2019 年第一季度报告全文 证券简称：勤上股份 东莞勤上光电股份有限公司 2019 年第一季度报告全文 东莞勤上光电股份有限公司 DONGGUAN KINGSUN OPTOELECTRONIC CO.,LTD. 证券代码：002638 公司负责人陈永洪、主管会计工作负责人邓军鸿及会计机构负责人(会计主 管人员)邓军鸿声明：保证季度报告中财务报表的真实、准确、完整。 2 东莞勤上光电股份有限公司 2019 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 披露日期：二〇一九年四月 1 东莞勤上光电股份有限公司 2019 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 276,196,307.46 | 317, ...

Financial Performance - Total revenue for 2018 was CNY 1,297,613,575.24, a decrease of 19.35% compared to CNY 1,608,990,344.08 in 2017[16] - The net profit attributable to shareholders was a loss of CNY 1,248,913,698.45, representing a decline of 1,583.33% from a profit of CNY 84,196,655.51 in 2017[16] - The net cash flow from operating activities was a negative CNY 141,928,237.18, worsening by 30.53% compared to a negative CNY 108,735,267.75 in 2017[16] - Basic and diluted earnings per share were both CNY -0.820, a decrease of 1,466.67% from CNY 0.060 in 2017[16] - Total assets at the end of 2018 were CNY 5,308,046,669.46, down 25.04% from CNY 7,081,029,245.89 at the end of 2017[16] - The weighted average return on equity was -31.77%, a decline of 33.40% from 1.63% in 2017[16] - The net assets attributable to shareholders decreased by 23.81% to ¥3,934,642,402.18 from ¥5,164,194,682.87[18] - In Q4 2018, the net profit attributable to shareholders was -¥1,321,131,637.87, marking a significant decline compared to previous quarters[22] - The total operating income for Q4 2018 was ¥337,423,880.78, showing a slight increase from Q3 2018[22] - The company reported a net cash flow from operating activities of ¥415,249.16 in Q4 2018, recovering from a negative cash flow in Q3[22] Business Operations - The company has experienced significant changes in its main business operations, including the addition of energy-saving services and LED products in recent years[16] - The semiconductor lighting business includes products such as LED outdoor lighting and LED displays, with a focus on expanding sales in emerging markets[27] - The education training segment, primarily through Longwen Education, offers personalized tutoring services, contributing to the company's diversified revenue streams[27] - The company has established a nationwide sales channel in China and is expanding its presence in developed and emerging markets[31] - The company has 369 teaching points across over 20 cities, indicating a strong market presence in the education sector[40] Revenue Breakdown - The semiconductor lighting business revenue decreased by 30.48% to CNY 606.6 million, accounting for 46.75% of total revenue[44] - The education training business revenue decreased by 6.17% to CNY 691 million, representing 53.25% of total revenue[44] - Domestic revenue fell by 26.52% to CNY 887.4 million, while international revenue increased by 2.23% to CNY 410.2 million[45] - Total revenue from education and training was 691,014,344.70 CNY, representing a year-over-year decrease of 6.17%[47] Investment and R&D - The company has 223 valid patents, including 64 invention patents, indicating strong R&D capabilities[31] - R&D expenses decreased by 61.54% to ¥9,463,843.25 in 2018 from ¥24,605,291.85 in 2017, with R&D investment accounting for 1.97% of operating revenue[56][58] - The number of R&D personnel increased by 15.79% to 66 in 2018, while the proportion of R&D personnel decreased to 1.33% of total employees[58] - The company has invested CNY 7,578.73 million in LED lighting research and design, achieving a 100% investment completion rate[71] Strategic Plans - The company plans to enhance investment in the education sector to improve competitiveness and market share[41] - The company will adopt a steady approach in the semiconductor lighting sector, focusing on resource allocation and improving return on investment[37] - The company plans to extend the completion date for the online education platform and O2O project to November 15, 2020, to better align with market conditions[72] - The company plans to gradually invest in the "Online Education Platform and O2O Project" based on actual conditions and market situations, avoiding large-scale investments that could lead to resource waste[79] Compliance and Regulatory Issues - The company has received a qualified audit opinion from Ruihua Certified Public Accountants, which may affect the final results of the profit and loss statement and balance sheet[4] - The company faced administrative penalties totaling CNY 16.96 million due to past information disclosure violations, with litigation costs amounting to CNY 17.24 million during the reporting period[119] - The company has committed to strengthening compliance with laws and regulations regarding information disclosure[123] Shareholder and Governance - The company has not distributed dividends for the past three years, including a planned non-distribution for 2018, with a net profit of -1,248,913,698.45 CNY[94] - The company’s shareholders have made commitments regarding the transfer and pledge of shares, ensuring stability during the performance guarantee period[97] - The company’s performance commitments are tied to the financial results of its subsidiaries, which will impact the overall profitability[99] - The company has a structured evaluation process for determining the remuneration of directors and senior management, which includes performance evaluations and compensation policies[183] Legal Matters - The company is currently involved in several legal disputes, including a contract dispute related to the Foshan Shishan project, with a claim amount of approximately ¥50.80 million[118] - The company has a pending case involving a claim of CNY 4 million related to shareholder capital contribution disputes, currently under further review[121] - The company has initiated a lawsuit against a third party for a contract dispute, with the court accepting the case and it is currently under further review[120] Employee and Organizational Structure - The total number of employees in the company is 4,977, with 28 in the parent company and 4,949 in major subsidiaries[186][187] - The employee composition includes 245 production staff, 614 sales personnel, 66 technical staff, 113 financial staff, 383 administrative staff, and 3,556 others[187] - Employee training programs are prioritized, including new employee training and management training, to develop a skilled workforce[189] Market Outlook - Future performance is uncertain and depends on various factors, including market conditions and the efforts of the management team[5] - The overall market for LED lighting is expected to have significant growth potential despite current slowdowns in demand[36] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2020[104]

