Financial Performance - The company's operating revenue for 2018 was RMB 614.61 million, a decrease of 19.5% from RMB 763.97 million in 2017[5]. - The company's net profit attributable to shareholders for 2018 was RMB -15.01 million, compared to RMB 30.33 million in 2017, indicating a significant decline[5]. - The basic earnings per share for 2018 was RMB -0.04, down from RMB 0.08 in 2017[5]. - The company's revenue for the year was RMB 614,607,551.15, a decrease of 19.55% compared to RMB 763,966,053.96 in the previous year, primarily due to the exit from the aluminum rod and related products business and significant declines in other segments[31]. - The company reported a loss attributable to shareholders of RMB 15,012,917.51 for the year, compared to a profit of RMB 30,325,354.80 in the previous year, indicating a significant decline in profitability[32]. - The profit before tax for 2018 was RMB 40,165.92 thousand, down 57.4% from RMB 94,259.25 thousand in 2017[65]. - Total assets decreased by 8.46% to RMB 1,257,656,669.24 from RMB 1,373,945,770.47 at the end of the previous year, with current assets making up 63.74% of total assets[33]. - Cash and bank deposits amounted to RMB 441,997,685.40, down 12.08% from RMB 502,739,979.20 at the end of the previous year[35]. - The company's net cash flow from operating activities was RMB -42,566,901.22, a decrease of RMB 204,447,088.67 from RMB 161,880,187.45 in the previous year[40]. Assets and Liabilities - Total liabilities decreased to RMB 213.12 million in 2018 from RMB 302.06 million in 2017, reflecting a reduction in financial obligations[6]. - The total net assets as of December 31, 2018, were RMB 1,044.54 million, slightly down from RMB 1,071.89 million in 2017[6]. - Total liabilities and equity amounted to RMB 1,257,656,669.24, down from RMB 1,373,945,770.47 in the previous year, indicating a reduction in overall financial leverage[40]. - Total liabilities decreased to RMB 213,118.95 thousand in 2018 from RMB 302,058.08 thousand in 2017, indicating improved financial stability[65]. Market and Business Strategy - The company faced a 50% year-on-year decline in feeder line market demand due to reduced investments in 4G infrastructure by major operators[17]. - The company plans to focus on smart city construction and the optical communication industry, aligning with national investment directions[11]. - The company aims to gradually eliminate underperforming and non-core business segments to enhance operational efficiency[11]. - The company plans to focus on the optical communication industry and enhance its core competitiveness and sustainable development capabilities in 2019[43]. - The strategy includes deepening the FTTX market and improving product composition by developing new types of optical fibers to increase sales of high-margin products[44]. - The company intends to stop its feeder line business and concentrate on motorcycle cable operations, enhancing marketing and production capabilities[45]. Operational Improvements - The company has made efforts in cost control and has seen improvements in operational economic indicators within its park operations[10]. - The company will continue to strengthen management capabilities and improve standardized management to achieve budget goals[19]. - The company has completed the rectification of 36 out of 62 identified issues, achieving significant progress in reform and development efforts[20]. - The company is actively developing park economy and transitioning from manufacturing to a combination of industry and services, with initial planning for the Chengdu Putian Electronic Information Industry Park completed[23]. - The company has streamlined its internal regulations, abolishing 102 items and establishing 35 new ones to enhance management efficiency[27]. - The company has implemented comprehensive risk management and internal control systems, completing a full risk management report for 2018[26]. Corporate Governance - The company emphasizes compliance training to enhance internal control and information disclosure processes[84]. - The company is focused on maintaining strong corporate governance and compliance with securities regulations[88][89]. - The board of directors includes experienced professionals with extensive backgrounds in finance and management, enhancing the company's governance[91][93][94][95][96]. - The company has a diverse board composition with both executive and independent non-executive directors, ensuring a balance of perspectives[91]. - The company has established a Compensation and Assessment Committee with five members, including three independent non-executive directors[198]. - The committee is responsible for recommending the remuneration policy for all directors and senior management, ensuring transparency and fairness in compensation practices[199]. - The company has maintained a commitment to improving corporate governance practices and ensuring shareholder interests are protected[165]. Shareholder Information - The total number of shareholders as of December 31, 2018, was 193, including 1 state-owned legal person and 192 H-share foreign investors[86]. - The largest shareholder of the company is Putian Co., holding 240,000,000 shares, which accounts for 60% of the total issued share capital[88]. - As of the end of the year, Hong Kong Central Clearing Limited held 156,232,999 H shares, representing 39.06% of the total issued share capital[88]. - The company confirms that its public float is sufficient as of the report date[89]. Employee and Social Responsibility - The group has established a comprehensive compensation system, detailing salary structures and performance management, ensuring employees receive performance bonuses based on their evaluations[113]. - The group has provided training opportunities for employees as part of its welfare programs[113]. - The group has committed to social responsibility by timely tax payments and implementing energy-saving measures[117]. - The group paid approximately RMB 2.9 million for employee basic medical insurance in the current year, slightly down from RMB 2.91 million in the previous year[115]. Related Party Transactions - The company confirms that all related transactions comply with the disclosure requirements of the Listing Rules Chapter 14A[148]. - The company will continue to provide products and services to Putian Group based on current market prices, ensuring prices are comparable to those offered by independent suppliers[139]. - The company has established a framework purchase agreement with Sumitomo Electric for the purchase of optical fiber preforms and related technical services[142]. - The total amount received from Putian Group for the year ended December 31, 2018, is approximately RMB 3.891 million[136]. - The total amount paid to Sumitomo Electric for the year ended December 31, 2018, is approximately RMB 136.08 million[147].