WISCOM(SZ:002090)2017-03-27 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares (including tax) based on a total share capital of up to 237,802,904 shares[5]. - For the year 2016, the proposed cash dividend is also 1.50 yuan per 10 shares, with a total distribution not exceeding 35,670,435.60 yuan (including tax) pending shareholder approval[124]. - The cash dividend for 2016 represents 32.67% of the net profit attributable to shareholders, which was 109,187,510.29 yuan[125]. - The company has maintained a stable dividend distribution policy over the past three years, with cash dividends of 31,181,625.00 yuan in 2014, 34,757,835.60 yuan in 2015, and a proposed 35,670,435.60 yuan in 2016[123]. - The total distributable profit for 2016, after accounting for the cash dividend, is 301,636,638.38 yuan[126]. - The company has not proposed any stock bonus or capital reserve increase in the current profit distribution plan[126]. - The cash dividend distribution is fully compliant with the company's articles of association and has been executed transparently[122]. - The company has provided opportunities for minority shareholders to express their opinions and has ensured their legal rights are protected[122]. - The company is currently in a growth phase and has significant capital expenditure plans, which necessitate maintaining a minimum cash dividend ratio of 20%[126]. Financial Performance - The company's operating revenue for 2016 was ¥1,874,225,630.94, an increase of 50.98% compared to ¥1,241,388,364.28 in 2015[18]. - The net profit attributable to shareholders decreased by 16.20% to ¥109,187,510.29 from ¥130,296,222.42 in 2015[18]. - The net cash flow from operating activities surged by 1,635.15% to ¥241,558,759.95, compared to ¥13,921,493.18 in 2015[18]. - The total assets at the end of 2016 reached ¥3,818,180,612.91, reflecting a growth of 44.49% from ¥2,642,440,104.35 in 2015[18]. - The company's basic earnings per share decreased by 21.77% to ¥0.4680 from ¥0.5982 in 2015[18]. - The company reported a significant increase in non-recurring gains, totaling ¥28,691,240.53 in 2016, compared to ¥51,520,030.62 in 2015[24]. - The company's equity assets increased by 70.83% compared to the beginning of the year, primarily due to capital increase to Zijin Trust and investments in Nanjing Energy Network New Energy Technology Development Co., Ltd. and Smart City Venture Capital Fund[31]. - The company achieved operating revenue of 1.874 billion yuan in 2016, a growth of 50.98% compared to 2015, primarily due to the EPC contracting projects for the 198MW wind farm and significant sales in modular substations and smart city business[42]. Business Segments and Operations - The company’s main business segments are smart energy and smart city, focusing on safe city, intelligent transportation, and intelligent buildings[16]. - The company has completed strategic layout in the entire industrial chain of power automation, including power product business, power design and general contracting business, and new energy investment and operation business[16]. - The company is actively developing and investing in wind and solar power projects, leveraging its strong foundation in the power industry[29]. - The smart city business includes mature solutions such as safe city, intelligent transportation, and smart buildings, successfully serving major projects like the Shanghai Expo[30]. - The company is focusing on strategic cooperation with Zhongjin Leasing to innovate its business model from "heavy asset investment" to "light asset operation," enhancing its project undertaking capabilities[49]. - The company has established a joint venture for new energy and smart city projects, enhancing its overall solution capabilities in smart city development[52]. - The company is actively promoting its distributed power terminal and active distribution network technologies in collaboration with provincial power companies, achieving significant sales in various regions[45]. - The company is recognized as a leading enterprise in the national power automation industry, with significant achievements in renewable energy and smart substation projects[39]. Research and Development - The company maintains annual R&D investment at over 8% of sales, with over 200 dedicated R&D personnel and more than 100 patents and software copyrights[35]. - The company has established a joint R&D center with Tsinghua University and other institutions, enhancing its technological innovation capabilities[35]. - Research and development expenses increased significantly, driven by innovation in smart energy and smart city sectors, with notable product advancements and successful testing[71]. - R&D investment increased by 27.30% to ¥135,904,004.45 in 2016, while the proportion of R&D investment to operating revenue decreased from 8.60% in 2015 to 7.25% in 2016[72]. Market and Strategic Initiatives - The company is focusing on expanding its market presence