Sinnet(SZ:300383)2019-04-17 16:00Financial Performance - The company's operating revenue for 2018 was CNY 6,023,164,541.28, representing a 47.73% increase compared to CNY 4,077,168,684.62 in 2017[17]. - The net profit attributable to shareholders for 2018 was CNY 667,452,385.34, a 53.13% increase from CNY 435,862,060.15 in 2017[17]. - The net profit after deducting non-recurring gains and losses was CNY 662,232,883.83, up 53.29% from CNY 432,006,572.96 in 2017[17]. - The company's total assets at the end of 2018 were CNY 11,386,893,458.21, a 7.29% increase from CNY 10,613,566,205.19 at the end of 2017[17]. - The net assets attributable to shareholders increased by 16.63% to CNY 7,500,643,482.77 from CNY 6,431,051,379.57 in 2017[17]. - The company reported a basic earnings per share of CNY 0.46 for 2018, a 53.33% increase from CNY 0.30 in 2017[17]. - The company achieved operating revenue of CNY 602,316.45 million in 2018, representing a year-on-year growth of 47.73%[47]. - Operating profit reached CNY 78,548.67 million, an increase of 55.78% compared to the previous year[47]. - Total profit amounted to CNY 78,813.60 million, reflecting a growth of 54.40% year-on-year[47]. - Net profit attributable to shareholders was CNY 66,745.24 million, up 53.13% from the previous year[47]. Accounts Receivable and Cash Flow - The company's accounts receivable increased significantly, with a year-end balance of 458.02 million yuan, representing 14.21% of total assets, compared to 0.51% in the previous year[2]. - The company has experienced rapid growth in accounts receivable, raising concerns about collection risks due to potential customer payment delays[4]. - Accounts receivable rose by 63.97% during the reporting period, attributed to the rapid development of the company's cloud computing business and increased receivables from customers[32]. - The net cash flow from operating activities for 2018 was CNY 586,931,267.12, a 44.67% increase from CNY 405,697,450.59 in 2017[17]. - The net cash flow from operating activities was ¥586,931,267.12, with a significant difference from the net profit of ¥683,970,939.23 due to non-cash expenses and increased accounts receivable[78]. Subsidiary Performance - The subsidiary Kexin Shencai achieved a net profit of 94.98 million yuan in 2018, exceeding its performance commitment by 3.13%[5]. - The subsidiary Wushuang Technology did not experience a decline in performance post-commitment period, with significant revenue growth attributed to enhanced R&D and marketing efforts[5]. - The company has successfully completed the three-year performance commitment for its subsidiary Zhongjin Yunwang, with no signs of goodwill impairment[5]. - The company achieved operating revenue of 77,042.41 million yuan and net profit of 28,090.05 million yuan from its subsidiary Zhongjin Yunwang, which focuses on cloud computing services for the financial sector[99]. Market and Competition - The company is facing increased competition in the IDC market due to rising demand for data centers driven by technologies like 5G and AI[2]. - The IDC market in China reached a total scale of 946.1 billion yuan in 2017, with a year-on-year growth rate of 32.4%[26]. - The company is focusing on integrating its subsidiaries' business systems and management structures to address the management risks associated with its expanding scale[107]. - The company is committed to increasing R&D investment in cloud computing services to provide comprehensive value-added services to users[102]. Investments and Projects - The company is actively planning and constructing green cloud computing base projects, which will increase its service capacity to approximately 100,000 cabinets upon completion[23]. - The company completed the acquisition of 85% of Kexin Shencai, integrating 100% of its equity, further expanding its data center scale and enhancing core competitiveness[34]. - The Shanghai Jiading Green Cloud Computing Base project has a total investment of CNY 57,354.83 million, with CNY 13,091.96 million invested during the reporting period, achieving an investment progress of 85.29%[88]. - The cumulative actual investment in the Yanjiao Guanghuan Cloud Valley Phase II project reached CNY 23,395.73 million, with an investment progress of 102.42%[87]. Risk Management - The company faces risks related to the tightening of IDC industry regulations, which may impact future expansion efforts[2]. - The company is exposed to various risks, including high asset-liability ratios and potential legal disputes related to trademark rights[7]. - The company is enhancing its risk control measures to ensure timely payments from clients, which include major internet companies and government departments, to mitigate the risk of increasing accounts receivable[106]. - The company has established a special task force to address ongoing legal disputes regarding trademark infringement, which could pose financial risks if the outcome is unfavorable[113]. Dividend Policy - The company plans to distribute a cash dividend of 0.20 yuan per 10 shares to all shareholders, based on a total of 1,541,195,921 shares[7]. - The total distributable profit for 2018 was RMB 154,078,671.72, with cash dividends constituting 20.01% of the total profit distribution[120]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with the 2016 dividend being RMB 72,317,569.40, which was 21.58% of the net profit[121]. - The cash dividend amount for 2017 was RMB 28,927,027.76, which accounted for 6.64% of the net profit attributable to ordinary shareholders[121]. Technological Advancements - The company is actively developing new technologies in network security, hybrid cloud applications, and data center optimization to improve operational efficiency and user experience[105]. - The company completed upgrades to its network attack protection system, enhancing network security capabilities, and developed various hybrid cloud solutions, including hybrid cloud encryption and disaster recovery applications[35]. - The company launched the GHBaaS platform, facilitating blockchain applications for startups and organizations, with features that lower deployment costs and enhance security[38]. - The company developed the INSPIRE empowerment platform, providing end-to-end services for channel partners and cloud service providers, promoting AWS cloud services in the Chinese market[39]. Compliance and Governance - The company has committed to avoiding direct competition with its subsidiaries and ensuring fair pricing in related transactions[123]. - The company ensures that its board of directors and senior management operate independently according to legal and regulatory requirements[50]. - The company has established a clear governance structure to maintain its independence and integrity in operations[53]. - The company has committed to fair and transparent related-party transactions, ensuring no special benefits are sought through such dealings[161].