KINGSUN(300235)2016-10-24 16:00Financial Performance - Total revenue decreased by 12.40% year-on-year to CNY 36,100,081.64 for the current period[8] - Net profit attributable to shareholders increased by 5.20% to CNY 13,310,479.41 compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses decreased by 26.55% to CNY 13,521,407.03 year-to-date[8] - The basic earnings per share rose by 5.00% to CNY 0.0840 for the current period[8] - The company achieved operating revenue of 79,361,440.08 RMB, a decrease of 2.89% year-on-year, with the core product, Kingsun educational software, showing slight revenue growth[35] - Total operating revenue for the current period is $36,100,081.64, a decrease of 12.8% from $41,208,396.30 in the previous period[70] - Total operating costs decreased to $24,446,548.80 from $29,228,014.85, reflecting a reduction of 16.5%[70] - Operating profit for the current period is $12,523,172.21, down 10.5% from $13,988,708.51 in the previous period[71] - Net profit increased to $13,288,383.15, up 5.0% from $12,652,343.95 year-over-year[72] - Total profit for the current period is $14,649,413.16, slightly up from $14,220,646.48, reflecting a growth of 3.0%[71] Assets and Liabilities - Total assets increased by 3.22% to CNY 379,531,131.26 compared to the end of the previous year[8] - Total current assets decreased from CNY 260,107,722.82 to CNY 221,694,661.56, a decline of approximately 14.7%[62] - Total non-current assets increased from CNY 107,588,020.30 to CNY 157,836,469.70, a growth of about 46.7%[63] - Total liabilities rose from CNY 25,063,787.10 to CNY 27,350,277.77, an increase of about 9.1%[64] - Owner's equity increased from CNY 342,631,956.02 to CNY 352,180,853.49, a growth of approximately 2.0%[65] - The company reported a significant increase in long-term equity investments from CNY 2,000,000.00 to CNY 51,991,531.16[66] Cash Flow - The company reported a net operating cash flow decrease of 102.37% year-on-year, mainly due to concentrated payments for last year's procurement[34] - The company reported a net cash outflow from operating activities of CNY -9,537,694.23, worsening from CNY -4,713,029.08 in the previous year[86] - Cash inflow from investment activities totaled CNY 337,676,283.30, slightly down from CNY 341,699,078.79 in the previous year[86] - Cash outflow from investment activities totaled CNY 342,368,295.30, down from CNY 416,682,911.33 in the previous period[90] - The ending balance of cash and cash equivalents was CNY 44,904,092.65, compared to CNY 26,231,027.28 in the previous period[91] - Total cash and cash equivalents decreased by CNY 22,605,538.08 during the period, compared to a decrease of CNY 89,837,950.88 in the previous period[91] Customer and Market Strategy - The company plans to expand into new sales regions and develop new subject areas to mitigate customer concentration risks[11] - The company’s top five customers accounted for 46.25% of total revenue, all being long-term partners with no significant changes in their operations[42] - The company actively implemented its 2016 annual business plan, focusing on market strategy, quality strategy, product strategy, and talent strategy to stabilize and expand market share[43] Investment and Development - Investment in synchronous teaching software and online education services is being prioritized to enhance product competitiveness[12] - The company plans to enhance its online education strategy by increasing investment in network technology development and learning resource development[36] - The project for upgrading and developing English education software has achieved 100% completion, with an investment of CNY 37.01 million[54] - The multi-subject education software project (excluding English) has only reached 81.3% of its planned investment, with CNY 22.15 million invested[54] Risk Management and Compliance - The company faces management risks due to the need for skilled professionals as it scales operations[13] - The report indicates that the company has faced important risk factors that could adversely affect future business operations, with measures outlined to address these risks[44] - The company has made commitments regarding major asset restructuring and compliance with relevant regulations, ensuring no violations occurred during the reporting period[47] - The company has not experienced any non-compliance issues regarding external guarantees during the reporting period[58] Shareholder and Governance - The company’s major shareholders have committed to not transferring shares or engaging in actions that could harm the company's interests[49] - The company has established a remuneration system linked to the execution of return measures, ensuring accountability among directors and senior management[49] - The company is prepared to adapt to new regulatory requirements from the China Securities Regulatory Commission regarding return measures and commitments[49]