Wondertek(SH:603189)2019-07-02 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]. - Basic earnings per share fell by 76.47% to CNY 0.04 from CNY 0.17 in 2017[23]. - The weighted average return on equity decreased to 1.00%, down 3.68 percentage points from 4.68% in 2017[24]. - The company reported a net cash flow from operating activities of CNY 18.13 million, a decline of 47.27% from CNY 34.39 million in 2017[22]. - The total assets increased by 5.45% to CNY 901.59 million from CNY 854.98 million in 2017[22]. - The company's operating revenue for 2018 was CNY 201,676,953.35, an increase of 4.3% compared to CNY 193,377,289.90 in the previous year[191]. - The net profit for 2018 was CNY 7,994,068.99, compared to CNY 37,204,932.74 in the previous year, indicating a significant decline[188]. Research and Development - The company is focused on integrating advanced technologies such as AI and big data into its operations[12]. - The company’s R&D expenses increased significantly due to the expansion of its workforce and the completion of a new R&D building in Shanghai, leading to higher depreciation costs[24]. - Research and development expenses increased to CNY 48,251,774.95, compared to CNY 33,431,568.23 in the previous year, reflecting a focus on innovation[187]. - The company has obtained 12 national invention patents and 57 software copyrights, reflecting its commitment to innovation and intellectual property development[48]. - The company is investing in video coding, cloud computing, and artificial intelligence, expanding its R&D team and increasing salary costs due to the new Shanghai headquarters[42]. Market Strategy and Expansion - The company is actively involved in the development of a fusion media platform to enhance content management and market responsiveness[12]. - The company is exploring opportunities in the new retail sector, leveraging internet technologies for business transformation[12]. - The company has expanded its operations from regional to national level, deploying teams in multiple provinces including Shanghai, Zhejiang, and Guangdong, significantly enhancing customer satisfaction through refined operational management[44]. - The company is actively pursuing market expansion in the new retail and media sectors, leveraging its complete solutions and strong operational capabilities[45]. - The company aims to strengthen its strategic layout in the big video sector, leveraging market demand and mobile internet multimedia software development technology[92]. Risk Management - The company emphasizes the importance of risk awareness in its forward-looking statements regarding development strategies and operational plans[6]. - The company has outlined potential risks and countermeasures in the management discussion and analysis section of the report[7]. - The company faces risks related to technology development, including high costs and rapid iteration, which could impact its competitive position if not managed effectively[94]. - The company has a high dependency on major clients like China Mobile and China Telecom, which poses a risk if their business needs change significantly[94]. - The company anticipates increased competition in the big video market, which may raise barriers to entry and intensify market risks[95]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of 0.30 RMB per 10 shares, totaling 6,624,000 RMB to shareholders[5]. - The proposed cash dividend for 2018 is RMB 0.30 per 10 shares, totaling approximately RMB 6,624,000, which represents 82.86% of the net profit[102]. - The cash dividend for 2017 was RMB 0.60 per 10 shares, amounting to RMB 13,248,000, which is 35.61% of the net profit[102]. - The company has a profit distribution policy clearly defined in its articles of association, approved by the board of directors[99]. - The company plans to maintain a dividend payout ratio that aligns with its net profit performance in future years[103]. Corporate Governance - The company has established a governance structure that complies with the requirements of the Company Law and relevant regulations, ensuring clear responsibilities among various governance bodies[158]. - The board of directors consists of members who actively participate in training to enhance their understanding of relevant laws and regulations, ensuring compliance and effective governance[160]. - The company has a diverse board with members holding various positions in other organizations, enhancing its strategic oversight[144]. - The independent directors have extensive experience in finance and technology sectors, contributing to the company's governance[144]. - The company has maintained a stable leadership team since 2018, with no changes in shareholding among key executives[141]. Financial Reporting and Audit - The company has received a standard unqualified audit report from Ruihua Certified Public Accountants[4]. - The audit report confirms that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2018[169]. - The company has not encountered any significant accounting errors that would require correction or impact its financial statements[110]. - The company has adhered to the new financial reporting format issued by the Ministry of Finance, which will not affect the financial position or performance of the company[108]. - The company continues to engage Ruihua Certified Public Accountants as its external auditor, with an audit fee of RMB 900,000 for the year[111].