BROADEX(SZ:300548)2019-04-16 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB in 2018, representing a year-on-year growth of 15%[25]. - The gross profit margin for the year was 35%, a decrease from 40% in the previous year, indicating potential pricing pressures in the market[8]. - The company's operating revenue for 2018 was ¥275,110,934.64, a decrease of 21.23% compared to 2017[32]. - The net profit attributable to shareholders for 2018 was ¥2,331,032.34, representing a significant decline of 97.08% from the previous year[32]. - The company reported a basic earnings per share of ¥0.03 for 2018, down 96.91% from ¥0.97 in 2017[32]. - Net profit for the year was 2.33 million yuan, down 97.08% year-on-year[62]. - The company reported a total of 1,084.29 million yuan in actual performance against a forecast of 1,000 million yuan for the year 2018[174]. Cash Flow and Assets - The net cash flow from operating activities increased by 21.94% to ¥90,314,713.46 in 2018[32]. - The total assets at the end of 2018 were ¥718,068,403.10, reflecting a growth of 4.49% compared to the end of 2017[32]. - The net increase in cash and cash equivalents was CNY 49,960,312.12, a significant increase of 310.46% year-on-year[92]. - The company recognized an asset impairment of CNY 58,957,860.76, representing 78,075.68% of total profit, due to a full impairment of its investment in Kaiam[93]. Market Strategy and Expansion - The company plans to expand its market presence by investing in new product development, particularly in silicon photonics technology, which is expected to enhance product offerings[12]. - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares, reflecting a commitment to returning value to shareholders[14]. - The company plans to expand its market presence by directly selling products to large operators and equipment manufacturers[46]. - The company aims to strengthen its market presence in emerging markets such as the Middle East, India, Eastern Europe, and Southeast Asia through brand promotion and market outreach[137]. - The company will establish a sales network in major global communication markets to provide products and after-sales services[136]. Research and Development - The company maintained R&D investment of 19.69 million yuan, representing 7.16% of operating revenue, with a focus on high-end DWDM devices and 10G PON optical modules[62]. - The number of R&D personnel increased to 123, making up 17.47% of the total workforce, up from 13.14% in 2017[89]. - The company will continue to invest in R&D for key projects, including silicon photonics technology platforms and new 10G PON optical modules, to support future business development[141]. Acquisitions and Investments - The company has successfully completed several acquisitions to enhance its operational capabilities and broaden its product range, which is expected to contribute positively to future earnings[14]. - The acquisition of Chengdu Dipu in June 2018 contributed 82.42 million yuan in revenue and 10.89 million yuan in net profit for the year[62]. - The acquisition of Chengdu Dipu Optical Technology Co., Ltd. was completed in July 2018 for ¥118,000,000, resulting in a 100% ownership stake[81]. - The company made a significant equity investment of ¥37,116,980 in Bochuang America, acquiring a 100% stake, focused on the research, manufacturing, and sales of integrated optoelectronic components[101]. Risks and Challenges - The company is facing risks related to technological upgrades, as existing products may become obsolete if new technologies are not adopted timely[9]. - The company acknowledges potential risks, including fluctuations in industry demand and the possibility of declining product gross margins due to competitive pressures[142]. - The company faced significant challenges due to the restructuring of its main customer, Kaiam, leading to a substantial decline in ROSA product sales[48]. Profit Distribution - The company has set a profit distribution plan for 2018, proposing a cash dividend of 1.00 yuan per 10 shares based on a total share capital of 83,350,000 shares[151]. - The cash dividend amount for 2018 is 357.57% of the net profit attributable to ordinary shareholders, which was 2,331,032.34 CNY[157]. - The company has consistently adhered to its profit distribution plan, aligning with its articles of association and dividend management measures[156].