Watertek(SZ:300324)2022-12-03 09:54Financial Performance - In 2017, the company achieved operating revenue of 329,714.08 million yuan, an increase of 50.64% compared to 218,877.59 million yuan in 2016 [3] - Total profit for 2017 was 63,117.96 million yuan, a decrease of 12.21% from 71,895.27 million yuan in the previous year [3] - Net profit attributable to shareholders was 38,929.22 million yuan, up 3.18% from 37,729.90 million yuan in 2016 [3] - Revenue from smart defense business was 42,444.26 million yuan, a year-on-year increase of 4.14% [4] - Revenue from information security business was 103,032.11 million yuan, a decrease of 15.03% [4] - Revenue from smart city business was 184,237.71 million yuan, a significant increase of 224.02% [4] Business Segments - The smart city segment has become a major development area, contributing 55% of total revenue in 2017 [13] - The company is focusing on military-civilian integration, with smart defense, tax informationization, smart city, and big data as key development areas [13] - The smart defense business is expected to see significant growth opportunities in 2018, particularly in big data applications [6] Challenges and Strategic Adjustments - The decline in profit was attributed to the integration of the acquisition of Beijing Taihao Intelligent Engineering Co., Ltd. and the impact of the "VAT reform" policy [4] - The company is increasing investment in R&D, with R&D expenses rising by 51.24% compared to the previous year [4] - The tax informationization business is facing challenges due to price reductions, with the price of tax control disks dropping from 490 yuan to 200 yuan [9][10] Future Outlook - The company plans to enhance its tax informationization services and develop new value-added products to create new profit growth points [9] - The integration of data management tools is expected to support the construction of a digital China [6] - The company is actively pursuing stock repurchase to stabilize investor confidence, with a total repurchase amount of 92,196,924.6 yuan as of March 2018 [16][17]