Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2018, representing a year-on-year growth of 15%[1]. - The net profit attributable to shareholders was 250 million RMB, an increase of 20% compared to the previous year[1]. - The company has set a performance guidance of 1.5 billion RMB in revenue for 2019, reflecting a growth target of 25%[1]. - The gross margin for 2018 was reported at 40%, consistent with the previous year, indicating stable cost management[1]. - The company achieved operating revenue of 966.91 million yuan, an increase of 4.10% compared to the same period last year[112]. - Net profit attributable to shareholders reached 64.50 million yuan, up 14.78% year-on-year[112]. - The net cash flow from operating activities for 2018 was ¥60,650,591.12, showing a significant increase of 150.98% from ¥24,165,987.23 in 2017[89]. - The total assets at the end of 2018 were ¥998,759,207.18, a 4.94% increase from ¥951,698,875.14 at the end of 2017[89]. - The company reported a total of ¥19,438,443.31 in non-recurring gains and losses for 2018, compared to ¥14,114,143.17 in 2017[95]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a revenue contribution of 10% from this region by 2020[1]. - New product launches are expected to contribute an additional 300 million RMB in revenue in 2019, driven by advancements in technology[1]. - SanDisk aims to expand its market presence in Asia, targeting a 15% increase in market share by 2025[77]. - The company is actively expanding its international market presence and enhancing support for international sales[116]. - The company plans to continue focusing on market expansion and new product development to address changing consumer demands[198]. Research and Development - The company has allocated 100 million RMB for research and development in new technologies for the upcoming fiscal year[1]. - SanDisk plans to invest $1 billion in R&D over the next three years to enhance its 3D NAND technology[77]. - The company is focusing on developing new product lines based on advanced technologies like 3D NAND FLASH and PCIe protocols[113]. User Growth and Engagement - User data showed an increase in active users to 5 million, up from 4 million in 2017, indicating a growth rate of 25%[1]. - SanDisk's user base has grown to 50 million active users, a 20% increase from the previous year[77]. Intellectual Property and Legal Actions - The company has established a dynamic management approach for its Hong Kong operations, including monthly financial reconciliations and periodic inventory audits to strengthen oversight[65]. - The company is actively pursuing patent rights protection through judicial and administrative means, including ongoing litigation against PNY Technologies[118]. - The company filed a lawsuit against Beijing Xuanji Information Technology Co., Ltd. and others for patent infringement, seeking a total compensation of RMB 60 million[129]. - The court ruled that Beijing Xuanji Information Technology Co., Ltd. must pay RMB 40 million in damages to the company for patent infringement[134]. - The company has been actively pursuing legal actions to protect its intellectual property rights and recover damages from infringers[136]. Risks and Challenges - The company is facing risks related to unstable patent income, which is a significant part of its business model, due to the lengthy and costly nature of patent applications and litigation[34]. - The company is at risk of being replaced by new technologies such as cloud storage and cloud computing, which threaten the mobile storage industry[44]. - The company heavily relies on its core patent "Flash electronic storage method and device for data processing system" (Patent No: ZL99117225.6), which expired on November 14, 2019, posing a significant risk to its operations[51]. - The company faces systemic risks related to the expiration of its patents, particularly in traditional mobile storage, which is increasingly being replaced by cloud storage and mobile internet technologies[51]. - The competitive landscape in the flash memory and mobile storage market is intensifying, with competitors potentially lowering prices to gain market share, threatening the company's market position and profit margins[55]. Governance and Shareholder Relations - The company emphasized the importance of maintaining shareholder communication and transparency in future strategic decisions[1]. - The company faced governance challenges, with 28 out of 163 board proposals receiving dissenting votes, raising concerns among investors and media[21]. - The company aims to enhance communication among major shareholders and directors to mitigate risks and seize development opportunities[21]. - The shareholding structure has undergone significant changes, which may impact the company's business and management[24]. Operational Management - The company has implemented measures to enhance daily management of its Hong Kong subsidiary, Netac Technology (Hong Kong) Limited, including independent accounting and strict inventory control to mitigate operational risks[65]. - The finance department is responsible for tracking accounts receivable based on sales contracts, with measures in place to withhold sales commissions for overdue payments to control collection risks[65]. - The company conducts weekly communications with clients to monitor their operational status and promptly report any risks that may affect payment collections[65]. - The board has emphasized the importance of controlling operational risks associated with the Hong Kong subsidiary through various strategies[68].

深圳市朗科科技股份有限公司 2018 年第三季度报告全文 深圳市朗科科技股份有限公司 2018 年第三季度报告 2018 年 10 月 1 深圳市朗科科技股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 公司负责人魏卫、主管会计工作负责人杜铁军及会计机构负责人（会计主 管人员）刘俏声明：保证季度报告中财务报表的真实、准确、完整。 2 除下列董事外，其他董事亲自出席了审议本次季报的董事会会议 未亲自出席董事姓名 未亲自出席董事职务 未亲自出席会议原因 被委托人姓名 杨敏 独立董事 法院开庭 黄志业 深圳市朗科科技股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 981,104,198.63 | ...