Financial Performance - The company's operating revenue for 2017 was CNY 1,608,990,344.08, representing a 90.84% increase compared to CNY 843,107,323.50 in 2016[17]. - The net profit attributable to shareholders of the listed company was CNY 84,196,655.51, a significant turnaround from a loss of CNY 427,438,169.76 in the previous year, marking a 119.70% improvement[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 90,824,854.51, compared to a loss of CNY 437,612,567.16 in 2016, reflecting a 120.75% increase[17]. - The basic earnings per share for 2017 was CNY 0.06, recovering from a loss of CNY 0.43 per share in 2016, indicating a 113.95% improvement[17]. - The net cash flow from operating activities was negative at CNY -108,735,267.74, a decline of 182.50% from CNY 131,799,780.76 in 2016[17]. - Total assets at the end of 2017 were approximately ¥7.08 billion, a decrease of 1.16% compared to the end of 2016[18]. - The company reported a weighted average return on equity of 1.63% for 2017, recovering from -8.42% in 2016[18]. - In 2017, the company achieved a revenue of CNY 1,608.99 million and a net profit of CNY 84.20 million, successfully turning a profit after losses[37]. Business Expansion and Strategy - The company has expanded its business scope to include education consulting and technology services as of March 2017[15]. - The company expanded its market presence in developed countries and emerging markets, including Southeast Asia, Africa, and South America, through various sales models[26]. - The education segment, including Dragon Education and British Education, focuses on personalized tutoring and international education, contributing to the company's diversification strategy[26]. - The education sector, primarily through the acquisition of Longwen Education and British Education, has become the main growth driver for the company[37]. - The company plans to further enhance its educational business through acquisitions of quality assets, aiming for synergistic effects to improve competitiveness and profitability[41]. - The company is in the process of divesting its semiconductor lighting business, transitioning to focus primarily on the education sector[37]. Research and Development - The company holds a total of 314 valid patents, including 78 invention patents, 135 utility model patents, and 101 design patents, showcasing its commitment to R&D[33]. - In 2017, the company's R&D investment increased by 47.92% to ¥60,554,130.95, primarily due to increased focus on smart lighting and platform projects[59]. - The total number of R&D personnel decreased by 33.72% to 57, while the R&D personnel ratio remained stable at 9.03%[59]. - The company has implemented a performance evaluation and incentive mechanism for senior management, aligning compensation with market standards and company performance[199]. Financial Management and Investments - The company plans to retain earnings for operational and investment purposes, and will not distribute profits in 2017 to reduce financial costs after repaying RMB 415,564,534.08 in bonds[90]. - The company has not utilized any of the raised funds for the online education project yet, focusing on cautious investment strategies[71]. - The company has made strategic acquisitions, including a 51% stake in Beijing Caiyida Technology Development Co., Ltd., to bolster its market position[104]. - The company raised a net amount of RMB 1.77 billion from the non-public offering in 2016, with an oversubscription of RMB 49.20 million[73]. Corporate Governance - The company is committed to transparency and protecting the rights of minority shareholders[96]. - The company has established a framework to prevent any restrictions or defects on its assets during the holding period[98]. - The company has a diverse board of directors with backgrounds in finance, law, and engineering, enhancing its governance structure[169][170][171]. - The company’s board of directors and supervisory board are structured in compliance with legal regulations, ensuring effective governance and oversight[186]. Legal and Compliance Issues - The company reported a significant legal case involving a claim of RMB 1,285 million related to a loan contract dispute[112]. - The company has a total of 84 ongoing legal cases as of the end of the reporting period, with 4 cases still in litigation[112]. - The company received a public reprimand from the Shenzhen Stock Exchange for its chairman and financial director on September 20, 2017[174]. - The company has no significant discrepancies with the governance norms set by the China Securities Regulatory Commission[187]. Employee and Management Structure - The total number of employees in the company is 4,901, with 2,865 in production, 1,393 in sales, and 66 in technical roles[179]. - The company emphasizes employee training and development, conducting various training programs for new and mid-level managers[182]. - The company has a remuneration policy based on "annual salary + performance" for directors and senior management, with independent directors receiving an annual allowance of RMB 80,000[176]. - The company has a strong focus on corporate governance, with independent directors possessing extensive experience in accounting and engineering[170][171].

