Sugon(SH:603019)2019-03-15 16:00Financial Performance - The company's operating revenue for 2018 reached ¥9,056,879,481.38, representing a 43.89% increase compared to ¥6,294,223,394.82 in 2017[17]. - Net profit attributable to shareholders was ¥430,604,628.31, a 39.43% increase from ¥308,822,733.01 in the previous year[17]. - The net cash flow from operating activities significantly improved to ¥631,060,300.10, compared to only ¥41,937,995.78 in 2017, marking a 1,404.75% increase[17]. - Basic earnings per share rose to ¥0.67, up 39.58% from ¥0.48 in 2017[18]. - The weighted average return on equity increased to 12.49%, up 2.25 percentage points from 10.24% in 2017[18]. - Total assets at the end of 2018 were ¥13,167,304,762.24, a 30.53% increase from ¥10,087,454,247.20 in 2017[17]. - The net profit after deducting non-recurring gains and losses was ¥271,632,366.99, reflecting a 31.98% increase from ¥205,814,240.60 in 2017[17]. - The total profit for 2018 was 537 million RMB, reflecting a growth of 44.68% compared to the previous year[38]. - The company reported a profit before interest, taxes, depreciation, and amortization (EBITDA) of ¥870,627,123.73 in 2018, a 50.62% increase from ¥578,042,334.75 in 2017[139]. Dividend and Capital Structure - The company plans to distribute a cash dividend of 1.4 yuan per 10 shares, totaling 90,023,355.80 yuan, and to increase capital by 4 shares for every 10 shares held, amounting to 257,209,588 shares[4]. - The cash dividend distribution is based on a total share capital of 643,023,970 shares as of December 31, 2018[70]. - The net profit attributable to ordinary shareholders for 2018 was 430,604,628.31 RMB, compared to 308,822,733.01 RMB in 2017[71]. - The cash dividend for 2017 was 1.0 RMB per 10 shares, totaling 64,302,397.00 RMB, which was 20.82% of the net profit[71]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[72]. Audit and Compliance - The company reported a standard unqualified audit opinion from Lixin Certified Public Accountants[3]. - The company is committed to ensuring the accuracy and completeness of its financial reports[3]. - The company has not reported any instances of funds being occupied or overdue receivables during the reporting period[75]. - The company has not faced any risks of suspension or termination of listing during the reporting period[82]. - The company has no significant litigation or arbitration matters during the reporting period[82]. Research and Development - The company invested 506 million RMB in R&D, which represents a significant increase of 118.50% from the previous year[40]. - In 2018, the company applied for 187 new patents, including 142 invention patents, and received 121 patent authorizations, with 73 being invention patents[31]. - The company’s deep learning platform "SothisAI" won the 2018 ECIAwards Gold Award for technological innovation[30]. - The total R&D investment accounted for 7.99% of the company's revenue, with 1,409 R&D personnel, representing 51.50% of the total workforce[49]. Market and Industry Trends - The electronic information manufacturing industry in China saw a value-added growth of 13.1% year-on-year in 2018[23]. - The revenue growth rate of the electronic information manufacturing industry has slowed from 20.9% in 2011 to 9% in 2018, indicating a transition to a low-growth phase[23]. - The demand for information technology infrastructure is expanding, particularly in economically developed regions like Beijing, Shanghai, and Guangdong[23]. - The high-end computer industry is facing declining profit margins due to intensified market competition and upstream concentration, particularly with CPU monopolization by major international manufacturers[25]. Financial Position and Assets - Cash and cash equivalents decreased by 19.80% to ¥2,018,408,616.34, accounting for 15.33% of total assets[53]. - Accounts receivable increased by 12.04% to ¥2,673,995,769.13, representing 20.31% of total assets[53]. - Inventory surged by 81.14% to ¥2,329,011,364.66, now making up 17.69% of total assets[53]. - Long-term equity investments rose significantly by 177.01% to ¥2,285,677,496.69, accounting for 17.36% of total assets[53]. - Total liabilities reached ¥9,116,726,650.80, up from ¥6,652,475,585.04, marking a growth of around 37.0%[150]. Strategic Initiatives - The company established the National Advanced Computing Industry Innovation Center, focusing on dual innovation in core technology and business models[35]. - The company aims to enhance its market share in hardware while increasing the proportion of software and service revenue[61]. - The company has deployed cloud computing data centers in nearly 40 cities, enhancing its capabilities in urban and industry cloud computing[32]. - The company is actively involved in the industrialization of disruptive computing technologies through partnerships with research institutions[62]. Governance and Management - The company has a governance structure that ensures compliance with legal requirements and protects the rights of all shareholders, particularly minority shareholders[125]. - The total remuneration paid to directors, supervisors, and senior management in 2018 amounted to 11.55 million yuan[117]. - The company has established a flexible and performance-oriented compensation structure for its employees, including fixed salaries and performance bonuses[121]. - The company emphasizes communication with investors and has dedicated personnel to address inquiries and feedback from investors[125].