BizConf(SZ:300578)2017-04-19 16:00Revenue and Profitability - The company's total revenue for 2016 was approximately ¥252.18 million, representing a 0.79% increase compared to ¥236.32 million in 2015[30]. - The net profit attributable to shareholders for 2016 was approximately ¥31.48 million, a decrease of 5.69% from ¥38.64 million in 2015[30]. - The total operating revenue for 2016 was ¥252,180,522.96, representing a year-on-year increase of 0.79% compared to ¥250,204,318.66 in 2015[89]. - Voice service revenue decreased by 7.35% to ¥190,893,558.87, accounting for 75.70% of total revenue, while network conferencing revenue increased by 39.21% to ¥59,892,198.96, representing 23.75% of total revenue[89]. - The gross profit margin for multi-party communication services was 48.54%, with operating costs amounting to ¥129,774,183.30, which is a decrease of 7.32% from the previous year[92]. Customer Concentration and Market Position - The revenue from the top five customers accounted for 39.30% of the total annual sales, with the first customer, InterCall, contributing 27.20% to the company's total revenue[5]. - The company has a high concentration of clients, with a significant portion of revenue dependent on a few major customers, which poses a risk[5]. - The company reported a total of 388 Fortune Global 500 enterprises using its services by the end of 2016, with 256 of these institutions actively utilizing its services[42]. - The company has served 256 out of 388 Fortune Global 500 companies with operations in China, indicating strong market penetration[75]. Financial Health and Cash Flow - The net cash flow from operating activities for 2016 was approximately ¥23.62 million, down 25.19% from ¥43.48 million in 2015[30]. - The net increase in cash and cash equivalents saw a significant decline of 423.87%, amounting to -¥19,516,207.08 compared to -¥3,725,384.88 in 2015[102]. - As of the end of 2016, cash and cash equivalents accounted for 36.25% of total assets, down from 45.58% in 2015, reflecting a decrease of 9.33%[106]. - Accounts receivable increased by 5.83% to ¥68,321,512.91, up from ¥60,914,339.61 in 2015, indicating a growing reliance on credit sales[106]. Strategic Initiatives and Future Plans - The company plans to enhance its cloud conferencing services and has made adjustments to its revenue recognition policy for better alignment with service delivery[31]. - The company aims to drive revenue through service by helping clients discover the value of multi-party communication, addressing the low penetration rate in the domestic market[64]. - The company plans to strengthen sales and service capabilities in key regions such as Jiangsu, Zhejiang, Sichuan, and others to ensure performance targets are met[124]. - The company aims to leverage its listing on the Shenzhen Stock Exchange to develop a next-generation global cloud video and live streaming platform[81]. Research and Development - The company has a strong R&D capability with 68 personnel and has obtained 65 software copyrights and 2 invention patents[74]. - Research and development expenses for 2016 totaled ¥14,019,510.88, accounting for 5.56% of operating revenue, an increase from 4.39% in 2015[101]. - The number of R&D personnel increased to 68, representing 28% of the total workforce, up from 24% in 2015[101]. Dividend Policy and Shareholder Returns - The company plans to distribute a cash dividend of 4.00 RMB (including tax) for every 10 shares based on a total of 72,000,000 shares[3]. - The cash dividend distribution plan for 2016 is set at ¥4.00 per 10 shares, totaling ¥28.80 million[136]. - The company’s cash dividends have shown a consistent increase over the past three years, reflecting a strong financial performance[142]. - The company plans to adopt a cash dividend policy, distributing at least 20% of the annual distributable profits in cash, contingent on financial conditions and future development plans[176]. Compliance and Governance - The company has committed to fulfilling all promises made during the acquisition and restructuring processes[143]. - The company has established measures to ensure compliance with commitments made in the prospectus, including extending the lock-up period for shares if necessary[174]. - The company has undertaken measures to ensure the accuracy and completeness of its public disclosures, adhering to regulatory requirements[168]. - The company has confirmed that it will not invest in projects that could lead to direct or indirect competition with Shanghai Huichang Communications[184]. Market Trends and Competitive Landscape - The communication conference market in China is still in its early development stage, with a market size of only 6.93% of the global market as of 2015[120]. - The voice conferencing market in China is projected to reach approximately $327 million by 2018[122]. - The company aims to enhance its high-end enterprise service capabilities and expand into the mid-to-low end conferencing market to increase its customer base and profitability[123].