CS&S(SH:600536)2017-03-30 16:00Financial Performance - The company's operating revenue for 2016 was CNY 4,529,778,511.92, representing a 24.77% increase compared to CNY 3,630,392,092.90 in 2015[20] - The net profit attributable to shareholders for 2016 was CNY 102,306,766.53, a significant increase of 73.15% from CNY 59,086,506.74 in 2015[20] - The basic earnings per share for 2016 was CNY 0.21, up 73.15% from CNY 0.12 in 2015[21] - The weighted average return on equity increased to 5.07% in 2016, up by 2.02 percentage points from 3.05% in 2015[21] - The company reported a significant quarterly net profit of CNY 243,257,999.97 in Q4 2016, contrasting with losses in the first three quarters[23] - The company achieved a revenue of 4.53 billion RMB, representing a year-on-year growth of 24.77%[46] - The net profit attributable to shareholders increased by 73.15% to 102.31 million RMB[46] - Revenue from proprietary software products reached 1.24 billion RMB, up 59% year-on-year[46] Cash Flow and Assets - The net cash flow from operating activities decreased by 87.38% to CNY 53,278,235.74 from CNY 422,086,550.49 in the previous year[20] - The company's total assets at the end of 2016 were CNY 5,967,906,666.14, an 8.06% increase from CNY 5,523,025,679.88 at the end of 2015[20] - The company's cash and cash equivalents at the end of the period amounted to ¥43,824,423.75, primarily restricted due to various guarantees[64] - The company's total assets reached ¥238,447,613.14, with significant portions under restriction due to various borrowings[65] - The ending cash and cash equivalents balance was ¥1,972,227,792.09, a decrease from ¥2,051,430,155.20 at the beginning of the year[170] Investments and R&D - The company’s R&D expenditure increased by 26.55% to 971.77 million RMB[46] - The company's total R&D investment amounted to approximately ¥971.77 million, representing 21.45% of total revenue, with a year-on-year increase of 25.65%[59][60] - The company reported a net loss from investment activities of approximately ¥204.59 million, a decrease of 249.61% compared to the previous year[61] - The company has made significant progress in its self-controlled projects, with all major projects passing acceptance tests in 2016[38] Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.63 per 10 shares, totaling CNY 31,157,455.27, which accounts for 30.45% of the net profit attributable to shareholders[3] - The cash dividend policy stipulates that at least 10% of the distributable profit will be distributed as cash dividends if the company is profitable[87] - In 2015, the company distributed cash dividends of 0.36 RMB per 10 shares, totaling 17,804,260.15 RMB, which accounted for 30.13% of the net profit attributable to shareholders[88] Market Position and Industry Outlook - The company operates in the software and information technology services industry, which is expected to grow at an average annual rate of over 13% during the "13th Five-Year Plan" period[28] - The company is recognized as a leading IT service provider in China, supported by its status as a core enterprise in the China Electronics Corporation's software sector[32] - The software and information technology services industry in China saw a revenue growth of 14.9% year-on-year, reaching ¥4.85 trillion[66] Corporate Governance and Compliance - The company has maintained compliance with corporate governance regulations, ensuring clear separation of powers among decision-making, supervisory, and execution bodies[143] - The company has not faced any penalties from securities regulatory authorities in the past three years[138] - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[97] Shareholder Information - The company’s controlling shareholder, China Electronics, strictly adhered to the lock-up commitment during the period, resulting in 9,850,546 shares becoming tradable on December 19, 2016[91] - Shareholder Wen Xitang increased his holdings by 2,783,080 shares, raising his ownership from 4.76% to 5.32% of the total issued shares[98] - The total number of ordinary shareholders at the end of the reporting period was 44,160, down from 46,161 at the end of the previous month[120] Employee and Management Structure - The number of R&D personnel was 4,036, accounting for 52.06% of the total workforce[59] - The company has a total of 759,630 RMB in compensation for all directors and senior management during the reporting period[128] - The company has implemented a salary structure based on basic salary plus performance pay for senior management, which is determined by the board based on various factors[138] Risk Management - The company faces risks from emerging technologies and market competition, which may impact its operations[85] - The company has a general risk reserve reported at 56,271,000 RMB, indicating a stable position in risk management[179]