HAND(SZ:300170)2017-04-25 16:00Financial Performance - The company's operating revenue for 2016 was CNY 1,710,218,028.51, representing a 40.32% increase compared to CNY 1,218,798,082.68 in 2015[18]. - The net profit attributable to shareholders for 2016 was CNY 241,382,013.60, which is a 12.67% increase from CNY 214,240,021.65 in 2015[18]. - The net profit after deducting non-recurring gains and losses was CNY 220,244,766.13, up 15.03% from CNY 191,468,659.61 in 2015[18]. - The total assets at the end of 2016 reached CNY 2,637,265,339.69, a 25.08% increase from CNY 2,108,380,164.71 at the end of 2015[18]. - The net assets attributable to shareholders increased by 19.21% to CNY 2,064,546,600.18 from CNY 1,731,909,030.76 in 2015[18]. - The basic earnings per share for 2016 was CNY 0.28, a 7.69% increase from CNY 0.26 in 2015[18]. - The diluted earnings per share was CNY 0.27, reflecting a 3.85% increase from CNY 0.26 in 2015[18]. - The weighted average return on equity for 2016 was 12.72%, down from 13.58% in 2015[18]. - The company achieved total operating revenue of CNY 1,710,218,028.51, representing a year-on-year growth of 40.32%[31]. - Net profit attributable to shareholders reached CNY 241,382,013.60, an increase of 12.67% compared to the previous year[31]. Quarterly Performance - In Q1, operating revenue was CNY 295,340,586.69, with net profit of CNY 41,693,825.12[20]. - In Q2, operating revenue increased to CNY 426,408,559.93, with net profit of CNY 63,450,106.90[20]. - In Q3, operating revenue further rose to CNY 439,782,541.33, with net profit of CNY 60,635,903.63[20]. - In Q4, the company reported operating revenue of CNY 548,686,340.56, with net profit of CNY 75,602,177.95[20]. Business Strategy and Focus - The company is focusing on improving service quality and customer experience to enhance the productivity of ERP consultants amidst rising labor costs[6]. - The company has focused on enhancing its ERP implementation services, leveraging its experience and technical capabilities[28]. - The company is expanding its service offerings to include emerging technologies such as cloud computing and big data[28]. - The company has implemented measures to optimize performance management and cost control across its business units[32]. - The company is actively exploring new business opportunities in supply chain finance and shared services[31]. - The company has expanded its service offerings beyond ERP to include CRM, HR management, performance management systems, and BI systems, reflecting a diversification strategy in response to evolving market demands[38]. - The company has a strong emphasis on talent development, with a dedicated training program recognized within the industry, ensuring a stable and skilled workforce[40]. - The company aims to enhance its marketing system and focus on regional operations to deepen relationships with existing clients and acquire new clients[105]. - The company will concentrate resources on the research and development of its own products and solutions to create new profit growth points and improve product performance[105]. - The company plans to enhance its competitive advantage by focusing on overall solution service capabilities and accelerating market expansion in the information technology consulting field[104]. Customer and Market Insights - Over 60% of the company's main business revenue comes from existing customers, indicating a high customer retention rate which is crucial for stable revenue growth[39]. - The company has seen significant growth opportunities in supply chain finance due to the shift in market competition dynamics from individual customers to supply chains[33]. - The company expanded its information technology solutions across various industries, responding to increasing and diversified client demands[44]. - Revenue from operation and maintenance services grew rapidly, contributing approximately 10% to total revenue[50]. Investments and Acquisitions - The company has invested in fixed assets primarily for the construction of office buildings and the purchase of electronic and office equipment[34]. - The company acquired Shanghai Dami and Yangzhou Dami, resulting in goodwill totaling ¥51.80 million, while a provision for impairment of ¥2.87 million was recognized for the acquisition of Suishen Technology[81]. - The company expanded its operations by acquiring Shanghai Dami Information Technology Co., Ltd. for ¥74,000,000.00 on January 31, 2016[63]. - The company established HAND ENTERPRISE SOLUTIONS USA.INC. with an investment of ¥3,258,500.00, which was included in the consolidated financial statements from April 2016[65]. - The company acquired 100% equity of Shanghai Dami Information Technology Co., Ltd. for a total cost of RMB 74 million, with a revenue of RMB 120.53 million and a net profit of RMB 9.50 million from the acquisition period[135]. - The company also acquired 100% equity of Yangzhou Dami Investment Management Co., Ltd. for RMB 55.28 million, resulting in a net loss of RMB 15,623.95 during the acquisition period[135]. Financial Management and Governance - The company has received multiple honors, including recognition as a key software enterprise and a high-tech enterprise, enhancing its brand reputation[41]. - The company reported a significant increase in hardware sales, which rose by 881.61% to ¥10,576,579.96[57]. - The company’s total operating costs increased by 42.44% to ¥1,039,668,160.93, primarily driven by the growth in software service costs[61]. - The company's R&D investment reached CNY 173 million, accounting for 10.13% of total revenue, marking a new high[71]. - The company reported a net cash outflow from investment activities of CNY 138 million, mainly due to acquisitions[75]. - The company has committed to invest RMB 31,161.05 million in various projects, with a cumulative investment of RMB 31,081.87 million[93]. - The company has established a performance evaluation system to enhance employee skills and promote mutual growth[166]. - The company maintained compliance with legal regulations regarding information disclosure, ensuring transparency and fairness to investors[165]. Shareholder Information - The company plans to distribute a cash dividend of CNY 0.50 per 10 shares, based on a total of 857,887,869 shares[6]. - In 2016, the company distributed a cash dividend of RMB 0.3 per share, totaling RMB 25,061,239.02, based on a total share capital of 835,374,634 shares[115]. - The company plans to allocate 100% of its profit distribution to cash dividends, with a total cash dividend amount of RMB 42,894,393.45 for the current period[116]. - The cash dividend payout ratio for 2016 was 17.77% of the net profit attributable to shareholders[121]. - The cash dividend payout ratio for 2015 was 11.63% of the net profit attributable to shareholders[121]. Risks and Challenges - The company faces risks from macroeconomic fluctuations that could impact client budgets for IT consulting and ERP system construction[102]. - Rising labor costs and talent retention risks are significant concerns for the company, which is addressing these through improved service quality and talent development strategies[103]. Compliance and Legal Matters - The company confirmed compliance with commitments regarding the use of raised funds, ensuring they are only used for project construction and not for leasing or commercial development[128]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[129]. - The company maintained a commitment to lock-up shares for major shareholders, with a gradual release of 30%, 30%, and 40% over three years[127]. - The company ensured that all related party transactions were conducted in accordance with market fairness and legal procedures[125]. - The company confirmed that all information disclosed in the application documents was true, accurate, and complete, with no misleading statements or omissions[125].