Shareholding Structure - The company reported a total share capital of 133.6 million shares as of December 31, 2016, with major shareholders holding the following percentages: Deng Guoshun 21.63%, Zhongke Huitong 21.00%, Cheng Xiaohua 8.80%, Antu Tianmu 6.52%, and Hunan Trust 4.94%[13]. - The company has experienced significant changes in its equity structure since April 2015, leading to a more dispersed shareholding distribution[11]. - As of December 31, 2017, the top three shareholders held the following percentages: Deng Guoshun 21.63%, Zhongke Huitong 21.00%, and Cheng Xiaohua 8.80%[13]. - The company has confirmed that it does not have a controlling shareholder or actual controller, as per the consensus among major shareholders[12]. - The company’s major shareholders have not signed any concerted action agreements, which affects the recognition of actual control[10]. - The company’s major shareholders have expressed differing opinions regarding the recognition of controlling shareholders, indicating potential management risks[6]. Corporate Governance - The company’s board of directors has passed a total of 140 resolutions during the tenure of Chairman Cheng Xiaohua, with some resolutions facing opposition from other board members[8]. - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report, indicating that these do not constitute substantial commitments to investors[5]. - The company aims to improve communication among major shareholders and directors to mitigate risks while seizing development opportunities[18]. - The company will continue to refine its governance structure and decision-making processes to protect shareholder interests amid the ongoing changes[23]. Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 1.2 billion in the first half of 2018, representing a year-on-year growth of 25%[54]. - The company has set a revenue guidance for the second half of 2018, projecting an increase of 20% over the first half, aiming for a total of RMB 1.44 billion[56]. - The gross margin for the first half of 2018 was reported at 35%, a slight increase from 32% in the same period last year[56]. - Operating profit increased by 29.08% to 33.81 million yuan, while total profit rose by 27.31% to 33.75 million yuan, and net profit attributable to shareholders grew by 18.92% to 27.14 million yuan, mainly driven by an increase in patent licensing income[78]. - The company reported an asset impairment provision of 24.78 million yuan as of June 30, 2018, which could reduce net profit by approximately 3.72 million yuan if not properly documented for tax deduction[41]. Market Risks - The company faces significant risks from fluctuations in raw material prices, particularly for flash memory, which can impact cost control and gross margins[26]. - The company is at risk of not being able to sustain technological innovation or product updates, which could lead to a loss of core technological advantages[28]. - The mobile storage industry is threatened by emerging trends such as cloud storage and cloud computing, posing risks to the company's main business[29]. - The company is experiencing intense market competition, with competitors potentially lowering prices to gain market share, which could affect profit margins[39]. - The company has acknowledged the risk of unstable patent income, which is a crucial part of its business model, due to the lengthy and costly nature of patent applications and litigation[24]. Product Development and Innovation - The company is focusing on expanding its product lines, particularly in solid-state drives and mobile storage applications, to enhance innovation and competitiveness[28]. - The company is exploring new product development in encrypted mobile storage to address security concerns in the digital landscape[28]. - The company is investing in R&D for 3D V-NAND technology, which is anticipated to enhance product performance and reduce production costs by 10%[54]. - The company launched several new products, including the U276, U905, and U352 flash drives, and is developing fingerprint recognition encrypted flash drives and mobile hard drives[79]. Legal and Intellectual Property - The company is actively pursuing legal actions to protect its intellectual property rights and has received favorable rulings in multiple cases[90]. - The company is involved in ongoing litigation with PNY Technologies regarding the validity and enforceability of certain patents, including US patents US8,074,024 and US8,332,585[85]. - The company has made progress in patent enforcement, including ongoing arbitration against PNY for alleged violations of a settlement agreement[83]. - The company has filed a lawsuit against Samsung China and others for patent infringement, claiming damages of RMB 5 million and legal costs of RMB 300,000[92]. Financial Management and Investments - The company has consistently reinvested idle funds into various bank financial products, optimizing the use of capital[137]. - The company reported a total investment of 109,000,000 yuan in various financial products during the reporting period[164]. - The expected return rate for the financial products was between 4.40% and 4.90%[164]. - The actual income generated from these investments was approximately 1,999,780 yuan, with a net profit of 969,260 yuan reported[164]. Shareholder Returns and Dividends - The company has committed to a cash dividend policy, ensuring that at least 10% of the distributable profit will be distributed in cash when conditions are met[183]. - The company aims to maintain a stable profit distribution policy, with cumulative cash distributions over three consecutive years not less than 30% of the average annual distributable profit[183]. - The company has outlined a three-year shareholder return plan (2018-2020) that includes cash and stock dividends, with a focus on maintaining a stable profit distribution policy[186]. - The company will consider the industry characteristics, development stage, and significant capital expenditure arrangements when proposing differentiated cash dividend policies[187].

