eGOVA(SZ:300075)2019-04-24 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,288,815,520.62, representing a 7.14% increase compared to ¥1,202,976,973.86 in 2017 [24]. - The net profit attributable to shareholders for 2018 was ¥117,186,570.99, a decrease of 30.90% from ¥169,594,871.96 in 2017 [24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥115,603,080.63, down 24.47% from ¥153,051,229.89 in 2017 [24]. - The net cash flow from operating activities for 2018 was ¥175,730,294.98, a significant increase of 587.63% compared to -¥36,037,789.90 in 2017 [24]. - The basic earnings per share for 2018 was ¥0.28, a decrease of 33.33% from ¥0.42 in 2017 [24]. - The total assets at the end of 2018 were ¥3,089,023,949.17, reflecting a 0.88% increase from ¥3,062,153,257.73 at the end of 2017 [24]. - The net assets attributable to shareholders at the end of 2018 were ¥2,171,111,080.96, an increase of 6.38% from ¥2,040,828,163.85 at the end of 2017 [24]. - The company achieved total operating revenue of ¥1,288,815,520.62 and a net profit attributable to shareholders of ¥117,186,570.99 during the reporting period [63]. - The impact of the loss from the subsidiary Digital Zhitong and goodwill impairment on the consolidated financial statements amounted to ¥71,750,000, which would have resulted in a net profit of ¥188,940,000, a 16% year-on-year increase, if excluded [64]. - The company reported a decrease in non-recurring income compared to the previous year, impacting overall performance due to the absence of one-time investment gains [64]. Dividend Distribution - The company reported a profit distribution plan to distribute a cash dividend of 0.30 RMB per 10 shares (before tax) based on 426,552,605 shares [9]. - In 2018, the cash dividend amount was ¥12,796,578.15, representing 10.92% of the net profit attributable to ordinary shareholders [183]. - The cash dividend represented 100% of the total distributable profit for the year, which was 739,220,638.21 yuan [181]. - The cash dividend total for 2018 was ¥12,796,578.15, which is the highest in the last three years [183]. - In 2017, the cash dividend amount was ¥12,738,807.15, which accounted for 7.51% of the net profit attributable to ordinary shareholders [183]. - In 2016, the cash dividend amount was ¥11,868,651.30, corresponding to 9.03% of the net profit attributable to ordinary shareholders [183]. Market Position and Competition - The company primarily relies on government procurement for revenue, which poses risks due to potential fiscal tightening by local governments [6]. - The company faces intensified market competition as it expands its business in the rapidly developing smart city sector [6]. - The company has a strong market position in traditional digital city management but must maintain technological leadership to avoid market share decline [6]. - The company is a leading developer of smart city application software and solutions, integrating various data types into a unified management platform [39]. Research and Development - The company has established a comprehensive knowledge management system to retain core technical personnel, crucial for product innovation and sustainable development [9]. - The company has a high-quality technical team and has implemented measures to attract and stabilize core technical personnel [9]. - The company maintained a high level of R&D investment with 304 R&D personnel, representing 15.52% of the workforce, despite a decrease in the number of R&D staff from 324 in the previous year [130]. - Research and development expenses totaled ¥81,311,057.55, accounting for 6.31% of operating revenue, with a year-on-year decrease from 7.47% [129]. - The company’s capitalized R&D expenses amounted to ¥32,793,600.63, which is 40.33% of total R&D expenditures, and 27.98% of the current period's net profit [130]. Strategic Initiatives - The company is focusing on the development of new products in urban management intelligent monitoring and traffic big data monitoring, with management expressing confidence in reversing the unfavorable trend and restoring business growth [64]. - The company has launched a new generation of urban operation center system, enhancing real-time supervision and decision-making capabilities through data platforms [68]. - The company is committed to innovation in core technologies and application models, focusing on financial management and core business areas [67]. - The company aims to integrate technology and market resources while strengthening localized operations and service teams to improve project implementation efficiency [156]. - The company plans to enhance its market presence by leveraging new technologies and expanding its service offerings in the smart city sector [164]. Operational Developments - The company has developed a grid-based environmental protection system that utilizes IoT technology for comprehensive environmental management [40]. - The company has developed a comprehensive urban management enforcement implementation experience, focusing on reforming the urban comprehensive law enforcement system to enhance government function transformation and administrative credibility [43]. - The company has launched a smart video analysis product for urban management, capable of processing hundreds of video streams with industry-leading accuracy using GPU-based deep learning algorithms [48]. - The new generation of the Zhixin Cloud platform has been developed to enhance urban management core business modules, completing various project requirements across nearly a hundred projects nationwide [47]. - The company has achieved rapid development in smart municipal services, providing a comprehensive solution that integrates data surveying, information system construction, and operation maintenance [51]. Financial Management - The total operating costs for the reporting period amounted to ¥918,250,858.35, representing a year-on-year increase of 17.71% from ¥780,098,018.18 [121]. - The main components of operating costs included raw materials at ¥273,528,131.08 (29.79%), labor costs at ¥333,409,331.73 (36.31%), and external service costs at ¥204,270,800.75 (22.25%) with significant increases of 7.56%, 26.63%, and 27.26% respectively [121]. - The company reported a significant increase in depreciation and amortization costs, which rose by 56.65% to ¥10,046,404.25 [121]. - The financial expenses decreased by 75.88% to -¥10,640,881.69, primarily due to increased interest income and unrecognized financing expense amortization [129]. Subsidiaries and Investments - The company established a new subsidiary, Fujian Zhengtong City Operation Information Technology Co., Ltd., with a registered capital of ¥20 million, fully owned by the company [122]. - The total registered capital of the subsidiary Beijing Digital Zhihui Technology Co., Ltd. is 40 million yuan, with a net profit loss of 47,252,324.04 yuan, reflecting challenges in its operations [160]. - The company has established underground pipeline projects in over ten cities, including Beijing, Guangzhou, and Hefei, contributing to urban flood prevention and wastewater treatment improvements [105]. - The project "New Generation 'Grid-based' Smart City Comprehensive Information Service" has received an investment of ¥14,965.1 million during the reporting period, with a cumulative investment of ¥22,425.8 million, achieving 59.31% of the planned investment progress [149]. Compliance and Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management [5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period [199]. - The company has adhered to all commitments made by shareholders and related parties during the reporting period [187]. - The company has maintained compliance with all commitments made regarding performance and related transactions [187].