CS&S(SH:600536)2016-03-30 16:00Financial Performance - The company's operating revenue for 2015 was CNY 3,630,392,092.90, representing a 12.31% increase compared to CNY 3,232,501,718.08 in 2014[22] - The net profit attributable to shareholders for 2015 was CNY 59,086,506.74, a significant increase of 76.16% from CNY 33,541,548.97 in 2014[22] - The net cash flow from operating activities reached CNY 422,086,550.49, up 76.77% from CNY 238,781,289.35 in the previous year[22] - The total assets at the end of 2015 were CNY 5,523,025,679.88, marking a 24.75% increase from CNY 4,427,301,923.86 at the end of 2014[23] - The basic earnings per share for 2015 was CNY 0.12, a 76.16% increase compared to CNY 0.07 in 2014[24] - The weighted average return on equity for 2015 was 3.05%, an increase of 1.29 percentage points from 1.76% in 2014[24] - The company reported a net loss of CNY 31,720,818.72 after deducting non-recurring gains and losses, compared to a loss of CNY 2,118,340.11 in 2014[22] - The total equity attributable to shareholders at the end of 2015 was CNY 1,976,976,085.28, a 3.36% increase from CNY 1,912,632,479.88 at the end of 2014[23] Cash Management - The company reported a significant increase in cash and cash equivalents, rising to ¥2,068,546,987.95, a 44.53% increase compared to the previous period[33] - The company’s total revenue for 2015 reached approximately CNY 3.60 billion, a 36.48% increase compared to the previous year[51] - The net cash flow from operating activities increased by 76.77% to CNY 422.09 million, driven by higher sales collections and the acquisition of a subsidiary[56] - The company reported a remaining undistributed profit of 76,019,947.55 RMB to be carried over to the next year after the 2014 profit distribution[104] Investments and Acquisitions - The company invested CNY 171.24 million in external equity investments during the reporting period, an increase of CNY 151.24 million compared to the previous year[67] - The acquisition of Mai Puhongxin by the company's subsidiary contributed CNY 24.76 million to the net profit attributable to shareholders of the listed company during the reporting period[69] - The company sold its stake in Sichuan Zhongruan for CNY 30.8 million, resulting in an investment gain of CNY 23.28 million, which accounted for 21.14% of the company's total profit[75] - The company’s subsidiary, Zhongruan Information Services, completed the sale of its investment in Shanglin Real Estate, receiving a total of CNY 54.93 million in transfer payments[77] Research and Development - R&D expenditure increased by 12.32% to 767.90 million RMB, reflecting the company's commitment to innovation and project development[47] - The company’s R&D personnel comprised 51.98% of the total workforce, with 3,697 employees dedicated to R&D[54] - The company’s R&D investment ratio was 21.15% in 2015, reflecting a commitment to innovation[96] Market Position and Strategy - The company is positioned as a leading IT service provider in China, with a comprehensive software industry chain including operating systems, databases, and security products[31] - The company is actively expanding into new service areas such as mobile payments and smart city solutions, reflecting its commitment to innovation[34] - The company has formed strategic partnerships with major manufacturers like DELL, HP, and Lenovo to enhance its OEM market presence[39] - The company completed the implementation of the "Golden Tax" Phase III project in 14 provinces, enhancing its position in the tax industry[41] Risk Management - The company faced various risks as outlined in the management discussion and analysis section of the annual report, which investors should pay attention to[8] - The company faced risks from emerging technologies and market competition, which could impact its traditional software and information services[100] - The company aims to upgrade traditional software through new technologies and optimize human resources to address market changes[100] Shareholder Information - The company distributed cash dividends of 0.21 RMB per 10 shares, totaling 10,385,818.42 RMB, which accounted for 30.96% of the net profit attributable to shareholders for the year 2014[104] - The company plans to distribute cash dividends of at least 10% of the distributable profit, contingent on profitability and positive retained earnings[102] - The company’s profit distribution policy allows for mid-term distributions under certain conditions, ensuring flexibility in capital allocation[102] Governance and Management - The company appointed Da Xin Accounting Firm (Special General Partnership) for the 2015 financial report audit, with an audit fee of 770,000 RMB and an internal control audit fee of 230,000 RMB[111] - The company has established a comprehensive performance evaluation system for senior management, linking remuneration directly to operational performance[162] - The independent directors did not raise any objections to the board's proposals during the reporting period, indicating a consensus on governance matters[170] - The company conducted an internal control self-assessment and found no significant deficiencies in its internal controls[174]