EmbedWay(SH:603496)2020-03-26 16:00Financial Performance - The company reported a total revenue of 1.2 billion CNY for the fiscal year 2019, representing a year-over-year growth of 15%[21]. - The company's operating revenue for 2019 was CNY 434,114,198.37, a slight increase of 0.63% compared to CNY 431,398,215.91 in 2018[31]. - The net profit attributable to shareholders for 2019 was CNY 67,338,091.67, representing a significant decrease of 35.97% from CNY 105,166,343.17 in 2018[31]. - The net cash flow from operating activities for 2019 was CNY 15,613,509.98, down 60.02% from CNY 39,057,802.46 in 2018[31]. - The basic earnings per share for 2019 was CNY 0.3376, a decrease of 55.12% compared to CNY 0.7522 in 2018[31]. - The total assets at the end of 2019 were CNY 963,416,870.37, an increase of 5.45% from CNY 913,640,809.86 at the end of 2018[31]. - The company reported a net profit of CNY -4,098,498.00 in Q4 2019, contrasting with positive profits in the first three quarters[34]. - The weighted average return on equity for 2019 was 8.72%, down 5.90 percentage points from 14.62% in 2018[31]. - The company’s net assets attributable to shareholders increased by 6.66% to CNY 801,350,236.35 at the end of 2019[31]. - The company reported a positive profit for the reporting period, with net profit attributable to ordinary shareholders being positive, but no cash dividend distribution plan was proposed[195]. Research and Development - Investment in R&D increased by 30% year-over-year, focusing on edge computing and big data technologies[21]. - The company invested CNY 110.13 million in R&D, representing a 42.69% increase year-over-year, and accounting for 25.37% of total sales revenue[88]. - The company has a strong product design capability across various fields, including hardware design and software development, with a total of 352 R&D personnel, making up 70.40% of the workforce[78]. - The company actively invested in early R&D for network visualization systems aimed at 5G mobile networks, enhancing product advantages in system capacity and processing capabilities[79]. - The company aims to enhance its technical innovation capabilities and improve the innovation environment by upgrading its existing R&D technology platform[175]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2021[21]. - The company is gradually strengthening its own production line to meet the growing market delivery demands and customer quality requirements[56]. - The company is focused on enhancing its market position and competitive advantage through comprehensive product specifications and technological solutions[175]. - The company plans to actively expand into multiple industry markets in China, focusing on clear positioning, leading technology, and extensive cooperation[179]. - The company aims to strengthen its marketing service network to cover key domestic regions with high market potential[179]. Risk Management - The company has detailed potential risk factors in its report, which investors should review[9]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[8]. - The company faces market competition risks due to increasing demand in information security and wireless networks, which may lead to intensified competition[184]. - The company has a risk of industry and technology changes, necessitating continuous monitoring of trends to avoid mismatches between products and market demands[185]. Corporate Governance - The board of directors and senior management guarantee the accuracy and completeness of the annual report[4]. - All directors attended the board meeting for the annual report review[5]. - The company has implemented strict procedures for related party transactions to ensure fairness and protect the interests of minority shareholders[195]. - The company has established measures to strengthen external supervision of related party transactions by independent directors[195]. Product Development and Innovation - The company continues to focus on the development and sales of intelligent system solutions, particularly in network visualization and embedded computing platforms[41]. - The company’s embedded and integrated computing platform products are designed for specific functions and applications, providing customizable solutions for various industries, including wireless networks and information security[51]. - The company is committed to developing a comprehensive series of products in the information technology field, including computing, networking, storage, and security[178]. - The company plans to continue investing in new product and technology development, including next-generation network visualization products and 5G mobile network technologies[173]. Dividend Policy - The company plans to distribute a cash dividend of 0.105 CNY per share (including tax) based on the total share capital on the equity distribution scheme registration date[7]. - The company distributed a cash dividend of 1.05 RMB per 10 shares, totaling approximately 21.1 million RMB, which is 31.34% of the net profit attributable to ordinary shareholders[191]. - The company will prioritize cash dividends, distributing at least 20% of the annual distributable profit in cash if conditions allow[189].