SXBN(SH:600831)2019-04-26 16:00Profit Distribution - The proposed profit distribution plan for 2018 is to distribute a cash dividend of 0.10 yuan per 10 shares, totaling approximately 6,935,980.40 yuan, which accounts for 6.60% of the net profit attributable to shareholders [5]. - The cumulative profit distribution over the last three years amounts to 54,123,460.14 yuan, representing 39.18% of the average annual distributable profit during the same period [6]. - The proposed cash dividend for 2018 is CNY 0.10 per 10 shares, totaling CNY 6,935,980.40, which represents 6.60% of the net profit attributable to ordinary shareholders [153]. - Over the last three years, the cumulative cash distribution amounted to CNY 54,123,460.14, accounting for 39.18% of the average annual distributable profit during this period [153]. - The profit distribution plan for 2018 has been approved by the board and is pending shareholder meeting approval for implementation [153]. - The cash dividend for 2017 was CNY 0.40 per 10 shares, totaling CNY 24,198,707.56, which was 13.74% of that year's net profit [152]. - The cash dividend for 2016 was CNY 0.38 per 10 shares, totaling CNY 22,988,772.18, which was 17.25% of that year's net profit [152]. - The company did not propose a capital reserve transfer to increase share capital for the 2018 fiscal year [152]. Financial Performance - In 2018, the company's operating revenue was CNY 2,713,843,226.25, a decrease of 4.89% compared to CNY 2,853,312,786.51 in 2017 [24]. - The net profit attributable to shareholders was CNY 105,063,754.55, down 40.33% from CNY 176,084,275.70 in the previous year [24]. - The net profit after deducting non-recurring gains and losses was CNY 74,103,295.83, a decline of 56.20% from CNY 169,178,737.03 in 2017 [24]. - The net cash flow from operating activities was CNY 553,349,597.63, down 36.09% from CNY 865,874,670.31 in 2017 [24]. - The total assets at the end of 2018 were CNY 8,049,951,087.03, an increase of 11.25% from CNY 7,236,225,562.67 at the end of 2017 [25]. - The net assets attributable to shareholders increased to CNY 3,178,742,018.13, reflecting a growth of 7.64% from CNY 2,953,144,732.39 in 2017 [25]. - Basic earnings per share decreased to CNY 0.1737, down 40.33% from CNY 0.2911 in 2017 [26]. - The weighted average return on net assets was 3.44%, a decrease of 2.67 percentage points from 6.11% in 2017 [26]. - The company reported a quarterly revenue of CNY 882,122,475.61 in Q2 2018, which was the highest among the four quarters [27]. - The net profit attributable to shareholders in Q4 2018 was negative at CNY -13,545,896.25, indicating a significant decline in performance during that quarter [27]. - The net profit after deducting non-recurring items for 2018 was CNY 30,960,458.72, a significant increase compared to CNY 6,905,538.67 in 2017, reflecting a strong performance in non-recurring gains [29]. - The company reported a cash flow from operating activities of CNY 152,656,134.20 in 2018, indicating a robust operational efficiency compared to CNY 81,809,913.20 in the previous year [28]. User Growth and Market Presence - The number of digital television users reached 201 million in 2018, representing a year-on-year growth of 3.61%, with digital television users accounting for 92.20% of total cable television users [39]. - The company achieved a 25.59% increase in the number of high-definition cable television users, rising to 9.257 million in 2018 from 7.371 million in 2017 [40]. - The number of smart terminal users increased dramatically by 168.76%, reaching 1.884 million in 2018, compared to 701,000 in 2017, indicating a strong trend towards smart technology adoption [40]. - The overall cable television user base in China grew to 346 million in 2018, with a slight increase of 2.98% from the previous year, indicating a stable market environment [40]. - The number of interactive network television (IPTV) users reached 154 million, while internet television (OTT) users totaled 420 million in 2018 [44]. - The actual number of rural digital television users increased by 4.76% to 66 million [43]. - The rural broadcasting coverage rate reached 98.58% in 2018, with rural digital television users increasing by 4.76% to 66 million [41]. Business Transformation and Strategy - The company is transitioning from a traditional cable television provider to a comprehensive media service provider, focusing on integrated network media services [32]. - The company is focusing on transforming from a traditional cable television transmission enterprise to a converged network media service provider [55]. - The company is implementing a "Four New Strategy" to develop new networks, new media, new platforms, and new ecosystems [55]. - The company is leveraging local advantages to provide localized services and content, differentiating itself from telecom and internet operators [52]. - The company is actively exploring new business applications, including smart series services and integrated media services, to capitalize on opportunities in the three-network integration process [100]. - The company aims to enhance its market presence by leveraging its extensive network of branches and partnerships to enhance service delivery and product offerings [34]. - The company plans to enhance its service model by implementing a three-tier customer service system to improve customer satisfaction and operational efficiency [37]. Financial Management and Investments - The company completed a convertible bond financing of 800 million RMB, with net proceeds of approximately 788.98 million RMB allocated to the "Qinling Cloud" project [72]. - The company received a central government subsidy of 150 million RMB for the "Hundred Megabit Village" project, the largest single government subsidy since its establishment [73]. - The company has a total of 2 billion RMB in wealth management products, with various annualized returns ranging from 2.20% to 7.00% [173]. - The company has fully redeemed all wealth management products during the reporting period, ensuring liquidity [173]. - The company has engaged in various financial products, including wealth management and structured deposits, totaling over 50,000 million CNY in investments [180]. - The company has committed to invest up to 300 million RMB of idle raised funds for cash management, including purchasing financial institution investment products with high safety and liquidity [171]. - The company has a diversified investment strategy, including both self-owned funds and idle raised funds for financial management [171]. Social Responsibility and Community Engagement - By the end of 2018, the company had implemented broadcasting poverty alleviation projects in 97 counties, connecting 629,000 impoverished households to digital television services [191]. - The company provided Wi-Fi hotspot services to 2,622 impoverished villages, with a total of 5,504 hotspots established [191]. - The company received recognition for its "Broadcasting Poverty Alleviation • Broadband Village" cultural poverty alleviation project, awarded first prize for innovation in cultural work by the Shaanxi Provincial Party Committee [191]. - The company plans to continue its "Broadcasting Poverty Alleviation • Broadband Village" project in 2019, integrating various access methods for rural households [192]. - The company actively engages in social responsibility, ensuring the safety and timeliness of television program transmission during major events [194]. Risks and Challenges - The company faces risks including increased user churn due to intensified market competition and challenges in demonstrating immediate benefits from business transformation [9]. - The company faces risks from intensified market competition, with traditional cable TV users declining due to the rise of OTT TV and IPTV [147]. - The company's net profit decreased by 47.34% to ¥92,786,293.75 compared to ¥176,204,978.51 in the previous year, primarily due to a decline in main business income and increased management, financial, and asset impairment losses [88]. Compliance and Governance - The company has committed to strict compliance with relevant laws and regulations, ensuring timely and accurate disclosure of significant information to investors [155]. - The company has not reported any non-standard audit opinions from its accounting firm [157]. - The company has committed to self-regulation regarding the use of company assets and has established measures to ensure fair treatment of all stakeholders [155]. - The company has not reached any performance commitments that would affect goodwill impairment testing during the reporting period [156].