Hisense V.T.(SH:600060)2018-03-28 16:00Financial Performance - The company's operating revenue for 2017 was CNY 33,008,637,701.21, representing a 3.69% increase from CNY 31,832,456,026.90 in 2016[18]. - Net profit attributable to shareholders of the listed company decreased by 46.45% to CNY 941,882,343.48 from CNY 1,758,869,028.41 in the previous year[18]. - The basic earnings per share for 2017 was CNY 0.720, down 46.43% from CNY 1.344 in 2016[19]. - The total assets of the company increased by 8.27% to CNY 24,567,860,772.82 at the end of 2017, compared to CNY 22,691,365,004.79 at the end of 2016[18]. - The company's net cash flow from operating activities for 2017 was CNY 2,368,264,529.26, a decrease of 4.14% from CNY 2,470,434,707.35 in 2016[18]. - The weighted average return on net assets decreased to 7.00% in 2017 from 13.99% in 2016, a reduction of 6.99 percentage points[19]. - The net profit after deducting non-recurring gains and losses was CNY 706,752,854.81, down 57.89% from CNY 1,678,153,144.86 in 2016[18]. - The company reported a net asset attributable to shareholders of CNY 13,626,819,056.99 at the end of 2017, an increase of 3.36% from CNY 13,184,275,028.51 at the end of 2016[18]. - The company experienced a significant decline in profit margins, with the net profit margin dropping from 5.52% in 2016 to 2.85% in 2017[18]. Market Performance - The company launched the world's first dual-color 4K laser TV at CES 2017, capturing 43.1% of the market share for TVs 80 inches and above[30]. - Internet TV operations saw revenue growth exceeding 180%, with global users surpassing 30.78 million, of which approximately 82% are domestic[31]. - The company’s overseas market sales revenue grew by 27% year-on-year, aided by becoming the official sponsor of the 2018 FIFA World Cup[32]. - Retail market share in China for the company’s TVs reached 16.79% in volume and 17.96% in value, maintaining the top position for 14 consecutive years[32]. Research and Development - The company invested CNY 1.18 billion in R&D, reflecting a 2.24% increase from the previous year[37]. - Research and development expenses amounted to ¥1.18 billion, representing 3.57% of total revenue, with 2,171 R&D personnel making up 10.76% of the workforce[45]. - The company aims to transition from a "TV enterprise" to a "display enterprise," focusing on high-quality products and expanding its industry chain[54]. - The company plans to enhance display quality and artificial intelligence technology, focusing on self-developed algorithms and image quality improvement for the 2018 World Cup[56]. Financial Management - The company has engaged in non-principal floating income financial management with a total amount of 4,998 million RMB, with an outstanding balance of 4,972 million RMB[72]. - The company has multiple financial management products with annualized returns ranging from 3.75% to 4.20%, with total expected returns of approximately 3,000 million RMB[74]. - The total interest income from non-principal floating investments amounted to 16,720.46 million RMB[79]. - The average interest rate for non-principal floating investments was between 5.20% and 5.40%[79]. Shareholder Information - The number of ordinary shareholders increased from 58,127 to 67,757 during the reporting period[89]. - The largest shareholder, Hisense Group Co., Ltd., holds 517,193,231 shares, representing 39.53% of total shares[91]. - The second largest shareholder, Qingdao Hisense Electronics Industry Holdings Co., Ltd., decreased its holdings by 5,876,202 shares during the reporting period[91]. - The company has not disclosed any significant related party transactions during the reporting period[66]. Corporate Governance - The company has established an environmental management system to improve environmental management levels[82]. - The company is committed to sustainable development and effective resource utilization[82]. - The total remuneration for the chairman, Liu Hongxin, was 352,300 RMB, while the director, Zhou Houjian, received 408,750 RMB[99]. - The company has no strategic investors or general legal entities among the top 10 shareholders due to new share placements[93]. Audit and Compliance - The audit opinion confirms that the financial statements fairly present the company's financial position and operating results for the year ended December 31, 2017[123]. - The audit identified key audit matters, including inventory impairment and related party transactions, which were deemed significant for the financial statements[125][129]. - The management is responsible for preparing financial statements in accordance with accounting standards and ensuring the absence of material misstatements due to fraud or error[133]. Future Outlook - Future outlook indicates a projected revenue growth of 10% for the upcoming fiscal year, driven by new product launches and market expansion strategies[103]. - The company plans to enhance its digital presence, targeting a 30% increase in online sales channels by the end of the next fiscal year[104]. - New product lines are expected to contribute an additional 5% to overall revenue in the next fiscal year[104].