Shareholding Structure - As of December 31, 2017, the total share capital of the company was 133.6 million shares, with the top three shareholders holding 21.63%, 21.00%, and 8.80% respectively[11]. - The company has experienced significant changes in its equity structure since April 2015, leading to a more dispersed shareholding[9]. - The major shareholders, including 邓国顺 and 中科汇通, have confirmed that they do not have actual control over the company as of December 31, 2016[10]. - The company has not identified a controlling shareholder or actual controller, which is not uncommon among listed companies[7]. - The company’s major shareholders have expressed differing opinions regarding control, with 邓国顺 holding 21.63% and 成晓华 holding 8.80% as of December 31, 2017[11]. - The company’s equity structure continues to evolve, with significant transactions occurring in December 2017 involving share transfers to 上海宜黎[11]. - The company’s major shareholders have not signed any concerted action agreements, which complicates the identification of actual control[6]. - The company’s shareholder structure as of December 31, 2016, included 中科汇通 at 21.00% and 安图田木 at 6.52%[10]. - Zhongke Huitong transferred 28,062,658 shares (21.00% of total shares) and Cheng Xiaohua transferred 5,250,000 shares (3.93% of total shares) to Shanghai Yili, resulting in Shanghai Yili becoming the largest shareholder with 33,312,658 shares (24.93%)[15]. Financial Performance - The company’s financial report has been confirmed as true, accurate, and complete by its board and management[3]. - The company experienced revenue growth rates of -8.79%, 91.52%, 46.21%, and 57.19% from 2014 to 2017, indicating instability in growth[35]. - The net profit growth rates after deducting non-recurring gains and losses were 3375.55%, 91.51%, 83.15%, and 6.41% during the same period, highlighting significant fluctuations[35]. - The company’s operating revenue for 2017 was ¥928,828,140.17, representing a 57.19% increase compared to ¥590,886,605.94 in 2016[57]. - The net profit attributable to shareholders for 2017 was ¥56,189,429.29, a 26.44% increase from ¥44,438,779.37 in 2016[57]. - The net profit after deducting non-recurring gains and losses was ¥42,075,286.12, which is a 6.41% increase from ¥39,542,370.41 in 2016[57]. - The basic earnings per share for 2017 was ¥0.4206, up 26.46% from ¥0.3326 in 2016[57]. - The total assets at the end of 2017 were ¥951,698,875.14, a 2.94% increase from ¥924,530,611.05 at the end of 2016[57]. - The net assets attributable to shareholders at the end of 2017 were ¥908,570,839.44, reflecting a 3.47% increase from ¥878,089,192.14 at the end of 2016[57]. - The company reported a net cash flow from operating activities of ¥24,165,987.23, which is a 13.79% increase from ¥21,237,504.94 in 2016[57]. Operational Risks and Challenges - The company has faced operational management risks due to disagreements among major shareholders[5]. - The company has faced challenges with Shanghai Yili regarding the payment of share transfer funds, which could create uncertainties regarding share ownership[16]. - The company faces risks of technological innovation stagnation, which could lead to core technology advantages being replaced by more advanced technologies[23]. - The mobile storage industry is experiencing a continuous decline, posing a risk to the company's main business operations[25]. - The company has not yet found effective methods to fundamentally address the risks of new technology substitution and patent invalidation[26][28]. - The core patent related to the data processing system will expire in just over a year, creating a significant dependency risk for the company's patent operations[29]. - The competitive landscape is intensifying, with competitors potentially lowering prices to gain market share, risking the company's market position and product margins[36]. - The company faces significant risks due to increasing competition and the threat of cloud storage and mobile internet replacing traditional storage products[67]. - The company has a strong market position in the flash memory and mobile storage sector but is experiencing challenges due to insufficient R&D and innovation[67]. Research and Development - The company plans to increase R&D investment and enhance the innovation capabilities of existing R&D personnel through training, aiming for breakthroughs in independent innovation and intellectual property operations[160]. - The company aims to expand its SSD (Solid State Drive) product line, with plans to achieve a leading position in the domestic market within 3-5 years[165]. - The company has experienced frequent technical personnel turnover, impacting its R&D and market support capabilities[73]. - The company plans to enhance its patent licensing strategy to increase the number of proactive payments for patent licenses[19]. - The company is focusing on solid-state drive product lines and upgrading traditional storage products to enhance innovation competitiveness[23]. Patent and Legal Matters - The company has been actively pursuing patent rights protection through judicial and administrative means, including a lawsuit against Beijing Xuanji Information Technology Co., Ltd. for patent infringement, with a court ruling ordering compensation of RMB 40 million[82]. - The company has filed multiple lawsuits for patent infringement, including a case against Shenzhen Xinjinkai Technology Co., Ltd. seeking RMB 300,000 in damages, which is still ongoing[85]. - The company has also initiated legal action against Crystal Sky Electronics (Shenzhen) Co., Ltd. for infringing its patent, with the Shenzhen Intermediate People's Court ruling in favor of the company, requiring the defendant to cease infringement and pay damages[86]. - The company continues to enhance its intellectual property management system, integrating it into all aspects of its operations to improve its contribution to business development[81]. - The company is actively involved in multiple patent infringement lawsuits to protect its intellectual property rights[90][92]. - The company has reported a total of four patent infringement lawsuits filed in 2017, showcasing its proactive legal strategy[93]. - The company is pursuing legal action against Guangzhou Youtuo Digital Technology for patent infringement, claiming RMB 1 million in damages and RMB 50,000 in reasonable expenses[92]. - The company filed a lawsuit against Micron's consumer products division and others for patent infringement, seeking a total compensation of RMB 1 million for economic losses and RMB 20,000 for reasonable expenses[94]. - The company initiated legal action against Samsung and related entities for infringing its patent, claiming damages of RMB 5 million and additional expenses of RMB 300,000[96]. Financial Management and Investments - The company has consistently achieved actual yields from its financial products, with the highest reported yield being RMB 4,178,446.03 from a 322-day product[142]. - The company has made strategic decisions to continue investing in principal-protected financial products to optimize returns on raised funds[142]. - The company has reported a series of successful investments in financial products with varying terms and yields, demonstrating effective fund management[142]. - The company has committed to transparency in its financial practices, as evidenced by the detailed disclosures regarding the use of raised funds[147]. - The company has utilized part of the idle raised funds amounting to 80 million yuan to purchase structured deposits from Ningbo Bank, with an expected annualized return of 4.19% and an actual return of 955,100 yuan[146]. Dividend Policy - The cash dividend for the year is set at 1.60 yuan per 10 shares, totaling 21,376,000 yuan, which represents 100% of the profit distribution[172][173]. - The cash dividend proposed for 2017 is RMB 21,376,000, which represents 38.04% of the net profit attributable to ordinary shareholders[180]. - The company did not propose a stock dividend for 2017 due to unstable growth in revenue and net profit, which were 57.19% and 26.44% respectively[175]. - The company plans to implement a cash dividend policy, distributing at least 10% of the distributable profits in cash when conditions are met[186]. - The company aims to maintain a stable profit distribution policy, with cumulative cash distributions over three consecutive years not less than 30% of the average annual distributable profits[186]. Compliance and Governance - The company has committed to enhancing training for directors and senior management regarding stock trading compliance[188]. - The company has maintained its accounting firm, Da Hua CPA, for 6 consecutive years, with an audit fee of ¥420,000[194]. - The company has not experienced any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[190]. - The company has not faced any bankruptcy reorganization issues during the reporting period[194]. - The company has established a policy to conduct annual cash distributions after the shareholders' meeting[186].

