Focus Tech.(SZ:002315)2019-01-31 16:00Financial Performance - The company's operating revenue for 2018 was ¥875,181,934.57, a decrease of 27.74% compared to ¥1,211,088,801.42 in 2017[27]. - The net profit attributable to shareholders for 2018 was ¥56,305,632.30, down 23.03% from ¥73,154,210.63 in 2017[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥17,326,173.19, a decline of 56.17% compared to ¥39,529,896.87 in 2017[27]. - The net profit attributable to shareholders for Q4 2018 was -7,255,688.25 CNY, following profits of 29,908,253.29 CNY in Q3 2018 and 24,136,778.83 CNY in Q2 2018[33]. - The company's operating profit and total profit for 2018 were CNY 64.00 million and CNY 65.57 million, representing declines of 12.95% and 25.32% respectively compared to the previous year[68]. - The net profit attributable to shareholders was CNY 56.31 million, down 23.03% year-on-year, mainly due to significant increases in asset impairment losses and goodwill impairment provisions[68]. - Basic and diluted earnings per share decreased by 22.58% to 0.24 CNY from 0.31 CNY[30]. Cash Flow and Investments - The net cash flow from operating activities was 301,457,530.83 CNY, a significant increase of 355.57% compared to -117,953,483.94 CNY in the previous period[30]. - The net cash flow from investment activities was 129,946,442.46 CNY, an increase of 179.78% year-on-year[115]. - The net cash flow from financing activities was -149,134,189.66 CNY, a decrease of 111.91% compared to the previous year[118]. - The company reported an investment income of 24,390,976.45 CNY, which accounted for 37.20% of the total profit[120]. - The company's cash and cash equivalents increased by 291,154,942.18 CNY, a turnaround from a decrease of 355,043,364.25 CNY in the previous year[114]. - As of the end of 2018, cash and cash equivalents amounted to ¥907,297,126.70, representing 35.69% of total assets, an increase of 9.81% from the previous year[121]. - The company's total investment during the reporting period was ¥180,746,900.00, a decrease of 76.68% compared to ¥774,945,300.00 in the previous year[126]. Revenue Breakdown - B2B revenue increased by 9.58% to ¥635,186,456.69, accounting for 72.58% of total revenue[89]. - Insurance revenue surged by 124.34% to ¥145,870,042.39, representing 16.67% of total revenue[89]. - Membership fees contributed ¥362,565,558.41, making up 41.43% of total revenue, with a slight increase of 2.47% year-over-year[89]. - Value-added service fees rose by 36.17% to ¥172,048,932.54, accounting for 19.66% of total revenue[91]. - The East China region generated ¥390,036,399.71 in revenue, representing 44.57% of total revenue[91]. Strategic Initiatives - The core business remains focused on the self-developed e-commerce platform Made-in-China.com and cross-border trade services[25]. - The company aims to help small and medium-sized foreign trade enterprises reduce risks and costs associated with international expansion[25]. - The company aims to enhance its supply chain management services, focusing on procurement collaboration and financial services for SMEs in the future[48]. - The company launched new products such as "Letter of Credit Steward" and "Credit Insurance" to help clients reduce payment risks and improve liquidity[75]. - The company expanded its global strategy with Crov.com, targeting Southeast Asia and preparing for market entry into Africa[74]. - The company has established subsidiaries such as InQbrands Inc. and Doba, Inc. to enhance its cross-border trade capabilities[25]. Risk Management - The company operates in a competitive environment with risks related to macroeconomic fluctuations and cross-border operations[10]. - The company faces risks from macroeconomic fluctuations, particularly due to its reliance on membership fees from export-oriented SMEs[158]. - Increased competition in the insurance industry poses a risk if the company fails to rapidly expand its customer base[159]. - The company is focused on enhancing its risk control capabilities to mitigate potential financial disputes related to online transactions and small loans[163]. - The company will actively monitor and respond to changes in international trade policies to minimize the impact of macroeconomic fluctuations[164]. Dividend Policy - The company plans to distribute a cash dividend of ¥5.00 per 10 shares, totaling ¥235,000,000 to all shareholders[10]. - The net profit attributable to shareholders for 2018 was RMB 56,305,632.30, with cash dividends representing 100% of the distributable profit[180]. - The company has maintained a consistent cash dividend distribution of RMB 117,500,000 over the past three years[178]. - The company has committed to a cash dividend distribution of no less than 30% of the distributable profits from the consolidated and parent company financial statements each year[184]. Research and Development - The company has established a dedicated research institute to drive innovation strategies and AI technology research, aiming to lead the industry through technological innovation[59]. - The company invested 111,693,655.13 CNY in R&D, which is 12.76% of its operating revenue, up from 8.46% the previous year[113]. - Research and development expenses rose by 34.21% to 88,125,577.85 CNY, primarily due to increased personnel costs[108]. Subsidiaries and Acquisitions - The company completed a minority equity acquisition of Lean Supply Solutions Inc. in Canada, enhancing its cross-border trade service capabilities[73]. - The company has added new subsidiaries to its consolidated financial statements, including a new insurance appraisal company established on February 13, 2018, and a wholly-owned subsidiary in Singapore established on October 26, 2018[192][193]. - The main subsidiaries include New One Station Insurance Agency Co., Ltd., which reported a net loss of RMB 13.39 million, and Nanjing Focus Internet Technology Microfinance Co., Ltd., which generated a net profit of RMB 20.63 million[150].