NeuSoft(SH:600718)2014-03-28 16:00Financial Performance - In 2013, the company achieved a net profit of RMB 348,501,524, with a total distributable profit of RMB 296,226,295 after statutory and discretionary reserves[2]. - The company plans to distribute a cash dividend of RMB 1.1 per 10 shares, totaling RMB 135,035,367, subject to shareholder approval[3]. - The company's operating revenue for 2013 was RMB 7,452,753,233, representing a year-on-year increase of 7.08%[22]. - The net profit attributable to shareholders decreased by 9.94% to RMB 410,938,749 compared to 2012[22]. - The basic earnings per share for 2013 was RMB 0.33, down 9.94% from RMB 0.37 in 2012[21]. - The weighted average return on equity decreased by 1.44 percentage points to 7.88% in 2013[21]. - The total assets of the company increased by 10.29% to RMB 9,376,450,793 at the end of 2013[22]. - The net assets attributable to shareholders rose by 4.11% to RMB 5,329,762,555 at the end of 2013[22]. - The net cash flow from operating activities was RMB 303,851,532, a decrease of 4.22% from the previous year[22]. - The company reported a decrease of 32.50% in net profit after deducting non-recurring gains and losses, amounting to RMB 215,672,470[22]. Revenue Breakdown - The software and system integration business achieved revenue of 648.063 million RMB, a year-on-year increase of 8.46%, accounting for 86.96% of total revenue[32]. - The international software business generated revenue of 32.321 million USD, a year-on-year decrease of 6.77%, representing 26.84% of total revenue[38]. - The medical system business reported revenue of 87.766 million RMB, a year-on-year decline of 1.79%, accounting for 11.78% of total revenue[39]. - Domestic revenue increased by 11.89% to ¥5.67 billion, while overseas revenue decreased by 5.85% to ¥1.78 billion, reflecting challenges in international markets[66]. Investments and Acquisitions - The company completed the acquisition of a 25% stake in Neusoft Philips Medical Systems, transitioning from a joint venture to a cooperative model[30]. - The company completed the acquisition of 15% equity in Neusoft Philips Medical Systems for a total price of 55.7363 million yuan and an additional 10% equity for 37.1575 million yuan, totaling 92.8938 million yuan[122]. - The company invested 500,000 RMB in Beijing Neusoft Xikang Hospital Management Co., holding a 100% equity stake[81]. - The company invested 2 million RMB in Dalian Neusoft Business Process Consulting Co., holding a 100% equity stake[81]. - The company established a wholly-owned subsidiary in Chongqing with an investment of 20 million RMB[84]. Research and Development - The company’s R&D expenses increased as part of its strategy to attract and retain talent, contributing to rising human resource costs[27]. - The company’s R&D expenditure reached CNY 604,046,763, an increase of 28.93% year-on-year, accounting for 8.11% of operating revenue[56]. - The company applied for a total of 428 patents by the end of 2013, with 171 patents granted, enhancing its core technology protection[45]. - The company has established a two-tier R&D system and is recognized as a national engineering research center for computer software, maintaining a leading position in foundational research[74]. Market Expansion and Strategy - The company actively expanded its international business despite revenue decline due to exchange rate fluctuations[29]. - The company is focusing on innovation in cloud computing and has launched new products such as the "IT Infrastructure Monitoring Management Platform" and "Application Delivery Security Gateway" to enhance competitiveness[37]. - The company is actively exploring new business areas, including virtual operators and smart transportation, to diversify its service offerings[33][36]. - The company is implementing a "go-in" strategy in key international markets to achieve scalable business development[39]. - The company is committed to strengthening customer value creation and expanding service business scale through market expansion and technological innovation[41]. Financial Management - The company reported a net cash outflow from investment activities of CNY 184,039,969, a significant decline of 487.59% compared to a net inflow of CNY 47,483,221 in 2012[46]. - The net cash flow from financing activities decreased by 485.97% to -¥57.54 million, largely due to cash dividends of ¥184 million paid and a reduction in cash inflow from minority shareholders[58]. - The company plans to increase the purchase limit for bank financial products to 600 million RMB to improve the efficiency of fund utilization and reduce costs[92]. - The company achieved a return of 30 on a principal amount of 5,000 from the entrusted financial management with the Transportation Bank for the period ending August 2, 2013[90]. Corporate Governance - The company has a strong governance structure with independent directors contributing to oversight and strategic guidance[174]. - The total remuneration for the reporting period for the directors and senior management amounted to 1,898.04 million yuan before tax[174]. - The company has not experienced any changes in directors, supervisors, or senior management during the reporting period[187]. - The company has a total of 12 key management personnel listed, with various roles in different subsidiaries and associated companies[184]. Shareholder Information - The largest shareholder is Northeast University Technology Industry Group Co., Ltd., holding 17.6248% of shares[165]. - The second largest shareholder is Alpine Electronics (China) Co., Ltd., with a holding of 13.9512%[165]. - The total number of shareholders at the end of 2013 was 62,680, increasing to 76,774 by March 24, 2013[164]. - The company does not have a controlling shareholder or actual controller, with shareholding being relatively dispersed[165]. Employee and Workforce - The total number of employees across the parent company and major subsidiaries is 20,397, with 7,475 in the parent company and 5,014 in Neusoft (Dalian) Co., Ltd.[189]. - The technical development staff constitutes 79.19% of the total workforce, while marketing, management, and logistics personnel account for 8.28%, 10.31%, and 2.22% respectively[194]. - The company has implemented a succession plan for key positions, preparing 3-5 successors for each critical role[188]. - The educational background of employees shows that 13.11% hold master's degrees or higher, while 74.07% have bachelor's degrees[197].