飞利信(300287) - 2017 Q4 - 年度财报

Important Notes, Table of Contents, and Definitions Important Notes and Risk Disclosures The company disclosed four main risks during the reporting period: intensified industry competition, accounts receivable collection, management challenges from investments and M&A, and core talent loss, with corresponding mitigation strategies in place - The company faces key risks including: - Intensified Industry Competition: The IT service industry benefits from policy dividends, leading to fierce competition. The company addresses this by developing cutting-edge technologies like big data and AI[5] - Accounts Receivable Risk: Long collection cycles in smart city projects increase accounts receivable, with 70% due within one year. The company has assigned collection tasks to senior management and intensified collection efforts[6] - Investment and M&A Management Risk: Six companies acquired in 2014-2015 have completed performance commitments. The company addresses integration challenges by adjusting executive structures and unifying management systems[7] - Talent Loss Risk: Loss of core management and technical talent could impact development. The company plans to improve human resource management and actively recruit high-end talent[8][9] 2017 Profit Distribution Plan | Distribution Plan | Details | | :--- | :--- | | Base | 1,435,273,808 shares | | Cash Dividend | CNY 0.57 (incl. tax) per 10 shares | | Bonus Shares | 0 shares | | Capital Reserve Conversion | 0 shares per 10 shares | Definitions This section defines key company entity abbreviations and professional terms used in the report, such as 'Feilixin Electronics' and 'Jingtu Information' for wholly-owned subsidiaries, and 'reporting period' for 2017, providing a basis for understanding the report content Company Profile and Key Financial Indicators Company Basic Information This section provides the company's basic registration information, office address, contact details, and information disclosure channels, with stock abbreviation 'Feilixin', code 300287, and legal representative Yang Zhenhua Key Accounting Data and Financial Indicators In 2017, the company achieved CNY 2.22 billion in operating revenue, up 8.98%; net profit attributable to parent company was CNY 404 million, up 18.83%. Net cash flow from operating activities significantly improved from CNY 8.83 million to CNY 137 million, a 1452.55% increase, with total assets and net assets also growing steadily 2017 Key Financial Indicators | Indicator | 2017 | 2016 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 2,220,676,444.50 | 2,037,626,247.61 | 8.98% | | Net Profit Attributable to Shareholders (CNY) | 404,107,820.17 | 340,084,604.26 | 18.83% | | Net Cash Flow from Operating Activities (CNY) | 137,022,732.59 | 8,825,680.67 | 1,452.55% | | Basic EPS (CNY/share) | 0.28 | 0.25 | 12.00% | | Total Assets (CNY) | 7,264,789,862.55 | 6,742,128,624.57 | 7.75% | | Net Assets Attributable to Shareholders (CNY) | 5,807,621,158.83 | 5,472,462,020.28 | 6.12% | 2017 Quarterly Key Financial Indicators (Unit: CNY) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 352,313,544.96 | 516,296,467.71 | 621,573,780.68 | 730,492,651.15 | | Net Profit Attributable to Shareholders | 70,164,882.80 | 84,162,876.90 | 171,336,432.69 | 78,443,627.78 | | Net Cash Flow from Operating Activities | -21,637,352.70 | -10,973,014.45 | -6,684,367.29 | 176,317,467.03 | - The company's 2017 non-recurring gains and losses totaled CNY 12.18 million, primarily from government subsidies of CNY 16.16 million. After deducting non-recurring items, net profit attributable to shareholders was CNY 392 million, a 23.07% year-on-year increase[24][29][30] Company Business Overview Main Businesses The company's core strategy is big data and AI, driving innovation in smart conference, smart city, and internet education. During the period, big data flourished in government and commercial sectors; smart conference grew steadily, transitioning to 'Made in China'; smart city offered end-to-end solutions; internet education matured, with network academic education platform operations reaching a record high 1. Steady Progress and Continuous Innovation: Flourishing Big Data and AI Business The company's big data and AI business serves government and large enterprises, offering solutions like data governance, data asset management, and video intelligent analysis. Its project-based and data analysis service model has been successfully applied in government services, urban governance, and financial marketing, driven by national big data strategy and continuous R&D investment - The company's big data business primarily serves government and enterprises, offering services such as video