NPEC(SH:600775)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 4,500,505,653.14, representing a 7.36% increase from CNY 4,191,928,908.95 in 2017[25]. - Net profit attributable to shareholders for 2018 was CNY 161,959,568.48, a significant increase of 50.83% compared to CNY 107,382,077.64 in 2017[25]. - The total profit for 2018 was RMB 25,100.43 million, with a net profit of RMB 21,253.41 million[60]. - The company reported a total of CNY 48,379,303.71 in non-recurring gains and losses for 2018, compared to CNY 34,972,218.53 in 2017[34]. - The company's operating revenue increased by 7.36% compared to the same period last year, while operating costs rose by 5.05%, maintaining a stable gross margin[76]. - In the intelligent manufacturing sector, operating revenue grew by 25.71%, and the gross margin increased by 0.63 percentage points to 13.99%[77]. - The electronic manufacturing services segment saw a 10.36% increase in operating revenue, with a gross margin rise of 0.78 percentage points to 15.63%[77]. - The company achieved a market share ranking of first in the domestic market for AFC system integration and sixth for communication systems in urban rail transit[53]. Cash Flow and Assets - The net cash flow from operating activities decreased by 71.08% to CNY 45,563,017.57 in 2018 from CNY 157,549,565.01 in 2017[28]. - The total assets at the end of 2018 were CNY 6,184,619,023.98, reflecting a 9.16% increase from CNY 5,665,503,486.59 at the end of 2017[28]. - The company's inventory increased to 86,780.87 million, representing 14.03% of total assets, up 46.83% from the previous period[101]. - Contract assets reached 36,075.37 million, accounting for 5.83% of total assets, with a reclassification due to new revenue standards[101]. - As of December 31, 2018, the company's consolidated asset-liability ratio was 40.31%, with current liabilities amounting to RMB 2,457.97 million, a current ratio of 1.88, and a quick ratio of 1.45[175]. Research and Development - The company invested RMB 23,564.65 million in research and development, a growth of approximately 15% from the previous year[61]. - Research and development expenses increased by 8.08% to RMB 221,663,740.72 compared to the previous year[71]. - The company applied for 101 patents in 2018, including 53 invention patents, and received 87 authorized patents[60]. - The company reported a total R&D investment of ¥235,646,501.65, which is 5.24% of operating revenue, with 710 R&D personnel constituting 20.25% of total employees[94]. - The company aims to enhance its core competitiveness through increased investment in technology research and development, focusing on key common technologies and accelerating the commercialization of research outcomes[151]. Market Position and Strategy - The company aims to become a leading player in the smart manufacturing and robotics sector, with a target of producing 100,000 industrial robots annually by 2020[110]. - The company is focusing on smart community and smart home sectors, enhancing its core capabilities for better profitability[122]. - The company is committed to expanding its market presence, particularly in areas such as emergency communication systems and smart factory systems, in response to the "Belt and Road" initiative[153]. - The company is targeting to become a leading provider of smart manufacturing solutions and industrial robots, aiming for international competitiveness[157]. - The company is advancing its smart city initiatives, particularly in intelligent transportation and public safety systems, to maintain its leading position in the domestic market[158]. Risk Management - The company has established a comprehensive risk management system to address decision-making, compliance, operational, financial, and legal risks[169]. - The company is facing market risks due to intense competition in the intelligent manufacturing, rail transportation, and robotics sectors, which may impact its sustainable development[168]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantive commitments to investors, highlighting investment risks[7]. Corporate Governance - The company has adopted and complied with the corporate governance code and standards set forth by the Hong Kong Stock Exchange[199]. - The company has established service contracts with all directors and supervisors, with a contract duration of three years[181]. - The company has purchased liability insurance for directors, supervisors, and senior management in compliance with the Hong Kong Stock Exchange regulations[184]. - The company has not engaged in any purchase, sale, or redemption of its own shares during the reporting period[176]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.8 per 10 shares, totaling RMB 73,107,082.32, based on a total share capital of 913,838,529 shares as of December 31, 2018[6]. - The company has not implemented a capital reserve transfer to increase share capital for the year[6]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[8].