KedaTechnology(SH:603660)2019-03-19 16:00Financial Performance - The company's operating revenue increased by 34.41% year-on-year, reaching approximately ¥2.45 billion in 2018[21]. - Net profit attributable to shareholders rose by 18.90% to approximately ¥322 million[21]. - The basic earnings per share increased by 17.92% to ¥0.9122[22]. - Total assets grew by 32.69% year-on-year, amounting to approximately ¥2.58 billion[21]. - The net profit attributable to shareholders of the parent company was 321.95 million yuan, up 18.90% year-on-year, with an earnings per share of 0.9122 yuan[51]. - After deducting the impact of stock incentive expenses of 50.45 million yuan, the net profit attributable to shareholders of the parent company was 372.41 million yuan, reflecting a growth of 37.53% year-on-year[51]. - The company reported a net profit of approximately ¥320 million for the reporting period[25]. - The net cash flow from operating activities decreased by 75.55%, totaling approximately ¥20 million[25]. - The weighted average return on equity decreased by 0.87 percentage points to 20.59%[23]. Dividend Distribution - The profit distribution plan for 2018 includes a cash dividend of RMB 1 per 10 shares and a capital reserve conversion of 4 shares for every 10 shares held, with a total cash dividend expected to be no more than RMB 35,991,788[4]. - The total share capital for the dividend distribution is projected to be no more than 359,917,880 shares, with a capital reserve conversion amount not exceeding RMB 143,967,152[4]. - In 2018, the company distributed a cash dividend of 1.00 RMB per 10 shares, representing 11.20% of the net profit attributable to shareholders[110]. - The company plans to distribute at least 10% of its distributable profits as cash dividends annually, adhering to a three-year cumulative distribution principle of at least 30% of the average annual distributable profits[109]. Research and Development - The company has invested significantly in R&D, with 2,184 R&D personnel and 284 software copyrights, alongside 186 patents, including 92 invention patents[43]. - The company continues to invest heavily in R&D, focusing on core technologies such as 4K encoding/decoding, video processing, and artificial intelligence applications[52]. - The company's total R&D investment reached CNY 580,096,145.76, accounting for 23.64% of total revenue[67]. - The company maintains an annual R&D investment of over 20% to ensure technological competitiveness and innovation[104]. Market Strategy and Product Development - The company is advancing its "AI + Big Data" strategy to enhance video technology applications across various industries[31]. - The company offers nearly 100 video conferencing products and around 1,000 monitoring products, integrating advanced technologies like cloud computing, big data, and AI to develop over 80 industry-specific solutions[32]. - The company launched several new products and solutions, including smart police solutions and smart community solutions, to enhance market presence[53]. - The video conferencing and monitoring industry is experiencing stable growth, driven by technological advancements and increasing demand for integrated video applications[39]. - The company’s market strategy focuses on self-research and production, delivering solutions through its own sales team, integrators, and agents[38]. Risk Management - The company did not identify any significant risks that could adversely affect its future development strategy or ongoing operations during the reporting period[6]. - The company has committed to actively respond to operational risks it may face in the future[6]. - The company faces risks related to market competition, technological accumulation, and core talent retention, which could impact performance and growth[104]. - The company is committed to optimizing its supply chain management to control accounts receivable and inventory levels effectively[106]. Corporate Governance - The company has a complete internal governance structure and a sound internal control system, with no reported penalties from regulatory authorities[195]. - The company’s board of directors and management have not faced any criticism or penalties from the China Securities Regulatory Commission or other administrative bodies[195]. - The company has established a comprehensive intellectual property protection mechanism to mitigate risks associated with talent turnover and technology leakage[104]. - The company has engaged in various leasing agreements, with significant contracts listed, but all transactions are at market prices[134]. Shareholder Information - The largest shareholder, Chen Donggen, holds 92,722,591 shares, representing 25.75% of the total shares[167]. - The second largest shareholder, Chen Weidong, holds 10,707,113 shares, accounting for 2.97% of the total shares[167]. - The company has a total of 92,722,591 restricted shares that will become tradable on December 1, 2019[169]. - The company has a total of 7,161,000 restricted shares held by Suzhou Linzhi Investment Management Co., Ltd., which will also become tradable on December 1, 2019[169]. Employee and Management Information - The company employed a total of 4,831 staff, with 1,894 in the parent company and 2,937 in major subsidiaries[189]. - The company has 2,184 technical personnel, 1,805 sales personnel, and 545 production personnel among its total workforce[189]. - The total pre-tax remuneration for the reporting period for all executives amounted to 578.01 million yuan[180]. - The company emphasizes employee training, implementing a comprehensive training system that includes onboarding, business training, and management enhancement[192]. Related Party Transactions - The company has established significant related transactions with its associates, including Shanghai Candar and Beijing Youyida, for research and development services[130]. - The company’s related transactions are subject to approval by the general manager, ensuring compliance with internal governance[130]. - The company has incurred rental expenses of RMB 23.78968 million for office and production-related properties during the reporting period[134]. - The cumulative related transactions with Jiangsu Beneng, including past transactions, do not exceed RMB 6.1 million, representing 0.44% of the company's audited net assets as of the end of 2017[125]. Environmental and Social Responsibility - The company strictly adheres to environmental protection laws and has not faced any penalties for violations during the reporting period[147]. - The company has a precise poverty alleviation work plan and continues to provide employment opportunities for disabled individuals[148]. - The company donated CNY 0.5 million to Guangxi Minzu University for poverty alleviation efforts[142]. - The company sponsored CNY 38,000 for housing construction for impoverished villagers[142].