DAHAO TECHNOLOGY(SH:603025)2019-03-19 16:00Financial Performance - The company reported a total operating revenue of 1.075 billion yuan, marking a 1.67% increase year-on-year, the highest in nearly 10 years[47]. - The net profit attributable to shareholders was 370 million yuan, down 6.79% year-on-year, with basic earnings per share at 0.4 yuan[47]. - The total profit amounted to 426 million yuan, a decrease of approximately 7% compared to the previous year[47]. - The cash flow from operating activities increased by 42.17% to approximately CNY 303.10 million[21]. - The company's total assets at the end of 2018 were approximately CNY 1.98 billion, a decrease of 6.71% from the previous year[21]. - The basic earnings per share for 2018 was CNY 0.40, down 9.09% from CNY 0.44 in 2017[21]. - The weighted average return on equity was 20.24%, down from 24.94% in 2017[21]. - The company reported a total of CNY 49.94 million in non-recurring gains for 2018, primarily from investment management and government subsidies[24][26]. Dividend Policy - The company proposed a cash dividend of 3 RMB per 10 shares, totaling 276,567,213.3 RMB, based on a total share capital of 921,890,711 shares[5]. - The company has established a cash dividend policy, committing to distribute no less than 30% of the annual distributable profits in cash from 2018 to 2020[111]. - In 2018, the company distributed a cash dividend of RMB 276,567,213.3, representing 74.83% of the net profit attributable to ordinary shareholders[114]. - In 2017, the company distributed a cash dividend of RMB 454,133,355, which accounted for 114.53% of the net profit attributable to ordinary shareholders[114]. - The company has a structured plan for profit distribution, ensuring transparency and commitment to shareholder returns[111]. Market Position and Business Focus - The company maintained a leading market position in the domestic sewing equipment control system sector, with a market share of approximately 80% for embroidery machine control systems[29]. - The company is focused on the research and development of intelligent equipment with proprietary computer control systems, enhancing its competitive edge in the automation technology market[29]. - The company has developed several industry-leading core technologies, including servo power supply integration technology and multi-head multifunctional embroidery machine control technology[32]. - The company has established a direct sales model, with all customers being manufacturers of sewing and knitting equipment, which helps reduce costs[31]. - The company is actively exploring new product development and upgrades to meet domestic and international market demands[34]. Risks and Challenges - The company reported no significant risks affecting its operations during the reporting period, with potential risks including industry fluctuations and international market changes[6]. - The company emphasizes the importance of risk awareness in its forward-looking statements, advising investors to consider potential investment risks[6]. - The company faces risks from fluctuations in downstream industries, which could directly impact its performance due to its reliance on the sewing machinery manufacturing sector[106]. - The company recognizes the potential risks associated with high business concentration, particularly in its embroidery machine control systems, which significantly contribute to profits[109]. Research and Development - Research and development expenses rose by 19.30% to ¥102,429,959.06, compared to ¥85,858,307.52 in the previous year, accounting for 9.53% of total revenue[58][61]. - The company has 292 R&D personnel, representing 35.7% of the total workforce[61]. - The company plans to enhance its R&D investment and product diversification, focusing on technological innovation and market-oriented strategies[104]. Corporate Governance and Management - The company’s financial report received a standard unqualified audit opinion from Beijing Xinghua Accounting Firm[4]. - The company’s core management team is stable and experienced, providing a strong foundation for future growth[40]. - The actual controller of the company is the State-owned Assets Supervision and Administration Commission of the Beijing Municipal Government[178]. - The company has no existing internal employee stock options[168]. Environmental Responsibility - The company has implemented the ISO 14001 environmental management system certification, ensuring compliance with environmental regulations and proper disposal of hazardous waste[157]. - The company has established strict environmental operation standards and has not faced any administrative penalties for environmental violations during the reporting period[157]. - The company is committed to resource conservation and environmental protection through its development of energy-efficient and multifunctional electromechanical integration sewing machinery control systems[154]. Investment Activities - The company has invested a total of RMB 100 million in various wealth management products with annualized returns ranging from 5.00% to 8.00%[139]. - The company has made an external equity investment balance of $5.30 million as of December 31, 2018[93]. - The company has engaged in multiple wealth management products, with a focus on non-principal guaranteed floating returns[139].