Feitian(SZ:300386)2016-03-29 16:00Financial Performance - The company's operating revenue for 2015 was ¥911,596,079.76, a decrease of 15.63% compared to ¥1,080,430,838.32 in 2014[22]. - The net profit attributable to shareholders for 2015 was ¥183,582,704.27, down 30.56% from ¥264,367,795.46 in 2014[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥151,992,093.56, a decline of 40.81% compared to ¥256,803,139.50 in 2014[22]. - The net cash flow from operating activities was ¥105,522,767.30, a significant drop of 61.66% from ¥275,246,375.22 in 2014[22]. - Basic earnings per share for 2015 were ¥0.88, down 37.59% from ¥1.41 in 2014[22]. - The total assets at the end of 2015 were ¥1,754,070,632.28, an increase of 7.42% from ¥1,632,903,665.10 at the end of 2014[22]. - The net assets attributable to shareholders at the end of 2015 were ¥1,500,990,078.86, up 8.00% from ¥1,389,853,346.79 at the end of 2014[22]. - The weighted average return on equity for 2015 was 12.65%, a decrease of 15.22% from 27.87% in 2014[22]. - The company's total non-operating income for 2015 was CNY 31,590,610.71, a significant increase from CNY 7,564,655.96 in 2014, marking a growth of 317.36%[28]. - The company achieved operating revenue of CNY 911.60 million in 2015, a decrease of 15.63% compared to the previous year[50]. - Net profit attributable to shareholders was CNY 183.58 million, down 30.56% year-on-year[50]. Market and Competition - The company relies heavily on major banking clients, with over 50% of revenue coming from the banking sector from 2012 to 2015, indicating significant risk if key clients like Agricultural Bank of China, Industrial and Commercial Bank of China, and Bank of China are lost[5]. - The demand for USB Key and OTP dynamic token products is declining due to market saturation and the shift towards mobile transactions, negatively impacting company performance[6]. - Intense market competition has led to a continuous decline in gross margins for USB Key and OTP dynamic token products, with sales prices dropping faster than raw material costs[8]. - The financial IC card market, a new business area for the company, is experiencing fierce price competition despite significant growth in issuance, which could affect profitability[10]. - The company aims to consolidate and deepen its existing market advantages, focusing on increasing market share despite declining sales and prices in the USB Key and OTP product segments[96]. - The company plans to achieve significant breakthroughs in the smart IC card business, targeting major banks and leveraging the rapid growth of the financial IC card market[98]. - The company anticipates that the smart card industry will continue to grow rapidly, driven by factors such as the increasing importance of bank chip cards and the explosive growth of NFC-based mobile payments[98]. Research and Development - The company invested significantly in R&D, with R&D expenses rising substantially compared to the previous year[50]. - The company has accumulated over 6,000 clients across various sectors, including finance, government, and telecommunications, with nearly 200 banking clients[36]. - The company holds 150 software copyright registrations and has applied for 1,254 patents, with 888 patents granted, making it a leader in intellectual property within the industry[38]. - The company has developed a voice dynamic token and a mobile device integrating card and payment functions, enhancing its product offerings in the security sector[44]. - The company has a focus on improving data processing speeds and security measures, as evidenced by patents related to data handling and secure communication methods[41][42]. - The company has made significant advancements in USB technology, including a patent for a 7PIN USB connector and related devices, which may enhance product compatibility and user experience[44]. - The company is actively pursuing innovation in embedded systems, with multiple patents aimed at improving performance and security in these applications[42][43]. - The company has a strong emphasis on developing methods for secure digital signatures and anti-phishing technologies, reflecting its commitment to cybersecurity[41][42]. - The company has introduced new methods for managing card data and enhancing communication between devices, which could lead to improved user interactions and security[43]. - The company is expanding its product line with new smart card technologies and manufacturing tools, indicating a strategic move towards more integrated solutions[44]. - The company has a robust pipeline of patents that were authorized in 2015, showcasing its ongoing commitment to research and development in the tech sector[41][42][43][44]. Strategic Partnerships and Agreements - The company established a strategic partnership with various third-party institutions, enhancing its competitive edge in the digital security sector[34]. - The company signed a licensing agreement with Shanghai Disney for themed transportation cards, set to be issued in over 20 cities[52]. - The company has signed a licensing agreement with Disney, becoming the only card manufacturer to use Disney characters for transportation cards, which has been successfully launched in over 20 cities[99]. - The company has established a framework agreement with Kunwu Jiuding Investment Management Co., Ltd. for joint investment projects[121]. Cash Dividends and Share Capital - The company has approved a profit distribution plan, proposing a cash dividend of 2.4 RMB per 10 shares (including tax) based on a base of 209,022,000 shares[11]. - The board proposed a cash dividend of RMB 50,165,280.00, representing 30% of the distributable profit, equating to RMB 2.40 per 10 shares (including tax)[107]. - The cash dividend for 2015 accounted for 27.33% of the net profit attributable to shareholders, consistent with previous years' distribution rates[111]. - The total cash dividend for 2015 was fully funded from the available distributable profits[107]. - The company plans to increase its share capital by 209,022,000 shares through a capital reserve conversion, resulting in a total share capital of 418,044,000 shares[109]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and transparency, as evidenced by its board composition and management practices[177]. - The company has established a complete governance structure, including a shareholders' meeting, board of directors, and supervisory board, operating independently[199]. - The company has a strong focus on technology and security, with key personnel holding various positions in national technology and security committees[182]. - The management team includes 11 senior executives with extensive backgrounds in technology and management, ensuring a robust leadership structure[184]. - The company has a diverse educational background among employees, with 395 holding vocational diplomas and 75 below that level[193]. - The company has implemented a performance-based salary system to enhance internal fairness and external competitiveness[194]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring proper operation of the board and committees[198]. Employee and Workforce Management - The total number of employees in the company is 976, with 921 in the parent company and 55 in major subsidiaries[192]. - The total remuneration paid to the board of directors, supervisors, and senior management in 2015 was 7.078 million yuan[191]. - A total of 1,300 training sessions were attended by employees in 2015, focusing on various skills and knowledge enhancement[195]. - The company has not engaged in labor outsourcing, maintaining all operations in-house[196]. Financial Management and Investments - The company engaged in entrusted financial management, with a total amount of 5,000,000 CNY in entrusted wealth management products with a return of 5.50%[138]. - The company reported actual gains from entrusted financial management amounting to 67.81 CNY during the reporting period[138]. - The company plans to continue its wealth management strategy, utilizing idle self-owned funds and part of idle raised funds[146]. - The company has a complete and independent financial institution, with dedicated accounting personnel and an independent accounting system[200].