JiShi Media(SH:601929)2019-04-11 16:00Financial Performance - The company's net profit attributable to shareholders for 2018 was CNY 304,467,778.11, a decrease of 18.90% compared to CNY 375,415,934.71 in 2017[5]. - Total operating revenue for 2018 was CNY 2,012,031,525.74, down 1.72% from CNY 2,047,177,786.71 in 2017[18]. - Basic earnings per share for 2018 were CNY 0.0979, a decrease of 18.89% from CNY 0.1207 in 2017[18]. - Diluted earnings per share decreased by 18.89% to CNY 0.0979 from CNY 0.1207[21]. - Basic earnings per share excluding non-recurring gains and losses fell by 37.40% to CNY 0.0656 from CNY 0.1048[21]. - Weighted average return on equity decreased by 1.34 percentage points to 4.52% from 5.86%[21]. - The company reported a net profit margin of 15%, up from 12% in the previous year[195]. Cash Flow and Assets - The net cash flow from operating activities was CNY 719,541,541.54, showing a slight increase of 0.89% compared to CNY 713,209,469.52 in 2017[18]. - The company's total assets at the end of 2018 were CNY 13,388,002,803.48, an increase of 15.59% from CNY 11,581,915,634.57 at the end of 2017[18]. - The company's cash and cash equivalents at the end of the period were 927,062,098.42, a 15.10% increase from the previous year[70]. - The financing activities generated a net cash flow of ¥964,081,976.32, a significant increase of 350.51% compared to the previous year[57]. - The total assets of the company increased by 8% to 3 billion, reflecting strong financial health[195]. User Growth and Market Expansion - The total number of users covered by the company reached 8.62 million, with a coverage rate of 94.73%[38]. - The number of broadband users increased by 3.58 million, totaling 38.56 million, although the growth rate is gradually slowing[34]. - The number of digital TV paying users declined to 14.6 million, with a payment rate of 74.6%[34]. - The company completed the goal of covering 3.2 million rural households with fiber optic networks, enhancing market penetration and revenue potential[42]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active subscribers[198]. - The company plans to expand its market presence by entering three new provinces by the end of the next fiscal year[199]. Strategic Initiatives - The company is focusing on expanding its broadband internet services and cloud computing applications to enhance revenue streams[25]. - The strategic transformation includes developing smart industry applications in line with national policies on social informationization[25]. - The company is actively developing new products in education and healthcare sectors, including remote consultation platforms and educational services[45]. - The company is focusing on the I-PON technology to support 4K and 8K video content, enhancing its capabilities in social informationization[77]. - The company aims to innovate in business and product offerings, targeting the smart home and social informationization markets[80]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share[199]. Risks and Challenges - The report includes a risk statement regarding future plans and development strategies, emphasizing the importance of investor awareness of investment risks[6]. - The company faces risks from the convergence of telecom, broadcasting, and internet services, which may impact traditional media revenue streams[133]. - The company is subject to regulatory risks regarding cable television basic viewing fees, which could adversely affect profitability if standards are lowered[137]. - The company acknowledges the pressure from emerging technologies and the need for continuous investment in technical upgrades to maintain competitiveness[138]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of CNY 0.07 per share based on the total share capital[5]. - The company plans to allocate 10% of its net profit to statutory reserves, amounting to 36,050,170.62 yuan, and 30% to discretionary reserves, totaling 108,150,511.86 yuan[142]. - The company distributed a cash dividend of 0.25 RMB per share, leading to an adjustment of the convertible bond conversion price from 2.98 RMB to 2.96 RMB effective June 28, 2018[168]. Related Party Transactions - The company engaged in related party transactions, including advertising services with Jilin Television, estimated at 15 million RMB, and transmission services expected to generate 8.5 million RMB in revenue[149]. - The total amount of related party transactions reached RMB 99,461.46 million, with a net increase of RMB 14,591.15 million during the reporting period[152]. Management and Governance - The company appointed Beijing Xinghua Accounting Firm as its auditor for the 2018 fiscal year, with an audit fee of 800,000 RMB[146]. - The company has no major litigation or arbitration matters during the reporting period[147]. - The total pre-tax compensation for all listed executives amounted to CNY 5,897,800[188].