GOODIX(SH:603160)2018-04-26 16:00Financial Performance - The company's operating revenue for 2017 was RMB 3,681,594,308.56, representing a year-on-year increase of 19.56% compared to RMB 3,079,331,261.46 in 2016[21]. - The net profit attributable to shareholders of the listed company for 2017 was RMB 886,942,112.90, an increase of 3.52% from RMB 856,824,030.01 in 2016[21]. - The net profit after deducting non-recurring gains and losses was RMB 870,734,322.12, up 2.27% from RMB 851,382,843.14 in 2016[21]. - The cash flow from operating activities for 2017 was RMB 1,099,540,700.08, a significant increase of 702.61% compared to a negative cash flow of RMB -182,464,536.72 in 2016[21]. - The total assets at the end of 2017 were RMB 4,417,940,059.28, reflecting a year-on-year growth of 37.41% from RMB 3,215,246,444.55 in 2016[21]. - The net assets attributable to shareholders of the listed company increased by 27.47% to RMB 3,485,759,075.97 at the end of 2017, compared to RMB 2,734,623,420.66 at the end of 2016[21]. - Basic earnings per share decreased by 7.14% to CNY 1.95 in 2017 compared to CNY 2.10 in 2016[22]. - Diluted earnings per share fell by 6.67% to CNY 1.96 in 2017 from CNY 2.10 in 2016[22]. - The weighted average return on equity decreased by 18.34 percentage points to 28.79% in 2017 from 47.13% in 2016[22]. Revenue and Market Position - The company achieved a sales revenue of 3.681 billion RMB, a 19.56% increase from 3.079 billion RMB in 2016, becoming the leading fingerprint chip supplier in the global Android smartphone market[42]. - The company’s revenue from mobile terminal products accounted for 92% of total sales in 2017[34]. - The domestic integrated circuit industry reached a total scale of CNY 541.13 billion in 2017, growing by 24.8% year-on-year[32]. - The integrated circuit design industry grew by 26.1% in 2017, reaching a scale of CNY 207.35 billion[32]. - The smartphone chip market in China surpassed CNY 330 billion in 2017, driven by the demand for new features like fingerprint recognition[34]. - Sales of fingerprint recognition chips accounted for 79.79% of total revenue, up from 75.12% in the previous year[60]. Research and Development - Research and development expenses in 2017 amounted to 597 million RMB, a 93.83% increase from 308 million RMB in 2016, representing 16.2% of sales revenue[42]. - The company plans to launch innovative 3D facial recognition technology solutions starting in 2018, aiming to enhance user security and convenience[49]. - The company has developed a new generation of capacitive touch chips that are faster and consume less power, enhancing competitiveness in the mobile and tablet markets[80]. - By the end of 2017, the company had filed a total of 1,879 patent applications, with 210 patents granted, reflecting its commitment to innovation and technology development[47]. Cash Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 0.6 per share, totaling RMB 27,249.57 million, subject to approval at the shareholders' meeting[5]. - The company has a profit distribution policy that emphasizes shareholder returns, aiming for a minimum cash dividend of 20% of distributable profits when profitable[90]. - The cash dividend for 2017 was 6.00 RMB per 10 shares, with a total cash dividend amounting to approximately 272.50 million RMB, representing 30.72% of the net profit attributable to ordinary shareholders[102]. - The company prioritizes cash dividends when conditions allow, with a minimum of 80% cash distribution during mature phases without major capital expenditures[90]. Risk Management - There were no significant risk events reported during the reporting period, and the company has outlined potential risks and mitigation measures in the management discussion section[7]. - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors, urging caution regarding investment risks[6]. - The company faces industry risks, including cyclical fluctuations in the semiconductor market and increasing competition from both domestic and international players[82]. - The company recognizes the risk of technology innovation lagging behind industry trends, which could lead to wasted R&D resources and missed market opportunities[84]. Corporate Governance - The company has no controlling shareholder or actual controller, ensuring independent governance[158]. - Independent directors are involved in the decision-making process for profit distribution, ensuring that minority shareholders' interests are protected[95]. - The company has implemented a robust internal control system, continuously improving its effectiveness through self-assessment and evaluation[185]. - The board of directors has established four specialized committees, which have provided valuable suggestions for the company's standardized development[189]. Employee and Management Structure - The company employed a total of 1,170 staff, with 1,118 in the parent company and 52 in major subsidiaries[175]. - The total number of technical personnel in the company is 1,019, representing a significant portion of the workforce[175]. - The company has implemented a leading compensation strategy for key positions and scarce market personnel to prevent talent loss while managing labor costs effectively[176]. - The management team has extensive experience in technology and finance, enhancing the company's strategic direction and operational efficiency[166]. Shareholder Information - The total number of ordinary shareholders was 28,237, an increase from 26,302 at the end of the previous month[150]. - The largest shareholder, Zhang Fan, increased holdings by 4,542,584 shares, totaling 219,898,584 shares, representing 48.41% of total shares[152]. - The second largest shareholder, Huifa International (Hong Kong) Limited, decreased holdings by 22,712,917 shares, now holding 72,253,083 shares, which is 15.91% of total shares[152]. - The total number of shares held by the top ten shareholders with limited sale conditions is 408,000,000 shares[155].