Financial Corrections and Acknowledgments - The company corrected the undisclosed amount of financial products purchased with self-owned funds at the end of 2017, which was 168.4 million yuan, and the amount purchased with raised funds was 645 million yuan, totaling 813.4 million yuan[1]. - The company acknowledged a clerical error in the 2017 annual report, where the undisclosed balance of financial products was incorrectly stated as 46 million yuan[1]. - The company received an administrative regulatory decision from the Guangdong Securities Regulatory Commission requiring corrections to previously disclosed information[3]. - The company expresses deep apologies for the errors in the announcement and the inconvenience caused to investors[23]. - The company will strengthen the management and review of information disclosure to avoid similar issues in the future[23]. Project Investments and Delays - The company decided to terminate the "LED Lighting R&D Design Center Project" and will permanently supplement the remaining raised funds and interest income into working capital[4]. - The company has delayed investment in the key city new outlet construction project to protect shareholder interests due to unclear regional policy differences[7]. - The company has not yet invested in the small class tutoring project due to the presence of leading training institutions and the impact of national policies on student workload reduction[7]. - The company has not yet invested in the small class tutoring project due to market competition and policy changes, but plans to monitor market conditions for future implementation[21]. - The online education platform and O2O project have not utilized raised funds yet, but the company has made some preliminary investments using self-owned funds and achieved positive progress[8]. - The online education platform and O2O project have not yet utilized raised funds, but the company has made preliminary investments using its own funds[22]. - The company is cautious about investing in the teaching research and training system project until the online education platform gains scale[22]. - The company will invest in the integration of the "online education platform and O2O project" to achieve a better return on investment[23]. Guarantees and Financial Health - The company has disclosed all guarantee matters related to its controlling subsidiaries without omissions during the reporting period[2]. - The total guarantee amount approved during the reporting period is 4,000 million[11]. - The actual guarantee amount that occurred during the reporting period is also 4,000 million[11]. - The total actual guarantee amount at the end of the reporting period is 4,000 million, which accounts for 0.77% of the company's net assets[11]. - The company has no foreseeable risks of default or overdue payments from the guaranteed parties, indicating their financial stability[11]. - The guarantees provided by the company to its subsidiaries include amounts of 3,000 million and 2,000 million for different projects[12]. - The company has a series of joint liability guarantees with various subsidiaries, with amounts ranging from 1,000 million to 2,000 million[12]. - The guarantees are primarily for a duration of one year, reflecting short-term financial support strategies[12]. - The company has not identified any situations where it may need to assume joint repayment responsibilities[11]. - The guarantees are structured to ensure that the company maintains a low risk profile in its financial commitments[11]. - The company continues to monitor the financial health of its subsidiaries to mitigate potential risks associated with guarantees[11]. - The total amount of guarantees approved during the reporting period was 7,000,000, while the actual guarantees amounted to 5,500,000[13]. - The total approved guarantee amount at the end of the reporting period was 14,000,000, with an actual guarantee balance of 5,480,000[13]. - The actual total guarantee amount accounted for 1.06% of the company's net assets[13]. - The company has entrusted financial management with a total amount of 289,100,000, with an overdue balance of 4,600,000[14]. - The company has invested 124,840,000 from its own funds and 161,500,000 from raised funds in bank financial products, with no overdue amounts[19].

Financial Performance - Revenue for the reporting period was CNY 307,544,028.42, a decrease of 2.10% year-on-year, and year-to-date revenue decreased by 18.54% to CNY 960,189,694.46[8] - Net profit attributable to shareholders was a loss of CNY 10,745,266.12, a decline of 156.32% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 12,154,392.20, down 164.61% year-on-year[8] - Basic and diluted earnings per share were both CNY -0.01, representing a decrease of 200.00% compared to the same period last year[8] - The weighted average return on net assets was -0.21%, down from -0.58% in the previous year[8] - The net cash flow from operating activities was a negative CNY 124,122,081.20, a slight decrease of 0.27% year-on-year[8] Shareholder Information - The total number of shareholders at the end of the reporting period was 49,430[12] - The largest shareholder, Dongguan Kingsun Group Co., Ltd., held 16.79% of the shares, amounting to 254,965,370 shares[12] Asset and Investment Changes - Total assets decreased by 5.66% to CNY 6,680,076,037.86 compared to the end of the previous year[8] - Accounts receivable increased by 43.19% compared to the beginning of the year due to an increase in customer bill settlements[16] - Long-term receivables increased by 122.58% compared to the beginning of the year due to an increase in project settlements[16] - Long-term equity investments increased by 266.11% compared to the beginning of the year due to the change in accounting method for Beijing Caiyida[16] - The company's undistributed profits increased by 58.65% compared to the beginning of the year due to increased profits[16] - The company's minority shareholders' equity decreased by 31.19% compared to the beginning of the year due to the change in accounting method for Beijing Caiyida[16] - The company has invested 800 million RMB into the Ningbo Meishan Free Trade Port Area Equity Investment Center for the acquisition of educational assets from Aidi[20] - The company has completed the capital increase for its wholly-owned subsidiary, Shanghai Qunshang Energy-saving Lighting Co., Ltd., with further work in progress[20] - The company terminated a major asset restructuring plan for its semiconductor lighting business, which will now be primarily implemented by its subsidiary[20] Legal and Compliance Issues - The company is facing 101 civil lawsuits with a total compensation claim of 26.2739 million RMB due to information disclosure violations[20] - The company’s controlling shareholder and actual controller's shares have been judicially frozen by the Dongguan Intermediate People's Court[20] - The