GIT(SZ:300465)2017-05-17 11:20Financial Performance - The company's operating revenue for 2016 was approximately ¥972.68 million, representing a 3.63% increase compared to ¥938.62 million in 2015[20]. - The net profit attributable to shareholders decreased by 43.95% to ¥23.11 million in 2016 from ¥41.23 million in 2015[20]. - The net cash flow from operating activities increased significantly by 72.53% to ¥52.93 million in 2016, compared to ¥30.68 million in 2015[20]. - The total assets of the company reached ¥1.70 billion at the end of 2016, marking a 96.11% increase from ¥866.72 million at the end of 2015[20]. - The net assets attributable to shareholders increased by 40.11% to ¥1.04 billion in 2016 from ¥745.09 million in 2015[20]. - The basic earnings per share decreased by 49.95% to ¥0.054 in 2016, down from ¥0.108 in 2015[20]. - The weighted average return on net assets fell to 3.06% in 2016, down from 10.43% in 2015, indicating a decline in profitability[20]. - The company's gross margin for the reporting period was 24.15%, slightly up from 24.12% in 2015[54]. - The cash dividend represents 100% of the total profit distribution for the year[126]. - The distributable profit for 2016 was RMB 23,109,577.54[125]. Acquisitions and Investments - The company completed the acquisition of Shanghai Ruimin, enhancing its service capabilities and expanding its product offerings in the financial information service sector[28]. - The company also acquired 100% stakes in both Jianguo Technology and Shanghe Technology, aiming to strengthen its position in the mobile internet marketing space[34]. - The company reported a total of CNY 58.63 million in goodwill resulting from the acquisitions, indicating significant investment in growth[35]. - The newly acquired company, Jian Guo Technology, generated a total revenue of 46.52 million yuan with a profit of 15.13 million yuan[56]. - The other newly acquired company, Shang He Technology, reported a total revenue of 89.66 million yuan with a profit of 14.84 million yuan[56]. - The acquisition of Shanghai Ruimin Internet Technology Co., Ltd. resulted in a revenue of approximately ¥22.07 million and a net profit of approximately ¥5.12 million since the purchase date[137]. - The acquisition of Hainan Nut Creative Information Technology Co., Ltd. generated a revenue of approximately ¥31.65 million and a net profit of approximately ¥11.39 million since the purchase date[137]. - The acquisition of Kashgar Shanghe Information Technology Co., Ltd. led to a revenue of approximately ¥29.87 million and a net profit of approximately ¥7.94 million since the purchase date[137]. - The company completed its performance commitments for all acquired companies in 2016[137]. Market and Industry Trends - The company’s main business focuses on financial information services and mobile internet marketing, aligning with the trends of economic transformation and social development[47]. - In 2016, the software and information technology service industry in China achieved a total software business revenue of CNY 4.9 trillion, representing a year-on-year growth of 14.9%[48]. - The total profit of the software industry reached CNY 602.1 billion, also reflecting a year-on-year increase of 14.9%[49]. - The mobile internet marketing sector is rapidly growing, with the company focusing on integrating new technologies from acquired firms to enhance service offerings[53]. - The company anticipates that mobile big data precision marketing will remain a fast-growing industry even amid overall economic slowdown[115]. Research and Development - The company has developed a cloud platform for financial IT services, catering to the IT needs of small and micro financial institutions in a cost-effective manner[36]. - The company has implemented a baseline R&D management model to enhance project efficiency and responsiveness to customer needs[42]. - The number of R&D personnel increased to 260 in 2016, representing 8.71% of the total workforce, up from 6.09% in 2015[86]. - R&D investment amounted to ¥78,632,865.96 in 2016, accounting for 8.08% of operating revenue, compared to 7.00% in 2015[86]. - The capitalization rate of R&D expenses rose to 46.83% in 2016, an increase of 19.34% from the previous year, due to investments in six projects totaling ¥23,142,700[86]. Governance and Compliance - The company has established a strong governance structure to protect shareholder rights and ensure compliance with regulations[165]. - The actual controller of the company has promised not to engage in any competitive activities without written consent from the company, ensuring no conflict of interest[128]. - The company has committed to ensuring fair pricing in related transactions, adhering to market principles to protect the interests of shareholders[127]. - The company has implemented measures to ensure compliance with laws and regulations regarding shareholder rights and related transactions[127]. - The company has committed to fulfilling its obligations regarding information disclosure for related party transactions in accordance with relevant laws and regulations[134]. Shareholder and Capital Management - The company has a cash dividend policy that mandates a minimum of 15% of distributable profits to be distributed in cash when profitable, with a cumulative cash distribution of at least 45% over the last three years[120]. - The company executed a capital reserve transfer plan, increasing total shares to 431,808,000, with a distribution of 22 shares for every 10 held[121]. - The total cash dividend for 2016 is RMB 3,603,051.66, which accounts for 15.59% of the net profit attributable to ordinary shareholders[125]. - The company has maintained a consistent dividend policy over the past three years, with cash dividends distributed in 2015 and 2016[125]. - The company has established a priority right to purchase any assets or businesses related to its operations that the actual controller intends to sell[128]. Management and Leadership - The company experienced a turnover in its management team, with several key personnel leaving for personal reasons, including the financial director and deputy general manager[193]. - The current chairman, Yu Wei, has extensive experience in software management, having held various leadership roles in the industry[194]. - The company has a diverse board with members holding significant experience in finance, law, and technology, enhancing its governance structure[196]. - The management team includes individuals with significant experience in both domestic and international markets, which may contribute to the company's growth strategy[199]. - The leadership team has a diverse educational background, including degrees in finance and engineering, which may support innovative approaches to business challenges[200].