FHM(SZ:300613)2020-12-20 16:00Revenue and Profitability - The company's operating revenue for 2018 was ¥412,004,133.31, a decrease of 8.28% compared to ¥449,213,027.97 in 2017[31]. - The net profit attributable to shareholders for 2018 was ¥54,498,833.45, down 48.62% from ¥106,061,136.18 in the previous year[31]. - The net profit after deducting non-recurring gains and losses was ¥36,611,974.63, a decline of 61.01% from ¥93,910,900.34 in 2017[31]. - Basic earnings per share for 2018 were ¥1.23, down 50.60% from ¥2.49 in 2017[31]. - The company achieved total operating revenue of CNY 412.0041 million, a decrease of 8.28% compared to the previous year[66]. - The net profit attributable to shareholders was CNY 54.4988 million, down 48.62% year-on-year[66]. Customer Concentration and Risks - The company's revenue from the top five customers accounted for 95.63% of total operating income, indicating a high customer concentration risk[10]. - The company has established a stable partnership with major clients but will actively seek to expand its customer base to mitigate risks associated with customer dependency[10]. - The top five customers accounted for 97.20% of total sales, with related party sales making up 64.52% of that amount[88]. - Total revenue from the top five customers amounted to ¥400,472,819.05, with Hikvision being the only related party[91]. Research and Development - The company emphasizes the importance of continuous R&D and innovation to keep pace with industry trends and meet diverse customer needs[6]. - R&D investment significantly increased compared to the previous year, aimed at enhancing the company's comprehensive competitiveness and long-term growth[66]. - The company aims to enhance its core technology and product competitiveness through effective cost management and innovation[11]. - The number of R&D personnel increased to 233, representing 85.04% of the total workforce, highlighting the focus on R&D[96]. - The company plans to continue its focus on independent research and development to master key core technologies in the integrated circuit industry[48]. Financial Performance and Cash Flow - The net cash flow from operating activities increased by 45.23% to ¥102,900,639.16 from ¥70,852,433.65 in 2017[31]. - The company experienced a 41.99% decrease in cash and cash equivalents, primarily due to investments in financial products[51]. - The company's cash and cash equivalents decreased by 32.45% to ¥386,211,959.84, mainly due to investments in principal-protected financial products[105]. - Operating cash flow increased by 45.23% to ¥102,900,639.16, primarily due to increased sales collections[100]. Dividend Policy - The company will distribute a cash dividend of 1.25 RMB per 10 shares to all shareholders, based on a total of 44,444,800 shares[16]. - In 2018, the net profit attributable to shareholders was CNY 64,242,877.09, with a cash dividend distribution plan of CNY 5,555,600.00, representing 10.19% of the net profit[162]. - The cash dividend for 2017 was CNY 10,633,726.03, which accounted for 10.03% of the net profit of CNY 106,061,136.18[165]. - The company has committed to a stable profit distribution policy, aiming for at least one distribution per year under normal operating conditions[176]. Market Trends and Strategic Focus - The integrated circuit industry is a strategic focus for national development, with policies supporting the growth of the sector, particularly in the context of enhancing domestic chip innovation capabilities[132]. - The security video surveillance industry is expected to continue its trend towards higher resolution, networked, and intelligent solutions, with smart cameras becoming mainstream[133]. - The automotive electronics market, particularly for in-car cameras, is experiencing significant growth due to advancements in autonomous driving technology, creating a substantial potential market for the company[141]. - The company plans to enhance its product offerings with a new generation of ultra-high-definition ISP chips, significantly improving hardware performance and image quality[145]. Operational Efficiency and Management - The company acknowledges the need for improved management practices to adapt to its growing scale and complexity[12]. - The company implemented internal governance improvements to enhance operational efficiency and organizational capabilities[71]. - The company is committed to enhancing its intellectual property protection to safeguard its proprietary technologies and mitigate risks of infringement[15]. Investment and Acquisitions - The company invested RMB 365.96 million in the new generation analog HD camera ISP chip project during the reporting period[110]. - The full HD network camera SoC chip project received an investment of RMB 2,590.52 million, with a cumulative investment of RMB 12,357.84 million, achieving 101.32% of the planned investment[110]. - The company invested 12 million yuan in Shanghai Xinyi Microelectronics Co., Ltd., acquiring a 16% stake, with no significant impact on overall production and performance[128]. - The company also invested 20 million yuan in Zhuhai Digital Power Technology Co., Ltd., acquiring a 10% stake, with no significant impact on overall production and performance[128].