SPEED(SZ:300322)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,722,361,995.31, a decrease of 16.80% compared to CNY 2,067,644,363.18 in 2017[24]. - Net profit attributable to shareholders was CNY 62,400,739.54, an increase of 21.33% from CNY 51,428,489.81 in 2017[24]. - The net profit after deducting non-recurring gains and losses reached CNY 50,208,592.55, a significant increase of 248.53% compared to CNY 14,405,657.27 in 2017[24]. - The net cash flow from operating activities was CNY 395,149,916.00, up 693.50% from CNY 44,389,582.32 in 2017[24]. - The total assets at the end of 2018 were CNY 1,837,559,034.73, a decrease of 10.71% from CNY 2,011,587,055.28 at the end of 2017[24]. - The company's total equity attributable to shareholders was CNY 576,065,963.16, down 7.75% from CNY 606,164,015.97 at the end of 2017[24]. - The company achieved operating revenue of CNY 1,722.36 million, a decrease of 16.80% year-on-year[42]. - Operating profit increased to CNY 74.23 million, up 278.72% year-on-year[42]. - Revenue from terminal antenna business grew by 20.82% to CNY 669.12 million despite a global decline in smartphone demand[42]. - Revenue from fingerprint recognition module business decreased by 27.02% to CNY 584.70 million due to intensified market competition[42]. - TSV packaging business revenue increased by 21.62% to CNY 299.35 million, overcoming demand decline challenges[42]. - The company reported a total revenue of 696.64 million yuan for the year 2018[81]. - The total operating revenue for the reporting period was approximately 1.72 billion yuan, a decrease of 16.80% compared to the previous year[51]. - The gross profit margin for the communication equipment manufacturing sector was 21.79%, reflecting a slight increase of 2.26% year-on-year[54]. Research and Development - The company emphasizes the need for increased investment in R&D talent to keep pace with rapid technological advancements and industry developments, particularly in the 5G sector[7]. - The company aims to strengthen its R&D capabilities and improve the professional skills of its personnel to maintain competitiveness in the market[9]. - The company is committed to timely market introduction of R&D results to avoid falling behind in the competitive landscape[9]. - The company recognizes the importance of maintaining a robust R&D system to adapt to technological changes in the industry[8]. - The company has a total of 355 R&D personnel and holds 139 patents, including 7 patents related to 5G technology[37]. - The company employed 355 R&D personnel and obtained 139 patents, including 25 invention patents, to maintain its technological leadership[46]. - Research and development expenses amounted to 117,348,854.94 CNY, accounting for 6.81% of total revenue, with a focus on 5G technology[64]. - The company plans to focus on antenna and RF components, gradually shifting away from less related businesses like chip packaging[88]. - The company aims to increase R&D investment in sub6G terminal antennas and millimeter-wave RF front-end modules to maintain technological leadership[88]. - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing product performance and user experience[189]. Market Strategy and Expansion - The company has officially entered the 5G base station antenna market, facing intensified competition and concentrated customer bases[11]. - The company plans to enhance its technological innovation and product development to improve product gross margins and meet market demands[10]. - The company acknowledges the risk of market expansion failures due to potential delays in 5G base station construction and changes in customer needs[11]. - The company will continue to monitor industry trends and customer demands to enhance its market competitiveness[11]. - The company is focused on providing customized services to clients to expand its customer base and improve client trust[10]. - The company plans to establish a new subsidiary focused on high-frequency signal transmission with an investment of ¥3,000,000, marking a 100% increase in investment compared to the previous period[77]. - The company is actively pursuing mergers and acquisitions to enhance its technological capabilities and market reach[77]. - The company plans to adjust its business strategy in 2019 to navigate the complex external environment while capitalizing on 5G opportunities[87]. - In 2019, the company aims to intensify efforts in expanding the base station antenna market, targeting both domestic and overseas markets to establish it as a new growth point[90]. - The company is expanding its market presence through strategic acquisitions and partnerships, including a recent investment in a precision technology firm[76]. Shareholder and Governance - The company reported a profit distribution plan based on 406,769,850 shares, proposing a cash dividend of 0.30 yuan per 10 shares (tax included) and no bonus shares[11]. - The cash dividend for 2018 represents 19.56% of the net profit attributable to ordinary shareholders, which was 62,400,739.54 yuan[99]. - The company has established a talent incentive mechanism, including a partnership system and a fair promotion system, to attract and retain outstanding talent[89]. - The company is committed to maintaining a stable and sustainable profit distribution policy in line with investor expectations[94]. - The company has conducted multiple investor relations activities throughout the year to enhance communication with institutional investors[91]. - The company has not issued any bonus shares or capital reserve transfers during the reporting period, maintaining a consistent profit distribution policy[97]. - The company has a stock option and restricted stock incentive plan, with a total of 1,321.56 million stock options granted after adjustments, and 51.3 million restricted stocks allocated[120]. - The company’s management has committed to not transferring their shares for six months after their departure from the company[101]. - The company’s executives have agreed to a share transfer limit of 25% of their total shareholdings during their tenure and six months post-termination[101]. - The company has maintained compliance with all commitments made during its initial public offering and subsequent financing activities[101]. Operational Challenges - The company faced challenges due to complex domestic and international conditions, including trade tensions and a slowing macroeconomic environment[32]. - The company expects to face challenges from the global consumer electronics industry, which is undergoing a transition period[87]. - The company has not encountered any violations of commitments made by shareholders regarding non-competition and share transfer restrictions[101]. - The company has not faced any major litigation or arbitration matters during the reporting period[114]. - The company has not undergone any bankruptcy reorganization during the reporting period[114]. Employee and Management - The total remuneration paid to directors, supervisors, and senior management in 2018 amounted to CNY 3.317444 million[191]. - The company employed a total of 1,911 staff, with 1,335 in the parent company and 576 in major subsidiaries[195]. - The professional composition of employees includes 1,185 production personnel, 122 sales personnel, and 355 technical personnel[195]. - The company emphasizes a competitive salary structure based on performance and market conditions to attract and retain talent[196]. - The company has a total of 162,000 restricted stocks held by its executives, with no stocks unlocked during the reporting period[194]. - The company’s governance structure includes independent directors and supervisors, ensuring compliance and oversight[199]. - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management team, complying with relevant laws and regulations[200].