big data for stability maintenance, social credit, and precision marketing, with achievements in video intelligent analysis and blockchain government services[33][34] - The company positions big data as a key supporting element to facilitate smart conference product upgrades, support smart city business expansion, and enhance internet education service capabilities[34] 1. Steady Development of Smart Conference Business The company's smart conference business, relying on its proprietary PRSMBus core technology, provides integrated solutions from R&D to sales and O&M. Supported by big data and AI, products continuously innovate, transitioning to 'Made in China', with a business model primarily focused on proprietary product sales, supplemented by agency products and a rental-sale approach - The company's smart conference business operates primarily on an 'independent R&D + design + production + sales + service' model, supplemented by agency conference products[47] - Leveraging a comprehensive product service system, brand advantages, and cutting-edge technologies like big data and AI, the company's smart conference business holds a strong competitive edge in the domestic market and has initiated overseas expansion[54] 2. Smart City Business As a member of the National Smart City Industry Technology Innovation Strategic Alliance, the company offers complete smart city solutions from top-level design to long-term operation, covering infrastructure, government management, and industrial economy, with extensive cases in smart pipelines, smart transportation, and Internet+government, operating primarily through government investment and public-private partnerships, expanding to government procurement of services - The company is a member of the National Smart City Industry Technology Innovation Strategic Alliance, committed to providing complete information solutions from top-level design to long-term operation, integrating industry chains and financial support schemes[55][64] - The company's smart city business covers a wide range of areas, with extensive technical, product, and case support in urban operation command centers, smart transportation, smart water, smart pipeline networks, Internet+government, and safe cities[61] 3. Internet Education The company's internet education business includes online education services, smart education solutions, and smart classroom system integration. During the reporting period, network academic education platform operations reached a record high, and smart manufacturing co-construction developed in vocational colleges, with business models including product sales, operation services and technology development services - The company's internet education business primarily operates through three models: product sales, operation services, and technology development services. Network academic education platform operations adopt an operation service and revenue-sharing model[68] - The company's core products and technologies are independently developed with full intellectual property rights, positioning it as a leader in industry technology applications with strong competitive advantages in performance and price[70] III. Analysis of Core Competencies The company's core competencies are its national policy-aligned development strategy, high-end integrated talent team, rich application scenarios, and continuous technological innovation. During the reporting period, the company and its subsidiaries obtained 12 new invention patents, 50 utility model patents, and 51 software copyrights, further solidifying its technological advantages and brand image - The company's core competencies include: - Development Strategy: Centered on big data and AI, aligning with national 'Manufacturing Power' and 'Data Power' strategies[72] - Talent Team: Possesses a high-end integrated team comprising data scientists, domain experts, and IT specialists[73] - Application Scenarios: Developed new big data and AI-driven smart conference, smart city, and internet education application scenarios[74] - Technological Innovation: Continuously increasing independent R&D, securing multiple patents and software copyrights during the reporting period[76] - During the reporting period, the company and its wholly-owned subsidiaries obtained 12 new invention patents, 50 utility model patents, 10 design patents, and 51 computer software copyrights, significantly enhancing technological barriers[76] Management Discussion and Analysis I. Overview In 2017, the company's operating performance grew steadily, with total operating revenue of CNY 2.22 billion, up 8.98%, and net profit attributable to parent company of CNY 404 million, up 18.83%. The company clarified traditional smart