Star-net(SZ:002396)2021-08-27 16:00Financial Performance - The company's operating revenue for 2018 was ¥9,131,571,813.18, representing an increase of 18.51% compared to ¥7,705,135,612.62 in 2017[29]. - The net profit attributable to shareholders for 2018 was ¥564,134,426.98, a growth of 24.29% from ¥453,875,490.20 in 2017[29]. - The net cash flow from operating activities reached ¥594,339,591.58, showing a significant increase of 114.37% compared to ¥277,255,509.05 in 2017[29]. - The company achieved a basic earnings per share of ¥0.9672, up 18.02% from ¥0.8195 in the previous year[29]. - Total assets at the end of 2018 were ¥6,999,108,789.03, an increase of 8.68% from ¥6,439,912,654.33 at the end of 2017[29]. - The company's total revenue for 2018 reached RMB 9,131,571,813.18, representing an 18.51% increase compared to the previous year[56]. - Operating profit for 2018 was RMB 833,424,487.88, up 18.55% year-on-year[56]. - The net profit margin for 2018 was 11.37%, down from 19.28% in 2017[127]. - The total distributable profit for the year was reported at approximately ¥1.30 billion[128]. Research and Development - Research and development investment totaled RMB 1,079,000,000, accounting for 11.81% of the company's annual revenue[49]. - The company applied for 243 patents in 2018, including 212 invention patents, bringing the total number of patents to 1,740 (1,412 valid)[49]. - The company emphasizes the importance of R&D investment to address technological risks and product competition in the industry[114]. - The company is committed to maintaining a competitive edge by understanding industry application needs and accelerating R&D for differentiated solutions[117]. - Research and development expenses amounted to ¥1,078,762,277.58, an increase of 7.03% year-on-year, constituting 11.81% of operating revenue[82]. Market Position and Strategy - The company maintained a leading position in the communication industry, ranking 27th in the "2018 Top 100 Software Companies in China" list, and 1st in Fujian Province[43]. - The company focuses on providing integrated information solutions for enterprise-level clients, with a product strategy centered around smart solutions[42]. - The company is focused on developing differentiated products to meet varying customer demands across different industries[6]. - The company aims to leverage opportunities in 5G, artificial intelligence, big data, and the Internet of Things to enhance its overall solution capabilities[111]. - The company plans to strengthen its human resources policies to attract and retain high-end technical talent amid fierce competition[117]. Customer and Supplier Concentration - The company acknowledges a high customer concentration and seasonal sales patterns, particularly in the fourth quarter[6]. - The total sales amount from the top five customers reached ¥2,447,269,746.18, accounting for 26.80% of the annual sales[78]. - The total procurement amount from the top five suppliers was ¥2,334,145,826.73, representing 35.77% of the annual procurement[78]. Cash Dividends and Shareholder Returns - The company reported a profit distribution plan of 1.10 RMB per 10 shares, based on a total of 583,280,278 shares[9]. - The cash dividend for 2018 was set at ¥1.10 per 10 shares, with a total cash dividend amounting to ¥64.16 million, which is 100% of the distributable profit[128]. - The cash dividend distribution plan was approved by the board on March 27, 2019, indicating a structured approach to shareholder returns[128]. Risks and Challenges - The company emphasizes the risk of technology and product competition, highlighting the need for continuous innovation to maintain profitability[6]. - The company faces risks from macroeconomic policies and economic slowdown, which may impact product market performance[113]. - The company has committed to fulfilling its promises regarding avoiding competition and related transactions, ensuring compliance with regulatory requirements[131]. Operational Highlights - The company’s thin client product shipments reached 679,000 units in 2018, capturing 48.6% of the domestic market share, maintaining the top position for 17 consecutive years[57]. - The company became the third-largest POS supplier globally in 2018, achieving significant breakthroughs in the commercial bank market[57]. - The revenue from international markets increased by 51.88%, totaling ¥1,874,114,525.29, compared to ¥1,233,915,981.57 in the previous year[63]. - The company established strategic partnerships with over 20 top real estate developers in the smart community sector[58]. Financial Commitments and Compliance - The company has committed to a cash dividend ratio of no less than 10% of the distributable profit after covering losses and allocating statutory reserves for the years 2018 to 2020[182]. - The company will not engage in any competitive business activities that threaten its main business during the period of being a controlling shareholder[179]. - The company has made a commitment to avoid any related party transactions that could harm its legitimate rights and interests[173].