International. Dahua Technology recently released its 2018 annual report, which demonstrates stable growth over the past year, as well as prospects for the future. During the reporting period, the company achieved operating income of RMB 23,666 million (approximately US$3,523 million), representing an increase of 25.58% year-on-year; net profit attributable to shareholders of listed companies was RMB 2,529 million (about US$376 million), indicating a year-on-year growth of 6.34%.
Innovation is an important source of power and a fundamental competitive advantage for the development of Dahua technology. In 2018, the company's R&D investment accounts for 9.65% of annual sales revenue, which focuses on artificial intelligence, cloud computing, big data, chips, and other future-oriented core technologies to enhance R&D capabilities and accelerate the commercialization of the technology.
Focusing on customer demands, Dahua Technology has constantly expanded and updated its business models. In 2018, Dahua Technology further optimized standardized solutions and provided customized solutions for safe cities, smart traffic, smart retailers, and other key industries. It also launched a number of intelligent front-end servers and products to meet intelligent application scenarios and consolidate the implementation of the Dahua Heart of City (HOC) strategy, a smart city development engine compatible with Full Sensing, Full Intelligence, Full Computing and Full Ecosystem (4 Full) capabilities.
2018 overseas revenue reached RMB 8,578 million (about US$1,277 million), representing 36.25% of total revenue and an increase of 26.01% year-on-year) The company has established a global marketing and services network with 54 overseas subsidiaries and representative offices. Products and solutions are applied in more than 180 countries and regions worldwide.
Prospects for future strategy
For the future, Dahua Technology will focus on the following aspects:
First, improve the ability to find end-to-end end-to-end solutions to solve customer pain points for customers based on the HOC structure. Second, continuously increase investment in R&D and facilitate technological innovation in artificial intelligence, cloud computing, big data, chip and other future core technologies.
Third, continuously enrich the customer interface to improve the ability to create value for customers. Fourth, deepen the exploration of the domestic market while promoting the localization of business abroad and optimizing the revenue structure. Fifth, create systematic delivery and service capabilities oriented towards the global market. Sixth, take video capabilities at the core and increase investment in innovative companies to cultivate new growth potentials. Seventh, focus on company pain points and processes to strengthen management improvement, improve operational efficiency, and increase the ability to continuously create value for customers. Last but not least, further improve the talent incentive system and the development of corporate culture.
With the mission of "Enabling a Safer Society and Smarter Life," Dahua Technology will continue to focus on "Innovation, Quality and Service" to serve partners and customers around the world.
