DZH(SH:601519)2019-06-24 16:00Financial Performance - The net profit attributable to shareholders for 2018 was RMB 108,313,396.16, while the parent company's net profit was RMB 270,606,818.91[7]. - The company's operating revenue for 2018 was ¥593.64 million, a decrease of 6.99% compared to ¥638.24 million in 2017[22]. - The net profit attributable to shareholders for 2018 was ¥108.31 million, down 71.71% from ¥382.92 million in 2017[22]. - The basic earnings per share for 2018 was ¥0.054, a decrease of 72.02% compared to ¥0.193 in 2017[22]. - The weighted average return on equity for 2018 was 7.67%, down 25.9 percentage points from 33.57% in 2017[22]. - The company reported a non-recurring gain of CNY 150.41 million in 2018, primarily from the disposal of its remaining stake in Da Zhi Hui (Hong Kong) which generated an investment income of CNY 151 million[30]. Cash Flow - The net cash flow from operating activities for 2018 was -¥378.01 million, showing a slight improvement from -¥401.77 million in 2017[22]. - The company experienced significant fluctuations in cash flow, with Q1 showing a net cash flow of -¥21.91 million and Q2 recovering to ¥12.01 million[26]. - The net cash flow from operating activities in Q3 2018 was CNY -159.88 million, a drastic decline of 1278.85% from CNY 13.56 million in Q3 2017[29]. - The net cash flow from operating activities in Q4 2018 was CNY -316.28 million, a decrease of 94.08% compared to CNY -162.97 million in Q4 2017[29]. - Net cash flow from investing activities increased by 229.06% to ¥578,049,158.90, mainly due to a decrease in investment in financial products[83]. Legal and Regulatory Issues - There are ongoing legal risks due to previous violations of information disclosure regulations, which may impact future profits[9]. - The company has recorded a total of 2,739 civil litigation cases related to securities false statements, with a cumulative compensation amount of RMB 166.42 million confirmed[88]. - The company confirmed a compensation amount of 94.56 million yuan related to ongoing litigation matters[114]. - The company has faced legal risks, with a total of 2739 litigation requests amounting to 521.91 million yuan as of March 8, 2019[114]. Shareholder Information - The largest shareholder, Zhang Changhong, holds 704,792,657 shares, representing 35.46% of the total shares[161]. - The total shares held by the top ten shareholders account for 42.31% of the company's total equity[168]. - The report indicates that there are no changes in the controlling shareholder during the reporting period[165]. - The company has committed to not reducing its shareholdings for 6 months following the transfer of 400,000,000 unrestricted shares to New Lake Group, effective from July 12, 2017[123]. Research and Development - The company aims to enhance its core competitiveness by strengthening R&D innovation and product design[107]. - The company plans to expand its product line and improve financial data terminal and mobile products[108]. - The company will increase investment in R&D and operations to enhance the technical depth and business breadth of its financial information services[109]. - The number of R&D personnel was 566, representing 63.95% of the total workforce[77]. Market Presence and Strategy - The company is focused on expanding its international presence by acquiring local financial information service providers in Hong Kong, Singapore, and Japan[34]. - The company has established a significant presence in overseas markets, with a market share of nearly 70% in Hong Kong through its subsidiary, making it the largest financial information service provider in the region[38]. - The smart investment advisory market in China is projected to reach RMB 188.47 billion by 2020, with an annual compound growth rate of 68.0% over the next three years[43]. Operational Efficiency - The company reduced sales expenses by 28.05% to 89.40 million yuan, primarily due to adjustments in live streaming platform business[62]. - Management expenses decreased by 21.85% to ¥165,720,315.30, attributed to adjustments in the live streaming platform and reduced labor and depreciation costs[76]. - R&D expenses decreased by 20.22% to ¥108,429,785.72, primarily due to reduced investment in R&D related to the live streaming platform[76]. Environmental Compliance - The company has confirmed that it does not belong to the list of key pollutant discharge units published by the Shanghai Environmental Protection Bureau in January 2018[153]. - The company has actively complied with environmental protection laws and has not faced any penalties for violations during the reporting period[153]. Employee Information - The company has a total of 885 employees, with 64 in the parent company and 821 in major subsidiaries[188]. - The professional composition includes 566 technical personnel, 122 sales personnel, and 90 management personnel[188]. - The company has established a scientific and reasonable compensation management system to attract and retain talent[189]. Financial Products and Investments - The company has ongoing investments in various financial products, indicating a strategy focused on diversifying income sources through structured financial instruments[145]. - The company has invested CNY 327 million in bank wealth management products, with an outstanding balance of CNY 64 million[140]. - Total investment in financial products reached ¥895,000,000, with redemptions totaling ¥1,016,000,000, resulting in an investment income of ¥7,558,176.35[145].