Star-net(002396)2021-08-27 16:00Financial Performance - The company's operating revenue for 2017 was ¥7,705,135,612.62, representing a 35.47% increase compared to ¥5,687,658,283.03 in 2016[29]. - The net profit attributable to shareholders for 2017 was ¥453,875,490.20, a 42.08% increase from ¥319,458,028.13 in 2016[29]. - The basic earnings per share for 2017 was ¥0.8195, up 38.29% from ¥0.5926 in 2016[29]. - Total assets at the end of 2017 were ¥6,439,912,654.33, a 12.00% increase from ¥5,749,733,120.05 at the end of 2016[29]. - The total cost of sales for 2017 was ¥4,744,431,994.48, reflecting a year-on-year increase of 47.20%[73]. - The company reported a net profit of 30 million in 2017, which is a 15% increase compared to the previous year[151]. - The cumulative net profit of Fujian StarNet Ruijie Communication Co., Ltd. for the years 2017, 2018, and 2019 is committed to be no less than 367.5 million yuan, excluding non-recurring gains and losses[179]. - The cumulative net profit of Shengteng Information for the same period is promised to be no less than 247 million yuan, also excluding non-recurring gains and losses[181]. Dividend Policy - The company reported a profit distribution plan of 1.50 RMB per 10 shares, based on a total of 583,280,278 shares[9]. - For 2017, the proposed cash dividend is 1.50 CNY per 10 shares, amounting to a total of 87,492,041.70 CNY[136]. - The cash dividends for 2017 represent 100% of the distributable profits, which are 1,073,254,575.75 CNY[136]. - The net profit attributable to ordinary shareholders for 2017 was 453,875,490.20 CNY, with a dividend payout ratio of 19.28%[135]. - The company has maintained a clear and transparent cash dividend policy, ensuring the protection of minority shareholders' rights[131]. - The cash dividend distribution plans for the past three years have been consistent and aligned with the company's profit distribution strategy[134]. - Independent directors have fulfilled their responsibilities effectively in overseeing the cash dividend policy[131]. Innovation and R&D - The company emphasizes the importance of continuous innovation in network and communication technologies to maintain product profitability[6]. - The company aims to leverage new technologies and market demands to continuously innovate and improve its offerings[44]. - Research and development investment totaled RMB 1,008 million, accounting for 13.08% of the company's annual revenue[50]. - The company applied for 298 patents in 2017, including 230 invention patents, with a total of 1,617 patents accumulated by the end of the reporting period[50]. - The company plans to increase R&D investment to address technology risks and ensure the development of differentiated products[117]. Market Position and Competition - There is a risk of intensified competition in the market, despite the company's competitive advantages in certain segments[6]. - The company aims to maintain a leading position in mPOS sales and actively explore overseas markets, focusing on major state-owned banks and third-party payment operators[113]. - The company acknowledges risks from macroeconomic policies and competition, committing to continuous innovation and collaboration across product lines to maintain a competitive edge[115][116]. - The company recognizes the risk of high customer concentration and seasonality in sales, particularly in the fourth quarter, and aims to diversify its market positioning[118]. Operational Challenges - The company faces challenges due to high customer concentration and seasonal sales patterns, particularly in the fourth quarter[6]. - The company experienced a 42.55% decrease in intangible assets due to the reduction in the scope of consolidation related to the acquisition of Sichuan Software[45]. - The company has not reported any changes in its main business operations since its listing[27]. Strategic Development - The company plans to strengthen its capabilities in smart networks, smart cloud, and other sectors as part of its future development strategy[109]. - In the cloud computing sector, the company plans to deepen its presence in the education industry and expand into the insurance sector, targeting the financial industry to build an ecosystem[113]. - The company aims to enhance operational efficiency and improve output per capita in its strategic initiatives[109]. - The company has established a clear guideline for market expansion and product development, focusing on maintaining competitive advantages in the telecommunications sector[179]. Human Resources - The company is implementing competitive human resource policies to attract and retain high-end technical talent amid industry growth and competition[123]. - The number of R&D personnel increased to 3,788, a growth of 14.61% from 2016[82].