Wuhan Tianyu Information Industry (300205) posted a 43.69 percent year-on-year fall in 2011 net profit to 29.34 million yuan due to fierce market competition which lowered gross profit margins, reports China Business News, citing a company filing.

Sales revenue rose 24.30 percent from a year ago to 656 million yuan as the company benefited from an 87.95 percent growth in revenue from its electronic payments business and from a 144.83 percent surge in revenue from mobile value-added services.

However, the company did not manage to solve its problem of high amounts of accounts receivable.

During the 2008-2010 period, accounts receivable hit 15 million yuan, 204 million yuan, and 185 million yuan, respectively.

According to market experts, the failure to collect the receivables will hurt the company's asset quality and financial status.

On the other hand, cash and cash equivalents rose 333.19 percent from the beginning of last year to 630 million yuan at the end of 2011, due mainly to its initial public offering.

The company said it is planning several projects which will use the excess funds raised from its listing.

At the end of last year, the Social Security Fund held 1.99 million shares, or a 2.5 percent stake.