HBGK(SZ:300449)2019-04-24 16:00Financial Performance - In 2018, the net profit attributable to the parent company after deducting non-recurring gains and losses for Jinshi Weishi was 49.7585 million yuan, failing to meet the performance commitment of 69.29 million yuan for that year[5]. - The company's operating revenue for 2018 was ¥526,085,767.84, a decrease of 23.82% compared to ¥690,555,875.88 in 2017[22]. - The net profit attributable to shareholders for 2018 was ¥10,986,518.56, down 76.89% from ¥47,538,585.05 in 2017[22]. - The company's net profit after deducting non-recurring gains and losses was ¥7,500,910.29, a decrease of 84.06% from ¥47,069,070.58 in 2017[22]. - Operating profit was 16.03 million yuan, down 73.57% year-on-year, while total profit decreased by 74.16% to 15.68 million yuan[39]. - The weighted average return on equity for 2018 was 0.68%, down from 5.64% in 2017, indicating a decline in profitability[22]. - The company achieved total revenue of 526.09 million yuan, a decrease of 23.82% compared to the same period last year[39]. - The company reported a total revenue of 4,245,981 for its security sales, with a net loss of 1,464,769[106]. Cash Flow and Assets - The net cash flow from operating activities improved to ¥78,967,951.64 in 2018, a significant increase of 138.84% from -¥203,317,571.83 in 2017[22]. - The total assets at the end of 2018 reached ¥2,289,679,372.65, representing a 28.91% increase from ¥1,776,185,349.52 at the end of 2017[22]. - Cash and cash equivalents increased by ¥18,335,222.36, a 139.77% rise from a decrease of ¥46,108,181.07 in 2017[82]. - The company's cash and cash equivalents increased to ¥210,872,827, accounting for 9.21% of total assets, a decrease of 1.55% compared to the previous year[85]. - Accounts receivable rose to ¥729,699,133, representing 31.87% of total assets, down 7.59% year-over-year[85]. - Inventory increased to ¥119,961,182, making up 5.24% of total assets, a slight decrease of 0.12% from the previous year[85]. - The company's international revenue was CNY 11 million, a decrease of 30.86% compared to the previous year[69]. Research and Development - The company aims to enhance its R&D capabilities and extend its business scope through acquisitions, including Jinshi Weishi and Putai Guoxin[8]. - Research and development expenses for 2018 amounted to approximately ¥33.12 million, reflecting a growth of 35.77% compared to the previous year[50]. - The company invested 33,118,107.97 yuan in R&D, an increase of 35.77% year-on-year, and improved operating cash flow from -203 million yuan to 78.97 million yuan, a rise of 138.84%[57][63]. - The company has established a comprehensive technology platform in video surveillance, including digital video processing and intelligent video analysis technologies[50]. - The company launched a facial recognition system as part of its AI development strategy, enhancing its innovation capabilities[62]. Mergers and Acquisitions - The acquisition of Putai Guoxin was completed in June 2018, with a performance commitment of 33 million yuan for 2018, which has been fulfilled[6]. - The company acquired 100% equity of Putai Guoxin, enhancing its software platform and application system development capabilities[33]. - The company acknowledges risks related to mergers and acquisitions, including integration challenges and potential legal and operational risks[9]. - The acquisition of Jinshi Weishi has strengthened the company's R&D capabilities and market share in the broadcasting and internet video monitoring sectors[46]. - The company completed the cash acquisition of 100% equity of Tianjin Putai Guoxin Technology Co., Ltd., which was included in the consolidated scope in June 2018[134]. Market Strategy and Outlook - The company is actively seeking synergistic partnerships and acquisitions to enhance market competitiveness and control[9]. - The smart city market in China is expected to grow at a compound annual growth rate of approximately 33.38% from 2018 to 2022, reaching 25 trillion yuan by 2022[40]. - The company is focusing on high-end project products and overall solutions, adjusting its product and market strategy in response to market demand[39]. - The company aims to create a diversified industrial ecosystem focused on intelligent monitoring and analysis of digital video content[56]. - The company plans to leverage new technologies such as 5G, cloud computing, and AI to expand its market applications and enhance its product offerings[109]. Governance and Compliance - The company emphasizes the importance of internal controls and credit management to mitigate risks associated with accounts receivable[10]. - The company is committed to improving governance structures and internal controls to manage integration risks effectively[8]. - The company has established a long-term commitment to avoid conflicts of interest and ensure transparency in its operations[123]. - The company has committed to reducing and standardizing related party transactions, ensuring fair operations at market prices[123]. - The company has not faced any administrative penalties from the China Securities Regulatory Commission in the past three years[123]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.70 yuan per 10 shares and to increase capital by 8 shares for every 10 shares held[11]. - The company will distribute a cash dividend of 0.7 yuan per 10 shares, totaling 11,847,261.93 yuan, which represents 100% of the total profit distribution[115]. - The company’s cash dividend distribution plan for 2018 reflects a significant increase compared to previous years, indicating a positive outlook on profitability[118]. - The company’s total cash dividends over the past three years show a fluctuating trend, with a notable increase in 2018 compared to 2016 and 2017[119]. - The company’s board of directors will adjust the distribution ratio if there are changes in share capital after the profit distribution proposal is reviewed[118].