SLC(SZ:002106)2016-04-15 16:00Financial Performance - In 2015, the company's operating revenue was CNY 2,423,799,414.60, representing a 3.44% increase from CNY 2,343,271,412.76 in 2014[27]. - The net profit attributable to shareholders was a loss of CNY 597,523,482.25, a significant decrease of 4,476.21% compared to a profit of CNY 13,653,903.61 in 2014[27]. - The net cash flow from operating activities improved to CNY 102,325,339.04, a 177.92% increase from a negative cash flow of CNY -131,314,786.30 in 2014[27]. - Total assets decreased by 17.04% to CNY 4,281,341,617.33 at the end of 2015, down from CNY 5,160,652,181.48 at the end of 2014[28]. - The net assets attributable to shareholders fell by 15.06% to CNY 3,444,809,789.81 at the end of 2015, compared to CNY 4,055,720,262.15 at the end of 2014[28]. - The company reported a basic earnings per share of -CNY 0.85, a decline of 4,350.00% from CNY 0.02 in 2014[27]. - The weighted average return on equity was -15.93%, a decrease of 16.26% from 0.33% in 2014[27]. - The fourth quarter of 2015 saw a significant increase in operating revenue to CNY 782,261,407.36, primarily due to a surge in sales of large-size OGS full lamination products[32]. - In 2015, the company reported a significant loss of approximately ¥376.16 million due to asset impairment and other non-recurring losses[35]. - The company achieved total operating revenue of CNY 2,423,799,414.60, an increase of 3.44% compared to the same period last year, primarily due to significant growth in sales of medium and large-sized OGS products[51]. - Operating profit was CNY -65,549,470, a decrease of 11,405.90% year-on-year, attributed to intense market competition and rising product costs[51]. Market Conditions - The company reported a significant decline in the touch screen market due to oversupply, with many manufacturers facing losses in 2015[14]. - The global touch screen market is experiencing oversupply and intense competition, leading to significant price declines and industry-wide losses[46]. - The market for ITO conductive glass is facing oversupply, with increasing competition among over a hundred domestic manufacturers, leading to price pressures[99]. - The competitive landscape in the industry is intensifying, with many manufacturers experiencing significant losses due to price declines and market saturation[97]. - The global smartphone market reached a shipment volume of 1.4 billion units in 2015, with a projected growth rate of only 7% to 1.5 billion units in 2016, indicating market saturation[102]. - The automotive touch screen market is expected to experience explosive growth, with shipments projected to reach 63.59 million units by 2018, significantly increasing from 2014 levels[104]. Research and Development - The company is investing in research and development of new materials such as nano-silver and graphene for touch screens[16]. - The company is committed to accelerating the R&D and mass production of high-resolution, flexible a-Si TFT-LCD panels[16]. - The company is exploring the industrial application of new display panel technologies and materials[17]. - The company has developed over 300 process improvements and more than 350 equipment modifications in 2015, enhancing its production capabilities[42]. - The company has successfully developed samples of metal mesh capacitive touch screens and color filters for G5 generation LCD panels, indicating ongoing innovation[42]. - The company is actively researching and developing new materials such as nano-silver and graphene for touchscreen applications, as well as new structures and processes for on-cell and in-cell touchscreens[116]. Strategic Initiatives - The company plans to maintain a stable financial structure while actively exploring external investment opportunities to mitigate market competition risks[14]. - The company aims to enhance production efficiency and yield rates for OGS products through automation and optimization of product structure[16]. - The company will focus on increasing market share for mid-to-large size OGS products while gradually phasing out smaller G-G structure products[16]. - The company emphasizes a differentiated competitive strategy to enhance its core competitiveness in the market[14]. - The company is preparing for the re-evaluation of its status as a national high-tech enterprise to maintain tax benefits, which could impact post-tax profits if not renewed[20]. - The company plans to optimize its incentive mechanisms and management practices to improve sales and operational performance in 2016[110]. - The company will ensure funding for the growth of mid-to-large size OGS product sales, with a focus on financing through non-public stock issuance for investment projects[112]. Financial Management - The company has no plans to distribute cash dividends or issue bonus shares for the 2015 fiscal year[7]. - The company reported a net profit of -591,087,362.38 CNY, resulting in no cash dividends being distributed[132]. - The total distributable profit available for shareholders was 368,150,016.70 CNY, with a cash dividend ratio of 0.00%[132]. - The company did not issue any bonus shares or increase capital from reserves in 2015, as per the profit distribution plan approved by the board[133]. - The company is facing risks related to funding operations and foreign exchange fluctuations, with plans to enhance financial planning and reduce potential losses[19][20]. - The company is committed to proactive financial planning to mitigate risks associated with capital operations and ensure sufficient funding for operations and development[118]. Operational Changes - The company has ceased production of certain products due to market conditions, as detailed in its announcement regarding significant operational changes[39]. - The company optimized production line resources and ceased production of unprofitable product lines, including small-sized OGS products and G-G CTPM production lines[158]. - The company has centralized its operations to the Guangming factory and rented out approximately 2,100 square meters of office space in its former headquarters[160]. - The company is increasing its full lamination business to meet the integrated supply demands of its customers, which may lead to significant cash flow pressures[118]. Corporate Governance - The company has not experienced any changes in its controlling shareholder during the reporting period[188]. - The company’s board of directors includes members with extensive backgrounds in finance and management, enhancing its governance structure[199]. - The company has undergone organizational restructuring to enhance the protection of stakeholder interests, including shareholders, employees, suppliers, and customers[169]. - The company has maintained its accounting policies without any changes compared to the previous year[137]. - The audit was conducted by Ruihua Certified Public Accountants, with an audit fee of 650,000 CNY[141].