Tricolor(SH:603516)2019-04-24 16:00Financial Performance - In 2018, the company's operating revenue reached RMB 275,557,114.93, representing a 10.08% increase compared to RMB 250,326,873.99 in 2017[20] - The net profit attributable to shareholders was RMB 84,953,654.93, a decrease of 6.57% from RMB 90,927,836.12 in the previous year[20] - The basic earnings per share (EPS) for 2018 was RMB 0.66, down 29.03% from RMB 0.93 in 2017[20] - The weighted average return on equity (ROE) decreased to 12.23%, down 22.78 percentage points from 35.01% in 2017[20] - The net cash flow from operating activities increased by 18.70% to RMB 59,790,169.99, compared to RMB 50,370,809.90 in 2017[20] - The total assets of the company at the end of 2018 were RMB 808,700,769.08, a 144.04% increase from RMB 331,378,243.09 at the end of 2017[20] - The net assets attributable to shareholders increased by 159.34% to RMB 756,289,125.31 from RMB 291,625,919.15 in 2017[20] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 3 per 10 shares, totaling RMB 39,289,614.00[4] - The cash dividend policy has been consistently applied over the past three years, reflecting a commitment to returning value to shareholders[128] - The net profit attributable to shareholders for 2018 was 84,953,654.93 RMB, indicating a healthy profit margin for dividend distribution[128] - In 2017, the cash dividend was 4 RMB per 10 shares, amounting to 37,418,680 RMB, representing 41.15% of the net profit attributable to shareholders[128] - For 2016, the cash dividend was 5.8 RMB per 10 shares, totaling 40,692,800 RMB, which was 50.03% of the net profit attributable to shareholders[128] Market Position and Business Focus - The main business focus remains on display control systems and solutions, with applications in military, public security, and exhibition industries, indicating a stable market position[29] - The company is actively expanding into broadcasting, education, and healthcare sectors, leveraging its strong technical foundation to develop tailored industry solutions[33] - The company aims to enhance its media integration capabilities by addressing the "island effect" of content resources, which is crucial for improving operational efficiency[35] - The company emphasizes the use of cutting-edge technologies such as cloud computing and big data analytics to improve content production and distribution efficiency[37] Research and Development - Research and development expenses reached a historical high of CNY 47.17 million, accounting for 17.12% of total revenue, with a year-on-year increase of 58.46%[66] - The company has applied for 19 new patents during the reporting period, bringing the total authorized patents to 29, including 13 invention patents, showcasing its technological leadership in the display control field[58] - The company has applied for 40 invention patents, with 19 new applications, to protect its intellectual property rights[66] Operational Efficiency - The company reported a significant increase in other current assets, reaching CNY 417.20 million, a year-on-year growth of 95,040.45%, primarily due to an increase of CNY 412.57 million in financial products[54] - The company’s operational model involves four main segments: research and development, production, sales, and procurement, ensuring a streamlined process from design to project delivery[45] - The company has developed a mature core competency system over the years, positioning itself for stable growth in a competitive market[57] Risks and Challenges - There were no significant risks impacting the company's operations during the reporting period[6] - The company faces risks related to macroeconomic fluctuations, which could impact demand from downstream industries[122] - The company acknowledges the risk of technological obsolescence in a technology-intensive industry, emphasizing the need for continuous innovation to meet market demands[123] Share Capital and Ownership - The total number of ordinary shares increased from 70,160,000 to 130,965,380, reflecting a capital increase of 37,418,680 shares through capital reserve conversion[179] - The company has a total of 32,741,380 unrestricted circulating shares, representing 25% of the total share capital[177] - The largest shareholder, He Shida, holds 38,012,800 shares after an increase of 10,860,800 shares[182] - The company does not have any controlling shareholders, with He Shida being the largest natural person shareholder and serving as the chairman and general manager[195] Future Outlook - The company plans to continue investing in talent recruitment and optimizing internal management systems to support future growth[68] - The company aims to enhance its product offerings by integrating cutting-edge technologies such as cloud computing and big data analytics into its systems[94] - Future guidance suggests a positive outlook for revenue growth, driven by new product launches and market expansion strategies[186] Compliance and Governance - The company has committed to timely disclosure of any unfulfilled commitments to protect investor rights, with specific measures outlined for compliance[160] - The company will compensate investors for losses incurred due to unfulfilled commitments if administrative penalties or court judgments are issued[159] - The company has a legal obligation to ensure the accuracy and completeness of the information in the prospectus, and will bear corresponding legal responsibilities[151]