conference and new big data as its two main businesses, optimizing organizational structure and marketing system. All business segments made significant progress, winning multiple key projects in smart conference, big data, and smart city, while strengthening industry chain advantages through investments, acquisitions, and strategic collaborations 2017 Operating Performance | Indicator | Amount (CNY 10,000) | Y-o-Y Change | | :--- | :--- | :--- | | Total Operating Revenue | 222,067.64 | 8.98% | | Operating Profit | 47,103.98 | 34.12% | | Net Profit Attributable to Shareholders | 40,410.78 | 18.83% | - The company has defined traditional smart conference and new big data as its two main businesses. Big data business is divided into endogenous and exogenous development, with exogenous extending to existing segments like smart conference, smart city, and internet education[88] - During the reporting period, the company won numerous projects in smart conference, big data, and smart city sectors, including the Tianjin Baodi District People's Congress conference system, the second phase of the National Credit Information Sharing Platform, and the Gansu Province National Economic Mobilization Simulation and Emergency Exercise project, strongly supporting performance growth[91][94][96] - The company completed its first employee stock ownership plan, acquiring 26,534,857 shares totaling approximately CNY 226 million, representing 1.8488% of the total share capital, aiming to enhance company cohesion and market competitiveness[128][129] II. Analysis of Main Business In 2017, smart conference and online education businesses showed strong growth, with revenues up 30.98% and 35.71% respectively. Smart city business had the largest revenue at CNY 1.17 billion, though slightly down year-on-year. Big data business had the highest gross profit margin at 57.89%, up 4.49 percentage points. East and North China were the main revenue sources, accounting for over 80% combined 2017 Operating Revenue Composition (by Product) | Product | Operating Revenue (CNY) | Share of Total Revenue | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Smart Conference | 607,299,129.46 | 27.35% | 30.98% | | Smart City | 1,167,157,074.32 | 52.56% | -0.87% | | Big Data | 284,177,486.20 | 12.80% | 6.75% | | Online Education | 129,184,360.97 | 5.82% | 35.71% | 2017 Gross Profit Margin by Main Product | Product | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | Y-o-Y Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Smart Conference | 607,299,129.46 | 370,489,800.86 | 38.99% | 0.16% | | Smart City | 1,167,157,074.32 | 736,033,969.32 | 36.94% | -0.35% | | Big Data | 284,177,486.20 | 119,661,008.40 | 57.89% | 4.49% | - Total R&D investment in 2017 was CNY 136 million, accounting for 6.12% of operating revenue, largely consistent with the previous year. R&D personnel numbered 1,031, representing 61.79% of total employees[161] - Financial expenses significantly decreased by 341.37% year-on-year, primarily due to increased interest income from raised funds deposits[152] IX. Outlook on Company's Future Development The company will continue to leverage cutting-edge technologies like big data, AI, IoT, and blockchain as core drivers, steadily developing its smart conference, smart city, and internet education segments. The 2018 operating plan includes simplifying management, accelerating business synergy, strengthening internal controls, establishing industry investment funds, optimizing talent development, increasing R&D, and enhancing brand building and market value management for sustained growth - The company's future R&D focus includes reinforcement learning-based AI applications, consortium blockchain solutions, big data governance, and IoT intelligent systems[218] - The company plans to establish military-civil fusion and big data industry funds to leverage capital for integrating quality resources, promoting industrial internet and big data technologies in military-civil fusion, and accelerating exogenous growth[238] - Key points of the 2018 operating plan: - Management Optimization: Streamline internal group management structure to improve operational efficiency[235] - Business Synergy: Accelerate internal group business synergy to expand market leadership[236] - Capital Operations: Establish industry investment funds to integrate resources in big data and military-civil fusion sectors[238] - Technological Innovation: Increase R&D investment to develop industrial internet platforms and modern data asset management services[246] Significant Matters I. Company's Ordinary Share Profit Distribution and Capital Reserve Conversion to Share Capital The company proposed a 2017 profit distribution plan: based