EASTCOM(600776)2016-04-18 16:00Financial Performance - In 2015, the company's operating revenue was CNY 3,565,925,468.23, a decrease of 3.92% compared to CNY 3,711,605,145.68 in 2014[21] - The net profit attributable to shareholders was CNY 169,799,041.36, down 5.38% from CNY 179,447,632.48 in the previous year[21] - The basic earnings per share decreased to CNY 0.1352, a decline of 5.38% from CNY 0.1429 in 2014[23] - The total revenue for 2015 was CNY 3,533,228,472.88, with a year-on-year decrease of 1.91%[51] - The company reported a total profit of CNY 191,809,052.00 for 2015, down 5.5% from CNY 202,974,632.47 in the previous year[170] - The company achieved historical highs in communication service revenue and operating profit, exceeding annual operational targets[44] Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -10,806,712.79, a significant decrease of 114.53% compared to CNY 74,355,286.63 in 2014[21] - The company's cash and cash equivalents decreased by 49.88% year-on-year, totaling CNY 637.23 million at the end of 2015[35] - The total assets at the end of 2015 were CNY 3,717,306,997.20, an increase of 2.44% from CNY 3,628,821,084.18 in 2014[22] - Current assets decreased to CNY 2,947,600,358.63 from CNY 3,002,378,715.02, representing a decline of about 1.83%[164] - Cash and cash equivalents dropped significantly from CNY 1,271,531,760.68 to CNY 637,228,926.10, a decrease of approximately 49.95%[164] Investments and R&D - The company invested CNY 160.66 million in R&D in 2015, representing a 4.4% increase compared to the previous year[46] - Development expenditures surged by 518.07% year-on-year, amounting to CNY 32.16 million, reflecting increased project investments[35] - The company is focusing on enhancing its research and development capabilities in the private network communication sector, particularly in PDT and TETRA markets[71] Market Position and Strategy - The company has maintained a leading position in the domestic financial electronic products sector, focusing on cash withdrawal machines and related services[32] - The company is expanding its market presence in information security and smart city solutions, aiming for sustainable growth in these sectors[32] - The company plans to expand its market share in financial electronics and self-service devices, leveraging its competitive advantages in information security and cash self-service equipment[71] Shareholder and Governance - The company has maintained a cash dividend policy, distributing 0.6 yuan per share in 2015, with a payout ratio of 44.38% of net profit attributable to shareholders[82][83] - The company has a diverse board with members holding various significant positions in other organizations, enhancing its governance and strategic direction[126] - The independent directors contribute to the company's governance, with a focus on compliance and risk management[126] Risks and Challenges - The company faces risks related to technology and product updates, market competition, and human resources, which could impact its profitability and growth[79][80][81] - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its capabilities[127] Employee and Management Structure - The total number of employees in the parent company is 2,388, and the total number of employees in major subsidiaries is 665, resulting in a combined total of 3,053 employees[136] - The company has implemented a salary system that links total employee income to company performance, department performance, and individual work performance[137] - The management team includes experienced professionals with backgrounds in finance, technology, and academia, contributing to the company's strategic planning and execution[126] Compliance and Reporting - The company has a well-defined internal control system and governance structure, complying with relevant laws and regulations[141] - The company has made efforts to ensure timely and accurate information disclosure to protect investors' rights[142] - The company's financial statements were prepared in accordance with the relevant accounting standards, ensuring compliance with regulatory requirements[196]