Financial Performance - Total revenue for Q1 2018 was CNY 207,471,790.75, representing a 1.20% increase compared to CNY 205,019,330.40 in the same period last year[8]. - Net profit attributable to shareholders was CNY 14,890,341.41, a slight increase of 0.07% from CNY 14,879,388.29 year-on-year[8]. - Net profit after deducting non-recurring items decreased by 27.99% to CNY 10,630,961.58 from CNY 14,762,270.75 in the previous year[8]. - Basic and diluted earnings per share were both CNY 0.1115, reflecting a 0.09% increase from CNY 0.1114[8]. - The company reported a total comprehensive income of CNY 12,278,082.99, down from CNY 13,513,327.64 in Q1 2017, primarily due to a decrease in other comprehensive income[166]. - Operating profit for the quarter was CNY 17,864,388.93, showing a marginal increase from CNY 17,545,125.87 in Q1 2017[165]. Cash Flow and Assets - Net cash flow from operating activities improved significantly, reaching CNY -19,172,865.87, a 65.71% reduction in losses compared to CNY -55,907,782.00 in the same period last year[8]. - Cash and cash equivalents decreased from CNY 178,160,131.61 to CNY 136,787,913.61, a decline of about 23.2%[156]. - Total current assets as of March 31, 2018, amounted to CNY 708,503,619.85, slightly up from CNY 703,677,539.69 at the beginning of the period, indicating a growth of approximately 1.2%[156]. - Total liabilities decreased from CNY 43,128,035.70 to CNY 33,557,543.90, a reduction of approximately 22.3%[158]. - The company's total assets as of March 31, 2018, were CNY 954,406,466.33, compared to CNY 951,698,875.14 at the beginning of the period, reflecting a slight increase of about 0.3%[159]. Shareholder Information - A total of CNY 21,376,000 in cash dividends is proposed to be distributed to shareholders, amounting to CNY 1.60 per 10 shares based on a total share capital of 13.36 million shares[147]. - The company has established a three-year shareholder return plan for 2018-2020 to ensure stable dividends[148]. - As of March 31, 2018, the total share capital was still 13.36 million shares, with the top three shareholders holding 24.93%, 21.63%, and 4.87% respectively[20]. Risks and Challenges - There are risks related to management due to disagreements among major shareholders, which may impact operational decisions[10]. - The company has faced control risks due to significant changes in its shareholding structure, which may impact its business operations and management[22]. - The company is at risk of not sustaining technological innovation or product updates, which could lead to losing core technological advantages[26]. - The company is facing increasing market competition, necessitating continuous product innovation and cost control to maintain its competitive edge[38]. - The company is at risk of losing its core patent related to flash memory technology, which is set to expire in just over a year, posing a significant operational risk[75]. Product Development and Innovation - The company plans to focus on solid-state drives and mobile storage applications to enhance innovation and competitiveness[27]. - The company is developing new products such as fingerprint recognition encrypted flash drives and Type-C interface mobile hard drives[57]. - The company is continuously analyzing market trends and consumer psychology to develop innovative product designs, including upcoming products like U276 and U905[57]. - The company is actively exploring new business models and application areas to enhance its core competitiveness and sustainable profitability[36]. Legal Matters - The company filed a lawsuit against Samsung China and others for patent infringement, claiming damages of RMB 5 million and legal costs of RMB 300,000[65]. - The company initiated a lawsuit against Shenzhen Suma Tieke Electronic Technology Co., Ltd. for patent infringement, seeking RMB 2 million in damages and RMB 100,000 in legal costs[68]. - The company is currently involved in a patent infringement lawsuit against Beijing Xuanji Information Technology Co., Ltd., with a claim for economic damages of 40 million RMB[87]. Financial Management - The company has consistently achieved returns from various bank wealth management products, demonstrating effective fund management strategies[141]. - The company plans to continue using up to CNY 470 million of raised funds for short-term bank wealth management products, with a rolling investment period of up to one year starting from February 3, 2018[142]. - The company has identified and corrected previous misallocations of raised funds, ensuring compliance with regulations[146].

