STS(SH:603322)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,394,544,255.45, representing a 46.98% increase compared to CNY 948,793,175.84 in 2017[23]. - The net profit attributable to shareholders for 2018 was CNY 24,842,766.23, a 16.20% increase from CNY 21,379,307.40 in 2017[23]. - The total assets at the end of 2018 reached CNY 2,211,725,174.08, marking a 71.71% increase from CNY 1,288,070,241.82 in 2017[24]. - The basic earnings per share for 2018 was CNY 0.25, down 7.41% from CNY 0.27 in 2017[25]. - The net cash flow from operating activities for 2018 was CNY 48,755,974.23, an increase of 27.81% compared to CNY 38,147,312.94 in 2017[24]. - The company reported a total revenue of RMB 1.5 billion for the fiscal year 2018, representing a year-over-year growth of 15%[107]. - The company provided guidance for 2019, projecting a revenue growth of 10% to 12%, aiming for a total revenue between RMB 1.65 billion and RMB 1.68 billion[107]. Shareholder Returns - The company plans to distribute a cash dividend of 1 RMB per 10 shares and increase capital by 4 shares for every 10 shares held, based on a total share capital of 111,300,000 shares after deducting 700,000 repurchased shares[5]. - The company has a cash dividend policy, distributing a total of 9.6 million RMB in cash dividends to shareholders based on a share capital increase of 32 million shares[100]. - For 2018, the company plans to distribute 1 RMB per share in cash dividends and increase share capital by 4 shares for every 10 shares held[101]. - The company will implement a profit distribution plan subject to shareholder approval, adjusting the total distribution amount based on changes in shareholding due to buybacks[102]. Acquisitions and Growth - The company completed the acquisition of Sanrui Electronics and Kangli IoT, enhancing its capabilities in the IoT sector[45]. - The company acquired 50.01% of Shanghai Sangrui Electronics Co., Ltd. on February 28, 2018, recognizing goodwill of CNY 114,456,280.78, and 51.00% of Guangdong Kanglida IoT Technology Co., Ltd. on May 31, 2018, recognizing goodwill of CNY 54,649,849.52, totaling CNY 169,106,130.30 in goodwill[181]. - The integration of subsidiaries Sangrui Electronics and Kangli IoT contributed approximately CNY 324,830,903.51 to operating revenue[51]. - The company plans to continue expanding its IoT applications and services, leveraging the recent acquisitions to enhance market presence[56]. Research and Development - The company is actively involved in the research and development of new technologies, including 5G and IoT solutions[12]. - Research and development expenses rose to CNY 62,536,302.95, marking a 75.53% increase, driven by enhanced investment in R&D[49]. - The company aims to enhance its research and development capabilities and increase investment in innovation to improve operational quality and achieve business objectives in 2019[93]. - The total R&D personnel count was 546, making up 16.36% of the total workforce[71]. Risk Management - The company has outlined potential risks in its operations, which are detailed in the report[8]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[6]. - The company acknowledges high accounts receivable and potential bad debt risks, and will strengthen dynamic management of accounts receivable to reduce losses[95]. - The company is aware of the risk of declining profits due to intensified market competition and will seek to diversify its business areas to reduce reliance on a single market[96]. Governance and Compliance - The company has established a comprehensive governance structure, ensuring accountability and transparency in its operations[10]. - The company has established labor contracts with all employees and ensures timely payment of wages and social insurance[106]. - The company will not engage in public financing if it fails to meet commitments[106]. - The company has not faced any risks of suspension or termination of listing during the reporting period[117]. Market Strategy - The company is focused on expanding its market presence and enhancing its product offerings in the telecommunications sector[10]. - The company operates in various regions, including South China, East China, and West China, indicating a broad market strategy[12]. - The company plans to continue expanding its market presence and invest in new technologies, particularly in 5G development, to maintain competitive advantages[82]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[107]. Financial Health - The total liabilities reached RMB 1,538,135,073.13, compared to RMB 797,517,105.88 at the beginning of the year, marking an increase of around 93.0%[191]. - The company's total assets increased significantly, with a notable rise in cash and cash equivalents by 325.11% to 64,745,177.19 RMB[75]. - The company's equity attributable to shareholders amounted to RMB 488,672,137.15, slightly down from RMB 490,553,135.94, indicating a decrease of about 0.4%[192]. - The company's cash and cash equivalents rose to RMB 458,496,822.73 from RMB 369,230,603.17, an increase of about 24.2%[190]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 3,337, with 2,526 in the parent company and 811 in subsidiaries[160]. - The professional composition includes 2,443 technical personnel and 546 R&D personnel, indicating a strong focus on technology and innovation[160]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.7642 million yuan[157]. - The company has established a performance-linked compensation system for senior management to ensure accountability and diligence[172].