Wondertek(SH:603189)2019-04-19 16:00Financial Performance - The company's operating revenue for 2018 was CNY 201.81 million, a slight increase of 2.64% compared to CNY 196.62 million in 2017[22]. - Net profit attributable to shareholders decreased by 78.51% to CNY 7.99 million from CNY 37.20 million in the previous year[22]. - The basic earnings per share dropped by 76.47% to CNY 0.04 from CNY 0.17 in 2017[23]. - The weighted average return on equity fell to 1.00%, down 3.68 percentage points from 4.68% in 2017[24]. - Operating cash flow decreased by 47.27% to CNY 18.13 million from CNY 34.39 million in the previous year[22]. - The total revenue for the company was approximately ¥201.81 million, with a gross margin of 41.69%, reflecting a year-over-year increase of 2.64% in revenue but a decrease of 9.03% in gross margin percentage[56]. - The mobile internet segment generated ¥195.74 million in revenue, with a gross margin of 42.07%, showing a year-over-year revenue increase of 16.43% but a decrease in gross margin by 12.33 percentage points[56]. - The business intelligence segment reported revenue of ¥306.11 million, with a gross margin of 64.58%, experiencing a significant decline in revenue by 95.61% year-over-year[56]. - The company reported a total comprehensive income for the current period of ¥2,788,575.85, down from ¥37,204,932.74 in the previous period[178]. Investment and Development - The company increased its investment in technology development, leading to a 21.45% rise in operating costs to CNY 117.68 million[24]. - Research and development expenses rose significantly due to an expanded workforce in mobile coding, cloud computing, and artificial intelligence[24]. - The company is focusing on technology development and services, with increased investment in mobile encoding, cloud computing, and artificial intelligence[40]. - The company is actively developing new retail solutions by integrating AI and big data analytics, focusing on marketing recommendations and customer flow analysis[43]. - The company has developed capabilities to support over 100 million devices on its multi-screen interactive platform, enhancing user experience during high-demand events[46]. - The company is committed to the development of the ultra-high-definition video industry, with expectations for the industry to exceed 4 trillion RMB by 2022[35]. - The company aims to enhance its technology innovation and new product development, exploring areas such as multi-screen interaction technology and big data analysis technology[78]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.30 RMB per 10 shares, totaling 6,624,000 RMB to shareholders as of December 31, 2018[5]. - For the fiscal year 2018, the company plans to distribute cash dividends of approximately RMB 6,624,000, which is 82.86% of the net profit available for distribution to shareholders[89]. - In 2017, the company distributed cash dividends totaling RMB 13,248,000, representing 35.61% of the net profit available for distribution[88]. - The company’s net profit for 2016 was RMB 71,659,774.46, with cash dividends of RMB 22,080,000 distributed, accounting for 30.37% of the net profit[87]. Risk Factors - The company has outlined potential risks in its annual report, which investors should pay attention to[7]. - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors, highlighting investment risks[6]. - The company faces significant technology risks due to the need for continuous innovation and timely upgrades in the mobile internet multimedia sector, with high costs associated with technology development[81]. - The company has a high dependency on major clients such as China Mobile and China Telecom, which poses risks if these clients shift towards in-house development or if market competition intensifies with the rise of internet giants like Tencent Video and iQIYI[81]. - Rising operational costs are a concern due to increasing property prices and competitive talent markets in first-tier cities, necessitating the introduction of high-margin products to stabilize profit growth[82]. Corporate Governance - The company has received a standard unqualified audit report from Ruihua Certified Public Accountants[4]. - The company has ensured the accuracy and completeness of the financial report, with all board members present at the meeting[8]. - The company adheres to the requirements of the Company Law and relevant regulations in its governance practices, ensuring no conflicts of interest with the controlling shareholder[148]. - The board of directors consisted of members who actively participated in meetings, with a total of 8 board meetings held during the year[152]. - The audit committee, strategic committee, compensation and assessment committee, and nomination committee were established to provide professional opinions for board decisions[148]. - The company has maintained a stable leadership structure with no changes in shareholding among the board members during the reporting period[130]. Market Presence and Expansion - The company has expanded its market presence in various provinces, including Chongqing, Sichuan, and Hainan, leading to increased initial investment costs[40]. - The company has deployed operational teams in multiple provinces, expanding from a regional to a national company, enhancing customer satisfaction through refined management[42]. - The company is investing in the Hefei Wangda mobile internet R&D industrial park, which may lead to reduced cash flow and increased financial costs due to the large investment and long construction period[82]. Social Responsibility - The company actively engages in social responsibility initiatives, including employment promotion and tax compliance[111]. - The company donated 100,000 RMB for infrastructure and 150,000 RMB worth of computer equipment to support education in Yunnan[109]. - The company has invested 250,000 RMB in improving educational resources in impoverished areas as part of its poverty alleviation efforts[109]. - The company is committed to environmental protection and has not faced any penalties for violations during the reporting period[112].