Boss Soft(SZ:300525)2018-04-24 16:00Financial Performance - The company's operating revenue for 2017 was CNY 309,882,371.93, representing an increase of 80.95% compared to CNY 171,251,296.12 in 2016[15]. - The net profit attributable to shareholders for 2017 was CNY 54,685,146.71, a growth of 42.78% from CNY 38,301,620.49 in the previous year[15]. - The net profit after deducting non-recurring gains and losses was CNY 53,961,830.30, up 49.64% from CNY 36,060,538.97 in 2016[15]. - The net cash flow from operating activities reached CNY 56,187,904.96, marking a 70.28% increase from CNY 32,997,092.55 in 2016[15]. - The total assets at the end of 2017 amounted to CNY 804,561,302.12, a 67.46% increase from CNY 480,442,114.57 at the end of 2016[15]. - The net assets attributable to shareholders were CNY 481,275,603.05, reflecting a 13.99% increase from CNY 422,225,359.08 in 2016[15]. - The basic earnings per share for 2017 was CNY 0.8026, an increase of 21.88% compared to CNY 0.6585 in 2016[15]. - The diluted earnings per share for 2017 was CNY 0.7986, up 21.28% from CNY 0.6585 in the previous year[15]. - The weighted average return on net assets was 12.13%, slightly up from 12.08% in 2016[15]. Revenue Breakdown - The company achieved operating revenue of CNY 30,988.24 million in 2017, representing an increase of 80.95% year-on-year[26]. - Net profit attributable to shareholders was CNY 5,468.51 million, a year-on-year growth of 42.78%[26]. - Software development and sales contributed ¥92,673,545.97, accounting for 29.91% of total revenue, with a year-on-year growth of 55.95%[44]. - Technical services generated ¥203,323,373.65, representing 65.61% of total revenue, with an impressive growth of 89.55%[44]. - Hardware and consumables sales surged by 280.98% to ¥12,378,404.31, making up 3.99% of total revenue[41]. - Northeast region revenue increased by 167.56% to ¥99,353,751.74, accounting for 32.06% of total revenue[42]. - North China region saw a remarkable growth of 290.87%, with revenue reaching ¥50,143,954.29, representing 16.18% of total revenue[44]. Market Expansion and Strategy - Significant market expansion in North China contributed to revenue growth, alongside the acquisition of Inner Mongolia Jincai[26]. - The company expanded its software development and sales revenue by 33.25 million yuan, driven by successful promotions in regions such as North China and acquisitions like Inner Mongolia Jincai[34]. - The company introduced a new generation of internet payment products to support government and administrative units in online payment services[25]. - The company aims to leverage the government's push for electronic fiscal ticket management and non-tax revenue collection to build a comprehensive ecosystem around electronic fiscal tickets and mobile payment services[81]. - In 2018, the company plans to expand its government procurement market and enhance its service offerings, targeting provincial governments and large state-owned enterprises[81]. - The company is planning to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[98]. Research and Development - R&D expenses amounted to 48.66 million yuan, accounting for 15.70% of operating revenue, reflecting a 99.03% increase year-on-year[35]. - Research and development investments were increased to enhance core product competitiveness, focusing on electronic invoicing and integrated government procurement systems[53]. - The company has allocated 300 million RMB for research and development in the upcoming year to innovate and improve existing products[98]. - The company is investing 100 million RMB in R&D for new technologies, particularly in artificial intelligence and big data analytics[166]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 2.10 per 10 shares, with no bonus shares issued[4]. - The cash dividend accounted for 100% of the profit distribution total for the year[92]. - The company proposed a cash dividend of RMB 2.10 per 10 shares, totaling RMB 15.13 million, which represents 27.66% of the net profit attributable to shareholders[95]. - The company commits to distributing cash dividends amounting to no less than 30% of the distributable profits achieved in the current year[101]. Governance and Compliance - The company maintains a governance structure compliant with relevant laws and regulations, ensuring equal rights for all shareholders[179]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance requirements[180]. - The company has independent financial management and accounting systems, ensuring financial independence from the controlling shareholder[184]. - The company has established a transparent information disclosure system, ensuring timely and accurate communication with investors[182]. - The company reported no significant internal control deficiencies during the reporting period[194]. Employee and Management Structure - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.49 million[170]. - The company has several wholly-owned subsidiaries, including Fujian Bosi E-Government Technology Co., Ltd. and Heilongjiang Bosi Software Co., Ltd.[169]. - The total number of employees is 1,234, with 685 in the parent company and 549 in major subsidiaries[173]. - The professional composition includes 970 technical personnel, 128 sales personnel, and 27 financial personnel[173]. - The company emphasizes a salary policy aligned with job value, linking compensation to performance metrics[175]. Risks and Challenges - The company faces risks from increasing market competition as more software firms enter the electronic fiscal ticket management sector[84]. - The company acknowledges potential risks related to information security, customer concentration, and the loss of core technology personnel[84]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 30% based on new product launches and market expansion strategies[98]. - The management team emphasizes a commitment to sustainable growth and innovation as core strategies moving forward[166].