Precise(SZ:300442)2017-03-30 16:00Financial Performance - The company's operating performance declined due to macroeconomic downturn and decreased demand growth, with ongoing risks if global economic conditions do not improve [6]. - The net profit attributable to shareholders decreased by 85.52% to CNY 7,248,406.79 from CNY 50,065,260.27 in the previous year [25]. - The net cash flow from operating activities was negative at CNY -61,721,893.16, a decline of 29.69% compared to CNY -47,590,151.36 in 2015 [25]. - The company reported a basic earnings per share of CNY 0.07, down 87.27% from CNY 0.55 in 2015 [25]. - The company’s weighted average return on equity was 0.74%, a decrease of 5.48% from 6.22% in 2015 [25]. - The company’s net profit excluding non-recurring gains and losses was CNY 4,145,126.03, down 91.21% from CNY 47,161,575.71 in 2015 [25]. - The company achieved a revenue of CNY 575.82 million in 2016, representing a growth of 6.51% compared to the previous year [56]. - The net profit attributable to shareholders decreased significantly to CNY 7.25 million, down 85.52% year-on-year due to various factors including a decline in filling machine business and provisions for bad debts [56]. - The company achieved operating revenue of 575.82 million yuan, a year-on-year increase of 6.51% [100]. Accounts Receivable and Cash Flow - Accounts receivable increased, leading to potential bad debt and cash flow risks; the company is implementing measures to track and manage receivables effectively [7]. - The company is focused on optimizing its financing structure to ensure stable cash flow amidst increasing accounts receivable [7]. - The company reported a net cash flow from financing activities decreased by 91.07% to 39,825,952.66 yuan, primarily due to the absence of IPO fundraising in the current period [79]. - The cash and cash equivalents decreased by 81,218,624.87 yuan, a decline of 179.51% compared to the previous year, highlighting liquidity challenges [79]. - As of the end of 2016, cash and cash equivalents amounted to ¥123,960,851.62, representing 8.73% of total assets, a decrease of 6.85% from 2015 [83]. - Accounts receivable increased to ¥341,094,943.28, accounting for 24.03% of total assets, up by 0.90% compared to the previous year [83]. - Inventory rose to ¥308,998,951.18, making up 21.77% of total assets, an increase of 3.43% from 2015 [83]. Investments and Acquisitions - The company has made strategic investments in subsidiaries and acquisitions, which are still in the cultivation phase and require ongoing capital investment [13]. - The company invested CNY 720,000 for a 60% stake in Suzhou Puqia Bottle Technology Co., focusing on PET and PP bottle technology [60]. - The company also invested CNY 700,000 for a 35% stake in Shanghai Pudi Industrial Intelligent Equipment Co., which specializes in automated packaging production lines [61]. - The company has established a new subsidiary, Suzhou Puchai Blow Molding Technology Co., Ltd., with an investment of 7.2 million yuan, holding a 60% stake [72]. - The company has committed to improving its office environment through the purchase of office buildings, which is expected to enhance its external image and attract talent [93]. Market Position and Competition - The company has developed core technologies in liquid food packaging machinery, but faces significant competition from foreign manufacturers, which poses a risk to market position [9]. - The company aims to expand its market share and customer base while enhancing product development to mitigate market risks [6]. - The company has expanded its customer base to include well-known liquid food enterprises such as Yili Group and Bright Dairy, enhancing its market position [46]. - The company aims to enhance its international influence in the liquid food packaging machinery and materials sector through integrated packaging systems and advanced sterilization technology [57]. - The company is positioned as a leading supplier of integrated solutions for liquid food enterprises, providing complete equipment and packaging materials [48]. Research and Development - The company holds multiple patents and is a leader in several R&D areas within the industry, but faces risks related to the confidentiality of core technologies [12]. - The company has a strong R&D team with over 100 technical personnel, focusing on innovation and product quality improvement [53]. - Research and development investment amounted to 28,084,213.38 yuan, representing 4.88% of the annual revenue, with a total of 122 R&D personnel, accounting for 15.19% of the total workforce [76]. - The company plans to enhance R&D efforts to develop high-value-added products and improve market competitiveness [102]. Profit Distribution and Dividends - A cash dividend of 0.15 RMB per 10 shares (before tax) has been proposed, with no bonus shares issued [13]. - The total distributable profit for the year is 325,837,086.13 yuan, with the cash dividend accounting for 100% of the profit distribution [107]. - The company has maintained a consistent cash dividend policy, with no dividends distributed in 2014 [111]. - The company’s profit distribution policy requires independent directors to provide opinions before any adjustments are made [114]. - The company prioritizes cash dividends, distributing at least 20% of the distributable profits as cash dividends annually, provided conditions are met [115]. Operational Challenges - Over 40% of production costs are related to steel and other raw materials, making the company vulnerable to fluctuations in raw material prices [10]. - The company has emphasized the importance of using funds for technology innovation and product development to enhance profitability [93]. - The company has not achieved the expected benefits from the projects, indicating a need for further strategic adjustments [93]. - The company has not faced any bankruptcy reorganization matters during the reporting period [125]. - The company has not encountered any major litigation or arbitration issues during the reporting period [126]. Governance and Shareholder Relations - The company has established a legal binding agreement among major shareholders to ensure unified action in decision-making [114]. - The company emphasizes the importance of protecting minority shareholders' interests in all major decisions [114]. - The company has a diverse board with independent directors, ensuring a balanced governance structure [163]. - The company has a complete and independent asset ownership, with all business-related assets fully owned and controlled by the company [185]. - The company has established an independent financial department with a separate financial accounting system and independent tax obligations [185].