Shareholding Structure - As of December 31, 2017, the total share capital of the company was 133.6 million shares, with the top three shareholders holding 21.63%, 21.00%, and 8.80% respectively[11]. - The company has undergone significant changes in its equity structure since April 2015, leading to a more dispersed shareholding[9]. - The major shareholders, including 邓国顺 and 成晓华, have expressed that they do not constitute the actual controllers of the company, confirming the absence of a controlling shareholder[10]. - The company received confirmations from its major shareholders that they are not the actual controllers as of December 31, 2016, and currently[10]. - The company’s major shareholders have historically disagreed on several board resolutions, indicating potential management risks[5]. - The company’s shareholder structure as of December 31, 2016, included 中科汇通 at 21.00% and 安图田木 at 6.52%[10]. - The company has not signed any concerted action agreements among its shareholders, which affects the recognition of actual control[8]. - The company’s major shareholders have consistently maintained that they do not meet the criteria for being recognized as controlling shareholders[7]. - The company’s equity distribution has led to a situation where no single entity holds a controlling stake, as confirmed by the shareholders[9]. - The company has not identified any actual controller as of December 31, 2017, which may lead to governance challenges[13]. Financial Performance - The company’s financial report has been verified for accuracy and completeness by its management team[3]. - The company's operating revenue for 2017 was ¥928,828,140.17, representing a 57.19% increase compared to ¥590,886,605.94 in 2016[57]. - The net profit attributable to shareholders for 2017 was ¥56,189,429.29, a 26.44% increase from ¥44,438,779.37 in 2016[57]. - The net profit after deducting non-recurring gains and losses was ¥42,075,286.12, which is a 6.41% increase from ¥39,542,370.41 in 2016[57]. - The basic earnings per share for 2017 was ¥0.4206, up 26.46% from ¥0.3326 in 2016[57]. - The total assets at the end of 2017 were ¥951,698,875.14, a 2.94% increase from ¥924,530,611.05 at the end of 2016[57]. - The net assets attributable to shareholders at the end of 2017 were ¥908,570,839.44, reflecting a 3.47% increase from ¥878,089,192.14 at the end of 2016[57]. - The company reported a net cash flow from operating activities of ¥24,165,987.23, which is a 13.79% increase from ¥21,237,504.94 in 2016[57]. Patent and Intellectual Property - The company is implementing a patent enforcement strategy to stabilize its patent income, which is crucial for its business model, despite the inherent risks of patent litigation[19]. - The company is aware of the potential risks associated with the instability of its patent income and is taking steps to promote its patent licensing model[19]. - The company has a significant patent portfolio in the flash memory sector but faces risks of losing commercial value as traditional storage products are replaced by new technologies[67]. - The company has been actively pursuing patent rights protection through judicial and administrative means, including a lawsuit against Beijing Xuanji Information Technology Co., Ltd. for patent infringement, with a court ruling ordering compensation of RMB 40 million[82]. - The company has filed multiple lawsuits for patent infringement, including a case against Shenzhen Xinjinkai Technology Co., Ltd. seeking RMB 300,000 in damages, which is still ongoing[85]. - The company continues to enhance its intellectual property management system, integrating it into all aspects of its operations to improve its contribution to business development[81]. - The company is focused on expanding its patent portfolio and enforcing its rights through litigation[92]. - The company has been involved in multiple patent infringement cases throughout 2017, indicating a proactive approach to safeguarding its innovations[94][95][96][99][100]. Market and Competition - The company faces risks of core technology being replaced by more advanced domestic and international technologies due to insufficient R&D and innovation[23]. - The mobile storage industry is shrinking due to trends like cloud storage and cloud computing, posing a risk to the company's main business[25]. - The competitive landscape is intensifying, with competitors potentially lowering prices, which could impact the company's market position and profit margins[36]. - The company has experienced frequent technical staff turnover, impacting its research and development capabilities[73]. - The company has faced significant competition in the mobile storage market due to the rise of cloud storage and mobile internet trends[73]. - The company aims to adapt to the increasing demand for portable personal storage solutions as new computer and smart device models are introduced[155]. Governance and Management - The company aims to enhance communication among major shareholders and board members to address governance issues and improve investor relations[14]. - The company is committed to improving its governance structure and decision-making processes to protect shareholder interests amid ownership changes[17]. - The company plans to strengthen training for directors and senior management regarding stock trading compliance[194]. - The company will strengthen its internal control and management efficiency by adjusting departmental structures and enhancing the accountability system[163]. - The company has established a framework for managing shareholder expectations regarding profit distribution and cash flow sustainability[185]. Research and Development - The company is focusing on solid-state drives and upgrading traditional storage products to enhance innovation and competitiveness[23]. - The company plans to increase R&D investment and enhance the innovation capabilities of existing R&D personnel through training, aiming for breakthroughs in independent innovation and intellectual property operations[159]. - The number of R&D personnel rose to 64, accounting for 19.94% of the total workforce, up from 15.33% in 2016[127]. Cash Dividend and Profit Distribution - The cash dividend policy stipulates that the total cash dividend for the year is 21,376,000 CNY, which is 100% of the profit distribution total, with a per-share dividend of 1.60 CNY[171][172]. - The company achieved earnings per share (EPS) of RMB 0.4206 for the year 2017, exceeding the minimum requirement of RMB 0.1 for cash distribution[174]. - The company did not propose a stock dividend for 2017 due to unstable growth in revenue and net profit, which were 57.19% and 26.44% respectively[174]. - The remaining undistributed profits after the 2017 dividend distribution will be RMB 58,635,400.58, to be carried forward to future distributions[177]. - The company’s cash flow is sufficient to support the proposed cash dividend without affecting its ongoing operations[174]. Financial Management - The company has utilized idle funds of RMB 10 million and raised funds of RMB 40 million for various bank wealth management products, achieving returns ranging from RMB 42.53 million to RMB 50.55 million[141]. - The company has consistently achieved returns from various bank wealth management products, with the highest projected annualized return being 4.10%[141]. - The company has a structured approach to managing idle funds, with multiple investments across different banks to maximize returns[145]. - The company has reported a total investment of 5,991,000 in patent application, maintenance, and operation projects, with an actual cumulative investment of 1,388,880, representing 23.18% of the planned investment[147]. Legal and Compliance - The company has not experienced any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[189]. - The company has maintained its accounting firm, Da Hua CPA, for 6 consecutive years, with an audit fee of ¥420,000[193]. - The company has not faced any situations that could lead to suspension or termination of its listing following the annual report disclosure[193]. - The company has not undergone any bankruptcy reorganization during the reporting period[193].

