 32.80% of its management expenses in R&D for the years 2014, 2015, and 2016 respectively, indicating a strong commitment to technological innovation[13]. - Research and development expenses increased by 74.54% to ¥27,935,183.72, reflecting the company's commitment to new product development[84]. - The company has established various technical research and development platforms, attracting over 20 high-end technical experts, including two experts enjoying special government allowances[68]. - The company has developed new technologies for wastewater treatment and solid waste management, contributing to its innovation strategy[74]. Market Expansion and Strategy - The company aims to enhance its research and development capabilities and optimize resource integration to mitigate the impact of intensified market competition[7]. - The company is actively exploring new profit growth points in project operations, environmental assessments, and value-added services to reduce seasonal revenue fluctuations[10]. - The company has a focus on expanding its market presence in the environmental protection sector, particularly in industries such as pulp and paper, pharmaceuticals, and municipal services[40]. - The company plans to actively expand its market in water pollution prevention PPP projects, focusing on comprehensive environmental remediation of drinking water sources and urban black-odor water bodies[178]. - The company intends to broaden its municipal project portfolio and environmental service industry, including water supply and drainage integration, municipal wastewater treatment, and ecological restoration[179]. Risks and Challenges - The company faces risks related to the implementation of PPP (Public-Private Partnership) projects, which may be affected by external policy changes and economic conditions[11]. - The company faces risks related to the potential loss of key personnel in a competitive market, which could jeopardize core technologies and intellectual property[16]. - The company has implemented risk prevention measures and is enhancing communication with stakeholders to ensure the smooth completion of the acquisition[6]. Acquisitions and Partnerships - The company agreed to acquire 100% of RemedX Remediation Service Inc. for 13 million CAD, with the completion of the transaction extended to March 31, 2017[5]. - The company has implemented the acquisition of RemedX Remediation Service Inc. to enhance its capabilities in groundwater remediation and petroleum-contaminated soil site restoration[62]. - The company has successfully acquired 100% equity of Canadian RX Company, marking its first step into the international soil remediation market[96]. Corporate Governance and Management - The company has established effective management systems for its subsidiaries to ensure efficient information flow and collaboration, which is crucial for maintaining profitability amid growth[15]. - The company has a strong management team with a focus on technological innovation and market competitiveness, ensuring its leadership in the environmental protection industry[67]. - The company has established a comprehensive environmental service model integrating investment, design, engineering, products, consulting, and operations[62]. Future Outlook - The company anticipates a growth rate of 15%-20% in water environment protection products and equipment over the next five years, with water environment service industry growth expected at 30%-40%[52]. - The company is set to explore the soil ecological restoration market, leveraging its experience in heavy metal pollution remediation projects[180]. - The environmental protection industry is projected to grow at an annual rate of 20-30% during the 13th Five-Year Plan period, with total investment in environmental pollution control expected to reach approximately 8-10 trillion RMB[175].