ENC(SH:603869)2019-04-19 16:00Financial Performance - The company achieved operating revenue of RMB 3,031,653,191.23 and a net profit attributable to shareholders of RMB 377,796,776.46 for the year 2018[6]. - The profit available for distribution to shareholders for 2018 was RMB 367,273,266.14 after deducting the statutory surplus reserve of RMB 4,889,219.14[6]. - The proposed cash dividend is RMB 3.26 per 10 shares, totaling RMB 113,663,149.57, which accounts for 30.09% of the net profit attributable to shareholders[7]. - The company achieved a basic earnings per share of CNY 1.08, representing a 40.26% increase compared to the previous year[24]. - Total revenue for 2018 was CNY 3,031,653,191.23, reflecting a 20.70% growth year-over-year[24]. - Net profit attributable to shareholders was CNY 377,796,776.46, up 40.15% from the previous year[24]. - The weighted average return on equity increased to 9.89%, up 2.41 percentage points from the previous year[24]. - The net cash flow from operating activities was negative CNY 641,149,209.79, a decline of 729.12% compared to the previous year[24]. - The company's total assets reached CNY 6,929,876,503.75, a 12.56% increase from the end of the previous year[24]. Business Strategy and Transformation - The company restructured its business focus towards digital-driven industry transformation, emphasizing smart public safety and smart city solutions[33]. - The company changed its name to "New Intelligence Cognitive Digital Technology Co., Ltd." to better reflect its strategic focus[33]. - The company plans to leverage big data and artificial intelligence as core capabilities in its cognitive solutions[33]. - The company focuses on providing industry cognitive solutions based on deep understanding of customer needs, utilizing AI, big data, and cloud computing technologies[34]. - The company aims to enhance enterprise efficiency through digital technology, transforming traditional management models[55]. - The company is focusing on digital-driven industry transformation as its main strategic direction[109]. - The company will shift its public security business from traditional integration to service operation models, expanding its service operations in public security bureaus nationwide[125]. Research and Development - The company invested CNY 25,781.43 million in R&D, marking a 118.61% increase compared to the previous year[69]. - The company significantly increased R&D expenses by 69.61% to 19,496.86 million RMB, indicating a strong commitment to innovation[83]. - The number of R&D personnel accounted for 20.15% of the total workforce, indicating a strong focus on innovation[95]. - The company has a workforce of 687 personnel in R&D, product development, and technical support, including 39 high-end industry experts[71]. - The company recognizes the need for increased R&D investment to maintain competitiveness in the rapidly evolving smart policing market[128]. Market and Industry Insights - The smart public security market in China is projected to reach approximately 657 billion yuan by 2018, with the intelligent security market around 30 billion yuan[59]. - The integration of AI in public security is seen as a significant development engine, expanding market opportunities for the company[60]. - The market for smart policing is expected to expand significantly, driven by the integration of big data and artificial intelligence technologies[115]. Shareholder and Financial Management - The company implemented a cash dividend policy, distributing 2.50 RMB per share, totaling 87,201,567 RMB, which accounts for 32.35% of the net profit attributable to shareholders[135]. - The company has a long-term commitment to reduce related party transactions and avoid industry competition, ensuring shareholder interests are protected[138]. - The company has established a profit compensation agreement to ensure financial performance meets specified targets[144]. - The company has a commitment to private placement shares with profit compensation agreements in place[178]. - The company has fulfilled its profit compensation obligations, allowing for the unlocking of all remaining restricted shares[172]. Operational Efficiency and Challenges - The company reported a net cash flow from operating activities of -64,114.92 million RMB, a significant decline from the previous year's positive cash flow[83]. - The company anticipates potential increases in fuel prices affecting its marine route business and plans to optimize flight schedules and reduce operational costs[132]. - The company is taking proactive measures to promote passenger growth in its marine route business to ensure stable revenue[132]. Corporate Governance and Compliance - The company has no major litigation or arbitration matters in the current year[149]. - The company has a long-term commitment regarding the handling of short-term trading profits, which will be retained by the company[141]. - The company is committed to timely information disclosure regarding restructuring and assumes legal responsibility for the accuracy of provided information[139]. Employee and Management Structure - The total number of employees in the parent company is 286, while the main subsidiaries employ 1,898, resulting in a total of 2,184 employees[200]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 16.7172 million yuan[196]. - The company has undergone several personnel changes, including the appointment of new vice presidents and the dismissal of others due to work adjustments[197][198]. - The company maintains a stable management team with no significant turnover reported[188].