on 1.435 billion shares, a cash dividend of CNY 0.57 (incl. tax) per 10 shares will be distributed to all shareholders, totaling CNY 81.81 million, representing 20.24% of net profit attributable to parent company, in line with company articles Cash Dividend Distribution Over Last Three Years | Dividend Year | Cash Dividend (incl. tax, CNY) | Ratio to Net Profit Attributable to Ordinary Shareholders in Consolidated Statements | | :--- | :--- | :--- | | 2017 | 81,810,607.06 | 20.24% | | 2016 | 68,893,138.43 | 20.26% | | 2015 | 40,136,237.63 | 22.22% | II. Fulfillment of Commitments During the reporting period, most commitments made during acquisitions and reorganizations, such as share lock-ups, avoiding competition, and regulating related-party transactions, were fulfilled. However, the performance commitment party of former subsidiary Donglan Digital failed to meet 2016 targets and refused compensation, leading the company to initiate arbitration. Other acquired companies (Jingtu Information, Jiedong Control, Ofeiling Communication, Hulian Tianxia) fulfilled their 2015-2017 performance commitments - Former subsidiary Donglan Digital's performance commitment party failed to meet 2016 performance targets and refused to fulfill compensation obligations; the company has initiated arbitration[266][308] - Jingtu Information, Jiedong Control, Ofeiling Communication, and Hulian Tianxia Technology all fulfilled their 2017 performance commitments[310] VII. Analysis of Major Holding and Participating Companies During the reporting period, the company's major holding subsidiaries operated well. Core subsidiaries like Beijing Feilixin Electronics, Xiamen Jingtu, Shanghai Jiedong, Chengdu Ofeiling, and Hulian Tianxia all contributed significant operating revenue and net profit, serving as crucial support for the company's performance 2017 Operating Performance of Major Subsidiaries (Unit: CNY 10,000) | Company Name | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Beijing Feilixin Electronic Technology Co., Ltd. | 220,320.65 | 124,666.83 | 72,534.25 | 14,656.61 | | Xiamen Jingtu Information Technology Co., Ltd. | 44,368.03 | 32,865.54 | 31,464.65 | 6,017.52 | | Shanghai Jiedong System Engineering Control Co., Ltd. | 48,347.39 | 25,174.02 | 44,380.93 | 6,897.27 | | Chengdu Ofeiling Communication Technology Co., Ltd. | 19,808.02 | 18,307.01 | 18,121.44 | 7,920.52 | | Hulian Tianxia Technology Development (Shenzhen) Co., Ltd. | 17,741.82 | 11,737.70 | 11,943.84 | 4,451.43 | Share Changes and Shareholder Information I. Share Changes During the reporting period, the company's total share capital of 1,435,273,808 shares remained unchanged. Due to the lifting of restrictions on some restricted shares, the proportion of restricted shares decreased from 49.66% to 28.21%, while unrestricted shares increased from 50.34% to 71.79% Changes in Share Structure | Share Type | Quantity Before Change | Ratio Before Change | Quantity After Change | Ratio After Change | | :--- | :--- | :--- | :--- | :--- | | Restricted Shares | 712,824,050 | 49.66% | 404,892,078 | 28.21% | | Unrestricted Shares | 722,449,758 | 50.34% | 1,030,381,730 | 71.79% | | Total Shares | 1,435,273,808 | 100.00% | 1,435,273,808 | 100.00% | III. Shareholders and Actual Controllers As of the end of the reporting period, the company had 59,114 shareholders. The controlling shareholders and actual controllers are Yang Zhenhua, Cao Xinjun, Chen Hongshun, and Wang Shouyan, acting in concert, with a combined shareholding of 25.67%. The top ten shareholders include several trusts and asset management plans in addition to the controlling shareholders - The company's controlling shareholders and actual controllers are Yang Zhenhua, Cao Xinjun, Chen Hongshun, and Wang Shouyan, four individuals acting in concert[375][377] Top Five Shareholders' Holdings | Shareholder Name | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | | Yang Zhenhua | 13.29% | 190,812,084 | | Cao Xinjun | 5.46% | 78,321,100 | | Chen Hongshun | 4.16% | 59,653,750 | | Zhao Jingwei | 2.91% | 41,800,000 | | Founder Fubon Fund - Minsheng Bank - Ping An Trust - Ping An Wealth * Huitai No. 183 Single Capital Trust | 2.86% | 40,983,600 | Preferred Shares Related Information Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[381] Directors, Supervisors, Senior Management, and Employees I. Changes in Holdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management. Chairman and General Manager Yang Zhenhua held 191 million shares at period-end, accounting for 13.29% of total share capital V. Employee Information As of the end of the reporting period, the company had 1,679 employees. Technical personnel constituted the largest group at 1,031, or 61.4% of the