Financial Performance - Operating revenue for the reporting period was ¥237,152,339.73, representing a year-on-year increase of 45.30%[7] - Net profit attributable to shareholders was ¥13,840,225.73, a slight increase of 0.70% year-on-year[7] - The basic earnings per share for the reporting period was ¥0.1036, up 0.68% year-on-year[7] - The weighted average return on net assets was 1.55%, a decrease of 0.05% compared to the previous year[7] - The company reported a net cash flow from operating activities of -¥39,344,590.59, a decline of 21.84% year-on-year[7] - Total operating revenue for Q3 2017 was CNY 237.15 million, an increase of 45.3% compared to CNY 163.21 million in the same period last year[95] - The net profit for the third quarter was ¥13,840,225.73, compared to ¥13,744,070.21 in the same period last year, reflecting a slight increase[96] - The total profit for the third quarter was ¥17,095,930.53, a marginal decrease from ¥17,175,898.14 in the same period last year[96] - The company reported a total comprehensive income of CNY 33,451,477.19 for the third quarter, slightly down from CNY 33,474,149.97 in the same period last year[105] Assets and Liabilities - Total assets at the end of the reporting period reached ¥929,754,052.41, an increase of 0.56% compared to the end of the previous year[7] - The total current assets amounted to 681,738,379.35 yuan, slightly up from 671,703,914.88 yuan at the beginning of the period, indicating stable asset management[87] - Total liabilities decreased to CNY 39.59 million from CNY 46.44 million, a reduction of 14.8%[89] - Owner's equity increased to CNY 890.16 million from CNY 878.09 million, reflecting a growth of 1.4%[90] - The company's current cash and cash equivalents decreased to 112,304,533.89 yuan from 322,816,375.38 yuan at the beginning of the period, indicating a significant reduction in liquidity[87] Revenue and Costs - Revenue for the first nine months of 2017 rose by CNY 340.84 million, an increase of 88.69%, driven by higher sales of solid-state drives and chips[19] - Operating costs for the same period increased by CNY 333.00 million, up 102.54%, reflecting the rise in sales revenue[19] - Total operating costs for Q3 2017 were CNY 225.22 million, up 51.1% from CNY 149.03 million in the previous year[95] - The total operating expenses for the third quarter were CNY 260,474,016.38, up from CNY 183,135,101.65 in the same period last year, indicating a rise of 42.3%[106] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 5,163[11] - The top shareholder, Deng Guoshun, held 21.63% of the shares, amounting to 28,900,000 shares, with 21,675,000 shares pledged[11] - The company did not conduct any repurchase transactions among the top shareholders during the reporting period[12] Legal Matters - The company filed a lawsuit against Beijing Xuanji Information Technology Co., Ltd. and others for patent infringement, seeking 60 million CNY in damages[25] - The court ruled that Beijing Xuanji Information Technology Co., Ltd. must pay 40 million CNY in damages to the company[25] - The company is involved in ongoing litigation with PNY Technologies, which includes claims for patent invalidation and damages[30] - The company initiated a lawsuit against Jing Tian Electronics for patent infringement related to its flash memory technology[32] - The company received a compensation of RMB 7,663,438.43 from Jing Tian Electronics for patent infringement, along with a storage fee of RMB 66,480.00[33] - The company has incurred legal and expert fees related to its patent infringement cases, totaling approximately RMB 920,000 in various costs[39] - The company has been actively involved in legal actions to protect its intellectual property rights, including multiple lawsuits against different entities[39] Cash Flow and Investments - Cash received from sales of goods and services increased by CNY 315.77 million, up 88.66%, due to higher revenue and collection of receivables[21] - The company utilized excess raised funds of 80 million yuan to purchase a bank wealth management product from Bank of China on August 10, 2017[74] - The company continued to invest in wealth management products, including another 80 million yuan from Guangfa Bank on September 2, 2017[74] - Operating cash inflow for the third quarter was CNY 342,168,996.71, an increase of 31% compared to CNY 260,916,816.28 in the previous period[113] Commitments and Policies - The company has a commitment regarding the lock-up period for major shareholders, which lasts for 36 months from the date of listing, ensuring no transfer of shares during this period[76] - The company has a commitment to cash dividends, stating that cash dividends will be implemented if the distributable profit is positive and cash flow is sufficient, with a minimum earnings per share of 0.1 yuan[78] - The company has confirmed that all commitments made by major shareholders are currently being fulfilled[76]

Share Capital and Ownership Structure - The company reported a total share capital of 133.6 million shares as of December 31, 2016, with major shareholders holding the following percentages: Deng Guoshun (21.63%), Zhongke Huitong (21.00%), Cheng Xiaohua (8.80%), Antu Tianmu (6.52%), and Hunan Trust (4.94%)[12]. - The company has experienced significant changes in its equity structure since April 2015, leading to a more dispersed shareholding pattern[10]. - As of December 31, 2016, the company confirmed that none of the major shareholders were actual controllers, which has raised concerns among investors and media regarding the company's market image[12]. - As of June 30, 2017, the total share capital of the company was 133.6 million shares, with major shareholders holding 21.63%, 21.00%, and 8.80% respectively[13]. - The company’s major shareholders have expressed differing opinions on the recognition of actual controllers, with some stating they do not meet the criteria for such recognition[9]. - The company has not established any formal agreements among shareholders to act in concert, which complicates the identification of a controlling shareholder[8]. Operational and Management Risks - The company has faced operational management risks due to disagreements among major shareholders, particularly between Deng Guoshun and Cheng Xiaohua, regarding control and decision-making[6]. - The company’s board of directors has seen significant opposition to various proposals, indicating potential governance challenges[7]. - The company acknowledges the risk of being a potential acquisition target due to its relatively dispersed shareholding structure[14]. - The company has not disclosed any new product developments or technological advancements in the current report[1]. - There are no indications of market expansion or acquisition strategies mentioned in the report[1]. Financial Performance and Revenue Growth - The company's revenue growth rates for 2014, 2015, 2016, and the first half of 2017 were -8.79%, 91.52%, 46.21%, and 120.72% respectively, indicating unstable revenue growth[27]. - The net profit growth rates after deducting non-recurring gains and losses for the same periods