Nsfocus(SZ:300369)2016-04-22 16:00Financial Performance - The company's operating revenue for 2015 was approximately RMB 877.66 million, representing a 24.90% increase compared to RMB 702.67 million in 2014[26]. - The net profit attributable to shareholders for 2015 was approximately RMB 194.32 million, a 34.48% increase from RMB 144.50 million in 2014[26]. - The net cash flow from operating activities for 2015 was approximately RMB 135.33 million, up 36.63% from RMB 99.05 million in 2014[26]. - The total assets at the end of 2015 were approximately RMB 2.13 billion, a 74.37% increase from RMB 1.22 billion at the end of 2014[26]. - The net assets attributable to shareholders at the end of 2015 were approximately RMB 1.69 billion, a 74.18% increase from RMB 970.31 million at the end of 2014[26]. - The basic earnings per share for 2015 was RMB 0.55, an increase of 27.91% compared to RMB 0.43 in 2014[26]. - The company reported a total of RMB 29.10 million in non-recurring gains and losses for 2015, compared to RMB 9.54 million in 2014[31]. - The company experienced a significant increase in quarterly revenue, with Q4 2015 revenue reaching approximately RMB 511.66 million[28]. - The company's weighted average return on equity for 2015 was 13.44%, down from 16.78% in 2014[26]. - The company achieved a net profit of RMB 41.6 million for the year 2015, fulfilling its performance commitment[88]. Market Position and Strategy - The company maintained its position as the market leader in vulnerability management software, with the Remote Security Assessment System (RSAS) holding the largest market share in China for five consecutive years[40]. - The company launched cloud-based security products and services in 2015, including self-service internal network vulnerability scanning and comprehensive security monitoring services[43]. - The company established a new security defense system based on software-defined architecture, enhancing operational efficiency and emergency response capabilities[43]. - The company was elected as the first chairman unit of the China Cybersecurity Industry Alliance established at the end of 2015[41]. - The company has accumulated over 32,128 vulnerabilities in its Chinese vulnerability database, becoming a widely referenced standard in the industry[41]. - The company received the first batch of "Information Security Level Protection Service Agency Capability Qualification Certificates" from the Ministry of Public Security in 2015[41]. - The company aims to enhance its market share and brand image in the domestic information security industry while actively expanding into international markets[102]. - The company plans to increase marketing investments to improve brand influence and coverage, focusing on establishing itself as a leader in the information security sector[102]. - The company is focusing on the development of cloud computing and big data security products and services, which present significant market opportunities[99]. Investments and Acquisitions - The company completed a major asset restructuring in 2015, acquiring Yisaitong as a wholly-owned subsidiary, but faces risks related to performance shortfalls and potential goodwill impairment[13][14]. - The company acquired 100% equity of Yisaitong, enhancing its position in DLP data leakage protection and network content security management[52]. - The company holds an 11.63% stake in Likong Huakang, strengthening its competitiveness in industrial control network security[52]. - The company has established subsidiaries in Hong Kong, the USA, Japan, Singapore, the UK, and Germany to explore international markets[55]. - The company made significant equity investments totaling ¥569,650,000, including a major acquisition of Yisaitong for ¥498,000,000[84]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of $100 million allocated for this purpose[200]. Research and Development - R&D investment totaled ¥219,289,326.60, representing 24.99% of total revenue, with a year-on-year growth of 36.19%[72]. - Research and development expenses increased by 30%, totaling $75 million, to support innovation in cybersecurity solutions[200]. Shareholder and Dividend Policies - The company plans to distribute cash dividends of RMB 1.10 per 10 shares, totaling RMB 40,049,656.35 for the year 2015, which represents 20.61% of the net profit attributable to shareholders[119]. - The cash dividend distribution policy requires at least 30% of the distributable profit to be distributed in cash if there are no major investment plans or cash expenditures, and at least 20% if there are such plans[117]. - The company emphasizes the protection of shareholder rights in any changes to the profit distribution policy, which must be transparent and compliant with regulations[119]. - The company’s profit distribution plan must be approved by the board and shareholders, requiring a two-thirds majority vote[117]. Compliance and Governance - The company has appointed Ruihua Certified Public Accountants as its auditing firm for the 2015 fiscal year[140]. - The company has not faced any penalties or rectification issues during the reporting period[143]. - The company has established a comprehensive after-sales service system, providing 7×24 support and various customer care services[166]. - The company’s board includes experienced professionals with backgrounds in technology, finance, and law, enhancing its governance structure[196]. - The company’s independent directors bring diverse expertise, including accounting and legal backgrounds, which may strengthen oversight and compliance[197]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[200]. - New product launches are expected to contribute an additional $50 million in revenue next year[200]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of the next fiscal year[200].