KINGSUN(SZ:300235)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was ¥107,245,103.63, representing a 6.70% increase compared to ¥100,510,607.42 in 2017[23]. - The net profit attributable to shareholders for 2018 was ¥12,316,056.55, a significant increase of 39.60% from ¥8,822,524.60 in 2017[23]. - The net cash flow from operating activities for 2018 was -¥14,721,398.70, indicating a decline compared to positive cash flow in previous quarters[26]. - The company reported a total asset value of ¥624,266,087.24 at the end of 2018, which is a 2.54% increase from ¥608,796,383.19 at the end of 2017[23]. - The total non-recurring gains for 2018 amounted to ¥15,032,652.53, compared to ¥4,095,267.37 in 2017, reflecting a substantial increase[29]. - The company's main product, Fangzhi Jintaiyang Education Software, generated CNY 88,652,299.04 in revenue, which is 82.66% of total revenue, with a growth of 6.93% compared to the previous year[65]. - Revenue from the education sector accounted for 96.36% of total revenue, with a total of CNY 103,343,487.95, reflecting a growth of 7.33% year-on-year[65]. - The company reported a gross margin of 62.36% for the education sector, a decrease of 3.13% from the previous year[67]. Investment and R&D - The company has invested in the "Teaching Research Cloud Platform" and "Synchronous Resource Learning System" projects to enhance R&D capabilities and expand market share[9]. - The company plans to strengthen its R&D investment to enhance product iteration capabilities and innovation amidst a competitive online education market[6]. - The company has increased its investment in product research and development, aligning with customer needs to enhance product offerings and service models[32]. - The R&D investment accounted for 26.68% of the operating revenue in 2018, up from 26.00% in 2017[83]. - The company has established a robust research and development system to optimize its educational technology products and enhance core competitiveness[38]. - The company is leading a national education technology research project focused on personalized teaching practices supported by big data, with a three-year research timeline[38][39]. - The company has obtained 80 software copyrights, 10 work copyrights, and 1 design patent, with 17 new software copyrights and 1 new design patent added during the reporting period[39][42]. Market Strategy and Expansion - The company aims to diversify its product offerings by developing new subjects such as language and mathematics to mitigate risks associated with customer concentration[7]. - The company is focusing on expanding into second and third-tier cities by developing localized educational resources[7]. - The company has expanded its market strategy by focusing on first-tier cities before moving to second and third-tier cities and rural areas, covering 29 provinces and over 100 cities in China[36]. - The company aims to enhance its market position by integrating advanced teaching concepts and effective methods with information technology[31]. - The company aims to establish a comprehensive education resource system covering primary, middle, and high school levels by 2021, focusing on multi-subject, multi-version, and synchronous resources[115]. - The company will focus on online education resource operation and service development, aiming for rapid performance improvement and business structure transformation in 2019[121]. Profit Distribution and Financial Policies - The company reported a profit distribution plan with a base of 167,831,090, proposing no cash dividends and no stock bonuses[12]. - The company proposed no profit distribution for the 2018 fiscal year, with retained earnings carried forward to the next year[138]. - The total distributable profit for the year was 124,698,323.79 yuan, with no cash dividends or stock bonuses proposed[142]. - The company has not distributed cash dividends in the last three years, with a cumulative cash dividend total of 11,879,919.48 yuan, representing 74.48% of the average annual distributable profit of 15,951,263.53 yuan[144]. - The earnings per share for 2018 was 0.07 yuan, which did not meet the company's cash dividend distribution criteria[144]. - The board's decision to not distribute profits is aimed at ensuring sustainable development and maintaining adequate capital reserves for future growth[145]. - The profit distribution plan for 2018 is subject to approval at the annual shareholders' meeting[139]. Corporate Governance and Compliance - The company has made commitments to avoid related party transactions and not to occupy company funds, which have been adhered to without violations[149]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[149]. - The company has implemented measures to ensure the protection of shareholder rights and interests[149]. - The company has not engaged in any related party transactions during the reporting period[159]. - The company has not experienced any penalties or corrective actions during the reporting period[156]. - The company has not undergone any bankruptcy restructuring during the reporting period[157]. Social Responsibility and Community Engagement - The company actively fulfilled its corporate social responsibility by providing educational resources to impoverished students[184]. - The company has established a comprehensive performance evaluation system to support employee development[183]. - The company does not belong to the key pollutant discharge units as per environmental protection regulations[186].