LEO(SZ:002131)2022-12-06 02:44Group 1: Company Performance Overview - In 2016, the company achieved a revenue of CNY 7.354 billion, representing a year-on-year growth of 67.44% [1] - Net profit attributable to shareholders was CNY 571 million, with a significant increase of 153.32% year-on-year [1] - The net profit after deducting non-recurring gains and losses was CNY 529 million, up by 158.76% [2] - Earnings per share reached CNY 0.37, reflecting a growth of 94.74% [2] Group 2: Asset and Equity Growth - Total assets at the end of the year amounted to CNY 11.291 billion, a growth of 34.4% compared to the previous year [2] - Net assets increased to CNY 7.378 billion, showing a year-on-year growth of 28.92% [2] Group 3: Business Segment Performance - Internet business accounted for 72.84% of total revenue, while manufacturing business contributed 26.66% [2] - The internet segment experienced a compound annual growth rate (CAGR) of 134.03% from 2014 to 2016 [2] - The manufacturing segment showed stable growth with improving gross margins, expected to continue in 2017 [2] Group 4: Future Outlook and Strategies - The company aims for a sales target of CNY 10 billion in 2017, primarily driven by marketing services [3] - Plans to continue acquisitions in the RTB industry, although the pace may be affected by domestic foreign exchange regulations [3] - The company is focusing on expanding its business scale and enhancing competitiveness to become a leading digital communication group in the Asia-Pacific region [3] Group 5: Shareholder and Incentive Plans - A profit distribution plan was proposed to distribute CNY 0.37 per 10 shares (tax included) and a capital reserve conversion of 25 shares for every 10 shares [2] - The company faced challenges with the stock incentive plan, where a 15% exercise ratio was not achieved [2] Group 6: Q&A Insights - The gross margin for mobile traffic integration has decreased due to the differing attributes of acquired companies [4] - The company maintains a balanced client structure, with major clients including Baidu and 360, while also expanding to other media [4] - The digital marketing sector is expected to see continued growth, with a projected increase of over 40% in media agency business [5] - The overall industry is anticipated to grow as digital adoption increases, with China's digitalization rate currently at 20-30% compared to 50% in the US [5]