GLARUNTECH(600562)2019-06-05 16:00Financial Performance - In 2018, the company's operating revenue was CNY 1,043,296,694.49, a decrease of 9.63% compared to CNY 1,154,448,171.07 in 2017[13] - The net profit attributable to shareholders was CNY 37,803,794.28, down 77.68% from CNY 169,359,879.01 in the previous year[13] - The net profit after deducting non-recurring gains and losses was CNY 28,338,542.41, a decline of 82.16% compared to CNY 158,813,709.81 in 2017[13] - The net cash flow from operating activities was CNY 138,642,077.60, a decrease of 40.11% from CNY 231,475,361.08 in 2017[13] - The basic earnings per share for 2018 were CNY 0.06, down 77.78% from CNY 0.27 in 2017[14] - The diluted earnings per share were also CNY 0.06, reflecting the same percentage decrease as the basic earnings per share[14] - The weighted average return on net assets was 2.12%, a decrease of 7.62 percentage points from 9.74% in 2017[14] - The gross profit margin decreased by 12.04 percentage points, with low-margin rail transit system revenue accounting for 44% of total revenue, an increase of 18 percentage points year-on-year[30] - Revenue from radar systems decreased by 41.45%, while revenue from rail transit systems increased by 53.77%[31][34] Cash Flow and Investments - The company reported a net cash flow from operating activities of -¥51,152,886.33 RMB, compared to -¥37,067,899.27 RMB in the previous period, indicating a decline in operational cash flow[140] - The total cash inflow from operating activities is ¥1,242,703,027.44, compared to ¥1,188,813,800.11 in the previous period, reflecting an increase of 4.5%[138] - The cash outflow from operating activities is ¥1,104,060,949.84, which is an increase from ¥957,338,439.03 in the previous period, representing a rise of 15.3%[138] - The company reported a net cash flow from investing activities of -¥43,993,265.93, compared to -¥20,236,620.86 in the previous period, indicating a worsening of 117.2%[139] - The net cash flow from financing activities is -¥65,904,866.10, an improvement from -¥78,241,087.09 in the previous period[139] Assets and Liabilities - As of the end of 2018, the total assets amounted to CNY 2,865,434,154.94, an increase of 6.61% from CNY 2,687,806,306.58 at the end of 2017[13] - The total liabilities for accounts payable and notes payable reached ¥715.11 million, up from ¥551.99 million in the comparable period[69] - Total current assets increased to ¥2,657,724,789.77 from ¥2,500,089,026.80, representing a growth of approximately 6.3%[128] - Total liabilities increased to ¥1,090,132,923.71 from ¥899,084,617.74, marking an increase of about 21.3%[129] - Total equity attributable to shareholders decreased to ¥1,775,301,231.23 from ¥1,788,721,688.84, a decline of approximately 0.8%[130] Research and Development - Research and development expenses were 68,730,894.40 RMB, a decrease of 6.70% compared to the previous year[28] - The total R&D investment for the year was 68.73 million yuan, accounting for 6.59% of total revenue, which is higher than the previous year's 6.38%[44] - The company has made significant progress in artificial intelligence and big data analysis technologies, enhancing its product offerings in meteorological systems[19] - The company has made significant advancements in 5G technology, securing bulk orders for 5G filters in 2019, indicating a strong position in the upcoming 5G network construction[23] Market Position and Competition - The company is a key supplier of radar systems, including air traffic control and meteorological radar, with a strong market position in China[19] - The company faces increasing competition in the meteorological radar market, necessitating enhanced R&D and innovation efforts[19] - The company ranked third in market share for urban rail transit signal systems in 2018, with significant projects contributing to its growth[20] - The company has established a strong presence in the military microwave device market, with increasing demand for active phased array radar components as it transitions to mass production[20] Corporate Governance and Compliance - The company has established a governance structure with a board of directors, supervisory board, and senior management to ensure orderly operations[113] - The audit committee actively supervised and evaluated the work of external auditors and reviewed the company's financial reports[117] - The company has implemented a strict cash dividend policy in accordance with its articles of association, ensuring compliance with legal regulations[64] - The company has passed the ISO14001 environmental management system certification, demonstrating its commitment to sustainable development[79] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 30,037, an increase from 28,077 at the end of the previous month[87] - The top ten shareholders held a total of 164,781,349 shares, representing 26.48% of the total shares[89] - China Electronics Technology Group Corporation was the largest shareholder, increasing its holdings by 38,026,465 shares during the reporting period[89] Future Outlook - The company aims to develop a comprehensive radar system business model, focusing on integrated solutions and core products in the smart meteorology sector[55] - The company plans to enhance its autonomous driving signal system products and develop intelligent operation systems in the rail transit sector, leveraging opportunities from the "Belt and Road" initiative[56] - In 2019, the company aims to increase market expansion efforts and enhance technological innovation to improve operational efficiency and overall performance[61]