through strategic partnerships and investments in new technologies[87]. - The company aims to leverage its investments in smart energy management systems to drive future growth[88]. - The company is committed to increasing its operational efficiency through innovative technology solutions in the energy sector[88]. - The company is exploring opportunities for mergers and acquisitions to enhance its market position[85]. - The company plans to expand its market share in the renewable energy sector, targeting a 38% share of non-fossil energy generation capacity by the end of 2017, up from 6.0 billion kW in 2016[99]. - The company aims to become a leading smart city solution provider, focusing on integrated solutions across various sectors including government, finance, and healthcare[106]. - The company plans to leverage strategic partnerships and investments to explore innovative business models in the smart city sector, enhancing its market presence[107]. Risks and Challenges - The company faces risks related to the uncertainty of industry technology development, particularly in smart grid standards and implementation plans[115]. - Increased competition in the power product business due to centralized bidding processes by major clients like State Grid and Southern Grid, raising market entry barriers[116]. - The company anticipates a trend towards grid parity for wind and solar energy by 2020, which may impact profitability in its renewable energy investment operations[117]. - The risk of curtailment in wind energy generation due to inadequate transmission planning, affecting profitability in renewable energy operations[117]. - The macroeconomic environment remains uncertain, with potential impacts on external market demand and financing costs[117]. - The company must navigate risks associated with national macro policies, including potential electricity price reductions and their effects on market pricing[117]. Corporate Governance and Compliance - The company has engaged the domestic accounting firm Tianheng for 17 consecutive years, with an audit fee of 500,000 RMB[134]. - The company is rated as an AAA credit enterprise by the People's Bank of China and recognized as a trustworthy enterprise in Jiangsu Province, reflecting its commitment to creditor rights protection[175]. - The company has implemented a comprehensive employee welfare system, including regular health check-ups and supplementary medical insurance, ensuring a fair and safe working environment[176]. - The company has a robust internal control system and governance structure, ensuring the protection of shareholder and creditor rights[175]. - The company held 9 shareholder meetings, 14 board meetings, and 10 supervisory board meetings in 2016, reviewing over 80 proposals, ensuring legal and compliant decision-making processes[174]. Investments and Financial Management - The company completed a non-public bond issuance project in 2016 and is actively pursuing a non-public stock issuance to increase capital for China Financial Leasing Co., Ltd.[53]. - The company plans to raise funds through a non-public stock issuance to increase its stake in China Financial Leasing Co., Ltd. to 22.22% after an investment of approximately CNY 1.49 billion[181]. - The total amount of funds raised in 2016 was CNY 500 million, with a net amount of CNY 498 million after deducting issuance costs of CNY 2 million[91]. - The company has engaged in entrusted financial management with a total amount of CNY 29.91 million, including CNY 9.91 million in principal recovered[167]. - The company reported a total of CNY 160 million in approved guarantees for subsidiaries during the reporting period, with actual guarantees amounting to CNY 30.29 million[163]. Subsidiaries and Related Transactions - The company established several new subsidiaries during the reporting period, which had a minimal impact on overall financial performance[66]. - The company has ongoing investments in related enterprises, including Jiangsu Jinzh Smart Industry Research Institute, focusing on product development and operational services[150]. - The company engaged in related party transactions, including procurement agreements with Jiangsu Jinzhijiao Education Information Co., Ltd., with a transaction amount of 500,000 CNY[145]. - The company confirmed that all related transactions were within the expected range during the reporting period[148]. Environmental and Social Responsibility - The company has invested in renewable energy, constructing a 300 kWp solar power station in 2012 and a 500 kWp photovoltaic station in 2015, demonstrating its commitment to environmental protection[180]. - The company actively engages in social responsibility initiatives, including environmental protection and support for national education and disaster relief efforts[178]. - The company has engaged in social responsibility initiatives, including donations and support for education and disaster relief[181].