Focus Media(SZ:002027)2018-04-24 16:00Financial Performance - The company achieved a revenue of RMB 5.2 billion for the fiscal year 2017, reflecting a 15% increase compared to the previous year[11]. - The company's operating revenue for 2017 was CNY 12,013,553,185.42, representing a 17.63% increase compared to CNY 10,213,134,291.73 in 2016[17]. - The net profit attributable to shareholders for 2017 was CNY 6,004,706,786.08, a 34.90% increase from CNY 4,451,211,722.61 in 2016[17]. - The company's gross profit was 8.74 billion yuan, resulting in a gross margin of 72.72%, an increase of 2.28% from the previous year[46]. - The elevator media business generated a revenue of 9.38 billion yuan, reflecting a growth of 15.99%[44]. - The cinema media business achieved a revenue of 2.33 billion yuan, with a year-on-year growth of 14.14%[45]. - The operating profit for 2017 was 7.24 billion yuan, an increase of 68.44% compared to the previous year[46]. - The net profit margin improved from 43.58% in 2016 to 49.98% in 2017[47]. - The company reported a significant increase in user data, with a total of 1.5 billion monthly active users across its platforms, representing a 20% year-over-year growth[11]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares (including tax) to all shareholders, based on a total of 12,231,566,900 shares[6]. - The company paid out approximately 358.70 million yuan in dividends, a significant increase of 226.40% from 109.21 million yuan in 2016[71]. - The net profit attributable to shareholders for 2017 was 6,004,706,786.08 yuan, with a distributable profit of 5,230,451,282.57 yuan after accounting for the legal surplus reserve[111]. - The company's cash dividend payout ratio for 2017 was 100% of the total distributable profit[109]. - The company has maintained a consistent cash dividend distribution strategy over the past three years, with varying amounts[108]. Market Expansion and Strategy - The company is focusing on expanding its market presence in tier-2 and tier-3 cities, aiming to increase its advertising reach by 25% in these regions[11]. - The company has established a subsidiary in South Korea, expanding its business to 15 major cities including Seoul and Busan in 2017[26]. - The company aims to expand its advertising reach to cover 500 cities, 5 million terminals, and 500 million new middle-class consumers[97]. - The company is exploring strategic partnerships with tech firms to enhance its digital advertising capabilities, aiming for a 15% increase in digital ad revenue[11]. - The company plans to expand its media resources in first and second-tier cities while penetrating into third and fourth-tier cities[42]. Research and Development - The company is investing in new technology development, with a budget allocation of RMB 500 million for R&D in 2018, which is a 30% increase from 2017[11]. - Research and development expenses increased by 30% in 2017, focusing on innovative advertising technologies[52]. - R&D investment amounted to approximately 224.30 million yuan in 2017, a 35.80% increase from 165.17 million yuan in 2016, representing 1.87% of operating revenue[65]. Financial Position and Assets - Total assets at the end of 2017 were CNY 15,554,602,846.85, reflecting a 28.24% increase from CNY 12,129,059,829.52 at the end of 2016[17]. - The net assets attributable to shareholders at the end of 2017 were CNY 10,372,574,413.65, a 29.80% increase from CNY 7,990,926,198.40 at the end of 2016[17]. - The company reported a net cash flow from operating activities of CNY 4,156,254,605.06, a decrease of 13.41% compared to CNY 4,800,012,042.70 in 2016[17]. - The company’s cash and cash equivalents decreased by 11.38% to approximately 3.93 billion yuan at the end of 2017, down from 4.45 billion yuan at the end of 2016[75]. Shareholder and Governance - The independent directors confirmed that the profit distribution plan aligns with the company's long-term development strategy and protects shareholder interests[103]. - The company has commitments from shareholders to avoid any business activities that may compete with its main business, effective from July 15, 2004, and is currently fulfilling these commitments[118]. - The company has engaged Lixin Accounting Firm for auditing services, with a fee of 4 million RMB, and has maintained a continuous relationship for 17 years[123]. - The company has established an independent financial department and accounting system[117]. - The company is currently fulfilling its commitments regarding independence and competition[117]. Employee and Management - The total number of employees in the company is 8,415, with 8,414 in major subsidiaries and 1 in the parent company[191]. - The total compensation for the board and senior management is 2,351 million[189]. - The company has implemented a performance-based compensation policy, linking total compensation changes to business performance growth[192]. - New employee training occurs monthly, covering company history, culture, and departmental functions[193]. - The management team includes experienced professionals with backgrounds in finance and media, enhancing the company's strategic direction[176]. Legal and Regulatory - The company reported a significant lawsuit involving a claim of 313.38 million RMB against two defendants for unpaid advertising fees, which has entered the execution phase[126]. - The company received a warning letter from the Guangdong Regulatory Bureau due to incomplete and untimely disclosures in the 2015 annual report[127]. - The company has been proactive in ensuring compliance with regulatory requirements, as evidenced by the warnings received and subsequent actions taken[185].