LONGSHINE(SZ:300682)2018-06-05 16:00Revenue Sources - The company's main revenue comes from customized software development for State Grid and Southern Grid, accounting for over 80% of the main business revenue during the reporting period [5]. - The company’s main revenue source, custom software development, accounts for over 80% of total revenue, while maintenance services contribute approximately 10% [37]. - The revenue from the electric power industry decreased by 3.98% to ¥624,679,211.27, accounting for 79.79% of total revenue, while non-electric power industry revenue increased by 59.90% to ¥158,255,829.77, making up 20.21% of total revenue [51]. - The customized software development segment generated ¥667,988,463.49, which is 85.32% of total revenue, with a growth of 3.79% year-on-year [51]. Financial Performance - The company's operating revenue for 2017 was approximately ¥782.94 million, representing a 4.46% increase compared to ¥749.51 million in 2016 [29]. - The net profit attributable to shareholders for 2017 was approximately ¥139.14 million, an increase of 13.97% from ¥122.09 million in 2016 [29]. - The net profit after deducting non-recurring gains and losses was approximately ¥110.71 million, up 14.06% from ¥97.06 million in the previous year [29]. - The total assets at the end of 2017 reached approximately ¥1.65 billion, a 47.80% increase from ¥1.11 billion at the end of 2016 [29]. - The net assets attributable to shareholders increased by 43.07% to approximately ¥1.16 billion from ¥809.60 million in 2016 [29]. - The basic earnings per share for 2017 was ¥0.37, an increase of 8.82% compared to ¥0.34 in 2016 [29]. - The net cash flow from operating activities for 2017 was approximately ¥48.71 million, a decrease of 9.21% from ¥53.66 million in 2016 [29]. - The company reported a weighted average return on equity of 14.70% for 2017, down from 15.40% in 2016 [29]. - The company achieved total operating revenue of CNY 782,935,041.04, representing a year-on-year growth of 4.46% [46]. - The net profit attributable to shareholders reached CNY 139,136,836.46, reflecting a year-on-year increase of 13.97% [46]. Research and Development - R&D expenses account for approximately 10% of total revenue, with a commitment to maintaining innovation and technology leadership in the industry [10]. - The company maintains a consistent R&D investment of around 10% of total revenue, ensuring its leading position in the public utility information technology solutions sector [43]. - R&D investment reached ¥97,301,644.68, accounting for 12.43% of operating revenue, up from 10.71% in 2016 [61]. - The company has maintained a research and development expense ratio of around 10% of total revenue, which supports its technological leadership and business innovation [96]. Market Expansion - The company plans to actively expand into the gas industry market, local power companies, overseas power markets, and other innovative business markets to increase the proportion of new market revenue [6]. - The company is focusing on expanding its market presence in local and overseas electricity sectors, achieving positive progress in these areas [46]. - The company will actively explore new markets, including local power companies, overseas power markets, and the gas industry, to reduce reliance on a few major clients [95]. - The company is actively exploring new business areas such as smart cities and new financial services, focusing on social governance and industrial upgrading [47]. Seasonal Fluctuations and Risks - The company maintains a strong seasonal fluctuation risk in operating performance, with potential negative net profits in the first quarter and first three quarters due to the nature of project approvals and contract signing processes [7]. - The company faces risks related to seasonal fluctuations in operating performance, particularly due to the nature of project approvals and contract signings concentrated in the fourth quarter [96]. - The company recognizes the risk of talent loss due to increasing competition for skilled professionals and is implementing competitive compensation and career development programs [98]. - The company anticipates that rising labor costs could negatively impact profitability and is focused on optimizing its business structure to enhance productivity [97]. Cash Dividends and Profit Distribution - The company will distribute a cash dividend of 0.51 yuan per 10 shares (before tax) based on a base of 416,760,300 shares, with no bonus shares issued [16]. - The cash dividend payout ratio for 2017 was 100% of the total profit distribution [102]. - The total distributable profit for 2017 after statutory surplus reserve deduction was 381,986,961.71 CNY [102]. - The company proposed a cash dividend of 0.51 CNY per 10 shares, totaling 21,254,775.30 CNY, which represents 15.28% of the distributable profit for 2017 [102]. Shareholder Structure and Governance - The company has a total of 18,807 shareholders at the end of the reporting period, with significant shareholders including Yue Qi Capital holding 24.02% and Wuxi Puhua Equity Investment Partnership holding 20.22% [160]. - The top ten shareholders held a total of 100,096,560 shares, with no repurchase agreements executed during the reporting period [161]. - The company’s shareholder structure has changed, reflecting a shift in ownership dynamics and potential strategic partnerships [160]. - The company emphasizes the protection of shareholders' rights and interests, ensuring equal status and rights for all shareholders [139]. Employee and Management Information - The total number of employees in the company is 1,792, with 1,752 in the parent company and 40 in major subsidiaries [189]. - The company has a total of 1,562 technical personnel, representing approximately 87.1% of the workforce [189]. - The company has established a compensation incentive system that aligns responsibility with benefits, ability with value, risk with return, and performance with income [191]. - The company conducted various training programs throughout the year, focusing on enhancing employees' business skills and management capabilities [192]. Related Party Transactions - The company engaged in significant related party transactions, including sales of customized software and service fees, with transaction amounts reaching 1,214.19 million CNY and 268.74 million CNY respectively [122]. - The company maintained a 100% compliance rate for related party transactions, with all transactions conducted at market prices [122]. - The company did not report any overdue receivables or debts related to related party transactions during the reporting period [126]. Financial Management and Investments - The company raised a total of RMB 24,795.00 million through its initial public offering, with a net amount of RMB 20,067.93 million after deducting issuance costs [78]. - The company has a remaining balance of RMB 12,679.29 million in unused raised funds, with discrepancies noted in the balance of RMB 13,943.02 million [78]. - The company reported a total of 61,365 million CNY in entrusted financial management during the reporting period, with no overdue amounts [134]. - The company has not engaged in any mergers or acquisitions during the reporting period [166].