SSET(SZ:300540)2017-04-12 16:00Financial Performance - The company's operating revenue for 2016 was ¥308,072,671.22, a decrease of 32.19% compared to ¥454,298,914.08 in 2015[21] - The net profit attributable to shareholders for 2016 was ¥38,588,744.72, down 36.46% from ¥60,729,821.66 in 2015[21] - The net cash flow from operating activities was negative at ¥59,087,843.84, compared to a negative ¥45,855,968.93 in 2015[21] - The total operating costs for 2016 amounted to CNY 201,907,633.33, down 31.85% from CNY 296,251,124.49 in 2015[56] - The company reported a total revenue of 1.5 billion CNY for the fiscal year 2016, representing a year-over-year growth of 20%[106] - The company reported a net profit attributable to shareholders of 38.59 million yuan for the reporting period, with a cash dividend distribution of 1 yuan per 10 shares, totaling 8 million yuan[98] - The cash dividend accounted for 100% of the total distributable profit, with retained earnings of 180.04 million yuan to be carried forward to the next year[98] Assets and Liabilities - The total assets at the end of 2016 amounted to ¥907,520,055.14, reflecting an increase of 23.85% from ¥732,767,485.78 at the end of 2015[21] - The net assets attributable to shareholders increased by 115.02% to ¥635,047,763.88 from ¥295,343,357.14 in 2015[21] - The company's total assets included CNY 177,371,858.92 in cash, representing 19.54% of total assets, an increase from 3.41% in 2015[68] - The company's inventory decreased by 29.34% to CNY 53,124,365.25 from CNY 75,183,207.43 in 2015[54] - The company's inventory decreased by 4.41% year-on-year, amounting to 53,124,365.25 CNY, which represents 5.85% of total assets[69] - As of December 31, 2016, the company had a total of 52,034,665.77 CNY in restricted assets, including cash and receivables[70] Research and Development - The company invested 14.46 million yuan in research and development, resulting in 3 new invention patents and 9 utility model patents[47] - Research and development expenses for 2016 were CNY 14,461,028.04, representing 4.69% of operating revenue, an increase from 3.65% in 2015[62] - The company has developed a range of LNG process technologies and equipment, with processing capacities from 20,000 to 1,200,000 cubic meters per day, making it one of the few domestic companies with projects exceeding 1,000,000 cubic meters per day[36] - The company aims to enhance its R&D capabilities and innovation to support its transformation and upgrade, addressing the need for complete solutions beyond just technology and equipment[85] - New product development includes optimizing large-scale deep cold liquefaction technology with a processing capacity of over 3 million cubic meters of natural gas per day, and developing intelligent small-scale liquefaction units for various gas sources[86] Market Position and Strategy - The company is positioned as a one-stop solution provider in the LNG industry, focusing on natural gas liquefaction and air separation technology[31] - The company aims to increase the proportion of natural gas in primary energy consumption from 5.9% in 2015 to an estimated 8.3% to 10% by 2020, as outlined in the national "13th Five-Year" plan[32] - The company has a projected annual growth rate of 8.9% for natural gas production, increasing from 1,350 billion cubic meters in 2015 to 2,070 billion cubic meters by 2020[33] - The company is actively involved in promoting the use of natural gas in various sectors, including power generation and transportation, as part of the national strategy to improve air quality[34] - The company plans to expand its market presence in Southeast Asia, targeting a market share increase of 10% within the next two years[106] Risks and Challenges - The company faces risks related to significant declines in operating performance due to various factors including macroeconomic conditions and market competition[6] - The company has a substantial accounts receivable balance, which may impact asset quality and financial status if not collected timely[9] - The company faces risks including potential declines in operating performance due to macroeconomic conditions, low oil prices, and increased market competition[91] Corporate Governance and Compliance - The company has established a strong governance structure with independent directors overseeing key decisions and ensuring compliance with regulatory standards[178][179] - The company has maintained compliance with all commitments without any violations during the reporting period[102] - The company has confirmed that all commitments made by the board and senior management were fulfilled on time[121] - The audit committee conducted regular reviews of internal controls and related party transactions, ensuring compliance and transparency in financial reporting[198] Shareholder Information - The total number of shareholders reached 16,313 by the end of the reporting period[162] - The company has 20 million unrestricted shares, accounting for 25% of total shares post-IPO[155] - The controlling shareholder, Xie Lemin, is a natural person and serves as the chairman and general manager of the company[164] - The actual controller, Xie Lemin, has not changed during the reporting period[165] - The total number of shares held by the chairman, Xie Lemin, is 10,714,200 shares, with no changes during the reporting period[170] Employee and Management Structure - The total number of employees in the company is 260, with 87 in production, 62 in sales, 73 in technical roles, 8 in finance, and 30 in administration[183] - The company has a 100% labor contract signing rate, ensuring compliance with labor laws and regulations[184] - The company has established a comprehensive training system, including new employee orientation, general skills training, management skills training, and professional skills training[185] - The educational background of employees includes 6 with master's degrees or higher, 166 with university degrees, 33 with high school diplomas, and 55 below high school[183]