Tom(SZ:300459)2018-03-06 16:00Financial Performance - The company's operating revenue for 2017 was ¥1,396,270,938.94, representing a 56.08% increase compared to ¥894,561,203.06 in 2016[23]. - The net profit attributable to shareholders for 2017 was ¥393,933,532.11, a 92.16% increase from ¥204,998,914.77 in 2016[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥360,519,486.04, up 79.59% from ¥200,741,175.65 in 2016[23]. - The total assets at the end of 2017 reached ¥10,728,596,047.51, a 100.10% increase from ¥5,361,702,677.71 at the end of 2016[23]. - The net assets attributable to shareholders at the end of 2017 were ¥9,419,674,898.01, an increase of 89.88% from ¥4,960,972,692.70 at the end of 2016[23]. - The basic earnings per share for 2017 was ¥0.25, a 31.58% increase from ¥0.19 in 2016[23]. - The diluted earnings per share for 2017 was also ¥0.25, reflecting the same growth rate as the basic earnings per share[23]. - The net cash flow from operating activities for 2017 was ¥217,228,434.15, a decrease of 35.64% compared to ¥337,516,819.87 in 2016[23]. - The company reported a weighted average return on equity of 7.63% for 2017, up from 6.56% in 2016[23]. - The company achieved a total revenue of 1,396.27 million CNY in 2017, representing a growth of 56.08% compared to the previous year[57]. - The net profit attributable to shareholders reached 393.93 million CNY, marking a significant increase of 92.16% year-on-year[57]. - Total assets increased to 10,728.60 million CNY, up 100.10% from the previous year[57]. - The equity attributable to shareholders rose to 9,419.67 million CNY, reflecting an increase of 89.88% year-on-year[57]. Dividend Policy - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares to all shareholders, based on a total of 1,971,232,995 shares[6]. - The company reported a total cash dividend of ¥39,424,659.90 for the year 2017, which represents 10.01% of the net profit attributable to ordinary shareholders of ¥393,933,532.11[156]. - The cash dividend per 10 shares is set at ¥0.20 (including tax), based on a total share capital of 1,971,232,995 shares[150]. - The total distributable profit at the end of the reporting period is ¥151,854,241.19, after accounting for previously distributed profits[150]. - The cash dividend accounts for 100% of the total profit distribution, aligning with the company's growth stage and significant capital expenditure plans[150]. - The company has consistently increased its cash dividends over the past three years, with a notable increase from ¥21,200,000.00 in 2015 to ¥39,424,659.90 in 2017[156]. - The company extracted 10% of the legal surplus from the net profit of ¥53,239,730.84 for the year 2017[150]. - The remaining undistributed profits will be carried forward to the next fiscal year[150]. - The company has adhered to its cash dividend policy, ensuring compliance with its articles of association and shareholder resolutions[149]. - The cash dividend distribution plan is consistent with the company's regulations and management practices[149]. Acquisitions and Strategic Expansion - The company completed a significant acquisition of Outfit7, aiming to enhance its global influence and profitability, with a focus on expanding into overseas markets[10]. - The company completed the acquisition of Outfit7 in December 2017, gaining control of the globally recognized IP "Talking Tom" family, which has accumulated over 7 billion downloads and over 400 million monthly active users[34]. - The company aims to expand its market presence by integrating its operations with Outfit7's expertise in family entertainment and user analytics[32]. - The acquisition of Outfit7 has led to an increase in goodwill and accounts receivable, reflecting the expansion of the company's business scale[46]. - The company plans to continue expanding its market presence and product offerings following the acquisition of Outfit7, which is expected to enhance its competitive position[102]. - The company aims to enhance its mobile internet distribution and operation business based on big data analysis, focusing on advertising, children's education, and artificial intelligence[133]. - The company will integrate resources from Outfit7 and other subsidiaries to enhance operational efficiency and market reach[138]. Market and Product Development - The company has a strong IP reserve, including the "Talking Tom" series, and intends to launch new mobile applications based on market demand to reactivate existing users[8]. - The company is actively expanding its offline business and derivative products based on its well-known IP to leverage its large online user base[8]. - The company operates a diverse portfolio of mobile casual games, successfully launching titles across eight major categories, enhancing its competitive advantage in the market[38]. - The company launched 116 mobile games in 2017, reflecting a significant increase in product offerings and user acquisition efforts[63]. - The company is currently developing several new games, including "Tom Cat Battle Camp" and "Tom Cat Water Balloon Battle," expected to launch in 2018[87]. - The company plans to launch a new mobile game titled "Tom Cat's Treasure Hunt" to expand its market share and attract a broader age group of players[89]. - The company is in the process of developing a new game based on the "Legend of the Sky" IP, which will feature rich storylines and engaging gameplay[90]. - The company aims to create a unique brand IP through original game design and high-quality art style, enhancing its market presence[90]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach[172]. Risk Management and Compliance - The company faces risks related to intellectual property, product lifecycle, and new product development, and has implemented measures to mitigate these risks[7][9]. - The company has established a professional legal team focused on intellectual property protection and has implemented strict internal controls to prevent infringement[6][9]. - The company acknowledges the cyclical nature of mobile internet products and aims to continuously innovate to meet user demands and stabilize performance[7][9]. - The company has established a risk control system to address management challenges arising from its expanded scale[142]. - The company recognizes the high risks associated with investment and acquisition activities and is focused on minimizing legal risks through improved agreements[142]. - The company will ensure fair pricing in related party transactions, aligning with prices from independent third parties[192]. - The company guarantees to minimize related party transactions post-transaction and will not seek preferential rights in business cooperation with the listed company[194]. Research and Development - The company reported a total R&D investment of approximately ¥87.61 million in 2017, representing 6.27% of its operating revenue, an increase from 4.63% in 2016[93]. - The number of R&D personnel increased to 634 in 2017, accounting for 49.76% of the total workforce, up from 19.57% in 2016[93]. - Research and development expenses increased significantly, reflecting the company's expansion and new product development efforts[86]. - The company is investing in new technology development, allocating 100 million RMB towards R&D initiatives in the upcoming year[176]. - The company is committed to maintaining compliance with regulatory requirements regarding share transfers and lock-up periods[166]. User Engagement and Market Trends - The company has developed an open mobile application operation platform, leveraging big data and AI to optimize content distribution and user engagement[33]. - The company collects approximately 5 billion user behavior data points daily, utilizing advanced machine learning algorithms for precise marketing and operational strategies[50]. - The company has established long-term partnerships with major advertising platforms such as Applovin and Google, enhancing its advertising revenue potential[51]. - The mobile internet leisure application market in China reached a scale of CNY 25.29 billion, with a year-on-year growth of 11.4%[128]. - User data indicated a growth of 25% in active users year-over-year, reaching a total of 1.5 million active users[162]. - The company reported a significant increase in active users, reaching 10 million, which is a 15% increase compared to the previous year[178]. Corporate Governance - The company emphasizes the importance of talent retention and development, implementing stock incentives and creating a supportive work environment to maintain core personnel stability[11]. - The company has established a complete and independent organizational structure to avoid any institutional confusion with controlled entities[190]. - The company commits to minimizing related party transactions and will sign agreements in accordance with legal regulations if such transactions are unavoidable[192]. - The company will ensure that any business opportunities that may compete with its operations will be disclosed and offered to the company[200].