LETS(SZ:002398)2017-03-27 16:00Dividend Policy - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total of 342,732,000 shares[5]. - The cash dividend for 2016 represents 20.49% of the net profit attributable to shareholders, which was RMB 167,283,206.24[99]. - The company has consistently executed its cash dividend policy, with a focus on protecting the rights of minority investors[96]. - The cash dividend for 2015 was also RMB 1.00 per share, totaling RMB 34,273,200, which accounted for 16.96% of the net profit[100]. - The company plans to maintain a minimum cash dividend ratio of 20% in future distributions, considering its growth stage and significant capital expenditure needs[101]. - The proposed cash dividend for 2016 is CNY 1.00 per 10 shares, totaling CNY 34,273,200.00, with the remaining undistributed profit of CNY 235,215,583.58 carried forward to the next year[102]. Financial Performance - The company's operating revenue for 2016 was ¥1,384,925,742.10, representing a 2.94% increase compared to ¥1,345,320,713.48 in 2015[18]. - The net profit attributable to shareholders decreased by 17.21% to ¥167,283,206.24 in 2016 from ¥202,058,629.37 in 2015[18]. - The net profit after deducting non-recurring gains and losses was ¥137,647,056.98, down 28.10% from ¥191,443,750.30 in the previous year[18]. - The net cash flow from operating activities increased by 39.50% to ¥288,148,123.78 in 2016, compared to ¥206,560,704.52 in 2015[18]. - The basic earnings per share decreased by 16.95% to ¥0.49 in 2016 from ¥0.59 in 2015[18]. - The total assets at the end of 2016 were ¥2,657,052,452.63, a 7.24% increase from ¥2,477,603,517.81 at the end of 2015[19]. - The net assets attributable to shareholders increased by 6.66% to ¥2,130,268,282.21 at the end of 2016 from ¥1,997,258,275.97 at the end of 2015[19]. Business Operations - The company has undergone a change in its main business scope, now including research, production, and sales of new building materials[17]. - The company operates in two main business segments: comprehensive technical services and new materials for additives, with a focus on technology development and application[28][29]. - The company has established 14 industrial bases across various provinces and overseas, enhancing its market presence in the concrete additive sector[29]. - The company maintained a strong competitive position in the construction industry, leveraging its comprehensive technical services and new material products[40]. - The company is the only publicly listed architectural research institute in the country, with significant market recognition and brand influence[33]. Research and Development - The company has established a robust research and development system, with a research base covering 37 acres and a building area of nearly 20,000 square meters[35]. - The company has been actively involved in research and development, resulting in 47 new patents granted during the reporting period, totaling 122 patents[46]. - The company aims to enhance its technological capabilities through innovation and has established several research centers to support this goal[45]. Market Risks - The company faces risks including market conditions, raw material price fluctuations, human resources, and industry competition[5]. - The company faces market risk due to reliance on national infrastructure and real estate investments, which could impact performance if market conditions are unfavorable[88]. - Fluctuations in raw material prices, particularly oil, are expected to create uncertainty in cost control, prompting the company to enhance technological innovation and management to mitigate these effects[88]. - Anticipated increases in labor costs due to rising living expenses and social security costs may significantly impact the industry, leading the company to optimize operations to reduce these costs[88]. Corporate Governance - The company has a commitment from its major shareholders to not reduce their holdings within a specified period, ensuring stability in shareholding[110]. - The company has not made any agreements that could affect the actual control of the company, maintaining a clear governance structure[108]. - The company has established a clear policy to manage related party transactions fairly and transparently[107]. - The company has committed to avoiding competition with its own business during the control period, ensuring no engagement in similar business activities by related parties[106]. Employee Relations - The company emphasizes employee rights and has established human resource policies to support sustainable development[163]. - The company has implemented various training programs to enhance employee skills and competencies[163]. - The company is committed to providing a safe and positive working environment for its employees[163]. Social Responsibility - The company actively practices social responsibility, focusing on protecting the rights of investors and creditors, and enhancing corporate governance[163]. - The company has established the "Little Bee Foundation" to assist employees facing special difficulties[166]. - The company emphasizes the importance of creating a "first-class service" model as the foundation for its survival and development[164]. Shareholder Information - The total number of shares is 342,732,000, with 25.78% (88,359,472 shares) being limited sale shares[170]. - The largest shareholder, Cai Yongtai, holds 17.76% of the shares, totaling 60,853,129 shares, with 15,213,280 shares pledged[176]. - The total number of ordinary shareholders at the end of the reporting period was 19,757[175]. - The company maintains a stable governance structure with no plans for changes in control among major shareholders[177]. Financial Management - The company engaged in cash asset management, with a total of CNY 4,000,000 in entrusted financial management yielding an estimated income of CNY 33,530,000[138]. - The company reported a total of CNY 1,900,000 in structured deposits with an estimated income of CNY 49,470,000[138]. - The company has consistently offered structured deposits with varying returns, indicating a focus on financial products to enhance revenue streams[150].