BONC(SZ:300166)2014-04-24 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[3]. - The company's operating revenue for 2013 was CNY 468,161,375.81, representing a 49.57% increase compared to CNY 313,003,233.22 in 2012[20]. - The net profit attributable to shareholders for 2013 was CNY 90,236,363.71, an increase of 27.54% from CNY 70,753,506.20 in 2012[20]. - The total assets at the end of 2013 reached CNY 1,135,197,833.49, a 45.73% increase from CNY 778,990,926.15 in 2012[20]. - The company's total liabilities increased by 161.24% to CNY 119,419,523.14 in 2013, up from CNY 45,713,280.44 in 2012[20]. - The basic earnings per share for 2013 was CNY 0.73, reflecting a 25.86% increase from CNY 0.58 in 2012[20]. - The weighted average return on equity for 2013 was 11.49%, up from 10.12% in 2012[20]. - The net profit after deducting non-recurring gains and losses for 2013 was CNY 84,980,688.30, a 22.09% increase from CNY 69,606,206.20 in 2012[20]. - The company achieved total operating revenue of 468 million, a year-on-year increase of 49.57%[36]. - Operating profit for the year was 88.65 million, reflecting an 8.73% increase compared to the previous year[36]. - The total profit reached 97.21 million, marking a 16.06% growth year-on-year[36]. - The net cash flow from operating activities for 2013 was CNY -42,074,120.20, a significant decline compared to CNY -10,781,428.60 in 2012, indicating a 290.25% increase in cash outflow[20]. Market Expansion and Strategy - User data showed a growth in active users, reaching 2 million, which is a 25% increase year-over-year[3]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 15% to 18%[3]. - Market expansion plans include entering two new provinces, aiming to increase market share by 5% in the next year[3]. - The company aims to diversify its client base beyond telecommunications, targeting sectors such as finance, government, and energy[27]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 200 million RMB earmarked for potential deals[3]. - The company maintained a steady increase in market share within the telecommunications sector, expanding its business from BSS to OSS domains[38]. - The company is focused on expanding its presence in non-telecommunications sectors such as finance, media, insurance, and government, seeking new business growth opportunities[101]. Research and Development - The company is investing heavily in R&D, allocating 10% of its revenue towards developing new technologies and solutions[3]. - The company's R&D investment totaled 89.98 million yuan, accounting for 19.22% of total operating revenue, with 54.63% of R&D expenses capitalized[51]. - The company focused on continuous innovation in technology, with significant R&D investments leading to the development of new products like data integration and management tools[37]. - The company is committed to strengthening its core competencies through ongoing research and development in big data technologies[37]. - The company is developing several key projects, including a big data platform and an integrated data management tool, to enhance its product offerings[51]. Financial Management and Investments - The company has established a clear profit distribution policy to ensure stable returns to shareholders, adhering to regulatory requirements[112]. - The company plans to distribute no cash dividends for the 2013 fiscal year, opting instead for a capital reserve increase of 10 shares for every 10 shares held[115]. - The total cash dividend amount for 2013 is 0.00 yuan, with a distributable profit of 90,236,363.71 yuan[120]. - The company is in a rapid expansion phase, requiring significant working capital for ongoing projects, which has led to a tight cash flow situation[121]. - The company has not proposed a cash dividend distribution plan despite having positive undistributed profits, due to urgent working capital needs[121]. - The company has committed not to engage in high-risk investments such as securities investment, entrusted financial management, or derivative investments for the next twelve months after using the raised funds[174]. Acquisitions and Mergers - The company completed the acquisition of 100% equity in Beijing Beike Yili Technology Co., Ltd. and Beijing Kairuiming Software Co., Ltd. for a total transaction price of 21 million yuan[131]. - The acquisition was approved by the China Securities Regulatory Commission on December 9, 2013, and the business registration changes were completed by December 30, 2013[134]. - The integration plans following the acquisitions were discussed, highlighting the expected synergies and operational efficiencies[126]. - The company aims to enhance profitability and operational capabilities through the acquisitions, which are expected to positively impact its financial performance[131]. - The company will pursue external growth strategies through mergers and acquisitions to quickly acquire new products, technologies, and markets, creating new profit growth points[105]. Compliance and Governance - The company has established measures to rectify any breaches of the non-compete commitments by its personnel[169]. - The company is focused on maintaining a complete business system and independent market operations following the acquisition[171]. - The company has committed to a minimum 5-year employment contract for key personnel to ensure stability[170]. - The company has established a commitment to ensure that any related party transactions are conducted at fair market prices[173]. - The company has implemented a plan to use RMB 10 million of excess funds to establish a wholly-owned subsidiary in Beijing, aimed at expanding its business intelligence applications[84]. Operational Efficiency - The company reported an increase in gross margin to 45%, up from 40% in the previous year, indicating improved operational efficiency[3]. - The company established a data-driven management model to enhance decision-making and operational efficiency[39]. - The board emphasized the importance of data quality, stating that investments in data management systems will enhance decision-making processes[3]. - Employee compensation accounted for 40.9% of operating costs, showing a decrease from 45.41% in the previous year, while the cost of goods sold increased by 193.54%[49]. Customer and Market Insights - The company has established a marketing service system across six major sectors, significantly enhancing its market reach and capabilities[63]. - The company's top five customers accounted for 27% of total annual sales, indicating a moderate customer concentration risk[57]. - The company reported a significant increase in revenue from the central region, with a growth rate of 330.97% year-over-year[70]. - The gross margin for the southwest region was 49.13%, reflecting a year-over-year increase of 170.78% in revenue[70]. - The gross margin for the northeast region was 36.77%, with a year-over-year revenue decrease of 6.28%[70].