Absen(SZ:300389)2017-04-07 16:00Financial Performance - The company's operating revenue for 2016 was CNY 1,165,998,433.50, representing a 15.04% increase compared to CNY 1,013,538,570.32 in 2015[19]. - The net profit attributable to shareholders for 2016 was CNY 151,353,133.06, a 20.57% increase from CNY 125,534,849.97 in 2015[19]. - The net profit after deducting non-recurring gains and losses was CNY 143,828,598.75, up 22.86% from CNY 117,067,308.81 in 2015[19]. - The net cash flow from operating activities improved significantly to CNY 70,864,146.68, a 398.55% increase from a negative CNY 23,735,808.19 in 2015[19]. - The total assets at the end of 2016 reached CNY 1,647,605,749.80, marking a 25.09% increase from CNY 1,317,136,040.12 at the end of 2015[19]. - The net assets attributable to shareholders increased to CNY 974,308,281.08, a 13.77% rise from CNY 856,409,342.42 in 2015[19]. - The basic earnings per share for 2016 was CNY 0.4765, reflecting a 19.75% increase from CNY 0.3979 in 2015[19]. - The company achieved a total revenue of 6,777.03 million yuan, with a net profit of 15,344.20 million yuan, representing a year-on-year growth of approximately 20.39%[131]. Dividend Distribution - The company reported a profit distribution plan, proposing a cash dividend of 1.10 RMB per 10 shares (including tax) based on a total of 319,256,418 shares[7]. - The cash dividend accounted for 23.20% of the net profit attributable to ordinary shareholders, which was 151,353,133.06 RMB[152]. - The total distributable profit for the year was 514,189,076.26 RMB, with cash dividends representing 100% of the profit distribution[150]. - The company did not propose any stock bonus shares for the year 2016, maintaining a policy of no capital reserve fund conversion[151]. - The cash dividend policy was executed in accordance with the company's articles of association and relevant regulations, ensuring the protection of minority shareholders' rights[149]. - The company has maintained a consistent cash dividend policy over the past three years, with no adjustments made during the reporting period[149]. Market Presence and Expansion - The company has established various subsidiaries in regions including Japan, the Middle East, and Germany to expand its market presence[12]. - The company reported that approximately 80% of its revenue comes from overseas sales, indicating a strong international market presence[29]. - The company is focused on becoming the "global leader in display application scenarios" with a complete product line and a robust global marketing network[29]. - The company plans to enhance its international operational framework and improve management processes across its subsidiaries to boost global market competitiveness[130]. - The company aims to solidify its position as the global leader in LED display manufacturing within 3 to 5 years, focusing on both revenue and profit growth[129]. Product Development and Innovation - The company launched several new products, including the HDV series small pitch products and upgraded existing products like the outdoor large screen A1088 to A1099[37]. - The company has made significant advancements in R&D, including the development of a 0.7mm pixel pitch technology, marking a leading position in the industry[94]. - The company invested 48.22 million CNY in R&D during the reporting period, an increase of 27.67% compared to the previous year, and holds a total of 90 patents, including 4 invention patents[49]. - The company successfully developed several new products, including the M series for indoor rental and the HDV series for small pixel pitch applications, all of which have been launched[94]. Risks and Challenges - The company faces risks including intensified market competition, declining gross margins, and increased accounts receivable[6]. - The company acknowledges the risks associated with overseas business expansion and potential goodwill impairment from acquisitions[6]. - The company is at risk of declining gross margins due to fierce competition and rapid product obsolescence, prompting a focus on product differentiation and exploring new application markets, especially for small-pitch LED displays[138]. - The company has faced challenges with external acquisitions, including unmet profit commitments from acquired entities, leading to goodwill impairment of approximately RMB 384.39 million in 2016[142]. Governance and Compliance - The company completed the election of its third board of directors, aiming for improved governance and operational health[69]. - The company revised 19 internal governance documents and 121 management processes to enhance operational efficiency and compliance[69]. - The company has established a commitment to minimize and avoid related party transactions, ensuring fairness and compliance with market principles[158]. - The company has committed to protecting the interests of all shareholders, especially minority shareholders, in the resolution of performance shortfalls[169]. Financial Management - The company reported a significant increase of 311.10% in revenue from LED display hotel operation services, reaching CNY 23,744,949.21[80]. - The company has committed to a share buyback plan to stabilize its stock price if it falls below the audited net asset value per share for twenty consecutive trading days within three years post-IPO[162]. - The company has established a joint control agreement among its major shareholders to maintain unified decision-making for significant operational decisions for 60 months post-IPO[155]. - The company will ensure compliance with all relevant laws and regulations in its future stock reduction plans[157].