DZH(SH:601519)2019-03-19 16:00Financial Performance - In 2018, the company's operating revenue was CNY 593,638,132.46, a decrease of 6.99% compared to CNY 638,236,192.35 in 2017[21] - The net profit attributable to shareholders of the listed company for 2018 was CNY 108,313,396.16, down 71.71% from CNY 382,924,649.84 in 2017[21] - The net cash flow from operating activities was negative CNY 378,012,304.39, compared to negative CNY 401,771,325.13 in 2017[21] - Basic earnings per share for 2018 were CNY 0.054, a decrease of 72.02% from CNY 0.193 in 2017[21] - The weighted average return on net assets was 7.67% in 2018, down 25.9 percentage points from 33.57% in 2017[21] - The company reported a net profit of CNY -6,046,084.28 after deducting non-recurring gains and losses[21] - The total non-recurring gains and losses for 2018 amounted to ¥114,359,480.44, a significant decrease from ¥491,023,190.18 in 2017[25] Assets and Liabilities - The total assets at the end of 2018 were CNY 2,031,381,580.48, an increase of 1.51% from CNY 2,001,189,726.03 at the end of 2017[21] - The net assets attributable to shareholders of the listed company increased by 5.94% to CNY 1,441,688,119.35 at the end of 2018[21] - The company's cash and cash equivalents at the end of the reporting period amounted to ¥1,110,116,758.78, representing 54.65% of total assets, an increase of 86.17% from the previous year[75] - The expected liabilities decreased by 20.90% to ¥170,849,526.46, primarily due to payments made following court rulings on securities fraud cases[78] Market Presence and User Base - The company has nearly 10 million monthly active users on its mobile app, which serves as a comprehensive securities information service platform[29] - The company has established a strong presence in East Asia and Southeast Asia, with international financial information services extending to major financial centers like Hong Kong, Singapore, and Japan[31] - As of December 2018, the number of internet users in China reached 829 million, with a penetration rate of 59.6%, an increase of 3.8% from the end of 2017[34] - The number of mobile internet users in China reached 817 million by December 2018, with a growth of 6.43 million users compared to the end of 2017[34] - The number of internet financial product users in China reached 151 million by December 2018, representing a year-on-year growth of 17.5%[35] Strategic Initiatives and Developments - The company focuses on building a comprehensive financial data center to provide services to banks, insurance companies, and other financial institutions[28] - The company has developed various data application products, including a financial big data terminal and a securities risk warning system, tailored for B-end institutional clients[30] - The company launched the "Enterprise Early Warning" APP, the first of its kind in China, providing effective risk warning tools for financial institutions and regulatory bodies[50] - The company has increased its investment in big data and artificial intelligence, enhancing data production efficiency and quality[50] - The company aims to enhance its core competitiveness by increasing R&D investment and improving product design, focusing on creating a one-stop financial investment trading service platform[89] Legal and Regulatory Issues - The company has faced legal risks due to previous violations of information disclosure regulations, which may impact future profits[8] - As of March 8, 2019, the company has received a total of 2,739 civil litigation notices related to false statements, with a total claim amount of approximately ¥521.91 million[98] - The company has been ordered to compensate a total of ¥164.42 million to 1,613 plaintiffs for investment loss and commission losses due to false statements[98] - The company has recognized a provision for ongoing litigation amounting to ¥170.85 million, considering the impact of new lawsuits and appeals[98] Shareholder and Governance - The total number of ordinary shareholders at the end of the reporting period was 121,297, a decrease from 144,588 at the end of the previous month[132] - The largest shareholder, Zhang Changhong, holds 704,792,657 shares, representing 35.46% of the total shares[135] - The company has commitments from major shareholders to not reduce their holdings for a period of 6 months following a share transfer completed on July 12, 2017[105] - The company has a cash dividend policy that prioritizes cash distributions only when there are distributable profits after covering losses and legal reserves[101] Employee and Management Structure - The total number of employees in the parent company is 64, while the main subsidiaries employ 821, resulting in a total of 885 employees[167] - The professional composition includes 566 technical personnel, 122 sales personnel, and 90 management personnel, reflecting a strong technical workforce[167] - The company has established a fair and competitive compensation system to attract and retain talent[168] - The company emphasizes training and development, focusing on leadership and technical skills to enhance employee capabilities[171] Financial Controls and Audit - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018, and its operational results for the year[185] - Key audit matters included revenue recognition, with a focus on the accuracy and completeness of sales and collection controls[187] - The company reported that it has no significant deficiencies in internal controls during the reporting period[181] - The company conducted internal control audits, confirming the effectiveness of controls over financial reporting[182]