Fuchun Technology(SZ:300299)2016-03-30 16:00Acquisitions and Investments - In 2015, the company completed the acquisition of Shanghai Junmeng Network Technology Co., Ltd., marking its entry into the game development and operation sector, which has become one of its main businesses[6]. - The company holds a 23% stake in Fuzhou Read Information Technology Co., Ltd. and a 24.24% stake in Shanghai Yuyang Network Technology Co., Ltd. after increasing its investment in these companies[8]. - The company is currently working on a major asset restructuring to acquire 80% of Spring and Autumn Times (Tianjin) Film and Television Co., Ltd., which is pending approval from the China Securities Regulatory Commission[9]. - The company completed the acquisition of Shanghai Junmeng, expanding its strategic layout into the internet cultural consumption business[35]. - The company plans to issue shares to acquire 80% of Spring and Autumn Times, further enhancing its service offerings in the film content business[35]. - The company has completed the acquisition of Wuhan Xinsifang for CNY 2.5 million, with a total investment of CNY 2.51 million[98]. - The acquisition of Beijing Tongchang was committed at CNY 4.4 million, with CNY 4.41 million utilized, achieving 100% of the planned investment[98]. - The company completed the acquisition of 100% equity in Shanghai Junmeng through share issuance and cash payment[200]. Financial Performance - The company's operating revenue for 2015 was RMB 378,424,503.38, representing a 69.79% increase compared to RMB 222,872,295.62 in 2014[26]. - The net profit attributable to shareholders for 2015 was RMB 69,950,870.92, a significant increase of 376.31% from RMB 14,686,116.55 in 2014[26]. - The net cash flow from operating activities reached RMB 95,423,211.93, marking an 812.86% improvement from a negative cash flow of RMB 13,385,928.34 in 2014[26]. - Basic earnings per share for 2015 were RMB 0.21, up 320.00% from RMB 0.05 in 2014[26]. - Total assets at the end of 2015 amounted to RMB 1,617,565,090.24, a 191.40% increase from RMB 555,107,559.58 at the end of 2014[26]. - The net assets attributable to shareholders increased by 226.47% to RMB 1,323,255,327.61 in 2015 from RMB 405,323,720.22 in 2014[26]. - The company reported a quarterly revenue of RMB 132,773,251.15 in Q4 2015, showing a consistent growth trend throughout the year[28]. - The weighted average return on equity for 2015 was 7.52%, an increase from 3.68% in 2014[26]. - The company’s total operating revenue for 2015 was ¥378,424,503.38, representing a year-on-year increase of 69.79% compared to ¥222,872,295.62 in 2014[64]. - The total profit amounted to 79.72 million yuan, marking a 218.07% increase from the previous year[54]. Gaming Business - The game business launched three new mobile games, including "Meng Three Kingdoms" and "Ancient Dragon Heroes," with "Meng Three Kingdoms" launched in mainland China[36]. - Game business revenue was 148.89 million yuan, accounting for 39.34% of total operating revenue[54]. - The operating profit from the game business was 56.15 million yuan, representing 79.66% of total operating profit[54]. - The company has developed a diverse IP portfolio, successfully launching multiple games based on well-known IPs, with some products exported to over 40 countries[42]. - The company has invested in multiple mobile games based on well-known IPs, including "SNH48," "Ragnarok Mobile," and "King of Kings"[131]. - The company began its mobile game publishing operations in Q4 2015, launching its first self-published product "Pili Jianghu"[138]. Research and Development - The company is involved in 13 R&D projects, including key technologies for 4G networks and 5G wireless access network architecture research[45]. - The company has established a research center in Xiamen to enhance its R&D capabilities and support nationwide operations[59]. - The company has increased its R&D personnel to 217, representing 22.68% of the workforce, and invested RMB 36.03 million in R&D, which is 9.52% of total revenue[82]. - The company has developed a complete game quality inspection system to minimize the risk of new game development failures[135]. - The company is focusing on the development of a cloud storage proxy system based on data characteristics[45]. Risk Management - The company faces risks related to the gaming industry, including regulatory policy risks, intensified market competition, and reliance on single game products[6]. - The company acknowledges the gradual nature of realizing investment returns, indicating potential risks in achieving expected investment benefits[8]. - The company has highlighted the importance of risk control and management talent in navigating the complexities of its expanded operations[7]. - The company recognizes potential risks in the gaming industry, including regulatory policy risks and market competition, and is implementing measures to mitigate these risks[126][129]. - The company is committed to improving its financial management and risk control capabilities to ensure sustainable development and prevent financial risks[124]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares (including tax) based on a total of 380,002,637 shares[10]. - The company reported a total distributable profit of RMB 45.01 million as of December 31, 2015, with cash dividends accounting for 100% of the profit distribution[151]. - The cash dividend payout ratio for 2015 was 27.16% of the net profit attributable to shareholders, while in 2014 it was 123.18%[156]. - The company has completed the equity distribution work for the 2014 fiscal year, with the record date set for April 30, 2015, and the ex-dividend date on May 4, 2015[149]. - The company has not proposed a cash dividend distribution plan for the reporting period despite having positive distributable profits[156]. Corporate Governance and Compliance - The company has implemented strict insider information management during the restructuring process to minimize the risk of insider trading[144]. - The company has received feedback from the CSRC regarding its restructuring application and is working on the necessary responses[144]. - The company is actively managing its investment strategies to ensure compliance with regulatory requirements[159]. - The company reported a commitment to provide accurate and complete information regarding the restructuring process, ensuring no misleading statements or omissions are made[160]. - The actual controller, Miao Pinzhang, has committed to not engaging in any business activities that directly or indirectly compete with the company during his tenure[161]. Market Expansion and Future Outlook - The company plans to enhance its IP incubation business, aiming to incubate 5-8 IPs across the full industry chain in 2016[112]. - The company aims to transform from a project-based company to a platform and operational company in 2016, focusing on enhancing professional competitiveness and investing in R&D and quality entertainment content[118]. - The company intends to pursue mergers and acquisitions to strengthen its performance and expand its business base, aiming for sustainable growth[118]. - The company plans to explore market expansion opportunities in under-served regions, targeting a 15% growth in user base[188]. - The company anticipates a stable economic environment, which will support its growth initiatives and performance targets for the next fiscal year[188].