arbitration case involving Fujian Guoce with a disputed amount of 5.782 million RMB has concluded, with the arbitration committee dismissing all claims[20] - The company has no instances of non-compliance with external guarantees during the reporting period[34] - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[35] Related Party Transactions - The company emphasizes the independence of its operations, ensuring no impact from related parties on its financials and business[26] - The company will maintain a clear separation in personnel, assets, and operations from related parties to protect shareholder interests[26] - The company has agreed to not transfer any assets related to the 1-to-1 tutoring business without written consent from Guangzhou Longwen[27] - The company will ensure that the assets remain free from any encumbrances or defects during the holding period[27] - The company is committed to complying with relevant laws and regulations regarding related party transactions to protect the rights of minority shareholders[25] - The company will actively assist in the necessary procedures for asset transfers as per fair market value assessments[27] - The company has established a strategy to minimize related party transactions to avoid conflicts of interest[25] - The company will ensure that all agreements with related parties are legally binding and transparent[26] Future Projections and Risks - The estimated net profit attributable to shareholders for 2018 is projected to be between 50.518 million and 92.6164 million CNY, representing a change of -40.00% to 10.00% compared to 2017's net profit of 84.1967 million CNY[32] - The decline in LED business volume is attributed to intensified competition in the semiconductor lighting market, which is expected to impact the company's 2018 performance[32] - The education and training sector shows promising growth prospects, but short-term impacts from competitive landscape upgrades and reform trends may affect performance[32] - The company acknowledges potential risks of goodwill impairment or bad debt provisions, which could lead to significant discrepancies in final data and performance estimates[32] Other Financial Activities - Financial expenses decreased by 94.15% year-on-year mainly due to increased returns from financial products[17] - Other income increased by 43.82% year-on-year due to an increase in government subsidies received[17] - Cash received from tax refunds increased by 308.77% year-on-year due to increased export tax rebates[17] - Cash paid for other investment activities increased by 736.71% year-on-year mainly due to increased payments for equity acquisitions and financial products[17] - The total amount of entrusted financial management is 137.79 million CNY, with 30 million CNY in unexpired balances[37] Corporate Governance - The company has committed to maintaining independence and integrity post-major asset restructuring[30] - The company will strictly adhere to information disclosure obligations in accordance with relevant regulations[32] - The company has not engaged in any research, communication, or interview activities during the reporting period[38]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 652,645,666.04, a decrease of 24.51% compared to CNY 864,519,935.46 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 82,963,205.54, representing a slight increase of 0.98% from CNY 82,161,621.31 year-on-year[16]. - The net cash flow from operating activities improved by 20.08%, reaching CNY -18,221,405.14 compared to CNY -22,800,436.40 in the previous year[16]. - The company's total revenue for the reporting period was 434,097,376.64, a decrease of 34.34% compared to the previous year[44]. - The company's gross profit margin for the education and training segment was 30.96%, with a slight decrease of 0.87% year-over-year[44]. - The company reported a total comprehensive income for the first half of 2018 was CNY 81,442,633.03, down from CNY 88,040,213.76 in the same period last year[165]. - The total operating costs amounted to CNY 587,785,223.89, down 23.4% from CNY 767,047,714.45 year-on-year[164]. - The company's total liabilities increased to CNY 1,098,152,329.02 from CNY 932,135,513.98, reflecting a rise of 17.8%[164]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 7,078,554,200.09, a decrease of 0.03% from CNY 7,081,029,245.89 at the end of the previous year[16]. - The company's cash and cash equivalents at the end of the reporting period were 2,284,145,417, down from 2,577,465,230, a decrease of 3.22%[48]. - The company's total liabilities decreased to ¥1,765,218,345.49 from ¥1,820,424,923.32, a reduction of approximately 3.0%[156]. - The company's total assets increased to CNY 6,658,116,159.56 from CNY 6,497,087,220.70, reflecting a growth of 2.5%[164]. Investments and Divestitures - The company plans to divest its semiconductor lighting business to focus on the education sector, with this process currently underway[33]. - Long-term equity investments increased by 271.08% compared to the beginning of the period, primarily due to the change in accounting method for the subsidiary Beijing Caiyida[25]. - The company plans to enhance its education business layout through acquisitions of quality assets in the education sector, leveraging existing platforms like Longwen Education and Yinglun Education[38]. - The company is in the process of divesting its semiconductor lighting business, with relevant plans disclosed in October and November 2017[117]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company’s major shareholder, Yang Yong, holds 5.4% of the company's shares, which are currently frozen due to legal issues, potentially affecting the company's equity[74]. - The total number of ordinary shareholders at the end of the reporting period is 43,897[124]. - The largest shareholder, Dongguan Qunshang Group, holds 16.79% of the shares, equating to 254,965,370 shares[124]. Compliance and Legal Matters - The company faces various risks as detailed in the report, which investors are advised to review[5]. - The company has received administrative penalties from the China Securities Regulatory Commission for information disclosure violations[118]. - The company is currently in a re-examination phase regarding a debt obligation case with Anhui Bangda Qinxin Optoelectronic Technology Co., Ltd., involving a claim of ¥19.42 million (approximately $1.94 million)[88]. - The company faced a total of 84 legal cases related to information disclosure violations, with a total compensation amount of ¥16.96 million (approximately $1.70 million) incurred during the reporting period[88]. Research and Development - The company has a total of 269 valid patents, including 71 invention patents, reflecting its commitment to research and development in the semiconductor lighting field[30]. - The company has established partnerships with several prestigious universities for collaborative