were 3375.55%, 91.51%, 83.15%, and 19.27%, highlighting significant fluctuations in profitability[27]. - The company reported a significant increase in revenue, achieving a total of RMB 1.2 billion for the first half of 2017, representing a year-on-year growth of 25%[43]. - The company has set a revenue guidance for the second half of 2017, projecting an increase of 30% compared to the first half, aiming for approximately RMB 1.56 billion[43]. - The company reported a total revenue of ¥487,997,250.11, representing a 120.72% increase compared to ¥221,092,586.71 in the same period last year[49]. - The company reported a total revenue of 1,000 million CNY for the first half of 2017, reflecting a year-on-year increase of 15%[103]. Research and Development - The company plans to focus on solid-state drives and mobile storage innovations to enhance its competitive edge amid rapid technological changes[18]. - Research and development efforts have focused on 3D NAND technology, with an investment of RMB 100 million allocated for the development of new storage solutions[43]. - The company is investing in R&D, with a budget allocation of 50 million yuan for new technology development[152]. - The company has allocated a budget of 150 million CNY for financial investments in wealth management products, aiming for a return of 5%[108]. Patent and Legal Matters - The company has implemented a global patent protection strategy since 2002, but patent revenue remains unstable and may impact overall performance[15]. - The company is dependent on a key patent set to expire in 2021, which poses a significant risk to its operations[22]. - The company is actively working to protect its patents and reduce the risk of invalidation through thorough pre-application research and strategic litigation[134]. - The company has been actively involved in multiple patent infringement lawsuits, reflecting its commitment to protecting its intellectual property rights[72][75]. - The company is currently involved in multiple legal disputes with PNY Technologies regarding patent validity and alleged breaches of a settlement agreement[162][163]. - The company filed a lawsuit against Shenzhen Xinjinkai Technology Co., Ltd. for infringing its invention patent, seeking a total compensation of RMB 300,000 for economic losses and RMB 6,000 for reasonable expenses[170]. Market Expansion and Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of 2018[43]. - The company is exploring new market expansion opportunities to increase its footprint[95]. - The company plans to expand its market presence by entering two new regions, aiming for a market share increase of 10% in those areas within the next year[151]. - A strategic acquisition of a smaller tech firm is expected to enhance the company's capabilities in flash memory technology, with a projected contribution of RMB 200 million to revenue in the next fiscal year[43]. Dividend Policy and Financial Management - The company does not plan to distribute cash dividends, issue bonus shares, or increase capital through reserves, indicating a focus on reinvestment[36]. - The company plans to implement a new dividend policy, aiming to return 30% of net income to shareholders[153]. - The company aims to achieve a minimum dividend payout ratio of 20% in the next fiscal year[155]. - The company is committed to transparency in its dividend policy and will communicate any changes to stakeholders[155]. Operational Efficiency and Cost Management - The company has successfully reduced operational costs by 8% through efficiency improvements and cost-cutting measures[103]. - The company aims to control overall operating costs while expanding its product application areas and exploring new business models to enhance core competitiveness[27]. - The company has established long-term relationships with key suppliers to mitigate risks associated with fluctuations in raw material costs, particularly due to reliance on imports priced in USD[33]. User Engagement and Market Reception - User data indicates that the number of active users for the company's products has reached 5 million, up from 4 million in the previous year, marking a 25% increase[43]. - User data showed a significant growth in active users, reaching 1.2 million, representing a 30% increase compared to the previous period[96]. - The user base grew to 1.2 million, reflecting a 20% increase compared to the previous quarter[153].

深圳市朗科科技股份有限公司 深圳市朗科科技股份有限公司 2017 年第一季度报告全文 证券代码：300042 证券简称：朗科科技 公告编号：2017-043 2017 年第一季度报告 2017 年 04 月 1 深圳市朗科科技股份有限公司 2017 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人魏卫、主管会计工作负责人杜铁军及会计机构负责人(会计主管 人员)刘俏声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳市朗科科技股份有限公司 2017 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 205,019,330.40 | 96,503,664.13 | 1 ...

Shareholding Structure and Governance - As of December 31, 2016, the total share capital of the company was 13.36 million shares, with the top five shareholders holding the following percentages: Deng Guoshun (21.63%), Zhongke Huitong (21.00%), Cheng Xiaohua (8.80%), Antu Tianmu (6.52%), and Hunan Trust (4.94%) [13] - The company has experienced significant changes in its shareholding structure since April 2015, leading to a more dispersed ownership [11] - The company has no controlling shareholder or actual controller as confirmed by the top five shareholders, which has raised concerns among investors and media [13] - The company aims to enhance communication among major shareholders and directors to mitigate risks while seizing development opportunities [15] - The company reported that major shareholders have expressed differing opinions, which may impact its management and capital market image [13] - The company has committed to improving service levels for all investors, including minority shareholders, and ensuring fair treatment [15] - The company has faced operational management risks due to disagreements among directors and major shareholders [6] - The company has not signed any concerted action agreements among its major shareholders, which complicates the identification of a controlling party [10] - The company will continue to provide convenience for effective communication among major shareholders and directors [15] - The company's total share capital as of December 31, 2016, was 133.6 million shares, with the top five shareholders holding 21.63%, 21.00%, 8.80%, 6.52%, and 4.94% respectively, indicating a relatively dispersed ownership structure that poses control risks [16] Financial Performance - The company's revenue growth rates for 2014, 2015, and 2016 were -8.79%, 91.52%, and 46.21% respectively, indicating unstable growth patterns [34] - The net profit growth rates after deducting non-recurring gains and losses for the same years were 3375.55%, 91.51%, and 82.78% respectively, highlighting significant fluctuations in profitability [34] - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB, representing a year-over-year growth of 20% [53] - The company's operating revenue for 2016 was CNY 590.89 million, an increase of 46.21% compared to CNY 404.14 million in 2015 [58] - The net profit attributable