DHCC(SZ:002065)2018-04-20 16:00Financial Performance - The company reported a total revenue of 3,139,787,560 RMB for the year 2017, with a cash dividend of 1.00 RMB per 10 shares distributed to shareholders[5]. - The company's operating revenue for 2017 was ¥7,290,128,453.42, representing a 12.56% increase compared to ¥6,476,747,733.49 in 2016[19]. - The net profit attributable to shareholders for 2017 was ¥663,799,645.53, a decrease of 26.22% from ¥899,647,231.24 in 2016[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥304,804,425.64, down 58.43% from ¥733,256,861.71 in 2016[19]. - The basic earnings per share for 2017 was ¥0.2114, a decline of 26.21% compared to ¥0.5731 in 2016[20]. - The total assets at the end of 2017 were ¥14,154,048,899.04, reflecting a 13.89% increase from ¥12,428,188,875.83 at the end of 2016[20]. - The net assets attributable to shareholders at the end of 2017 were ¥8,894,807,143.21, an increase of 1.28% from ¥8,782,567,390.96 at the end of 2016[20]. - The net cash flow from operating activities for 2017 was ¥167,677,716.04, a significant improvement of 134.93% compared to -¥501,109,930.09 in 2016[19]. - The company reported a total of ¥358,995,219.89 in non-recurring gains for 2017, compared to ¥166,390,369.53 in 2016[27]. - The company achieved a net profit of 16.93 million yuan in 2017, with a net profit attributable to the parent company of 10.14 million yuan, representing only 8.01% of the promised performance target[156]. Market Strategy and Expansion - The company plans to expand its market presence and enhance its product offerings in 2018, focusing on potential risks and operational strategies[5]. - The company's future development outlook includes addressing potential risks and implementing strategic initiatives for growth in 2018[5]. - The company has established long-term strategic partnerships with major suppliers like Huawei, IBM, and Oracle, enhancing its competitive edge[43]. - The company is actively embracing new technologies such as blockchain, artificial intelligence, big data, and IoT, driving innovation and growth[33]. - The company is positioned to benefit from the rapid growth in the software and information technology services industry, driven by national strategic initiatives[115]. - The company aims to improve customer satisfaction and brand influence by providing comprehensive solutions across multiple industries, including healthcare and finance[128]. - The company is focused on optimizing resource allocation and conducting mergers and acquisitions to extend its industry chain[126]. - The company is actively pursuing international expansion, seeking quality overseas targets to enhance its global presence[135]. Research and Development - The company has over 1,000 software copyrights and has established several research institutes and innovation centers to enhance its R&D capabilities[40]. - Research and development expenditure totaled ¥1,114,984,033.13, accounting for 15.29% of total revenue, an increase of 2.79% year-on-year[100]. - The number of R&D personnel increased by 18.13% to 5,023, representing 58.69% of the total workforce[100]. - Donghua Software is committed to increasing R&D investment and introducing new technologies to find new profit growth points, focusing on AI, big data, and blockchain[126]. Client Relationships and Contracts - The company has a large and stable customer base, including over a thousand long-term clients across various industries[44]. - The company signed contracts with over 500 healthcare clients nationwide, expanding its user base in municipal hospitals[50]. - In the financial sector, the company successfully secured multiple projects with major banks, including the China Postal Savings Bank and the People's Bank of China[52]. - The company established strong client relationships in the transportation sector, securing contracts with Hainan Airlines and Beijing Capital International Airport[56]. - The company has signed contracts for various government projects, including the construction of the legal regulations review information platform, which has been promoted to cover 31 provinces and 4 economic special zones in China[59]. Cash Flow and Investment - Operating cash inflow for 2017 was CNY 8,205,899,249.61, an increase of 17.44% compared to 2016[101]. - Total cash and cash equivalents increased by 96.62% to CNY 504,115,418.33, compared to a decrease in 2016[101]. - The company’s cash flow management and investment strategies are under review to address the significant variances observed in cash flow metrics[102]. - Investment cash inflow increased by 146.38% to CNY 396,163,098.83, primarily due to cash recovered from the disposal of fixed and intangible assets[102]. - Investment cash outflow surged by 356.76% to CNY 577,819,956.28, mainly due to increased investments in various banks and technology companies[102]. Corporate Governance and Compliance - The board of directors has confirmed that all members attended the meeting to review the annual report, ensuring accountability for the report's accuracy[4]. - The company emphasizes that future operational plans do not guarantee profit forecasts and are subject to market conditions[5]. - The company is committed to maintaining transparency and has designated multiple media outlets for information disclosure, including the Securities Daily and China Securities Journal[17]. - The company has maintained a good credit status, with no outstanding court judgments or significant debts due[166]. - The company did not face any major lawsuits or arbitration matters during the reporting period[165]. Employee and Stockholder Relations - The employee stock ownership plan (ESOP) was disclosed on January 17, 2017, aiming to enhance the company's incentive system and align employee interests with shareholders[167]. - As of March 2, 2018, the ESOP had acquired a total of 26,412,422 shares, representing 0.8412% of the company's total equity, with a total transaction amount of approximately RMB 200 million[168]. - The company acknowledges the risk of core personnel loss and is enhancing its compensation and training programs to retain talent[138]. Dividend Policy - For the 2017 fiscal year, the proposed cash dividend is RMB 1.00 per 10 shares, based on a total share capital of 3,139,787,560 shares[151]. - The cash dividend for 2016 was RMB 235,484,067, which accounted for 26.18% of the net profit attributable to shareholders[149]. - The company has maintained a consistent cash dividend policy over the past three years, adhering to its articles of association[144]. - The total distributable profit for the current period is RMB 1,815,609,492.72, with cash dividends accounting for 100% of the profit distribution[149].