AVIT(SZ:300264)2019-04-12 16:00Financial Performance - The company's operating revenue for 2018 was CNY 320.60 million, an increase of 31.83% compared to CNY 243.19 million in 2017[32]. - The net profit attributable to shareholders was CNY 10.60 million, a significant turnaround from a loss of CNY 73.73 million in 2017, representing a 114.37% increase[32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 7.86 million, improving by 90.65% from a loss of CNY 84.13 million in 2017[32]. - The net cash flow from operating activities was -CNY 85.35 million, an improvement of 21.31% from -CNY 108.47 million in 2017[32]. - The total assets at the end of 2018 were CNY 805.28 million, a decrease of 11.57% from CNY 910.65 million at the end of 2017[32]. - The net assets attributable to shareholders increased by 1.22% to CNY 548.07 million from CNY 541.49 million in 2017[32]. - The company reported a basic earnings per share of CNY 0.0257, compared to a loss of CNY 0.1800 in 2017, marking a 114.40% improvement[32]. - The total operating revenue for the company in 2018 was ¥320,601,543.31, representing a year-on-year increase of 31.83% compared to ¥243,186,058.81 in 2017[73]. - The digital television industry accounted for 93.28% of total revenue, with revenue of ¥299,054,492.50, up 32.62% from the previous year[73]. - The gaming industry generated revenue of ¥20,666,945.63, which is 6.45% of total revenue, reflecting a year-on-year growth of 20.24%[74]. Market Trends and Developments - In 2018, the total number of fixed internet broadband access users in China reached 407 million, with IPTV users at 155 million, highlighting a growing market for IPTV services[9]. - The total number of cable TV users in China decreased by 2.32 million in 2018, with a year-on-year decline of 8.7%[40]. - The number of broadband users increased by 3.58 million, reaching a total of 38.56 million, although the growth rate has slowed down[40]. - The global virtual reality industry is projected to grow at a compound annual growth rate of over 70% from 2017 to 2022, with the VR market exceeding CNY 600 billion in 2018[46]. - The IPTV user base among the three major telecom operators grew by 27.1% year-on-year[47]. - The number of dual-way network coverage users reached 171 million, with penetration users at 97.2 million, indicating an expanded coverage[128]. Strategic Initiatives - The company made significant strategic deployments in 2018, achieving major breakthroughs in cooperation with China Mobile and China Unicom, establishing stable business partnerships to enhance market expansion[9]. - The company is actively working on improving its internal controls and monitoring the operational status of acquired subsidiaries to manage potential impairment risks effectively[8]. - The company is focusing on continuous technology research and development, enhancing its capabilities to mitigate risks associated with new game development and operations[16]. - The company has established collaborations with national key laboratories and professional research institutions to address technical challenges in the "VR + broadcasting" sector, aiming for industrialization in the near future[7]. - The company is actively engaging with telecom operators to enhance platform operations and marketing activities, aiming to optimize user experience and product offerings[18]. - The company is focusing on developing key technologies and products such as AI television and smart monitoring systems to adapt to market trends[87]. Research and Development - The company has a strong R&D team with an average industry experience of over 10 years, capable of launching 4-5 new products monthly[52]. - The company has developed 561 game products since 2012, focusing on high-quality games suitable for large screens[52]. - The company is committed to continuous innovation and development in broadcasting technology and applications, including cloud platforms and big data applications[51]. - The company has committed to ongoing research and development in the interactive value-added services sector, aligning with industry trends and customer needs[110]. - The number of R&D personnel in 2018 was 183, accounting for 57.73% of the total workforce, compared to 197 and 57.60% in 2017[91]. Intellectual Property and Compliance - The company has implemented measures to protect its intellectual property rights, including applying for software copyrights and establishing internal control mechanisms[12]. - The company holds 39 registered trademarks, 27 authorized patents, and 792 software copyrights, reinforcing its core competitiveness[51]. - The company emphasizes the importance of timely market response and understanding user needs to avoid risks associated with new product development and operational failures[16]. - The company aims to improve its governance structure and transparency, focusing on compliance and operational standards to support long-term development[148]. Challenges and Risks - As of the end of the reporting period, the company's goodwill balance was 147.28 million yuan, and available-for-sale financial assets amounted to 98 million yuan, indicating potential impairment risks if the performance of acquired subsidiaries declines significantly[8]. - The company is focused on overcoming technological innovation risks in the virtual reality sector, which is still in its growth phase, by refining its business model and ensuring timely development[149]. - The company is committed to maintaining a close watch on the operational status of its acquired subsidiaries to mitigate potential risks related to asset impairment[150]. Community Engagement and Social Responsibility - The company has successfully organized a large-scale children's art event, involving over 5000 participants from more than 150 educational institutions, showcasing its commitment to community engagement[147]. - The company has actively fulfilled its social responsibilities, providing a good working environment and opportunities for employee development[193]. Future Outlook - The company plans to enhance its investment in "VR + broadcasting," online education, and online gaming, aiming to build a comprehensive industrial ecosystem[134]. - The company plans to explore VR game development and commercial models, leveraging operator resources to boost software sales and hardware bundling[136]. - The company aims to accelerate the transition from digital to intelligent broadcasting networks, leveraging new technologies such as 4K, 5G, and AI[127].