to shareholders for 2016 was CNY 44.44 million, representing an 82.97% increase from CNY 24.29 million in 2015 [58] - The net cash flow from operating activities decreased by 52.74% to CNY 21.24 million in 2016, down from CNY 44.93 million in 2015 [58] - The total assets at the end of 2016 were CNY 924.53 million, a 4.76% increase from CNY 882.55 million at the end of 2015 [58] - The company reported a basic earnings per share of CNY 0.3326 for 2016, an increase of 82.95% from CNY 0.1818 in 2015 [58] - The company achieved operating revenue of 590.89 million yuan, an increase of 46.21% compared to the previous year, primarily due to increased sales of solid-state drives and chips [75] - Operating profit rose to 48.30 million yuan, up 90.22% year-on-year, while total profit reached 54.17 million yuan, an increase of 83.13% [75] Market and Product Development - The company is focusing on solid-state drives (SSD) and mobile storage products, with ongoing development of new technologies and products, including portable SSDs and wireless storage devices [23] - The company is at risk of obsolescence due to rapid technological advancements in the industry, necessitating continuous innovation to maintain competitive advantages [22] - The company has established long-term relationships with key suppliers to mitigate risks associated with raw material price volatility and supply chain disruptions [20] - The company is exploring the creation of a "patent pool" to enhance protection and reduce dependency on individual patents, while also considering partnerships for acquiring high-quality patents [29] - The company is actively exploring new marketing strategies, including crowdfunding and exclusive sales models, to expand its customer base [76] - The company is expanding its international sales efforts to seek new market growth points and enhance support from upstream partners [76] - The company plans to invest in R&D, manufacturing, and sales promotion of SSD products to achieve a leading position in the domestic market within 3-5 years [145] Intellectual Property and Legal Matters - The company has been implementing a global patent protection strategy since 2002, but the income from patent licensing remains unstable due to the lengthy and costly nature of patent applications and litigation [19] - The core patent related to the company's data processing system is set to expire in just over two years, raising concerns about reliance on this patent for business operations [28] - The company acknowledges the threat posed by emerging technologies such as cloud storage and mobile internet, which could significantly impact its core business in mobile storage [25] - The company is involved in ongoing legal proceedings regarding patent infringement cases, with hearings scheduled for 2017 [85] - The company has initiated a lawsuit against Shenzhen Xinjinkai Technology Co., Ltd. for patent infringement, seeking damages of RMB 300,000 and additional costs of RMB 6,000 [85] - The company has filed multiple lawsuits against ADATA Technology Co., Ltd. and its affiliates for infringing its patent, claiming a total of RMB 1,000,000 in damages for each case [196][197][198][199] - The company has actively engaged in litigation to protect its intellectual property rights, indicating a strategic focus on legal enforcement as part of its business strategy [193][196] - The company has received notifications from the National Intellectual Property Administration regarding invalidation requests, demonstrating ongoing challenges in maintaining patent rights [194] Risk Management - The company faces significant risks from fluctuations in raw material prices, particularly for flash memory, which can impact gross margins and overall financial performance [20] - The company is exposed to market competition risks, with competitors potentially lowering prices to gain market share, which could impact the company's market position and product gross margins [35] - The company has faced operational management risks due to disagreements among directors and major shareholders [6] - The company has not yet found effective methods to fundamentally address the systemic risks associated with its main patents and patent pool facing expiration [32] - The company recognizes the risks posed by cloud computing and mobile internet trends, which may threaten the mobile storage industry [141] Corporate Governance and Shareholder Relations - The company is committed to improving its governance structure and decision-making processes to safeguard shareholder interests amid potential acquisition risks [16] - The company reported a commitment to avoid competition from major shareholders, which includes a promise from key stakeholders to refrain from competing activities since July 2009 [156] - The original shareholders committed to a lock-up period of 36 months post-IPO, during which they would not transfer or delegate their shares, with compliance ongoing as of December 2010 [156] - The company has a commitment regarding tax incentives, acknowledging potential risks of tax recovery for benefits received from January 1, 2006, to September 30, 2009, with ongoing compliance as of July 2009 [158] - The company has a commitment to distribute profits to shareholders in various forms, including cash and stock, as part of its shareholder return plan for 2015-2017, with compliance ongoing since April 2015 [158] - The company plans to implement a cash dividend policy, distributing no less than 10% of the annual distributable profit when conditions are met [160] - The company aims to maintain a stable profit distribution policy, with cumulative cash distributions over any three consecutive years not less than 30% of the average annual distributable profit [160] Research and Development - The company increased its R&D investment to ¥16,718,157.15 in 2016, representing 2.83% of its operating revenue, down from 3.08% in 2015 [115] - The number of R&D personnel rose to 55, accounting for 18.52% of the total workforce, compared to 16.22% in 2015 [115] - The company has a series of original invention patents in the flash memory field, but its innovation and R&D efforts are considered insufficient [68] - The company aims to increase R&D investment and enhance innovation capabilities to achieve breakthroughs in independent innovation and intellectual property operations [142] Cash Management and Investments - The company has committed to invest RMB 213.38 million in various projects, with a cumulative investment of RMB 92.54 million, representing 21.8% of the expected total investment [126] - The company has not utilized any of the raised funds for the current reporting period, maintaining a 0.00% usage rate [126] - The company has extended the investment period for previously approved financial products to February 2, 2017, to improve fund utilization efficiency [129] - The company has utilized part of the raised funds, RMB 80 million, to purchase a 180-day bank principal-protected financial product from Bank of China, with an expected annualized return of 3.50% and an estimated income of approximately RMB 1.38 million [129]