DPC(SH:600405)2019-04-24 16:00Financial Performance - The company's total revenue for 2018 was ¥909,557,120.02, a decrease of 25.56% compared to ¥1,221,877,504.28 in 2017[19] - The net profit attributable to shareholders for 2018 was -¥280,221,091.60, compared to a profit of ¥19,992,617.19 in 2017[19] - The net assets attributable to shareholders decreased by 22.71% to ¥1,072,403,393.60 at the end of 2018 from ¥1,387,539,062.73 at the end of 2017[19] - The total assets decreased by 10.81% to ¥2,582,511,653.16 at the end of 2018 from ¥2,895,419,650.75 at the end of 2017[19] - Basic earnings per share for 2018 was -0.499 yuan, a decrease of 1,347.50% compared to 0.040 yuan in 2017[21] - The weighted average return on equity dropped to -22.460% in 2018, a decrease of 24.26 percentage points from 1.800% in 2017[21] - Operating profit was CNY -215.68 million, a decline of CNY 22.72 million compared to the previous year[57] - Net profit attributable to shareholders was CNY -280.22 million, down CNY 30.02 million year-on-year[57] - The company generated a net cash flow from operating activities of CNY -63.84 million, an improvement of CNY 9.97 million compared to the same period last year[60] Cash Flow and Assets - The cash flow from operating activities for 2018 was -¥63,844,434.90, compared to -¥73,813,452.63 in 2017[19] - The net cash flow from operating activities for 2018 was -63,844,434.90, an improvement from -73,813,452.63 in 2017[68] - The net cash flow from investing activities was -145,485,582.92, compared to -136,655,905.45 in the previous year[68] - The net cash flow from financing activities decreased by 93.78% to 22,470,586.27 from 361,443,682.84 in 2017[68] - Cash and cash equivalents at year-end decreased by 62.54% to 140,181,716.62, down from 374,264,734.28 in the previous year[71] - Accounts receivable notes increased by 505.51% to 55,762,167.90, compared to 8,663,356.17 in 2017[71] - Other current assets grew by 94.31% to 40,518,132.17, up from 20,852,653.55 in the previous year[71] - Long-term receivables decreased by 68.21% to 4,178,950.75 from 13,146,210.83 in 2017[71] - The company's intangible assets increased by 40.60% to 78,329,898.26, compared to 55,710,281.65 in the previous year[72] Business Strategy and Operations - The company focused on three main industries: data communication, smart energy, and new energy vehicles, adjusting its business strategy to concentrate on core products[29] - Key products include communication power modules, photovoltaic inverters, and battery management systems, aimed at enhancing energy utilization[30] - The company aims to provide comprehensive solutions and lifecycle services in its core industries, emphasizing customer value[29] - The company has implemented a strategy to optimize lifecycle costs for its products and services across various sectors[30] - The company is committed to expanding its market presence in renewable energy and energy storage solutions, aligning with industry trends[29] - The company has established three R&D centers in Beijing, Shenzhen, and Harbin, employing 804 technical personnel, which constitutes 30% of the total workforce[39] - The company has participated in the formulation of over 50 national or industry standards for power supply products and holds more than 200 patents and software copyrights[40] Market and Industry Trends - The domestic communication power system investment is expected to fluctuate with the total fixed asset investment in the communication industry, which saw a net increase of 290,000 mobile communication base stations in 2018, totaling 6.48 million[87] - The investment by telecom operators in 5G network equipment is projected to exceed CNY 220 billion by 2020, with total spending across industries expected to surpass CNY 520 billion by 2030[88] - The global IDC market is expected to exceed CNY 200 billion by 2020, driven by rapid growth in cloud computing, big data, and IoT[91] - The company has developed a new generation of 5G communication power products and has already supplied these to telecom operators in South Korea, indicating readiness for domestic 5G construction[90] Research and Development - R&D expenses totaled CNY 131.68 million, representing 14.48% of total revenue[67] - The company’s R&D personnel accounted for 17.61% of the total workforce, with 471 employees dedicated to R&D[67] - The company has a long-term incentive plan for core personnel and a project bonus system for R&D staff to support strategic product development[182] - The company is investing in technology research and development to innovate its product offerings[174] Corporate Governance and Compliance - The audit report for the financial statements was issued with a standard unqualified opinion by the auditing firm[4] - The company has maintained effective internal controls and governance structures to mitigate operational and management risks[121] - The internal control audit for the financial report was conducted by a reputable accounting firm, resulting in an unqualified opinion[192] - The company has not faced any penalties from securities regulatory authorities in the past three years[180] Shareholder and Stock Information - The company plans to repurchase and cancel 7.95 million restricted stocks that have not been unlocked due to performance not meeting assessment indicators[135] - The total number of shares will decrease from 562,040,448 to 553,275,448 after the cancellation of the restricted stocks[135] - The largest shareholder, He Zhenya, holds 62,138,615 shares, representing 11.06% of the total shares, with 48,300,000 shares pledged[157] - The second-largest shareholder, Zhou Weijun, holds 17,021,656 shares, representing 3.03% of the total shares, with 15,050,000 shares pledged[157] Social Responsibility and Community Engagement - The company has established a helping relationship with Huangjiao Village in Laiyuan County, Hebei Province, as part of the national poverty alleviation strategy[144] - In 2018, the company constructed 10 photovoltaic power stations in Langxi County, with a total installed capacity of 450KW and an investment of CNY 3.17 million, generating an annual income of CNY 1.2 million[145] - The company has invested CNY 656,700 in poverty alleviation projects, helping 120 impoverished individuals to escape poverty[149] Future Outlook and Challenges - The company anticipates challenges in its core communication power business due to the transition from 4G to 5G, but sees growth opportunities in international communication power, smart energy, and new energy vehicle sectors[115] - Future guidance indicates a cautious outlook, with expectations of modest growth in the upcoming quarters[174] - The company recognizes the risks of industry competition and technological changes, emphasizing the need to maintain technological leadership and adapt to market trends to protect its market share[118][120]