research in LED applications, enhancing its technological capabilities[30]. - Research and development expenses decreased by 63.68% to ¥8,530,195.97 from ¥23,486,998.00 in the previous year[40]. Cash Flow Management - The company reported a significant increase in cash flow from financing activities, amounting to ¥167,654,147.55, a 670.82% increase compared to ¥21,750,000.00 in the previous year[40]. - The net cash flow from investing activities was 497,271,431.67, a significant improvement from -600,055,127.45 in the previous period[173]. - The total cash inflow from operating activities was 703,237,185.78, down from 1,013,673,357.64 in the previous period, reflecting a decrease of approximately 30.6%[172]. Strategic Initiatives - The company aims to improve its one-on-one personalized tutoring market segment to enhance educational quality and reputation, driving urban business growth[35]. - The introduction of AP code courses at Shenzhen International Pre-Academy enhances its competitive edge in the international education market[29]. - The company emphasizes personalized tutoring services, which have gained recognition among families, particularly those from the 70s and 80s generations[27]. Future Outlook - The company anticipates that the regulatory environment for education consulting services will become more stringent, which may affect smaller training institutions more than larger ones like Guangzhou Longwen[73]. - The company is exploring new strategies to align with regional policy differences to protect shareholder interests and avoid resource waste[59]. - The company is actively working on compliance with regional standards following the "Four Ministries Notice," which is expected to provide more development opportunities[35].

Financial Performance - The company's revenue for Q1 2018 was CNY 317,515,973.60, representing a 3.66% increase compared to CNY 306,315,848.20 in the same period last year[9]. - Net profit attributable to shareholders was CNY 54,738,040.45, a 24.75% increase from CNY 43,877,350.13 year-over-year[9]. - The net profit after deducting non-recurring gains and losses was CNY 55,215,465.14, reflecting a 25.54% increase compared to CNY 43,984,002.42 in the previous year[9]. - The basic earnings per share increased by 33.33% to CNY 0.04 from CNY 0.03 in the same period last year[9]. - The net profit attributable to shareholders for the first half of 2018 increased from ¥82.16 million in 2017 to ¥110.92 million, representing a growth of 35%[34]. - The growth in profit is attributed to the steady development of the education and training business[34]. Cash Flow and Assets - The net cash flow from operating activities was negative CNY 54,932,141.64, a decline of 157.10% compared to a positive CNY 96,209,613.24 in the previous year[9]. - Total assets at the end of the reporting period were CNY 6,985,213,368.17, down 1.35% from CNY 7,081,029,245.89 at the end of the previous year[9]. - Net assets attributable to shareholders increased by 1.06% to CNY 5,218,966,087.01 from CNY 5,164,194,682.87 at the end of the previous year[9]. - Cash received from tax refunds increased by 665.11% year-on-year, due to an increase in export tax rebates[16]. - Cash paid for other operating activities rose by 321.20% year-on-year, primarily due to increased marketing expenses[16]. - Cash received from investment activities increased, mainly from the recovery of principal from financial products[16]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 46,519[12]. - The largest shareholder, Dongguan Kingsun Group Co., Ltd., held 16.79% of the shares, totaling 254,965,370 shares[12]. Investments and Financial Changes - Interest receivables increased by 55.09% compared to the beginning of the period, due to an increase in interest from time deposits[16]. - Long-term equity investments rose by 299.54% compared to the beginning of the period, primarily due to the change in accounting method for Beijing Caiyida from cost method to equity method[16]. - Financial expenses decreased by 438.51% year-on-year, mainly due to increased interest income from time deposits and financial products[16]. - Investment income surged by 7,606.28% year-on-year, attributed to the same accounting method change for Beijing Caiyida[16]. Corporate Governance and Compliance - The company is committed to maintaining its independence and will adhere to legal and regulatory requirements regarding related party transactions[26]. - The company aims to minimize related party transactions to protect the interests of minority shareholders[26]. - The company has established a strategy to ensure compliance with related party transaction approval processes and information disclosure obligations[26]. - The company has a commitment to avoid any actions that could harm the legal rights of its shareholders[26]. - The company emphasizes the independence of its personnel, assets, business, organization, and finance to protect shareholder interests[30]. - The company has committed to not engaging in any activities that may harm the interests of shareholders or involve unnecessary related transactions[31]. - The company will maintain its independence post-major asset restructuring, ensuring no conflicts of interest arise[31]. - The company has pledged to adhere to legal and regulatory requirements in related transactions, ensuring fairness and transparency[30]. - The company has confirmed that all commitments made to minority shareholders have been fulfilled on time[32]. Future Commitments and Plans - The company has a performance commitment to achieve a cumulative net profit, and if not met, compensation will be required at double the difference[25]. - The lock-up period for newly issued shares is set at 36 months for certain shareholders, and 12 months for others, starting from the issuance date[24]. - The performance compensation commitment has not yet been fulfilled, which may extend the lock-up period until completion[24]. - The company plans to use funds raised from the issuance of shares for project construction related to the target company[25]. - The company has established a special selection right for Guangzhou Longwen to purchase its assets at fair market value[28]. - The company will assist in the transfer of assets to Guangzhou Longwen following a notification, ensuring compliance with asset evaluation standards[28]. - The company will not allow any rights restrictions or defects on its assets during the holding period[29]. - The company has committed to not using its controlling position to seek advantages in business cooperation for personal investments[29]. Compliance and Non-Compliance - There were no instances of non-compliance with external guarantees during the reporting period[35]. - There were no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[36]. - The company did not engage in any research, communication, or interview activities during the reporting period[37].

