Nsfocus(300369)2018-04-23 16:00Financial Performance - The company's operating revenue for 2017 was ¥1,255,110,707.41, representing a 15.07% increase compared to ¥1,090,693,867.24 in 2016[21]. - The net profit attributable to shareholders decreased by 30.78% to ¥152,367,683.85 in 2017 from ¥220,124,125.56 in 2016[21]. - The net profit after deducting non-recurring gains and losses was ¥89,349,023.17, down 54.77% from ¥197,550,954.80 in the previous year[21]. - The net cash flow from operating activities was ¥75,891,136.51, a decrease of 18.94% compared to ¥93,622,173.45 in 2016[21]. - The total assets at the end of 2017 reached ¥3,761,452,844.79, an increase of 38.74% from ¥2,711,227,178.95 at the end of 2016[21]. - The net assets attributable to shareholders increased by 49.32% to ¥2,865,854,850.91 at the end of 2017 from ¥1,919,265,179.45 at the end of 2016[21]. - The basic earnings per share decreased by 33.33% to ¥0.20 in 2017 from ¥0.30 in 2016[21]. - The weighted average return on equity was 6.48%, down from 12.47% in 2016, reflecting a decline of 5.99%[21]. - The total profit was CNY 182.62 million, a year-on-year decrease of 29.41%[47]. - The net profit attributable to shareholders was CNY 152.37 million, a year-on-year decrease of 30.78%[47]. - The net profit after deducting non-recurring gains and losses was CNY 89.35 million, a year-on-year decrease of 54.77%[47]. Dividend Policy - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares (including tax) to all shareholders, based on a total share capital of 803,137,302 shares[11]. - The cash dividend payout ratio for 2017 was 100%, consistent with the company's profit distribution policy[120]. - The company distributed a cash dividend of RMB 1.199959 per 10 shares in 2016, totaling RMB 47,786,637.67, which was 21.71% of the net profit[119]. - The company has maintained a consistent cash dividend policy over the past three years, with a focus on returning profits to shareholders[123]. Market Expansion and Strategy - The company has established wholly-owned subsidiaries in Hong Kong, the United States, Japan, Singapore, and the United Kingdom to expand its international market presence[11]. - The company acknowledges risks associated with overseas market expansion, including local operating environments and regulatory changes[11]. - The company aims to enhance its market share in the domestic information security sector while actively exploring international markets to become a globally influential cybersecurity enterprise[106]. - The global information security market presents significant growth opportunities, with the company expanding its presence in regions such as the US, Japan, Hong Kong, Singapore, and the UK[114]. - The company is transitioning from product-based offerings to solutions and services, aiming to increase the revenue share from industry-specific solutions and technology solutions[113]. Research and Development - The company has a strong focus on employee training and development as part of its talent strategy to drive growth[10]. - The company's R&D investment amounted to ¥289,875,551.21 in 2017, representing 23.10% of total revenue[76]. - The number of R&D personnel increased to 1,315 in 2017, up from 1,160 in 2016[76]. - The company has invested RMB 15,502.1 million in the acquisition of Yisaitong, achieving an investment progress of 100.06%[94]. - The company is focusing on research and development of new technologies, with a dedicated team led by the Chief Technology Officer, Zhao Liang[200]. Risk Factors - The company faces risks related to potential changes in tax incentive policies that could adversely affect its performance[8]. - The company has acknowledged risks associated with overseas market expansion, including local operating environments and regulatory changes[11]. - The company has a seasonal distribution of profits, with expenses occurring relatively evenly throughout the quarters, impacting profit visibility[7]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, as evidenced by the recent board restructuring and the appointment of independent directors[197]. - The company has not reported any non-standard audit reports for the current period[135]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[134]. Employee Engagement and Welfare - The company emphasizes employee welfare, providing additional medical insurance and various benefits, including birthday celebrations and team-building activities[167]. - The company has established long-term partnerships with universities to support talent development in the information security industry[167]. - In 2017, the company recruited 175 fresh graduates from 24 universities, enhancing its talent pool[168]. Product Development and Innovation - The next-generation firewall (NF) achieved a throughput of 80G and received a high-performance wall sales license from the Ministry of Public Security[32]. - The company's intrusion detection system (IDS) successfully adapted to domestic hardware and operating systems, marking a significant step in product localization[32]. - The cloud security management system (NCSS) became the first product in China to obtain a sales license for cloud security management platforms[35]. - The company has launched multiple security solutions, including cloud security solutions and industry-specific solutions, achieving high customer satisfaction and recognition[48]. Financial Position and Investments - The company's cash and cash equivalents increased by 83.52% compared to the beginning of the year, primarily due to the proceeds from a non-public offering[36]. - The company completed a non-public stock issuance, raising net funds of CNY 771.78 million for project funding[47]. - The company has committed RMB 39,488.41 million to the Smart Security Protection System project, with a cumulative investment of RMB 19,246.22 million, representing 48.74% of the total[94]. Customer Base and Market Share - The company has a diverse and high-quality customer base, including government, telecommunications, finance, energy, and healthcare sectors[42]. - The company maintains a leading market share in key products, consistently ranked first in market share in China according to various industry reports[44].