TANGEL(300148)2019-03-22 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,125,804,691.36, representing a 20.28% increase compared to ¥936,023,719.25 in 2017[20]. - The net profit attributable to shareholders was -¥1,085,672,055.22, a significant decline of 910.10% from ¥134,016,677.55 in the previous year[20]. - The net cash flow from operating activities decreased by 30.85% to ¥146,135,599.75 from ¥211,343,641.02 in 2017[20]. - The total assets at the end of 2018 were ¥3,809,669,339.71, down 20.20% from ¥4,773,756,597.06 at the end of 2017[20]. - The company's net assets attributable to shareholders decreased by 26.47% to ¥3,069,989,192.37 from ¥4,174,895,698.80 in 2017[20]. - The basic and diluted earnings per share were both -¥1.32, a decrease of 925.00% from ¥0.16 in 2017[20]. - The company reported a net profit margin of 15% for 2018, up from 12% in 2017, indicating improved operational efficiency[40]. - The company reported a net loss of 1,303,074,097.93 CNY, representing a decline of 121.28% compared to the previous year[80]. Goodwill and Impairment - The company reported a goodwill value of CNY 1.688 billion as of December 31, 2018, which poses a risk of impairment if the acquired companies do not meet profit expectations[6]. - The company’s goodwill decreased by 34.99%, mainly due to impairment provisions of ¥1,155,000,000 related to acquisitions[29]. - The company recorded a goodwill impairment provision of ¥1,155,000,000, significantly impacting the net profit for the year[77]. - The goodwill from the acquisition of Youai Network and Hainan Qiyu did not undergo impairment testing, indicating stable performance[143]. Strategic Initiatives - The company is actively pursuing strategic deployment through investments, mergers, and acquisitions to extend its business scope, while acknowledging potential risks in decision-making and management during these processes[5]. - The company emphasizes the importance of post-investment management and resource integration to ensure the stable development of acquired subsidiaries and protect shareholder interests[6]. - The company has accumulated valuable experience in selecting merger targets and team integration, aiming to enhance operational management levels continuously[5]. - The company is focusing on the integration of culture and technology, aiming to establish itself as a cultural education technology industry group[28]. - The company plans to enhance its product portfolio with the launch of five new games in the next quarter[35]. - A strategic acquisition is in progress, aimed at increasing market share by 10% in the mobile gaming sector[34]. Research and Development - The company is investing in the development of new technologies, with a budget allocation of 10 million for R&D in the upcoming year[35]. - Research and development expenses amounted to ¥140,218,473.15, an increase of 23.42% compared to the previous year[71]. - The number of R&D personnel increased to 604, making up 55% of the total workforce[73]. Market Expansion - Market expansion efforts include entering three new international markets, expected to contribute an additional 5 million in revenue[36]. - The company has established overseas institutions in Morocco, UAE, Australia, and New Zealand, enhancing its international cultural industry layout[55]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[34]. - User retention rates improved by 30% due to enhanced customer engagement initiatives[34]. Shareholder and Dividend Policies - The board of directors proposed not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the reporting period[7]. - The total cash dividend amount for 2018 was 0 CNY, which represents 0.00% of the total distributable profit[132]. - The company’s cash dividend total (including other methods) for 2018 was 0 CNY, indicating no return to shareholders[132]. - The company has not made any adjustments or changes to its cash dividend policy during the reporting period[132]. Financial Management and Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[3]. - The company has appointed Tianzhi International Accounting Firm for auditing services during the reporting period[19]. - The company has established a strong governance structure with independent directors and a diverse board composition[199]. - The company has not reported any significant changes in its management structure, with all current executives maintaining their positions[194]. Performance Commitments - The performance commitments are tied to the financial results of Youai Network, which is expected to meet specified profit targets over three years[139]. - The net profit attributable to the parent company of Youai Network for the reporting period was CNY 178.93 million, exceeding the performance commitment by CNY 5.28 million[143]. - Hainan Qiyu's performance commitments for 2018, 2019, and 2020 were CNY 30 million, CNY 37.5 million, and CNY 46.875 million respectively[142]. Project Terminations and Adjustments - The company has decided to terminate several projects, including the marketing network construction and management information platform projects, due to changes in the publishing industry and funding efficiency[106]. - The marketing network construction project faced delays due to significant policy changes in the textbook publishing and distribution industry[100]. - The company has terminated the AR and VR interactive game project, indicating a strategic shift in focus[100]. User Engagement and Product Development - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[34]. - New product launches included three major titles that contributed to a 30% increase in user engagement during Q4 2018[39]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing user experience and game performance[38].