Sino Wealth(SZ:300327)2019-04-02 16:00Dividend Distribution - The company plans to distribute a cash dividend of 4.50 CNY per 10 shares (including tax) based on a total of 230,962,360 shares, with no bonus shares issued[11]. - The company distributed cash dividends of RMB 4.50 per 10 shares, totaling RMB 103,933,062.00 (including tax), which represents 61.76% of the net profit attributable to shareholders[115]. - The net profit attributable to shareholders for the year was RMB 168,290,777.55, with a cumulative distributable profit of RMB 249,113,286.78 at year-end[118]. - The company plans to increase its total share capital to 254,058,596 shares by issuing 1 additional share for every 10 shares held, using capital reserves[119]. - The cash dividend distribution plan was approved by the board and is consistent with the company's articles of association and dividend management measures[114]. - The company did not issue any bonus shares during the reporting period, focusing solely on cash dividends[115]. - The total cash dividends distributed over the past three years were RMB 103,933,062.00 in 2018, RMB 94,493,669.85 in 2017, and RMB 66,561,764.43 in 2016[122]. - The company retained a legal surplus reserve of RMB 14,022,626.24, which is 10% of the net profit for the year[118]. - The company’s cash dividend policy is designed to ensure stable and reasonable returns to investors, with a transparent decision-making process[114]. - The company has not proposed any cash dividend distribution plan for the current reporting period, indicating a focus on reinvestment[122]. Financial Performance - The company's operating revenue for 2018 was ¥757,710,546.74, representing a 10.50% increase from ¥685,724,752.16 in 2017[25]. - The net profit attributable to shareholders for 2018 was ¥168,290,777.55, a 25.93% increase compared to ¥133,637,665.17 in 2017[25]. - The net profit after deducting non-recurring gains and losses was ¥159,320,784.08, up 27.35% from ¥125,107,472.47 in 2017[25]. - The basic earnings per share for 2018 was ¥0.7307, reflecting a 26.20% increase from ¥0.5790 in 2017[25]. - The total assets at the end of 2018 were ¥1,032,465,781.56, a 5.27% increase from ¥980,777,107.38 at the end of 2017[25]. - The net assets attributable to shareholders increased by 10.22% to ¥860,344,374.76 at the end of 2018 from ¥780,564,647.26 at the end of 2017[25]. - In Q1 2018, the operating revenue was ¥195,264,833.43, with net profit attributable to shareholders at ¥34,656,716.63[26]. - The cash flow from operating activities for 2018 was ¥103,586,585.04, down 26.02% from ¥140,013,671.84 in 2017[25]. - The company reported a decrease in cash and cash equivalents by ¥330,480,494.79, a reduction of 83.58% due to cash management strategies[37]. Research and Development - The company emphasizes the importance of new product development, which requires significant R&D investment, and acknowledges the risks associated with market demand misjudgment and technology development capabilities[6]. - The company has increased its recruitment efforts and internal training to mitigate the risk of losing high-end technical talent, which is critical in the IC design industry[10]. - The company has implemented a comprehensive technical R&D management process and feasibility assessment system to reduce product development risks[6]. - The company is focused on enhancing its product advantages and sales channel strengths to respond to market changes effectively[10]. - The company has seen a significant increase in R&D expenses due to rising labor costs for high-tech talent in the IC design field[10]. - The company aims to control the growth rate of R&D personnel expenses in line with its performance growth rate[10]. - The company is committed to improving its market foresight by actively collecting market information and monitoring competitor developments[10]. - The company has established a differentiated reward system for its R&D team to encourage long-term contracts with outstanding employees[10]. - The company invested ¥119,700,000 in R&D, a 16.74% increase from the previous year, accounting for 15.80% of total sales revenue[40]. - The company aims to increase R&D investment to establish technological barriers, focusing on industrial control chips, lithium battery management chips, OLED display driver chips, and smart IoT application chips[106]. Market and Sales - The company is focused on R&D in integrated circuit chips and has seen continuous growth since 2012, benefiting from domestic market trends and government support for chip localization[36]. - In 2018, the company achieved a total revenue of ¥757,710,546.74, representing a year-on-year growth of 10.50%[56]. - Domestic sales accounted for 61.98% of total revenue, while overseas sales made up 38.02%, with a 3.00% increase in overseas revenue[56]. - The sales of lithium battery management chips experienced the fastest growth, with increasing applications and recognition from major brand clients[51]. - The company launched 10 new products during the reporting period, focusing on industrial control chips, lithium battery management, and OLED display drivers[40]. - The average gross margin of products remained stable, contributing to profit growth despite fluctuations in industrial control chip sales[51]. - The company anticipates a sequential increase in performance for 2019, with more new products expected to enter mass production[52]. - The company maintains long-term cooperative relationships with major domestic brands, providing integrated hardware and software services[41]. - Integrated circuit design revenue reached ¥757,710,546.74, with a year-on-year increase of 10.50%[57]. - Gross margin for integrated circuit design was 43.84%, reflecting a 0.80% increase compared to the previous year[57]. Inventory and Cash Management - The company’s inventory increased by 45.51% to 339,709,561 units, including semi-finished products[60]. - The net cash flow from operating activities decreased by 26.02% to ¥103,586,585.04 compared to the previous year, primarily due to an increase in inventory and a decrease in accounts payable[73]. - The net cash flow from investing activities showed a significant decline, with a net outflow of ¥341,095,679.57, a decrease of 11,655.23% year-on-year, attributed to increased purchases of short-term wealth management products[73]. - The net cash flow from financing activities decreased by 84.04% to -¥94,299,644.95, mainly due to increased cash dividends and the granting of unrestricted stock during the period[73]. - The company’s cash and cash equivalents net increase was -¥330,480,494.79, a decrease of 480.60% compared to the previous year[73]. - The company has invested in bank wealth management products totaling CNY 211,925,000 from idle self-owned funds[164]. - The annualized return rate for bank wealth management products ranges from 4.30% to 4.90%[166]. Corporate Governance and Compliance - The company has not encountered any issues with the disclosure of fundraising usage, ensuring all information is timely, truthful, and complete[91]. - The company has not engaged in any related party transactions during the reporting period[148]. - There were no asset or equity acquisitions or sales related party transactions during the reporting period[149]. - The company did not have any significant related party transactions during the reporting period[152]. - The company has no instances of major shareholders or related parties occupying company funds during the reporting period[200]. - The company has maintained a continuous audit service with the accounting firm Zhonghua for 8 years, with an audit fee of ¥460,000[131]. - There were no significant lawsuits or arbitration matters during the reporting period[133]. - The company did not face any penalties or rectification issues during the reporting period[134]. - The company has not undergone any bankruptcy restructuring during the reporting period[132]. - There were no changes in the scope of the consolidated financial statements compared to the previous year[130]. Social Responsibility - The company emphasizes social responsibility, maintaining transparent communication with investors through various channels[200]. - The company has implemented a stable profit distribution policy to ensure reasonable returns for shareholders[200]. - Employee rights are respected, with a focus on creating a competitive welfare system and providing training for skill development[200].