兴业科技(002674) - 2016 Q4 - 年度财报(更新)

Financial Performance - The company's operating revenue for 2016 was CNY 2,565,857,719, representing an increase of 8.81% compared to CNY 2,358,148,642 in 2015[14]. - The net profit attributable to shareholders for 2016 was CNY 63,119,198.43, a significant increase of 374.58% from CNY 13,299,906 in 2015[14]. - The basic earnings per share for 2016 was CNY 0.2418, reflecting a growth of 337.25% compared to CNY 0.0548 in 2015[15]. - The total assets at the end of 2016 amounted to CNY 2,686,161,891, which is a 5.35% increase from CNY 2,549,777,753 in 2015[15]. - The net cash flow from operating activities for 2016 was CNY 420,499,636.2, a 619.02% increase from a negative CNY 81,018,774.1 in 2015[14]. - The total operating revenue for 2016 was CNY 2,565,857,719.58, representing an increase of 8.81% compared to CNY 2,358,148,642.13 in 2015[46]. - The net profit for 2016 was ¥63,119,198.43, showing a significant growth of 374.58% compared to the previous year[36]. - The net cash flow from operating activities reached ¥420,499,636.20, which is a remarkable increase of 619.02% year-on-year[36]. Dividend Policy - The company plans to distribute a cash dividend of 1.50 CNY per 10 shares (including tax) based on a total share capital of 302,178,412 shares[3]. - In 2016, the company achieved a net profit of 59,391,321.18 yuan, with 10% allocated to statutory surplus reserves, resulting in a distributable profit of 599,757,758.03 yuan[119]. - The cash dividend for 2016 is set at 45,326,761.80 yuan, which represents 71.81% of the net profit attributable to shareholders[118]. - The company did not distribute any cash dividends in 2015, as it was in a strategic upgrade phase[114]. - The remaining undistributed profits as of the end of 2016 amount to 554,430,996.23 yuan, which will be retained for future distribution[119]. - The cash dividend distribution plan for 2016 is subject to approval at the annual general meeting[116]. - The company has maintained a consistent cash dividend policy, with a total cash dividend of 36,371,700 yuan in 2014, which was 30.32% of the net profit[118]. - The cash dividend for 2016 is 100% of the total distributable profit, indicating a commitment to returning value to shareholders[118]. Environmental Commitment - The company has a commitment to environmental protection through clean production strategies[7]. - Environmental protection measures were effective, with all pollutants meeting discharge standards and zero environmental accidents reported in 2016[45]. - The company has implemented a comprehensive wastewater treatment plan, focusing on the separation and targeted treatment of different types of wastewater generated during leather processing[158]. - The company has implemented a chromium wastewater recycling process, allowing for the reuse of chromium wastewater in the tanning process after treatment, significantly reducing waste[162]. - The company has established a middle water reuse system that employs membrane technology for purification, allowing for the recycling of treated wastewater back into production[171]. - The company has invested in advanced air pollution control measures, including a 40-meter high chimney for boiler emissions, ensuring compliance with environmental standards[176]. - The company has passed the ISO 14001 environmental management system certification[191]. - The company successfully met all local environmental protection standards for pollutant emissions, with no exceedances reported[188]. Operational Stability - The company has not reported any changes in its main business since its listing, indicating stability in its operations[13]. - The company operates under the stock code 002674 and is listed on the Shenzhen Stock Exchange[10]. - The registered address of the company is located in Anhai Second Industrial Zone, Jinjiang City, Fujian Province[10]. - The company has established subsidiaries, including Fujian Ruisen Leather Co., Ltd., which contribute to its operational capabilities[7]. - The company has been recognized as a high-tech enterprise and a national-level enterprise technology center, indicating its leadership in product R&D and innovation[23]. Market Position and Strategy - The company maintained the largest market share in the cowhide upper leather market in China for several consecutive years[23]. - The company plans to continue focusing on market-driven strategies, enhancing innovation, and expanding into diversified international markets[23]. - The company has established long-term partnerships with well-known brands such as Belle and Aokang, focusing on high-end shoe materials[26]. - The company’s production capacity exceeds 120 million square feet of cowhide leather annually, maintaining a leading market share in China[26]. - The company’s strategic focus includes "de-stocking," "de-leveraging," and "cost reduction" to navigate the challenging market environment[36]. Risks and Challenges - The company faces risks from stringent environmental regulations that may increase operational costs and pressure smaller competitors to exit the market[100]. - The company is exposed to risks related to product innovation and technology advancement, which are crucial for maintaining competitive advantages in the industry[101]. - Fluctuations in the price of raw materials, particularly cowhide, could significantly impact the company's financial performance if not managed effectively[102]. - Currency exchange rate fluctuations, particularly with the depreciation of the RMB, pose a risk to the company's earnings due to significant imports of raw materials[104]. - The company operates in a low-concentration industry with intense competition from numerous small enterprises, which may affect its market position and profitability[103]. Research and Development - The company holds 12 invention patents, 15 utility model patents, and 4 design patents as of the end of 2016, reflecting its commitment to technological innovation[27]. - Research and development (R&D) investment increased by 9.15% to ¥72,111,849.56, which is 2.81% of the operating revenue[57]. - The company plans to enhance product innovation through a combination of independent research and cooperative development, focusing on high-end, multifunctional leather products and green chrome-free leather[97]. - The company is committed to talent development by collaborating with universities and research institutions to cultivate skilled employees, ensuring a continuous supply of talent for its R&D team[99]. Financial Management - The company raised a total of RMB 720 million from the public offering in May 2012, with a net amount of RMB 672.39 million after deducting issuance costs[74]. - In August 2016, the company conducted a private placement of 61,510,162 shares at RMB 11.64 per share, raising RMB 715.98 million, with a net amount of RMB 709.97 million after fees[75]. - The company has a total of RMB 70.56 million in excess funds raised from the public offering[74]. - The company has committed to invest RMB 601.83 million in projects, including RMB 199.78 million for a new technology processing project and RMB 402.05 million for a leather processing project[74]. Corporate Governance - The company's independent directors have fulfilled their responsibilities in the decision-making process regarding the cash dividend policy[111]. - The company commits to avoiding related party transactions that could harm shareholder interests, ensuring fairness in any unavoidable transactions[122]. - The company will not engage in any business that competes with its subsidiaries, ensuring no conflicts arise from business expansions[121]. - The company emphasizes maintaining a continuous and stable profit distribution policy to ensure reasonable returns for investors[122].