EASTCOM(SH:600776)2015-04-27 16:00Financial Performance - In 2014, the company's operating revenue reached CNY 3,711,605,145.68, representing a year-on-year increase of 7.98% compared to CNY 3,437,220,265.62 in 2013[21] - The net profit attributable to shareholders of the listed company for 2014 was CNY 179,447,632.48, a decrease of 7.37% from CNY 193,717,111.51 in 2013[21] - The net profit after deducting non-recurring gains and losses was CNY 88,207,980.98, down 15.18% from CNY 103,996,266.13 in the previous year[21] - The cash flow generated from operating activities was CNY 74,355,286.63, a significant improvement compared to a negative cash flow of CNY -189,588,568.97 in 2013, marking a 139.22% increase[21] - The company achieved operating revenue of 3.712 billion RMB, an increase of 8% year-on-year[30] - The net profit for the year was 179 million RMB, a decrease of 7% compared to the previous year[30] - Basic earnings per share decreased by 7.37% to 0.1429 RMB per share[24] - The weighted average return on equity fell to 6.432%, a decrease of 0.784 percentage points[24] Assets and Liabilities - As of the end of 2014, the total assets of the company amounted to CNY 3,628,821,084.18, reflecting a 5.50% increase from CNY 3,439,765,070.39 at the end of 2013[21] - The total liabilities increased to CNY 990,660,754.99, compared to CNY 756,186,231.85 in the previous year, reflecting a growth of 30.93%[175] - The company's total assets reached RMB 3,628,821,084.18, up from RMB 3,439,765,070.39, marking an increase of around 5.5%[172] - The company's total liabilities were RMB 723,075,822.31, compared to RMB 550,068,447.65 at the beginning of the year, reflecting an increase of approximately 31.4%[172] Cash Flow and Investments - The net cash flow from operating activities increased significantly by 139.22%, reaching approximately ¥74.36 million, compared to a negative cash flow of ¥189.59 million in the previous year[35][48] - The net cash flow from investment activities surged by 539.25%, amounting to approximately ¥107.77 million, compared to ¥16.86 million in the previous year[35][48] - Cash and cash equivalents reached CNY 1,271,531,760.68, accounting for 35.04% of total assets, up from 27.82% in the previous period, indicating a significant increase in sales collection[56] - The company reported a total expected return of RMB 38,612.24 from the loan to Tiantong High-tech Group[65] Research and Development - Research and development expenses totaled approximately ¥153.89 million, accounting for 4.15% of operating revenue, with a year-on-year increase of 11.40%[35][45] - The company’s R&D expenditure for 2014 was CNY 15,389,000, with 31 new patent applications filed, including 17 invention patents[58] Market and Product Development - The financial electronics sector saw growth in both sales revenue and total profit, with a focus on customer experience and product structure adjustment[30] - The company successfully launched new products, including the PT8600/8601 cycle machine and VTM smart financial solutions[30] - The company aims to enhance its position in the financial electronics industry by transitioning from scale expansion and price competition to quality and differentiation-based competition[81] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, totaling CNY 75,360,003.84, with a remaining undistributed profit of CNY 120,653,862.31 to be carried forward[3] - The total number of shareholders at the end of the reporting period was 88,181, an increase from 63,864 five trading days prior to the report[114] Corporate Governance and Compliance - The company has established a comprehensive internal management system, including various rules and regulations to ensure effective governance and compliance[150] - The company has maintained a commitment to social responsibility, including donations and promoting e-commerce in rural areas[92] - The company has not engaged in any major litigation or bankruptcy restructuring during the reporting period[94][95] Strategic Planning and Future Outlook - The company will implement a new three-year strategic plan from 2016 to 2018, focusing on emerging fields such as cloud computing, IoT, and information security[84] - The company anticipates strong demand for TETRA and PDT products due to the acceleration of public security and rail transit construction in China[80] - In 2015, the company expects revenue and profit growth in its main businesses, including financial electronics and wireless cluster industries[84] Employee and Management Information - The total number of employees in the parent company and major subsidiaries was 3,038, with 1,396 in the parent company and 1,642 in subsidiaries[142] - The company has implemented a salary system that links total employee income to company performance, department performance, and individual work performance[143] - The core technology team increased from 323 members in 2013 to 341 members in 2014, with a net increase of 32 members[140] Risk Management - The company faces potential risks in the financial electronics industry due to stable demand for self-service devices and increasing competition from internet finance[88] - The company will strengthen project management and financial oversight to mitigate risks associated with the complex nature of wireless cluster projects[88]