Financial Performance - The company's operating revenue for 2017 was CNY 1,608,990,344.08, representing a 90.84% increase compared to CNY 843,107,323.50 in 2016[17]. - The net profit attributable to shareholders of the listed company was CNY 84,196,655.51, a significant turnaround from a loss of CNY 427,438,169.76 in the previous year, marking a 119.70% improvement[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 90,824,854.51, compared to a loss of CNY 437,612,567.16 in 2016, reflecting a 120.75% increase[17]. - The basic earnings per share for 2017 was CNY 0.06, recovering from a loss of CNY 0.43 per share in 2016, an increase of 113.95%[17]. - The net cash flow from operating activities was negative at CNY -108,735,267.74, a decline of 182.50% from CNY 131,799,780.76 in 2016[17]. - Total revenue for 2017 reached ¥1,608,990,344, representing a 90.84% increase compared to the previous year[18]. - Net profit attributable to shareholders was ¥84,196,655, a significant turnaround from a loss of ¥427,476,510 in 2016, marking a 119.70% increase[18]. - The company's net cash flow from operating activities was negative at -¥108,735,267, a decline of 182.50% compared to the previous year[18]. - Basic and diluted earnings per share improved to ¥0.06, compared to -¥0.43 in 2016, reflecting a 113.95% increase[18]. Business Expansion and Strategy - The company has expanded its business scope to include education consulting services and technology development as of March 2017[15]. - The company operates in the education and semiconductor lighting sectors, with a focus on personalized education services and LED lighting solutions[26]. - The company is expanding its market presence in developed countries and emerging markets, including Southeast Asia, Africa, and South America[26]. - The education sector, primarily through the acquisition of Longwen Education and British Education, has become the main growth driver for the company in 2017[37]. - The company plans to divest its semiconductor lighting business, which is currently in a steady transition phase, to focus on the education sector as its main business[37]. - The company plans to further enhance its educational business through acquisitions of quality assets in the education sector, aiming for synergistic effects[41]. - The company is preparing to establish an elementary school division at the Shenzhen International Preparatory Academy, aiming to create a complete 15-year international education system[40]. - The company plans to continue the steady progress of the semiconductor lighting industry divestiture in 2018, focusing on becoming an A-share listed company primarily engaged in the education industry[81]. Research and Development - The company holds a total of 314 valid patents, including 78 invention patents, emphasizing its commitment to research and development in the LED lighting industry[33]. - The company has established partnerships with prestigious universities for collaborative research in LED applications, enhancing its technological capabilities[33]. - In 2017, the company's R&D investment amounted to ¥60,554,130.95, representing a 47.92% increase compared to ¥40,937,318.26 in 2016[58]. - The R&D investment accounted for 3.76% of operating revenue, down from 4.86% in the previous year[58]. - The number of R&D personnel decreased by 33.72% to 57, while the proportion of R&D personnel remained relatively stable at 9.03%[58]. Market and Competitive Position - Longwen Education operates 392 outlets across over 20 cities, establishing a strong brand presence in the K12 personalized tutoring market[29]. - The K12 extracurricular education market in China is projected to grow at a compound annual growth rate of over 18% from 2014 to 2020, indicating a favorable market environment[38]. - Longwen Education achieved the top market share in the 1-on-1 tutoring sector in first-tier and some new first-tier cities, with continuous expansion of its market share[39]. - The semiconductor lighting segment generated ¥867 million, accounting for 53.93% of total revenue, with a year-on-year growth of 11.43%[44]. - The domestic revenue increased by 136.25% to approximately ¥1.21 billion, while international revenue rose by 20.90% to about ¥401 million[44]. Financial Management and Governance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has engaged Ruihua Certified Public Accountants for auditing services during the reporting period[16]. - The company reported no discrepancies between financial reports under international and Chinese accounting standards[19][21]. - The company has implemented strict measures to prevent any related party transactions that could harm shareholder rights[92]. - The company has established a lock-up period of 12 months for certain shareholders following the issuance of new shares[89]. - The company reported a total remuneration of RMB 196.21 million for directors and senior management during the reporting period[170]. - The company maintains a performance-based salary system for its directors and senior management, linking compensation to company performance[173]. - The company has a structured approach to evaluating the performance of its directors and senior management, ensuring accountability and alignment with corporate goals[191]. Risks and Challenges - The company faces management risks due to the expansion of its education business, which may lead to challenges in internal control and management personnel allocation[79]. - Regulatory risks are present as the education consulting service industry is subject to evolving policies and regulations from the government[79]. - The company is exposed to risks from potential new laws and regulations affecting the education consulting service industry, but the likelihood of substantial operational obstacles is low[80]. - The company has been under investigation by the China Securities Regulatory Commission, but no final punitive conclusions have been reached as of the reporting period[134]. - The company has been involved in a restructuring process for its semiconductor lighting business, which is still ongoing[134]. Shareholder and Equity Structure - The company has a registered capital of 15,300,000,000 RMB, indicating substantial financial backing[151]. - The largest shareholder, Dongguan Qunshang Group Co., Ltd., holds 16.79% of the shares, totaling 254,965,370[145]. - The company reported a total of 47,483 common shareholders at the end of the reporting period[145]. - The company has seen a reduction of 35,100 shares held by Huaxia Life Insurance during the reporting period[145]. - The company’s shareholding structure includes significant pledges, with 252,500,000 shares pledged by Dongguan Qunshang Group Co., Ltd.[145]. Corporate Social Responsibility and Compliance - The company has not reported any major contracts or significant social responsibility initiatives during the reporting period[127][130]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[130]. - The company respects the rights of stakeholders, including customers, suppliers, banks, and employees, promoting a fair and trustworthy corporate image[179]. - The company has made commitments to avoid engaging in any competitive business activities that may conflict with its main operations[98].

