CS&S(SH:600536)2015-03-23 16:00Financial Performance - The company's operating revenue for 2014 was CNY 3,232,501,718.08, an increase of 8.45% compared to CNY 2,980,642,865.55 in 2013[23] - The net profit attributable to shareholders for 2014 was CNY 33,541,548.97, a decrease of 47.37% from CNY 63,730,874.10 in 2013[23] - The basic earnings per share for 2014 was CNY 0.07, down 47.37% from CNY 0.13 in 2013[24] - The total profit decreased by 48.85% to ¥56,578,053.77, primarily due to increased investment in major projects and reduced investment income[48] - The company reported a significant decrease in actual amounts for related party transactions, with procurement from China Electronics Corporation totaling 8,897.75 million RMB compared to an expected amount of 25,000 million RMB[101] - The company reported a decrease in capital contributions from shareholders amounting to CNY 5,027,543.92 during the current period[196] - The company reported a significant loss in the current period, with a total of -18,456,525[199] Assets and Liabilities - The total assets at the end of 2014 were CNY 4,427,301,923.86, a decrease of 2.09% from CNY 4,521,596,639.03 at the end of 2013[23] - The total current assets as of December 31, 2014, amounted to CNY 3,542,625,829.23, a decrease from CNY 3,755,781,317.52 at the beginning of the year, representing a decline of approximately 5.65%[179] - Total liabilities decreased from CNY 2,214,031,439.79 to CNY 2,103,106,363.26, a reduction of approximately 5.02%[180] - The total non-current assets increased from CNY 765,815,321.51 to CNY 884,676,094.63, showing an increase of about 15.5%[179] - The total equity at the end of the current period increased to CNY 2,324,195,560.60, reflecting a positive change in retained earnings[197] Cash Flow - The cash flow from operating activities for 2014 was CNY 238,781,289.35, compared to a negative cash flow of CNY -221,510,347.62 in 2013[23] - The company reported a net cash flow from operating activities of 238.78 million RMB, a significant improvement from the previous year's negative cash flow[41] - Cash outflow from investing activities was ¥202,938,584.21, significantly higher than ¥77,943,915.98 in the previous period, resulting in a net cash flow from investing activities of ¥-194,558,105.24[190] - The ending cash and cash equivalents balance decreased to ¥1,410,978,319.03 from ¥1,610,801,571.05 in the previous period[190] Research and Development - Research and development expenses rose by 11.39% to 683.68 million RMB, reflecting increased investment in R&D projects[41] - The total R&D expenditure for the period amounted to ¥683,676,747.49, representing 29.42% of net assets and 21.15% of operating revenue[43] - The company is focusing on the development of new technologies and solutions related to smart city construction and information services[72] Market and Business Strategy - The company plans to distribute a cash dividend of CNY 0.21 per 10 shares, totaling CNY 10,385,818.42, which accounts for 30.96% of the net profit attributable to shareholders[2] - The company is focusing on expanding its cloud computing services and smart city IT operations to enhance its service offerings[66] - The company aims to enhance its management capabilities and optimize resource allocation through budget management[85] - The company intends to promote the Golden Tax Phase III core tax management system to expand its service offerings[84] Shareholder Information - The company has a profit distribution policy that prioritizes cash dividends, distributing at least 10% of the annual distributable profit to shareholders if the company is profitable and has positive retained earnings[89] - The largest shareholder, China Electronics Corporation, holds 239,320,546 shares, representing 48.39% of the total shares, with 9,850,546 shares under lock-up[136] - The company’s total share capital increased to 494,562,782 shares after the recent changes, with 259,018,357 shares being freely tradable[125] Governance and Compliance - The company has a governance structure that complies with the requirements of the Company Law and the regulations set by the China Securities Regulatory Commission[159] - The internal control system was evaluated as effective as of December 31, 2014, ensuring the reliability of financial reporting[168] - The company held three shareholder meetings during the reporting period, with all resolutions passed as proposed[161]