But'one(SH:600455)2018-03-30 16:00Financial Performance - The company achieved a net profit attributable to the parent company of CNY 4,394,526.50 for the year 2017[6]. - As of December 31, 2017, the company's undistributed profits amounted to CNY -86,833,521.34, leading to a proposal of no profit distribution for the year[6]. - The company's operating revenue for 2017 was CNY 154,159,779.57, a decrease of 4.67% compared to CNY 161,708,227.58 in 2016[26]. - The net profit attributable to shareholders of the listed company was CNY 4,394,526.50 in 2017, recovering from a loss of CNY 9,990,251.64 in 2016[26]. - The net cash flow from operating activities increased by 93.06% to CNY 52,079,891.33 in 2017, compared to CNY 26,976,151.94 in 2016[26]. - The total assets at the end of 2017 were CNY 683,563,662.17, reflecting a 1.09% increase from CNY 676,208,829.65 at the end of 2016[26]. - The basic earnings per share for 2017 was CNY 0.070, compared to a loss of CNY 0.160 per share in 2016[27]. - The weighted average return on equity improved to 3.476% in 2017 from -7.730% in 2016[27]. - The company reported a net profit of CNY 11,499,892.23 in the third quarter of 2017, marking a significant recovery from previous quarters[29]. - Non-recurring gains and losses amounted to CNY 14,215,315.57 in 2017, compared to CNY 1,039,486.63 in 2016[31]. Business Operations and Strategy - The company operates primarily in two sectors: computer information technology and higher education, with a fully owned subsidiary and two controlling subsidiaries[35]. - The main products in the computer information technology sector include land resource information products and middleware platform products, with a focus on electronic government informationization[36]. - The company is among the top five providers in the domestic land resource informationization market and is actively expanding its market share in electronic government applications[38]. - The land resource informationization business is expected to benefit from the government's push for a nationwide "land resource cloud" and improved data sharing services[39]. - The higher education segment operates an independent college, which has recently expanded its enrollment to include undergraduate programs for students who pass the national entrance examination[40]. - The independent college is registered as a non-profit institution, which is anticipated to positively impact its long-term development[42]. - The company is transitioning from a project-based model to a product-based model in its computer information technology business, focusing on software development and system integration services[37]. - The software industry in China is experiencing rapid growth, driven by increasing government demand for informationization and electronic government services[37]. - The company aims to enhance its competitive edge by investing in research and development for its middleware platform and expanding its service offerings[37]. Challenges and Risks - The company has faced significant risks in the computer information technology sector due to economic cycles and intense market competition, which may impact future performance[9]. - The company has experienced challenges with major asset restructuring efforts, with previous attempts in 2015 and 2016 not being approved, impacting its business development[10]. - Future asset restructuring plans may be pursued depending on market conditions, but there are uncertainties regarding approval and implementation[11]. - The company faced challenges due to unsuccessful major asset restructurings, impacting its core competitiveness and market performance[55]. - The revenue from the computer information business decreased due to significant asset restructuring, with software project revenue at ¥5,616,436.81, resulting in a gross margin of 49.27%, down from 51.87% in 2016[66]. - The company recognizes the increasing competition in higher education due to a long-term decline in the number of students eligible for college entrance exams[101]. Governance and Compliance - The company’s board of directors and management have confirmed the accuracy and completeness of the annual report[5]. - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not provided guarantees in violation of regulatory decision-making procedures[9]. - The company has not proposed any cash dividends or stock dividends for the years 2016 and 2017, reflecting ongoing financial challenges[122]. - The company has been actively revising its cash dividend policy to better reflect investor interests and ensure compliance with regulatory requirements[118]. - The company has engaged Xinyong Zhonghe Accounting Firm for auditing services, with a remuneration of 300,000 RMB for the fiscal year 2017[127]. - The company has maintained a consistent relationship with Xinyong Zhonghe Accounting Firm since 2011, ensuring continuity in its auditing processes[127]. - The company has publicly disclosed its cash dividend policy revisions and sought investor opinions to enhance transparency and governance[118]. Human Resources and Employee Development - The total number of employees in the parent company and major subsidiaries is 660, with 143 in the parent company and 517 in subsidiaries[182]. - The company has 365 technical personnel, accounting for approximately 55.3% of the total workforce[182]. - 49% of employees hold a master's degree or higher, totaling 323 individuals[182]. - The company emphasizes performance-based compensation, gradually increasing the proportion of performance pay for mid-to-senior management[183]. - Employee training programs include onboarding for new hires and ongoing training for existing staff, focusing on technical and product knowledge[184][185]. - The company has no outsourced labor, indicating a fully in-house workforce[186]. Social Responsibility and Environmental Initiatives - The company emphasizes the importance of social responsibility, focusing on safety production, product quality, environmental protection, and employee rights[148]. - The company has established processes and systems related to safety production and environmental protection, contributing to sustainable development[149]. - The company has actively engaged in energy-saving and environmental protection initiatives, aligning with national policies for green development[149]. - The company has established a worker representative assembly and union to ensure employee rights are respected and protected[148]. - The company is committed to providing a clean and safe working environment for its employees, enhancing productivity and reducing labor intensity[148]. Future Outlook and Plans - For 2018, the company plans to achieve operating revenue of 170 million yuan and control costs at 165 million yuan[107]. - The company aims to enhance its core competitiveness and market share by improving technology and educational quality in 2018[107]. - The company plans to strengthen its research and development efforts in computer information technology and expand its market presence[103]. - The company will continue to analyze national and provincial policies regarding private education to align its development direction accordingly[104]. - The company aims to enhance its competitive edge by increasing the proportion of high-margin project contracts and improving product R&D and service quality[108].