Boss Soft(SZ:300525)2018-08-01 08:49Financial Performance - The company achieved operating revenue of CNY 309,882,371.93 in 2017, representing an increase of 80.95% compared to CNY 171,251,296.12 in 2016[16]. - Net profit attributable to shareholders was CNY 54,685,146.71, a year-on-year increase of 42.78% from CNY 38,301,620.49 in 2016[16]. - The net cash flow from operating activities reached CNY 56,187,904.96, up 70.28% from CNY 32,997,092.55 in the previous year[16]. - Basic earnings per share rose to CNY 0.8026, reflecting a growth of 21.88% from CNY 0.6585 in 2016[16]. - Total assets increased by 67.46% to CNY 804,561,302.12 at the end of 2017, compared to CNY 480,442,114.57 at the end of 2016[16]. - The company’s net profit after deducting non-recurring gains and losses was CNY 53,961,830.30, a 49.64% increase from CNY 36,060,538.97 in 2016[16]. - The weighted average return on equity was 12.13%, slightly up from 12.08% in the previous year[16]. - The company's total revenue for the reporting period reached 309.88 million yuan, an increase of 80.95% compared to the same period last year[35]. - Net profit attributable to shareholders was 54.69 million yuan, representing a year-on-year growth of 42.78%[35]. Market Expansion and Acquisitions - The company expanded its market presence significantly in North China and completed the acquisition of Inner Mongolia Jincai, contributing to revenue growth[27]. - The company acquired 70% of Inner Mongolia Jincai Information Technology Co., Ltd., enhancing its market presence in the region[37]. - Software development and sales revenue increased by 33.25 million yuan, driven by successful expansion into regions such as Ningxia, Hainan, Tianjin, and Shanghai[35]. - Technical service revenue rose by 96.06 million yuan, attributed to ongoing maintenance services for clients after the free service period ended[35]. - The company is focused on expanding its market presence through strategic acquisitions and investments in technology development[67]. Research and Development - The company increased its R&D expenditure to 48.66 million yuan, accounting for 15.70% of total revenue, a 99.03% increase year-on-year[36]. - The company increased R&D investment to ¥48,655,797.15 in 2017, representing 15.70% of operating revenue, up from 14.27% in 2016[57]. - The number of R&D personnel rose to 389, accounting for 32.98% of the total workforce, compared to 29.63% in 2016[57]. - The company continues to develop new internet payment products to support government and administrative units in online payment services[26]. Risks and Challenges - The company faces various risks including market competition, technology development, product upgrade risks, and significant accounts receivable balances[4]. - The company is at risk of technological obsolescence if it fails to keep pace with rapid advancements in software development and information security requirements[85]. - A significant portion of the company's revenue is derived from Fujian province, which poses a risk if there are adverse changes in that market[86]. - The company is vulnerable to core technology leakage and the loss of key personnel, which could negatively impact its competitive advantage[86]. - The company faces risks from increasing market competition as more software firms enter the electronic fiscal ticket management sector[86]. Profit Distribution and Shareholder Policies - The company reported a profit distribution plan based on a base of 72,032,000, proposing a cash dividend of 2.10 RMB per 10 shares (tax included) and a capital reserve increase of 8 shares per 10 shares[4]. - 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[96]. - The cash dividend accounted for 100% of the total profit distribution in the reporting period[93]. - The company’s cash dividend policy is compliant with its articles of association and ensures the protection of minority shareholders' rights[93]. - The company commits to distributing cash dividends amounting to no less than 30% of the distributable profits achieved in the current year[101]. Corporate Governance and Management - The company has established a strong talent acquisition strategy, enhancing its human resources structure to support its growth objectives[84]. - The company has a structured remuneration plan based on operational performance and management responsibilities[169]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal requirements[180]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors[182]. - The company maintains complete independence from its controlling shareholder in business, personnel, assets, organization, and finance[184]. Future Outlook and Strategic Plans - 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 in social security, healthcare, and education sectors[82]. - The company will focus on continuous product upgrades and the development of internet-based fiscal information products to meet evolving customer needs[82]. - The company is considering strategic acquisitions to enhance its product offerings and market presence, with a budget of 500 million RMB allocated for potential deals[98]. Employee and Shareholder Engagement - The company has established partnerships with three major tech firms to enhance its service delivery and customer engagement[98]. - The company has communicated transparently with investors through various channels, enhancing transparency and credibility[137]. - The company held three temporary shareholder meetings in 2017, with investor participation rates of 52.38%, 42.87%, and 32.22% respectively[186]. - The company has a total of 12 board members, including 4 independent directors[169].