Nsfocus(SZ:300369)2016-04-29 16:00Financial Performance - The company reported that over 50% of its annual revenue is generated in the fourth quarter, with net profit in that quarter accounting for over 80% of the total annual profit[9]. - 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 reached 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 achieved a net profit of RMB 41.6 million for the year 2015, fulfilling its performance commitment[88]. - The company achieved a net profit of 194,323,894.17 CNY for the year 2015, which is an increase from 144,503,492.29 CNY in 2014[123]. Tax and Regulatory Issues - The company faced a tax rate increase from 10% to 15% in 2015 due to the lack of re-evaluation as a key software enterprise, which may adversely affect future operating performance[10]. - The company has no significant discrepancies between financial reports prepared under international accounting standards and those prepared under Chinese accounting standards for the reporting period[29]. - The company has not faced any penalties or rectification issues during the reporting period[143]. Acquisitions and Investments - The company completed a significant 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 the DLP data leakage protection and network content security management sectors[52]. - The company completed acquisitions of 100% of Yisaitong and 55% of Minxun Technology, expanding its consolidated financial statements[66]. - The company invested in several firms, including a 19.91% stake in Kingsoft Security, to strengthen its market influence in the small and medium enterprise sector[52]. - The company has made significant investments in new generation security products, with total commitments reaching RMB 29,258.12 million[90]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 1.10 yuan per 10 shares, based on a total share capital of 364,087,785 shares[15]. - 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 plans to distribute cash dividends of 1.10 CNY per 10 shares, totaling 40,049,656.35 CNY for the year 2015, which represents 20.61% of the net profit attributable to shareholders[119]. - The company’s profit distribution plan must be approved by the board and the shareholders' meeting, requiring a two-thirds majority vote[117]. Research and Development - The company continues to focus on innovation and has increased R&D investment to meet evolving customer security needs[49]. - R&D investment totaled ¥219,289,326.60, representing 24.99% of total revenue, with a year-on-year growth of 36.19%[72]. - The company is investing 200 million RMB in research and development for new technologies aimed at enhancing cybersecurity solutions[200]. Market Position and Strategy - The company maintained its position as the market leader in vulnerability management software, with its 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 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 enhance its brand promotion efforts, allocating 50 million RMB for marketing initiatives in the next fiscal year[200]. Corporate Governance and Management - The company has established a sound incentive mechanism and constraint mechanism to improve its corporate governance structure[145]. - The company has appointed Ruihua Certified Public Accountants as its auditing firm for the 2015 fiscal year[140]. - The current board includes experienced professionals from various sectors, enhancing the company's strategic direction and governance[195]. - The company has seen multiple executive departures, including the resignation of Vice Presidents and the Chief Operating Officer, indicating potential shifts in management strategy[194]. Financial Health and Cash Flow - The company reported a VAT refund of ¥60,943,691.35, which is classified as a recurring gain due to stable expected policies[32]. - Cash and cash equivalents decreased by 70.99% to CNY 110,062,987.65, primarily due to acquisitions and investment payments[75]. - The company has a remaining balance of RMB 552.61 million in its fundraising account as of December 31, 2015[88]. - The company has not engaged in any related party transactions during the reporting period[148]. Future Outlook - The company expects the domestic information security market to reach 4.822 billion USD by 2019, with a compound annual growth rate of 16.6% from 2014 to 2019[100]. - The company has set a revenue guidance of 1.8 billion RMB for the next fiscal year, indicating an expected growth of 20%[200]. - New product launches are expected to contribute an additional 300 million RMB in revenue in the upcoming year[200].