ISS(SH:600756)2019-03-28 16:00Financial Performance - In 2018, the company's operating revenue was CNY 1,212,528,447.70, a decrease of 6.88% compared to CNY 1,302,152,531.56 in 2017[20] - The net profit attributable to shareholders increased by 153.85% to CNY 313,985,662.01 from CNY 123,688,696.16 in the previous year[20] - The basic earnings per share rose by 155.26% to CNY 0.97, compared to CNY 0.38 in 2017[21] - The net cash flow from operating activities improved significantly to CNY 155,200,482.51, a 904.15% increase from a negative CNY 19,299,999.15 in 2017[20] - The total assets of the company at the end of 2018 were CNY 3,150,317,729.65, an increase of 8.85% from CNY 2,894,306,502.13 in 2017[20] - The net assets attributable to shareholders increased by 13.32% to CNY 2,437,362,614.16 from CNY 2,150,867,928.05 in 2017[20] - The weighted average return on equity rose to 13.72%, an increase of 7.82 percentage points from 5.90% in 2017[22] - The company achieved a net profit attributable to shareholders of approximately ¥313.99 million in 2018, with a proposed cash dividend of ¥37.27 million, representing 11.87% of the net profit[74] Investment and R&D - Research and development expenses increased by 41.10% year-on-year, amounting to 303,841,713.66 RMB, due to increased investment in fundraising projects[43] - The company is actively investing in cloud computing, big data, and artificial intelligence technologies to enhance its core product competitiveness[40] - The company plans to increase investment in R&D for general-purpose platform products to adapt to the transition towards cloud computing and big data[75] - The company reported investment income of CNY 376,982,078.44, a substantial increase from CNY 97,831,552.17 in the previous year, indicating successful investment strategies[165] Market Position and Strategy - The company has established a strong presence in the electronic government and tobacco industries, leveraging its experience in software development and system integration[29] - The electronic government business is the core focus, with significant government initiatives promoting online services and integrated platforms[30] - The tobacco industry is undergoing high-quality development, with the company enhancing its market position through data-driven decision support and expanding into industrial markets[31] - The company is focused on expanding its presence in the "Internet + Supervision" market, leveraging government initiatives to drive growth[65] Operational Efficiency - The company aims to strengthen local delivery centers to improve customer satisfaction and expand market coverage[40] - The company has a competitive edge due to its extensive customer base and integrated service capabilities in electronic government and tobacco sectors[32] - The company emphasizes a customer-centric service philosophy, aiming to provide comprehensive support across all operational stages[33] Financial Management - The asset-liability ratio decreased by 3.05 percentage points to 22.62%[41] - The company’s management expenses rose by 18.90% to CNY 275.37 million, attributed to increases in employee compensation and marketing expenses[53] - The company plans to strictly control expenses and rationally arrange funding plans to support healthy and rapid development in 2019[76] Shareholder Relations - The cumulative cash dividends over the past three years accounted for 59.76% of the average distributable profit, indicating a commitment to shareholder returns[75] - The company has maintained a stable dividend policy, balancing sustainable development with shareholder returns[76] - The company plans to distribute a cash dividend of 1.15 yuan per 10 shares, totaling 37,271,356.60 yuan[100] Governance and Compliance - The company has a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability[133] - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018[142] - The company maintained independence in its operations and did not report any conflicts of interest with controlling shareholders[137] Employee Development - The company is committed to talent development through various training programs and incentives to enhance employee capabilities and retention[33] - Employee training programs have been expanded to improve skills and management levels, fostering mutual growth between employees and the company[101] - The company has established a competitive and performance-oriented compensation policy to attract and retain talent[129] Risk Management - There were no significant risks identified that could adversely affect the company's future development strategy and operational goals during the reporting period[6] - The company did not disclose any major risks identified by the supervisory board during the reporting period[137] Related Party Transactions - The total amount of related party transactions reached 560,573,890.79 RMB, accounting for 59.25% of similar transaction amounts[88] - The company’s related party transactions are necessary for reducing procurement costs and operational expenses, benefiting the company’s interests[88]