Star-net(002396)2022-09-23 16:00Financial Performance - The company's operating revenue for 2018 was ¥9,131,571,813.18, representing an increase of 18.51% compared to ¥7,705,135,612.62 in 2017 [29]. - The net profit attributable to shareholders for 2018 was ¥578,393,221.83, a growth of 23.00% from ¥470,238,579.87 in 2017 [29]. - The net cash flow from operating activities reached ¥594,339,591.58, showing a significant increase of 114.37% compared to ¥277,255,509.05 in 2017 [29]. - The basic earnings per share for 2018 was ¥0.9916, up 16.78% from ¥0.8491 in 2017 [29]. - Total assets at the end of 2018 amounted to ¥6,999,108,789.03, an increase of 8.68% from ¥6,439,912,654.33 at the end of 2017 [32]. - The net assets attributable to shareholders at the end of 2018 were ¥3,678,190,629.71, reflecting a growth of 14.90% from ¥3,201,224,709.86 in 2017 [32]. - The company reported a non-recurring gain from the disposal of non-current assets of ¥93,324,527.79 in 2018, compared to ¥34,851,784.80 in 2017 [36]. - The company's total revenue for 2018 reached RMB 9,131,571,813.18, representing an 18.51% increase compared to the previous year [58]. - The net profit attributable to shareholders for 2018 was RMB 578,393,221.83, reflecting a growth of 23.00% year-over-year [58]. Cash Dividend Policy - The company reported a profit distribution plan to distribute a cash dividend of 1.10 RMB per 10 shares, based on a total of 583,280,278 shares [9]. - The company has maintained a clear and transparent cash dividend policy, ensuring the protection of minority shareholders' rights [121]. - The total cash dividend for 2018 accounted for 100% of the distributable profit [127]. - The cash dividends over the past three years represent 11.09%, 18.61%, and 16.88% of the net profit attributable to ordinary shareholders, respectively [126]. - The company has established a complete decision-making process for dividend distribution, with independent directors fulfilling their responsibilities [121]. Research and Development - Research and development investment totaled RMB 1,073,000,000, accounting for 11.75% of the company's annual revenue [51]. - The number of R&D personnel increased by 2.22% to 3,872, with R&D expenses growing by 7.53% [83]. - Research and development expenses reached ¥1,042,885,909.73, an increase of 7.39% compared to the previous year, representing 11.75% of total revenue [81]. - The company has filed a total of 243 patents in 2018, including 212 invention patents, enhancing its technological advantage [51]. Market Position and Strategy - The company achieved a 48.6% market share in the domestic thin client market, maintaining its position as the leading provider for 17 consecutive years [59]. - The company focuses on providing integrated information solutions for enterprise-level clients, with a product strategy centered around smart solutions [44]. - The company emphasizes innovation-driven development, continuously upgrading products and services to enhance competitiveness in response to market demands [44]. - The company plans to continue expanding its market presence in the U.S. and other regions, including Eastern Europe and Southeast Asia [63]. - The company has established strategic partnerships with over 20 top real estate developers in the smart community sector [60]. Risks and Challenges - The company faces risks related to high customer concentration and seasonal sales patterns, particularly in the fourth quarter [6]. - The company acknowledges risks from macroeconomic policies and competition, committing to continuous innovation and differentiated solutions [113]. - The company is focused on maintaining compliance with regulations set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange regarding share transfers [157]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management [5]. - The company is committed to ensuring the accuracy of its financial data and disclosures to investors [5]. - The company has not engaged in any share buybacks or other forms of cash distribution aside from the declared dividends [127]. - The company has reported that there are no unfulfilled commitments that exceed the deadline, indicating compliance with all commitments made [183]. Subsidiaries and Investments - The company lost control of Kaimi Network, resulting in a dilution of its equity stake from 52.528% to 42.36% [75]. - The company established a new subsidiary, Shanghai Ruishan Network Co., Ltd., with a 51% stake and a registered capital of 10 million RMB [194]. - The company acquired a 19.36% stake in Fujian Kaimi Network Technology Co., Ltd., transitioning from control to significant influence [109]. Future Outlook - In 2019, the company aims for steady and sustainable growth in operating performance, focusing on enhancing efficiency and increasing per capita output ratio [113]. - The company plans to increase investment in three key product lines: switches, wireless products, and cloud desktops, aiming for quality growth and market expansion [113]. - The company aims to steadily increase market share in remote information terminals, with a focus on 5G technology investment [113].