SZZT(SZ:002197)2016-04-21 16:00Financial Performance - The company's operating revenue for 2015 was CNY 1,127,441,401.54, representing a 16.66% increase compared to CNY 966,421,179.44 in 2014[16]. - The net profit attributable to shareholders for 2015 was CNY 81,593,007.59, a 30.18% increase from CNY 62,675,976.22 in 2014[16]. - The net profit after deducting non-recurring gains and losses was CNY 78,459,524.53, which is a 40.75% increase compared to CNY 55,745,401.51 in 2014[16]. - The company's total assets at the end of 2015 were CNY 2,942,296,687.97, reflecting a 51.91% increase from CNY 1,936,867,544.90 at the end of 2014[17]. - The net assets attributable to shareholders at the end of 2015 were CNY 1,204,777,202.77, a 6.72% increase from CNY 1,128,956,858.04 at the end of 2014[17]. - The basic earnings per share for 2015 were CNY 0.19, up 26.67% from CNY 0.15 in 2014[16]. - The diluted earnings per share for 2015 were also CNY 0.19, reflecting the same 26.67% increase from CNY 0.15 in 2014[16]. - The net cash flow from operating activities for 2015 was negative CNY 48,654,079.27, a decrease of 155.25% compared to CNY 88,069,541.28 in 2014[16]. - The weighted average return on equity for 2015 was 7.02%, an increase from 5.67% in 2014[16]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 0.6 RMB per 10 shares based on a total of 426,036,752 shares, which amounts to a total cash distribution of approximately 25.56 million RMB[4]. - The net profit available for distribution to shareholders for the year 2015 is 115,696,800.70 CNY, with a cash dividend accounting for 100% of the profit distribution[116]. - The company reported a net profit of 56,806,625.82 CNY for the year 2015, with a profit margin of 31.33% for the cash dividends distributed[116]. - The company has established a three-year shareholder return plan (2015-2017) that includes a differentiated cash dividend policy[111]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during profit distributions, considering its growth stage and significant capital expenditure plans[116]. Operational Risks and Management - The board of directors has acknowledged various operational risks including management and technology risks, urging investors to be cautious[4]. - The company emphasizes the importance of risk management strategies in response to potential operational and financial challenges[4]. - The company recognizes operational, technical, and management risks and plans to implement monitoring mechanisms and improve management capabilities to mitigate these risks[103]. - The company has faced rising operational costs and funding risks due to increasing labor costs and varying investment scales across different business segments[106]. - The company aims to enhance internal management and cost control to mitigate the risks associated with rising operational costs[106]. Strategic Development and Market Expansion - The annual report includes a section on future development plans and operational goals, which are subject to market conditions and do not constitute a binding commitment to investors[4]. - The company has established subsidiaries and partnerships to enhance its market presence and technological capabilities[8]. - The report outlines the company's commitment to research and development in new technologies and products to drive future growth[8]. - The company is actively exploring market expansion opportunities to increase its competitive edge[8]. - The company has expanded its business into IDC and community O2O financial services as part of its strategic upgrade in 2015[15]. - The company plans to enhance its community O2O financial services to adapt to changing consumer behaviors and increase customer loyalty[96]. - The company is focusing on the development of smart products and the transformation of business models to meet the demands of the financial sector[92]. - The company intends to actively pursue mergers and acquisitions to enhance its core capabilities in new payment methods, IDC, and cloud computing[99]. Research and Development - The company has a strong R&D and technical advantage, being one of the earliest high-tech enterprises in the production of financial electronic payment devices in China[31]. - R&D investment increased by 31.23% to ¥49,922,611.93, representing 4.43% of operating revenue, up from 3.94% in the previous year[59]. - The company expanded its R&D capabilities in financial electronic payment devices, launching new self-service terminal products across various sectors[58]. Financial Instruments and Capital Management - The company issued bonds in 2015, raising RMB 400 million, with a net amount of RMB 396.63 million after fees[76]. - The company issued a total of 400 million RMB in bonds, with 337.7 million RMB utilized by the end of 2015[162]. - The company’s bonds have a credit rating of AA+, indicating high debt security and low default risk[164]. - The company secured a credit line of CNY 1,220 million from major banks, with CNY 609.3 million (50%) remaining unused as of December 31, 2015[178]. - The company maintained a 100% repayment rate for loans and interest over the past three years, with no overdue debts[178]. Shareholder Structure and Relations - The total number of shareholders at the end of the reporting period was 66,967, with a focus on major shareholders holding over 5%[198]. - The major shareholders include Zeng Shengqiang with 24.57% ownership, Zeng Shenghui and Xu Zhonggui each holding 7.05%[199]. - The company has a diverse shareholder base, including institutional investors such as Taiping Life Insurance and various investment funds[199]. - The report indicates that the company has not disclosed any strategic investors or new shareholders among the top ten[199]. Environmental and Social Responsibility - The company is committed to environmental protection, ensuring all waste emissions meet regulatory standards[158]. - The company has implemented a green office policy, promoting paperless operations to enhance operational efficiency[158]. - The company actively supports local economic development by providing numerous job opportunities, including high-end talent[159].