Weaver Network(SH:603039)2019-03-28 16:00Financial Performance - The net profit attributable to shareholders for 2018 was RMB 114,487,090.34, while the parent company achieved a net profit of RMB 123,222,884.72[6]. - The company's operating revenue for 2018 was CNY 1,003,600,759.35, representing a 42.51% increase compared to CNY 704,217,665.37 in 2017[32]. - The net profit attributable to shareholders for 2018 was CNY 114,487,090.34, a 31.64% increase from CNY 86,970,596.44 in 2017[32]. - The net profit after deducting non-recurring gains and losses was CNY 94,400,147.40, up 42.99% from CNY 66,016,564.98 in 2017[32]. - The company's total assets at the end of 2018 were CNY 1,607,642,720.46, a 22.64% increase from CNY 1,310,890,692.14 at the end of 2017[32]. - The net assets attributable to shareholders increased by 22.19% to CNY 724,091,970.43 at the end of 2018 from CNY 592,590,504.43 at the end of 2017[32]. - The basic earnings per share for 2018 was CNY 1.16, a decrease of 12.78% compared to CNY 1.33 in 2017[32]. - The weighted average return on equity for 2018 was 17.42%, an increase of 0.98 percentage points from 16.44% in 2017[32]. - The net cash flow from operating activities for 2018 was CNY 199,749,435.23, which is a 27.58% increase from CNY 156,566,376.99 in 2017[32]. - The company reported a net profit of CNY 146,841,006.35 after excluding the impact of equity incentives, marking a 54.83% increase year-on-year[35]. - The company achieved a total revenue of 1,003.60 million yuan in 2018, an increase of 42.51% compared to the previous year[95]. - The net profit attributable to the parent company was 114.49 million yuan, up 31.64% year-on-year, with a net profit of 137.45 million yuan after deducting stock incentive effects, representing a 44.93% increase[95]. Dividend and Profit Distribution - The proposed cash dividend is RMB 1.50 per 10 shares, totaling RMB 15,376,363.80 to be distributed to shareholders[7]. - The annual report is subject to approval at the 2018 annual general meeting before implementation of the profit distribution plan[7]. - In 2018, the company distributed a cash dividend of 15,376,363.80 RMB, representing 13.43% of the net profit attributable to ordinary shareholders[155]. - The cash dividend per 10 shares was 1.5 RMB, and the stock bonus was 0 shares for the year 2018[155]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[159]. Risks and Uncertainties - The company has stated that its future plans may be affected by risks and uncertainties, and these do not constitute a commitment to investors[8]. - The company has outlined potential risks in its annual report, which investors should pay attention to[11]. - The company recognizes market competition as a risk, with increasing entrants in the collaborative management and mobile office software sector[147]. - A talent retention strategy will be implemented to mitigate human resource risks, ensuring the stability of the professional team[148]. Corporate Governance and Compliance - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[4]. - The company has committed to linking executive compensation to the performance of the company, ensuring alignment with shareholder interests[165]. - The company has established a policy to ensure that any stock sales by major shareholders comply with regulatory requirements and do not harm the company's interests[165]. - The company has a long-term commitment to maintain transparency and accuracy in the information provided during major asset restructuring[162]. - The company has committed to minimizing related party transactions and ensuring fair pricing in unavoidable business dealings[174]. - The company will not engage in any business that competes with its main operations, either directly or indirectly, for the duration of the commitment[173]. Research and Development - The company invested approximately 12.50% of its revenue, amounting to 12,546.61 million yuan, in research and development during the reporting period[76]. - The company holds 88 software copyrights and 2 invention patents as of the end of the reporting period, reflecting its commitment to technological innovation[76]. - The company aims to enhance product R&D and upgrade existing product lines to meet evolving customer needs, with a focus on smart office products[142]. - The company’s R&D team released several new application features, enhancing workflow and integration capabilities[100]. Product Development and Market Strategy - The company focuses on collaborative management and mobile office software development, emphasizing a strategy of "intelligent, platform-based, and fully electronic" services[44]. - The e-cology product line targets large and medium-sized organizations, providing a comprehensive electronic collaborative office platform to meet cross-departmental management needs[49]. - The e-office product is designed for small and medium-sized organizations, offering a cost-effective solution with numerous functional modules to improve management efficiency[51]. - The company has developed the eteams product, a cloud-based mobile office service platform, which operates without the need for server hardware, suitable for organizations with simpler management needs[54]. - The company has launched the new generation "intelligent, platform-based, fully electronic" OA product e-cology 9.0, which supports comprehensive electronic processes for business operations[89]. - The company plans to collaborate with partners like Tencent Enterprise WeChat to promote integrated application models in 2019[143]. Market Trends and Competitive Landscape - The software and information services industry in China has maintained a steady growth trend, with revenue and profit increasing at double-digit rates[62]. - The market for collaborative management and mobile office software is fragmented, with low concentration and many small vendors competing[63]. - Leading national vendors are likely to gain market share due to increasing complexity in user needs and higher expectations for service quality[67]. - A multi-level distributed operational system is becoming a key competitive advantage for vendors in the collaborative management software market[68]. - The SaaS model is transforming the software service landscape, allowing organizations to access software applications without the need for extensive IT infrastructure[70]. Marketing and Sales Strategy - The company has established a multi-layered marketing service system across nine regions, ensuring a two-hour service response time nationwide[48]. - The sales model includes direct sales and channel distribution, with a focus on e-cology products for large and medium-sized enterprises and e-office for small enterprises[56][57]. - The e-office product line primarily utilizes a distribution model, targeting small enterprises due to its standardized and user-friendly nature[60]. - The company expanded its marketing efforts by hosting multiple large-scale user conferences and product experience events across various cities[101]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[188]. - New product launches are expected to contribute an additional 100 million in revenue, with a focus on expanding the product line[188]. - The company is investing in new technology development, allocating 50 million towards R&D initiatives in the upcoming year[188]. - Market expansion plans include entering two new international markets, which are projected to generate an additional 30 million in revenue[188]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 200 million earmarked for potential deals[188].