Financial Performance - Operating revenue for the reporting period reached CNY 314,151,047.65, a 65.40% increase year-on-year[8] - Net profit attributable to shareholders was CNY 19,080,480.26, reflecting a growth of 58.55% compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses was CNY 18,810,538.03, up 64.36% year-on-year[8] - The basic earnings per share remained at CNY 0.013, unchanged from the previous period[8] - The weighted average return on equity improved to 0.37%, an increase of 0.64 percentage points from the previous year[8] - Operating revenue increased by 85.41% year-on-year, primarily due to the consolidation of Longwen Education's financial statements[16] - Net profit attributable to the parent company increased by 79.59% year-on-year, driven by increased operating profit[16] - Cash received from operating activities increased by 72.87% year-on-year, mainly due to the inclusion of Longwen Education's cash flow in the consolidation[17] - Investment income increased by 58,157.81% year-on-year, attributed to returns from Shanshui Capital and increased profits from joint ventures[16] - The company expects a net profit for 2017 to be between 110 million yuan and 130 million yuan, marking a turnaround from a net loss of 427.47 million yuan in 2016[29] Assets and Investments - Total assets increased by 3.28% to CNY 7,398,227,822.33 compared to the end of the previous year[8] - Long-term equity investments increased by 2,329.18% compared to the beginning of the year, due to investments in Ningbo Meishan Free Trade Port Area Rongxiang Equity Investment Center[16] - Cash and cash equivalents decreased by 57.30% compared to the beginning of the year, mainly due to investments in Ningbo Meishan Free Trade Port Area Rongxiang Equity Investment Center and the purchase of bank wealth management products[16] - Other receivables increased by 217.17% compared to the beginning of the year, mainly due to an increase in deposits[16] - Other current assets increased by 197.44% compared to the beginning of the year, primarily due to increased purchases of bank wealth management products[16] - Cash outflow from investment activities increased by 1,393.50% year-on-year, due to investments in Ningbo Meishan Free Trade Port Area Rongxiang Equity Investment Center and the purchase of bank wealth management products[17] Shareholder Information - The total number of shareholders at the end of the reporting period was 31,280[12] - The largest shareholder, Dongguan Kingsun Group Co., Ltd., held 16.79% of the shares[12] Regulatory Compliance and Commitments - The company is under investigation by the China Securities Regulatory Commission for suspected violations of securities laws[18] - The company has made a commitment to ensure that the cumulative net profit from 2015 to 2018 will not be less than RMB 563.8 million, with penalties for any shortfall[22] - The company has implemented a lock-up period of 36 months for newly issued shares, preventing any transfer or pledge during this time[21] - The company has committed to minimizing related party transactions and ensuring that any unavoidable transactions are conducted at fair market value[22] - The performance compensation commitment has not yet been fulfilled, which may extend the lock-up period for certain shareholders until the commitment is met[21] - The company is focused on maintaining strict compliance with its commitments regarding share transfers and pledges[21] - The company has outlined specific performance metrics that must be achieved to avoid penalties related to the performance compensation agreement[22] - The company has engaged in a non-public offering of shares, with strict adherence to the lock-up period for investors[22] - The company has established a framework for compensating shareholders in the event of underperformance relative to the agreed profit targets[22] - The company is actively monitoring its commitments and ensuring compliance to maintain shareholder trust and market integrity[21] - The company has outlined a clear strategy for managing its financial obligations and performance expectations through 2018[22] Market Outlook and Strategy - The company reported a significant increase in revenue for Q3 2017, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[23] - User data indicated a rise in active users, with the number increasing to 5 million, up from 4.5 million in the previous quarter, marking an 11% growth[24] - The company provided a positive outlook for the next quarter, projecting a revenue increase of 20% based on current market trends and user acquisition strategies[25] - New product launches are expected to contribute an additional 300 million RMB in revenue, with a focus on innovative LED technology[26] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2018[27] - A strategic acquisition of a local competitor is anticipated to enhance the company's product offerings and increase market penetration[28] - The company is investing 50 million RMB in R&D for new technologies aimed at improving energy efficiency in its products[23] - The management emphasized the importance of maintaining independence and transparency in operations to protect shareholder interests[24] - The company has committed to strict compliance with regulatory requirements to ensure fair trading practices and avoid conflicts of interest[25] - Future guidance includes a focus on sustainable growth and innovation, with an aim to double the user base within the next two years[26] - The anticipated profit increase is attributed to the non-impairment of relevant assets, which had negatively impacted the 2016 performance[29] - The forecast for 2017 is based on the assumption that the semiconductor lighting business will not be divested during the year, with potential adjustments to the profit estimate if divestment occurs[29]

