Boss Soft(SZ:300525)2019-03-18 16:00Profit Distribution and Financial Performance - The company reported a profit distribution plan based on a base of 129,636,000, proposing a cash dividend of 2.00 RMB per 10 shares (including tax) and a capital reserve increase of 5 shares per 10 shares [6]. - The company plans to distribute cash dividends of RMB 2.00 per 10 shares, totaling RMB 25,927,200.00 for the year 2018, which represents 30.38% of the net profit attributable to ordinary shareholders [144]. - The company reported a distributable profit of RMB 189,972,760.80 for the year 2018 [144]. - The cash dividend amount for 2017 was RMB 15,126,720.00, which accounted for 27.66% of the net profit attributable to ordinary shareholders [148]. - The cash dividend amount for 2016 was RMB 13,627,800.00, representing 35.58% of the net profit attributable to ordinary shareholders [148]. - The company has established a clear and complete decision-making process for its profit distribution and capital reserve increase plans [143]. - The cash dividend for 2018 is fully compliant with the company's articles of association and relevant regulations [143]. - The company reported a total revenue of 1,595.41 million CNY for the period ending December 31, 2019, exceeding the original profit forecast of 1,200 million CNY [199]. Financial Reporting and Compliance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report [5]. - The company’s financial report is available on the designated website of the China Securities Regulatory Commission [21]. - The company disclosed 267 documents during the reporting period, ensuring the quality of information disclosure [61]. - The company is subject to regulatory commitments regarding the accuracy and completeness of its public disclosures, with potential penalties for non-compliance [198]. - The company has committed to maintaining transparency with shareholders regarding any changes in shareholding and management practices [198]. Revenue and Profit Growth - The company's operating revenue for 2018 was ¥558,594,681.40, representing an increase of 80.26% compared to ¥309,882,371.93 in 2017 [25]. - The net profit attributable to shareholders for 2018 was ¥85,349,226.11, a growth of 56.07% from ¥54,685,146.71 in 2017 [25]. - The net profit after deducting non-recurring gains and losses for 2018 was ¥81,323,906.13, up 50.71% from ¥53,961,830.30 in 2017 [25]. - The net cash flow from operating activities for 2018 was ¥91,681,083.51, an increase of 63.17% compared to ¥56,187,904.96 in 2017 [25]. - The company reported a significant increase in equity assets by 86.18% due to additional investments in newly added joint ventures [45]. - The company reported a total of ¥91,420,869.00 in sales from its top five customers, which accounted for 16.37% of total annual sales [76]. Market Expansion and Business Development - The company is committed to expanding its market presence and exploring new business areas [6]. - The company has established a public service platform called "Fumaton Cloud Payment" aimed at providing simple, secure, and fast online payment solutions [15]. - The company is enhancing its public payment platform to support digital government initiatives and smart city development [39]. - The company has expanded its electronic ticketing business into new provinces including Sichuan, Tianjin, and Hubei, contributing to significant revenue growth [56]. - The company plans to leverage the government's push for electronic fiscal ticket management to enhance the promotion of its electronic ticket products, particularly in the healthcare sector [124]. - The company aims to expand its market share in smart city construction by utilizing its electronic payment platform advantages and successful case studies [124]. Research and Development - The company invested 86.56 million yuan in R&D, accounting for 15.50% of operating revenue, which is a 77.91% increase year-on-year [57]. - The company is focusing on enhancing its core competitiveness by increasing R&D investments in electronic invoicing and non-tax revenue collection systems [81]. - The total R&D investment in 2018 was ¥86,562,242.72, accounting for 15.50% of operating revenue, a slight decrease from 15.70% in 2017 [87]. - The number of R&D personnel increased to 889 in 2018, representing 42.11% of the total workforce, up from 32.98% in 2017 [87]. Risks and Challenges - The company faces various risks including market competition, policy risks, and technology development risks, which investors should be aware of [6]. - The company is actively managing policy risks related to potential changes in tax incentives for the software industry, which could impact its financial performance [133]. - The company recognizes the risks associated with new business ventures and is focused on optimizing team structures and decision-making processes for successful market expansion [137]. - The company faces market competition risks as new entrants may lead to price declines and challenges in maintaining market share [134]. Acquisitions and Strategic Moves - The company plans to acquire 78.00% equity of Guangdong Ruilian through cash [154]. - The acquisition is part of a restructuring effort, with necessary confidentiality measures taken during feasibility studies [154]. - The acquisition is expected to enhance the company's market position and expand its operational capabilities [157]. - The company has committed to providing all necessary factual materials and documents for the disclosure related to the acquisition, ensuring their authenticity and completeness [160]. - The independent financial advisor, Guojin Securities, confirmed that their reports regarding the acquisition do not contain any false records or misleading statements [160]. Corporate Governance and Shareholder Relations - The company has established a consistent action agreement among major shareholders to maintain unified voting and proposal rights during board meetings [190]. - The company has committed to measures to fill the diluted immediate returns, including improving operational efficiency and reducing costs to enhance profitability [178]. - The company will ensure that the compensation system for directors and senior management is linked to the execution of measures to fill diluted immediate returns [178]. - The company has established measures to stabilize its stock price, including share repurchases and increases by directors and senior management, to ensure compliance with listing conditions [181]. - The controlling shareholder has committed to not requiring the company to provide guarantees for their controlled enterprises [182].