VASTDATA(SH:603138)2018-03-08 16:00Financial Performance - The net profit attributable to shareholders for 2017 was RMB 56,889,924.49, while the parent company's net profit was RMB 58,049,407.60[5]. - The company's operating revenue for 2017 was ¥518,078,332.96, representing a year-on-year increase of 10.16% compared to ¥470,277,212.36 in 2016[22]. - The net profit attributable to shareholders for 2017 was ¥56,889,924.49, which is a 30.47% increase from ¥43,604,936.54 in 2016[22]. - The net profit after deducting non-recurring gains and losses was ¥46,596,338.37, up 12.75% from ¥41,325,312.45 in 2016[22]. - The total assets at the end of 2017 reached ¥608,296,287.68, a 51.43% increase from ¥401,689,249.90 at the end of 2016[23]. - The basic earnings per share for 2017 was ¥0.551, an increase of 8.81% from ¥0.5064 in 2016[24]. - The weighted average return on equity for 2017 was 17.23%, down 12.14 percentage points from 29.37% in 2016[24]. - The cash flow from operating activities for 2017 was ¥19,539,440.28, a decrease of 55.38% compared to ¥43,792,234.82 in 2016[22]. - The company reported a net profit of $150 million for the fiscal year, representing a 20% increase compared to the previous year[99]. - The company achieved a net profit margin of 12.61% for the reporting period[162]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 1.6 per 10 shares, totaling RMB 17,174,240, and will increase capital by converting reserves, issuing 4 new shares for every 10 held, totaling 42,935,600 shares[5]. - The total distributable profit at the end of the reporting period was RMB 128,413,538.35, after accounting for the cash dividends and retained earnings[5]. - The company extracted 10% of the net profit as statutory surplus reserve, amounting to RMB 5,804,940.76[5]. - The remaining undistributed profit after the dividend distribution will be RMB 111,239,298.35, carried forward to the next year[5]. - In 2017, the cash dividend increased to RMB 1.6 per 10 shares, amounting to RMB 17,174,240, representing a payout ratio of 30.19%[92]. - The cash dividend policy is aligned with the company's charter and shareholder meeting resolutions, ensuring transparency and compliance[91]. Business Operations and Strategy - The company provided data center solutions and services, focusing on building IT infrastructure for medium and large enterprises, with no significant changes in its main business during the reporting period[31]. - The company's main business segments include system integration, technical services, service sales, and product sales, with a focus on building complete data platform systems for clients[32]. - The company primarily adopts a direct sales model to end customers, utilizing both bidding and negotiation methods to secure contracts[35]. - The company has accumulated a diverse client base across various industries, including finance, manufacturing, energy, telecommunications, and media, enhancing its customer resource advantage[41]. - The company is focusing on developing big data quality and value solutions, including data integration and visualization[50]. - The company plans to enhance its data integration and visualization solutions to improve business flexibility and reduce technical complexity[51]. - The company aims to improve its independent innovation and R&D capabilities to keep pace with technological advancements in data center solutions[89]. Research and Development - The company invested in R&D for new products, including the InfoCycle information lifecycle management system and database disaster recovery management system[50]. - Research and development expenses amounted to CNY 25,197,003.93, representing 4.86% of total operating revenue, with a year-on-year increase of 30.23%[63]. - The company is investing $30 million in research and development for new technologies[99]. - The company plans to enhance its research and development capabilities by establishing R&D centers and industry bases, while adopting advanced management practices from leading equipment manufacturers[88]. Market Expansion and Future Plans - The company plans to enhance its talent acquisition and training programs to maintain a competitive edge in the data center solutions and services industry[89]. - Market expansion plans include entering three new international markets by Q3 2024[99]. - The company aims to reduce operational costs by 5% through efficiency improvements in the next fiscal year[99]. - Future guidance indicates a projected revenue growth of 20% for the next fiscal year[162]. - The company is exploring potential mergers and acquisitions to enhance its competitive position in the industry[162]. Corporate Governance and Compliance - The company has provided a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[4]. - The company emphasizes the importance of risk awareness regarding forward-looking statements and potential market risks[6]. - The company has implemented a performance compensation system to attract and retain high-quality talent[89]. - The company strictly adheres to corporate governance regulations, ensuring equal rights for all shareholders, particularly minority shareholders[179]. - The board of directors operates in compliance with legal requirements, with a clear structure and responsibilities, and has established several specialized committees[181]. Shareholder Information - The top shareholder, Zhu Huawai, holds 34,702,200 shares, representing 32.55% of the total shares[147]. - The second-largest shareholder, Chen Zhimin, has 32,923,800 shares, accounting for 30.89% of the total shares, with 10,049,000 shares pledged[147]. - The total number of ordinary shareholders at the end of the reporting period was 19,857, up from 18,843 at the end of the previous month[145]. - The company has no preferred shareholders with restored voting rights as of the reporting period[145]. Risk Management - The company emphasizes the importance of continuous analysis of market trends to adapt its strategies accordingly[89]. - The management will adopt flexible operational strategies to mitigate market risks arising from changes in macroeconomic conditions and technological developments[89]. - The company faces inherent risks of revenue manipulation to meet specific targets, making the authenticity of massive data revenue recognition a key audit matter[198]. Employee and Training Programs - The total number of employees in the parent company is 211, while the main subsidiaries have 34 employees, resulting in a total of 245 employees[174]. - The company has established a salary management system that includes basic salary, position salary, performance salary, and benefits[175]. - The company organizes various training programs to ensure sustainable development and improve employee skills[176]. - The training programs include onboarding, on-the-job training, skills training, management training, and product knowledge training[176].