INESA-it(SH:600602)2019-03-22 16:00Financial Performance - In 2018, the company achieved operating revenue of CNY 446.556 million and a net profit attributable to the parent company of CNY 27.224 million, resulting in earnings per share of CNY 0.199[6]. - The company's operating revenue for 2018 was approximately CNY 4.47 billion, representing a year-on-year increase of 5.76%[24]. - The net profit attributable to shareholders for 2018 was approximately CNY 272.24 million, a decrease of 1.96% compared to the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 159.96 million, an increase of 6.30% year-on-year[24]. - The net cash flow from operating activities for 2018 was approximately CNY 193.10 million, a significant recovery from a negative cash flow in the previous year[24]. - The basic earnings per share for 2018 was CNY 0.199, down 3.86% from the previous year[27]. - The weighted average return on equity for 2018 was 6.965%, a decrease of 0.626 percentage points compared to the previous year[27]. - The total assets at the end of 2018 were approximately CNY 5.54 billion, an increase of 1.46% from the end of 2017[24]. - The company's net assets attributable to shareholders at the end of 2018 were approximately CNY 4.00 billion, reflecting a year-on-year increase of 4.74%[24]. Dividends and Shareholder Returns - The company proposed a cash dividend of CNY 0.60 per 10 shares (including tax) to all shareholders, pending approval at the annual general meeting[6]. - The company has maintained a consistent dividend payout ratio, with 30.14% of net profit allocated for dividends in 2018[96]. - For 2018, the proposed cash dividend is RMB 0.60 per 10 shares, subject to shareholder approval[96]. Audit and Compliance - The audit report issued by Lixin Certified Public Accountants was a standard unqualified opinion[5]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - There are no violations of decision-making procedures regarding external guarantees[8]. - The company has implemented a strict insider information management system to ensure compliance with relevant laws and regulations[1]. Strategic Development and Innovation - The company has a strong focus on future strategic development and plans, although these do not constitute a commitment to investors[7]. - R&D expenses increased by 20.61% to CNY 301 million, highlighting the company's commitment to innovation[45]. - The company aims to become a leading provider of smart city comprehensive solutions, leveraging new generation information technology[82]. - The establishment of an artificial intelligence innovation institute in collaboration with Yidian Group is part of the company's strategy to drive digital transformation[83]. - The intelligent products sector will increase R&D investment to enhance competitiveness in scientific instruments and develop new products for food safety and environmental testing[88]. Market Position and Projects - The company secured multiple government cloud projects, enhancing its market position and project experience[40]. - The company continues to focus on smart city projects, leveraging new information technologies for urban management[38]. - The company plans to enhance its cloud management service market influence and support business growth through its cloud computing segment[82]. Risks and Challenges - The company has detailed risks associated with its future development in the report, emphasizing the importance of investor awareness[8]. - The company faces risks from macroeconomic changes due to the US-China trade dispute and the evolving landscape of information technology[89]. - There is a risk of technological innovation impacting business models, necessitating close tracking of advancements in cloud computing, big data, and AI[90]. Corporate Governance - The company actively engages in investor relations management, organizing events to enhance communication with investors[1]. - The board of directors consists of 7 members, including 3 independent directors, all of whom attended the board meetings diligently[191]. - The supervisory board consists of 3 members, ensuring compliance with legal and regulatory requirements[1]. - The company has established specialized committees within the board to enhance governance and operational efficiency[1]. Employee and Social Responsibility - The total number of employees in the parent company is 76, while the main subsidiaries employ 2,240, resulting in a total of 2,316 employees[179]. - The company emphasizes energy conservation and emission reduction, implementing measures to track energy consumption and provide improvement suggestions[143]. - The company maintains a commitment to social responsibility, integrating sustainable development into its corporate culture[143]. - The company has raised a total of 350,000 RMB in materials and funds to assist employment issues for the disabled in partnership with local communities[143].