NEWLAND(SZ:000997)2019-06-13 16:00Financial Performance - The total revenue for 2018 was not explicitly stated in the provided documents, but the company emphasized the importance of accurate financial reporting[2]. - The company's operating revenue for 2018 was ¥5,759,682,039.35, representing an increase of 18.61% compared to ¥4,855,897,041.02 in 2017[12]. - The net profit attributable to shareholders for 2018 was ¥585,836,541.95, a decrease of 10.43% from ¥654,083,057.52 in 2017[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥537,497,404.50, down 9.48% from ¥593,765,606.56 in 2017[12]. - The basic earnings per share for 2018 was ¥0.5796, a decrease of 15.72% from ¥0.6877 in 2017[12]. - The overall revenue for the company was approximately 5.947 billion CNY, reflecting a growth of 20.88% from the previous year[41]. - The company achieved total operating revenue of 5.947 billion yuan, a year-on-year increase of 20.88%, and 5.796 billion yuan excluding real estate, a growth of 43.23%[34]. - The company reported a net cash flow from operating activities of -¥55,976,259.79, an improvement of 79.71% compared to -¥275,911,509.18 in 2017[12]. - The company reported total assets of CNY 3,408,943,320.54 and net assets of CNY 544,405,906.10 for its subsidiary Guotong Xingyu Company[73]. Dividends and Shareholder Returns - The company reported a cash dividend of 3.00 RMB per 10 shares for the year ending December 31, 2018[2]. - The cash dividend distribution for 2017 was RMB 0.80 per 10 shares, amounting to RMB 80,833,501.66, which was 12.36% of the net profit attributable to ordinary shareholders[87]. - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 313,237,415.10 for the year 2018, which represents 53.47% of the net profit attributable to ordinary shareholders[89]. - The total number of shares for the cash dividend distribution in 2018 is based on 1,044,124,717 shares[91]. Business Operations and Strategy - The company has not changed its main business since its listing, indicating stability in its operations[9]. - The company has a strong market presence in electronic payment devices, with sales covering both domestic and international markets[20]. - The company launched several new products including "Xing Tong Bao," "Xing Pay," and "Xing Partner" during the reporting period[19]. - The company aims to enhance operational efficiency for small and micro merchants through its "Xing POS" service platform, leveraging big data analysis[19]. - The company has established a comprehensive merchant service platform, "Star POS," to support small and micro businesses with payment, ERP, marketing, and financial services[23]. - The company has developed a comprehensive payment platform and value-added service platform, with development costs fully capitalized[32]. - The company is focused on expanding its product line in the smart POS segment to become the leading brand in China's financial smart payment device market[79]. Research and Development - The company has a strong focus on R&D in core technologies and product innovation, aiming to challenge traditional international giants in the barcode recognition market[28]. - The company invested 200 million RMB in R&D for new product development, focusing on digital payment solutions[120]. - The company’s R&D expenses amounted to ¥483,130,903.75, representing 8.39% of total revenue, an increase from 8.16% in the previous year[54]. - The company employed 2,970 R&D personnel, an increase of 14.45% from the previous year[54]. Market Trends and Industry Insights - In 2018, the total number of market entities in China reached 110.2 million, with a year-on-year growth of 12.28%, indicating a robust environment for small and micro enterprises[23]. - The payment service industry saw a total of 98.336 billion card transactions in 2018, amounting to 9.276 trillion yuan, representing a year-on-year growth of 67.73% and 35.09% respectively[24]. - The consumer finance market in China reached a scale of 38.3 trillion yuan in 2018, with a year-on-year growth of 21.55%, and internet consumer finance credit balance grew by 64.16% to approximately 1.5 trillion yuan[25]. - The third-party payment card acquiring industry in China is expected to exceed CNY 130 trillion in transaction volume by 2021, indicating strong growth prospects[76]. Corporate Governance and Compliance - The board of directors and senior management confirmed the accuracy and completeness of the annual report, ensuring accountability[2]. - The company has not reported any major asset or equity sales during the reporting period[70]. - The company has not faced any penalties from securities regulatory authorities in the past three years[170]. - The company has not engaged in any significant related party transactions during the reporting period[107]. - The company has not reported any non-standard audit reports for the reporting period, indicating compliance with accounting standards[99]. Social Responsibility and Community Engagement - The company has engaged in social responsibility initiatives, particularly in poverty alleviation, partnering with specific villages for targeted support[133]. - The company invested CNY 50,000 from the "assistance fund" to build a drinking water reservoir in Xian Village, along with donating two sets of environmental water treatment devices[135]. - The company assisted 143 registered impoverished households in achieving poverty alleviation through various projects in 2018[138]. - The company established a dedicated poverty alleviation team to ensure effective implementation of poverty alleviation strategies[135]. Financial Management and Investments - The company has a total of CNY 8,000 million in entrusted management with Xiamen Trust, yielding a 7.00% expected return[116]. - The company has not engaged in any high-risk entrusted financial management products during the reporting period[115]. - The company has a guarantee amount of 3 million CNY for Fujian Newland Automatic Identification Technology Co., Ltd., with an actual guarantee amount of 907.04 thousand CNY[112]. - The company has a total of CNY 2,000 million in guarantees for Jiangsu Zhiliantian Technology Co., Ltd. with a three-year guarantee period[113]. Shareholder Structure and Changes - The largest shareholder, Newland Technology Group Co., Ltd., holds 29.58% of the shares, amounting to 308,879,440 shares, with 110,850,000 shares pledged[154]. - The company has a total of 82,746 shareholders at the end of the reporting period[153]. - The company’s total number of restricted shares after the changes was 39,788,761, accounting for 3.81% of total shares[145]. - The company’s board of directors includes a total of 11 members, with no changes in the actual controller during the reporting period[164]. Employee and Management Information - The company has a total of 5,370 employees, with 66.29% being technical personnel (3,560 employees) and 14.92% being marketing personnel (801 employees)[177]. - The educational background of employees shows that 64.97% hold a bachelor's degree (3,489 employees) and only 4.15% have a master's degree or higher (223 employees)[178]. - The company implements a performance evaluation system for senior management to determine annual remuneration based on market salary levels[171]. - The current board includes experienced professionals with backgrounds in engineering, finance, and law, enhancing the company's governance[170].