INTERACT(300419)2020-06-11 16:00Financial Performance - The company reported a net profit commitment of CNY 30 million, CNY 42.5 million, and CNY 53.5 million for the years 2015, 2016, and 2017 respectively from the acquisition of Lu'an Century[8]. - The company's operating revenue for 2017 was ¥543,433,906.25, representing a 15.41% increase compared to ¥466,467,677.09 in 2016[22]. - The net profit attributable to shareholders for 2017 was ¥56,678,574.92, a decrease of 12.57% from ¥61,418,102.95 in 2016[22]. - The total profit for the company was 56.48 million yuan, showing a year-on-year decline of 16.22%[47]. - The net profit attributable to ordinary shareholders was 56.68 million yuan, down 12.57% compared to the previous year[60]. - The basic earnings per share for 2017 was ¥0.15, down 58.33% from ¥0.34 in 2016[22]. - The weighted average return on equity for 2017 was 3.88%, a decrease from 4.47% in 2016[22]. - The company reported a total comprehensive income attributable to shareholders of ¥61,418,102.95 in 2016, which was adjusted to ¥64,824,376.93 after corrections[24]. - The company experienced a significant increase in cash flow from operations in the fourth quarter of 2017, reaching ¥76,215,964.69[26]. - The total revenue for the reporting period was CNY 543.43 million, representing a year-on-year increase of 15.41%[60]. Dividends and Share Capital - The company plans to distribute a cash dividend of CNY 0.35 per 10 shares, based on a total of 367,753,770 shares[10]. - The cash dividend for 2017 is set at CNY 0.35 per share, totaling CNY 12,871,381.95, with a cash dividend payout ratio of 100%[106]. - The company distributed cash dividends of RMB 12,871,381.95, accounting for 22.71% of the net profit attributable to ordinary shareholders[109]. - The cash dividends for 2015 were RMB 23,715,363.50, which was 41.45% of the net profit attributable to ordinary shareholders[109]. - The total share capital as of April 1, 2017, was 367,753,770 shares, with a proposed cash dividend of RMB 0.35 per 10 shares for 2017[108]. - The number of shares increased to 367,753,770, a growth of 100.00% due to the implementation of a profit distribution plan[51]. Risks and Commitments - The company faces risks related to goodwill impairment due to the acquisition of Lu'an Century and Huayuan Zhide, which may lead to significant goodwill on the balance sheet if their performance does not meet expectations[7]. - The company has a risk of profit decline if the projects funded by the raised capital do not meet expected operational conditions or if market conditions change significantly[9]. - The company has a risk of not achieving performance commitments from Huayuan Zhide, which are set at no less than CNY 2 million, CNY 3 million, and CNY 4 million for the years 2016, 2017, and 2018 respectively[8]. - The company has committed to reducing and standardizing related party transactions following a significant transaction in July 2015[110]. - The company guarantees to use shareholder rights legally and reasonably, avoiding any actions that could disrupt normal operations[112]. Investments and Projects - The company is investing raised funds into the Lu'an Century Hotel Multimedia System Operation and Maintenance Construction Project to expand market reach and enhance product competitiveness[9]. - The hotel multimedia system operation and maintenance project received ¥12,221.85 million in committed investment, with 92.25% of the investment completed by the end of the reporting period[90]. - The project achieved a post-tax financial internal rate of return of 22.72% and a net present value of ¥19,032,800, indicating strong project viability[90]. - The company has effectively managed idle funds, generating investment income through financial products while ensuring capital preservation[92]. Operational Performance - The company’s main business remains unchanged, focusing on providing marketing information solutions based on cloud computing and big data for various sectors including finance and public services[33]. - The company has expanded its service offerings to include hotel and family media services following the acquisition of 100% equity in Road Safety Century, a leading provider of broadcasting information technology services[41]. - The company’s revenue from IaaS cloud data center construction and marketing information platforms is a major contributor to its profit margins, emphasizing the importance of solution design in operational efficiency[38]. - The company utilizes a dual approach for business expansion, targeting both new clients and upgrading existing systems for current clients[38]. - The company’s operational model includes a comprehensive technical service framework to ensure system stability and security for clients post-implementation[37]. Compliance and Governance - The company’s board of directors has confirmed the accuracy and completeness of the annual report, ensuring no misleading statements or omissions[3]. - The company operates under the supervision of the China Securities Regulatory Commission and is listed on the Shenzhen Stock Exchange[19]. - The company has established a complete and clear internal governance structure, compliant with relevant laws and regulations[194]. - The attendance rate for the annual shareholders' meeting was 59.14%[197]. - The company has not faced any penalties from regulatory authorities in the past three years[186]. Shareholder Information - Major shareholders include Sun Chengwen with 22.28% and Li Jianmin with 7.36% of the total shares[171]. - The controlling shareholder of the company is Sun Chengwen, who is a natural person and holds 40,964,000 shares, increasing his total holdings to 81,928,000 shares during the reporting period[179]. - The actual controller of the company is also Sun Chengwen, with no changes in control during the reporting period[175]. - The company has a stable management team with no significant changes in key positions during the reporting period[181]. Research and Development - The company will continue to invest in technology research and development, focusing on cloud computing, information security, and big data[101]. - The company's R&D investment amounted to CNY 33,212,145.34, representing 6.11% of operating revenue, with the number of R&D personnel increasing to 110, accounting for 29.89% of the workforce[77]. - Research and development efforts are being directed towards innovative financial technologies, aiming to enhance user experience and operational efficiency[151].