total. Employees with bachelor's degrees or higher accounted for over 57% Employee Professional Composition | Professional Category | Number of People | Proportion | | :--- | :--- | :--- | | Technical Personnel | 1,031 | 61.41% | | Management Personnel | 165 | 9.83% | | Sales Personnel | 158 | 9.41% | | Other | 325 | 19.35% | | Total | 1,679 | 100.00% | Corporate Governance I. Basic Status of Corporate Governance The company has established a complete and effective governance structure, independent from controlling shareholders in personnel, assets, finance, organization, and business. Its corporate governance complies with relevant regulations like the 'Guidelines for Corporate Governance of Listed Companies', with no significant discrepancies. One annual and two extraordinary general meetings were held during the reporting period - The company's actual corporate governance status complies with normative documents issued by the China Securities Regulatory Commission regarding listed company governance, with no significant discrepancies[408][411] - The company is completely separate from its controlling shareholders and actual controllers in terms of assets, personnel, finance, organization, and business, operating independently and possessing the ability to operate autonomously in the market[412] Corporate Bonds Related Information Corporate Bonds During the reporting period, the company had no publicly issued and listed corporate bonds on stock exchanges that were either unexpired or not fully redeemed by the approval date of the annual report - The company has no publicly issued and listed corporate bonds on stock exchanges that were either unexpired or not fully redeemed by the approval date of the annual report[428] Financial Report I. Audit Report Lixin Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2017 financial statements, affirming that they fairly present the company's financial position, operating results, and cash flows in all material respects, in accordance with enterprise accounting standards. Key audit matters included revenue recognition and provision for bad debts on accounts receivable - The auditing firm, Lixin Certified Public Accountants (Special General Partnership), issued a standard unqualified audit opinion[430][431] - Key audit matters include: 1. Revenue Recognition: As revenue is a key performance indicator, there is an inherent risk of management manipulating the timing of revenue recognition[434] 2. Provision for Bad Debts on Accounts Receivable: The book value of accounts receivable is high (28.49% of total assets), and the assessment of bad debt losses involves significant management judgment[435] II. Financial Statements Financial statements show that as of year-end 2017, total assets were CNY 7.265 billion, total liabilities CNY 1.414 billion, and equity attributable to parent company owners CNY 5.808 billion. For 2017, operating revenue was CNY 2.221 billion, net profit CNY 414 million, with CNY 404 million attributable to parent company owners. Net cash flow from operating activities was CNY 137 million Consolidated Balance Sheet Key Items (Unit: CNY) | Item | Dec 31, 2017 | Dec 31, 2016 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,163,069,597.59 | 1,178,186,924.34 | | Accounts Receivable | 2,069,545,841.06 | 1,646,707,598.98 | | Inventories | 400,005,095.45 | 371,382,902.36 | | Goodwill | 2,397,829,293.24 | 2,399,829,184.57 | | Total Assets | 7,264,789,862.55 | 6,742,128,624.57 | | Short-term Borrowings | 185,700,000.00 | 110,010,000.00 | | Accounts Payable | 499,647,175.66 | 566,701,218.30 | | Total Liabilities | 1,413,813,256.77 | 1,236,593,990.28 | | Total Equity Attributable to Parent Company Owners | 5,807,621,158.83 | 5,472,462,020.28 | | Total Liabilities and Equity | 7,264,789,862.55 | 6,742,128,624.57 | Consolidated Income Statement Key Items (Unit: CNY) | Item | 2017 | 2016 | | :--- | :--- | :--- | | Total Operating Revenue | 2,220,676,444.50 | 2,037,626,247.61 | | Operating Cost | 1,296,103,835.35 | 1,199,639,017.87 | | Operating Profit | 471,039,822.68 | 350,481,508.39 | | Total Profit | 469,546,712.69 | 383,200,631.39 | | Net Profit | 414,360,536.38 | 347,971,930.94 | | Net Profit Attributable to Parent Company Owners | 404,107,820.17 | 340,084,604.26 | Consolidated Cash Flow Statement Key Items (Unit: CNY) | Item | 2017 | 2016 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 137,022,732.59 | 8,825,680.67 | | Net Cash Flow from Investing Activities | -136,837,937.28 | -1,006,925,675.27 | | Net Cash Flow from Financing Activities | -20,316,417.07 | 1,720,807,972.51 | | Net Increase in Cash and Cash Equivalents | -20,046,875.02 | 722,709,588.74 | XII. 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