Changhong Jiahua holdings limited issued the annual results announcement for the year 2018
In 2018, the Group recorded revenue of approximately HK$22,098.08 million, representing an increase of 5.11% as compared with that in the corresponding period of the last financial year. In 2018, profit attributable to shareholders amounted to approximately HK$270.15 million, representing an increase of approximately 10.48% as compared with that in the corresponding period of the last financial year.
In 2018, the overall growth of the world economy was moderate, and the major developed economies maintained relatively strong growth. However, the economic momentum slowed down, the US protectionism and unilateralism emerged frequently, and the international economic and trade rules had shown a trend of undergoing profound adjustment. Affected by major changes in the domestic and international environment, China’s economy faced increased downward pressure in 2018, but it remained stable on the whole with some progress through adopting a loosely-oriented monetary policy and a more proactive fiscal policy. Various new technologies such as artificial intelligence, blockchain, big data, cloud computing and Internet of Things are accelerating industrial innovation and application, and the digitization transformation has become the main theme in the market.
In 2018, the Group implemented the marketing network strategy of online and offline omnichannel expansion, aiming to strengthen the segmentation and management of channels and tap the channel value. At the same time, we continued to deepen our strategic upgrading and completed the business layout for the big data, cloud services and hardware and software infrastructures, forming a satisfactory business scale, gaining solid market position and winning good reputation among upstream and downstream enterprises; and in terms of the internet distribution business, we solidify the basic business and upgraded the internet platforms in an effort to build the network-based and three-dimension distribution platforms and ecological systems.
The Group continued to strengthen its basic management and carried on strengthening the information technology construction as well as transforming and optimizing the business process so as to improve its operational efficiency. In addition, the Group adhered to strict credit management and accounts receivable management. The turnover ratio of receivables slight decreased as compared with that in the corresponding period of the last financial year due to the lowered settlement speed of cash during the whole year as a result of the expansion of the e-commerce sales business with long accounts receivable periods and the growth of IT corporate products sales. The inventory balance at the end of this financial year increased compared with the same period last year due to concentrated purchase at the end of the year. The Group continued to strengthen its cost control. The distribution and sales expenses was basically the same as those of the same period of last year; the administrative expenses increased significantly as compared with the corresponding period of last year due to the increase in the number of technical personnel and related expenses; and the finance costs increased as compared with the corresponding period of last year due to the rising interest rates on loans.
Looking forward to 2019, global economic growth is expected to slow down, while the economic uncertainty and instability will pile up. The external environment facing China remains grim, and China’s economy is still exposed to great downward pressure. However, with the increase in the reverse regulation effect of macro policies and the sustained release of policy effects, it is expected that China’s economy will rally gradually in the second half of 2019 with a “First Low, Then Stable” growth momentum throughout the year. China will continue to promote the deep integration and application of next-generation information and communication technologies and industries such as big data, cloud computing, artificial intelligence, Internet of Things and 5G, and promote the emergence of new technologies, new products, new industries, new formats and new models.
In 2019, the Group will keep on promoting the strategic upgrading towards becoming a IT comprehensive service provider, and carry on the implementation of the business strategy of “All Channels, Specialization, New Distribution, and Good Partners”, and hence establish a new IT comprehensive services system based on the business policy of “Professional Exploration and Growth of Value”, and strive to build and expand independent intellectual property solutions, promote value added continuously and enhance the ability to serve customers by enhancing technology implementation and service capabilities, make every effort to increase the stickiness of customers and channels to get closer to the end customers, and end up to help customers achieve the digitalization transformation while making a greater contribution to shareholders.