Goke(SZ:300672)2019-04-24 16:00Financial Performance - The company reported a continuous rapid growth in performance during the reporting period, aligning with the national strategic emerging industry development direction[6]. - The company's revenue for 2018 was CNY 400,107,744.17, a decrease of 2.83% compared to CNY 411,751,765.92 in 2017[31]. - Net profit attributable to shareholders for 2018 was CNY 56,171,038.41, an increase of 6.70% from CNY 52,644,829.52 in 2017[31]. - The net profit after deducting non-recurring gains and losses was CNY 2,139,919.77, showing a significant increase of 120.37% compared to CNY 971,040.47 in 2017[31]. - The total assets at the end of 2018 reached CNY 1,627,110,919.10, representing a growth of 49.79% from CNY 1,086,284,733.68 at the end of 2017[31]. - The net assets attributable to shareholders increased by 5.94% to CNY 1,025,550,542.82 at the end of 2018 from CNY 968,073,844.78 at the end of 2017[31]. - The company reported a negative cash flow from operating activities of CNY -75,617,166.80 in 2018, a decline of 185.40% compared to CNY 88,542,682.54 in 2017[31]. - Basic earnings per share for 2018 were CNY 0.5, down 9.09% from CNY 0.55 in 2017[31]. - The weighted average return on equity for 2018 was 5.64%, a decrease from 6.40% in 2017[31]. - Quarterly revenue for Q4 2018 was CNY 225,269,156.66, contributing significantly to the annual total[32]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares, with a total base of 111,764,668 shares[13]. - The cash dividend amount for 2018 was 11,176,466.80 CNY, representing 19.90% of the net profit attributable to ordinary shareholders[145]. - In 2017, the cash dividend amount was 16,764,700.20 CNY, which accounted for 31.84% of the net profit attributable to ordinary shareholders[145]. - The company did not propose a cash dividend distribution plan for the reporting period despite having positive profits available for distribution to ordinary shareholders[146]. - The cash dividend total for 2018 included no additional forms of distribution, solely cash dividends[145]. - The company plans to utilize capital reserves to increase share capital by 6 shares for every 10 shares held, without issuing bonus shares[145]. Research and Development - The company emphasizes the importance of maintaining continuous innovation capabilities to adapt to market dynamics and technological advancements[9]. - The company has achieved significant breakthroughs in multiple core technologies since its establishment, which are crucial for future operations[13]. - The company has multiple products and technologies currently in the research and development phase, which poses risks of technology leakage and failure[10]. - The company has implemented strict intellectual property protection measures to safeguard its core technologies[13]. - The company has a strong focus on R&D in key technology areas, including audio and video codec, SoC chips, and embedded software development, which enhances its competitive edge[44]. - The company is investing heavily in R&D, allocating 10% of its revenue, approximately 120 million yuan, towards developing new technologies[166]. - The company plans to strengthen the construction of its R&D center to maintain technological leadership and enhance core competitiveness[87]. Market Position and Strategy - The integrated circuit design industry is highly competitive, and the company faces risks related to talent retention and innovation failure[9]. - The company operates under a Fabless model, which allows it to focus on design but also exposes it to risks from changes in the manufacturing ecosystem[139]. - The company is positioned to leverage the growing demand in the integrated circuit market, with a projected annual revenue target of ¥3,900 billion by 2020[47]. - The company aims to enhance its brand recognition and become a leading provider of integrated circuit design solutions, targeting both domestic and international markets[132]. - The company plans to focus on high-quality merger targets in the integrated circuit design sector to reinforce its leading position in niche markets[134]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of 500 million yuan earmarked for potential deals[166]. Risks and Challenges - The company acknowledges the potential impact of external factors, such as changes in government policies, on its growth prospects[6]. - The company faces risks related to maintaining its innovation capabilities and adapting to market dynamics, which could impact its growth potential[137]. - The company has implemented strict measures for intellectual property protection to safeguard its core technologies, which are crucial for its future operations[139]. - The company recognizes the importance of attracting and retaining high-end talent to sustain its competitive edge in the integrated circuit design industry[139]. Investments and Acquisitions - The company established a new wholly-owned subsidiary, Jiangsu Guoke Microelectronics Co., Ltd., during the reporting period[78]. - The company made a new investment of 100,000,000.00 in Jiangsu Guoke Microelectronics Co., accounting for 100% ownership[101]. - The company also acquired Shenzhen Huadian Communications Co. for 360,000,000.00, achieving 100% ownership[101]. Compliance and Commitments - The company has established measures to ensure compliance with these commitments, including potential withholding of dividends[158]. - The company is subject to regulatory requirements regarding share transfers as stipulated by Chinese securities laws[158]. - The company has committed to a long-term holding of its shares, with any reduction in holdings after the lock-up period to comply with relevant regulations and to be announced 5 trading days in advance[194]. - The company’s major shareholders have pledged that any proceeds from the sale of shares in violation of lock-up commitments will belong to the company, and the company has the right to freeze remaining shares until obligations are fulfilled[194].