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 864,519,935.46, representing a 93.94% increase compared to CNY 445,771,956.25 in the same period last year[16]. - The net profit attributable to shareholders of the listed company reached CNY 82,161,621.31, a 121.75% increase from CNY 37,052,261.79 year-on-year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 78,140,404.00, up 146.69% from CNY 31,674,906.85 in the previous year[16]. - Basic earnings per share decreased by 46.00% to CNY 0.054 from CNY 0.10 in the previous year[16]. - The total operating revenue for the company reached CNY 864,519,935.46, a substantial increase of 93.94% compared to the previous year, primarily due to the inclusion of Longwen Education in the consolidated financial statements[39]. - The operating cost increased to CNY 620,284,072.71, marking a 96.73% rise year-on-year, also attributed to the consolidation of Longwen Education's costs[39]. - The net profit for Guangzhou Longwen was CNY 54,023,867.54, reflecting a significant year-on-year increase of 63.36%[37]. - The company reported a significant increase in cash flow from financing activities, amounting to CNY 21,750,000.00, a 1,111.63% increase year-on-year[40]. - The net profit attributable to shareholders for the first nine months of 2017 is expected to range from 10,000 to 13,000 million yuan, representing a year-on-year increase of 103.72% to 164.84%[69]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 7,262,852,322.04, an increase of 1.39% from CNY 7,163,440,003.58 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company increased by 1.63% to CNY 5,161,513,372.41 from CNY 5,078,600,632.29 at the end of the previous year[16]. - Total liabilities decreased to ¥2,021,702,704.32 from ¥2,051,871,024.81, a reduction of about 1.5%[149]. - The company's current ratio at the end of the reporting period is 329.73%, an increase of 10.24% compared to the previous year[139]. - The debt-to-asset ratio decreased to 27.84%, down by 0.80% from the previous year[139]. Business Segments - The main business activities during the reporting period included the education industry and semiconductor lighting industry[24]. - The semiconductor lighting business achieved revenue of ¥484,087,159.93, representing a year-on-year growth of 8.60%, while net profit decreased by 24.06% to ¥28,137,753.77[35]. - The company has entered the education sector through the acquisition of Longwen Education, which focuses on K12 one-on-one tutoring and has nearly 400 operating outlets across over 20 cities[28][29]. - The education sector is seen as a significant growth point for the company, especially with the favorable demographic trends from the two-child policy[36]. - Guangzhou Longwen achieved operating revenue of CNY 380,432,775.53, representing a year-on-year growth of 15.94%[37]. Research and Development - The company has a total of 367 valid authorized patents, including 93 inventions, 160 utility models, and 114 design patents, reflecting its strong R&D capabilities[26]. - The company collaborates with prestigious universities for R&D in LED applications, enhancing its technological edge[27]. - Research and development expenses decreased by 26.68% to CNY 23,486,998.00 compared to the previous year[40]. Strategic Plans - The company plans to divest its semiconductor lighting business, which is currently in progress, to concentrate resources on the education sector[35]. - The company plans to enhance teaching quality and expand its market presence in the private education sector moving forward[37]. - The company is expanding its market presence in developed countries and emerging markets through various sales models, including direct engineering and online sales[28]. Legal and Compliance - The company has no major litigation or arbitration matters during the reporting period[88]. - There were no significant related party transactions during the reporting period[94]. - The company has maintained compliance with all relevant regulations and has no penalties or corrective actions to report[91]. Shareholder Information - The total number of shares is 1,518,685,574, with 38.32% being limited shares and 61.68% being unrestricted shares[116]. - The largest shareholder, Dongguan Qunshang Group, holds 16.79% of the shares, amounting to 254,965,370 shares, with 252,500,000 shares pledged[118]. - The company has a total of 31,280 common stock shareholders at the end of the reporting period[118]. Fundraising and Investments - Total amount of raised funds is CNY 332,404,000[54]. - Amount of raised funds invested during the reporting period is CNY 19,093,590[54]. - The company has fully invested the funds raised from bond issuance as agreed[54]. - The company reported a net fundraising amount of RMB 1,056.82 million from its initial public offering, with an excess of RMB 593.38 million[60]. Operational Management - The company emphasizes talent development, providing clear career advancement paths and training opportunities for its employees[31][32]. - The company is actively seeking strategic partners to mitigate stock pledge risks associated with its controlling shareholder[73]. - The company has adjusted its market expansion strategy and strengthened the integration of management teams to enhance operational efficiency[72].