EASTCOM(SH:600776)2018-04-22 16:00Financial Performance - The company's total revenue for 2017 was CNY 2,437,285,614.69, representing a 23.08% increase compared to CNY 1,980,288,987.42 in 2016[20]. - The net profit attributable to shareholders for 2017 was CNY 118,208,655.39, up 29.01% from CNY 91,625,023.65 in 2016[21]. - The net profit after deducting non-recurring gains and losses was CNY 82,494,861.10, a significant increase of 90.55% from CNY 43,293,767.67 in 2016[21]. - Basic earnings per share increased by 29.01% to CNY 0.0941 in 2017 compared to CNY 0.0729 in 2016[22]. - Diluted earnings per share also rose by 29.01% to CNY 0.0941 in 2017 from CNY 0.0729 in 2016[22]. - The net profit attributable to shareholders for Q4 2017 was CNY 49,194,276.94, showing a significant increase compared to CNY 18,742,304.27 in Q1 2017[24]. - The company achieved a revenue of 2.437 billion yuan in 2017, representing a year-on-year growth of 23%[37]. - Net profit for the year was 118 million yuan, reflecting a 29% increase compared to the previous year[37]. Cash Flow and Assets - The company reported a net cash flow from operating activities of CNY -68,620,898.01, worsening from CNY -58,567,690.44 in 2016[21]. - The company reported a net cash decrease of 364 million yuan, with net cash flow from operating activities at -68.62 million yuan, a decrease of 10.05 million yuan year-on-year[62]. - The total assets at the end of the reporting period amounted to 4,000,000,000.00 CNY, with a year-on-year increase of 15%[64]. - The company's receivables increased by 89.97% to 55,035,644.91 CNY, primarily due to the increase in accepted bills from customers[64]. - The total current assets decreased from CNY 2,991,677,269.67 at the beginning of the year to CNY 2,779,358,657.35 by year-end, reflecting a reduction of approximately 7.1%[159]. - The cash and cash equivalents increased from CNY 691,513,089.06 to CNY 743,510,598.38, showing a growth of about 7.5%[159]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, totaling CNY 75,360,003.84, with the remaining undistributed profit carried forward to future years[5]. - The company distributed cash dividends of 0.6 yuan per 10 shares in 2017, with a total cash dividend amounting to 75,360,003.84 yuan, representing 63.75% of the net profit attributable to ordinary shareholders[83]. - In 2016, the cash dividend was also 0.6 yuan per 10 shares, totaling 75,360,003.84 yuan, which accounted for 82.25% of the net profit attributable to ordinary shareholders[83]. Research and Development - Research and development expenses amounted to 173.44 million yuan, with a total of 439 patent applications filed, including 187 invention patents[32]. - The company is investing 100 million RMB in R&D for new technologies, focusing on 5G and IoT solutions[121]. - Total R&D investment amounted to 173.44 million yuan, accounting for 7.12% of operating revenue, with 554 R&D personnel, representing 20.19% of the total workforce[60]. Market and Product Development - The company focuses on three core industry ecosystems: enterprise networking and information security, intelligent self-service devices, and information communication technology services[27]. - The intelligent self-service device segment expanded its market by exploring opportunities beyond banking, targeting sectors like public security and telecommunications[28]. - The company launched three new terminal products in 2017, including the first LTE/PDT multi-mode terminal[39]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next three years[119]. Risks and Challenges - The company has outlined potential risks in its future development, which investors should be aware of[7]. - The company is facing risks related to technology and product updates, market competition affecting profitability, and human resource retention and attraction[79]. - The company aims to optimize quality and supply chain management to increase profitability through continuous cost reduction and efficiency improvement[78]. Corporate Governance and Compliance - The company has established a well-established internal control system and governance structure in compliance with relevant laws and regulations[138]. - The company continues to engage Zhongshun Zhonghuan Accounting Firm for financial and internal control audits, with an audit fee of 79.03 million yuan for the year[90]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2017[149]. Employee and Management Structure - The company employed a total of 2,744 staff, with 2,127 in the parent company and 617 in major subsidiaries[133]. - The total remuneration for all directors, supervisors, and senior management was 6.2071 million yuan (pre-tax) during the reporting period[130]. - The current chairman and executives have held their positions since 2016, indicating stability in leadership[123].