Teamsun(600410)2019-04-18 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of -225,871,722.68 CNY, resulting in no profit distribution for the year[9]. - The company reported an ending undistributed profit of 832,272,730.14 CNY for 2018[9]. - The company's operating revenue for 2018 was CNY 5,224,124,676.76, a decrease of 3.81% compared to CNY 5,431,194,163.81 in 2017[33]. - The net profit attributable to shareholders for 2018 was a loss of CNY 225,871,722.68, representing a decline of 199.05% from a profit of CNY 228,027,938.92 in 2017[33]. - The net cash flow from operating activities for 2018 was CNY 787,747,720.32, a significant improvement compared to a negative cash flow of CNY -895,305,533.44 in 2017, marking a 187.99% increase[33]. - The total assets at the end of 2018 were CNY 10,134,675,641.82, down 15.87% from CNY 12,046,439,633.52 at the end of 2017[33]. - The company's net assets attributable to shareholders decreased by 4.38% to CNY 4,660,534,532.35 at the end of 2018 from CNY 4,874,110,614.44 at the end of 2017[33]. - The basic earnings per share for 2018 was -0.2063 CNY, a decrease of 199.57% compared to 0.2072 CNY in 2017[33]. - The diluted earnings per share for 2018 was -0.2048 CNY, down 199.13% from 0.2066 CNY in 2017[33]. - The weighted average return on net assets for 2018 was -4.74%, a decrease of 9.44 percentage points from 4.70% in 2017[33]. - The company achieved a total revenue of approximately 5.17 billion RMB, representing a year-over-year decrease of 4.10%[91]. - The company's total revenue for 2018 was approximately 5.2 billion, with cloud computing revenue reaching 1.204 billion, representing a growth of 48.89% year-over-year[67]. Cloud Computing Business - The company has transitioned to an industry cloud business model, focusing on cloud infrastructure products and industry application services[4]. - The company aims to expand its cloud services market, particularly in the industrial internet sector, targeting the development of "hundreds of industry clouds"[4]. - The company has developed specialized industry cloud services, including "Easy Safety Cloud" for industrial internet and "Smart Retail Cloud" for the retail sector[4]. - The company’s cloud computing services aim to provide clients with a light-asset model, allowing for flexible and efficient resource utilization[46]. - The revenue model for the Smart Retail Cloud includes service fees based on customer needs and application module usage fees, enhancing shopping experience and operational efficiency[50]. - The Cross-Border Logistics Cloud aims to create a digital logistics ecosystem, integrating various resources and providing services such as online ERP software and digital customs clearance, contributing to revenue growth[53]. - The Smart Tourism Cloud offers a one-stop service platform for the tourism industry, generating income from project implementation fees and operational service revenues[54]. - The Digital Factory Cloud helps manufacturing enterprises build a new generation cloud data center, facilitating unified management of IT resources and industrial control systems[55]. - The Public Safety Cloud focuses on providing a comprehensive service platform for safety management, generating revenue from membership services and platform transaction income[56]. - The company’s cloud series products generated a total revenue of approximately 600 million in 2019, reflecting a year-over-year growth of 31%[70]. - Cloud computing business revenue grew by 48.89% year-on-year, accounting for about 23% of total revenue[86]. Strategic Partnerships and Investments - The company has established a strategic partnership with GridDynamic, a leader in e-commerce big data and machine learning technologies[4]. - The company invested in key technologies and acquired several unicorn companies, including a significant investment in IoT chip company Tailin Microelectronics[4]. - The company has formed strategic partnerships to enhance its public safety cloud platform, serving over 46,000 enterprises and 90 inspection institutions[83]. - The company has invested a total of 10 billion RMB in the Beijing Integrated Circuit Advanced Chip Equity Investment Center, with an initial contribution of 4 billion RMB completed[167]. - The company acquired a 200 million RMB share in the Zhongyu Zhaotuo Equity Investment Center for a maximum price of 2.44612 billion RMB, with the transaction completed on January 8, 2019[167]. - The IoT M&A Fund has a total paid-in capital of 2.196 billion RMB and holds an 82.7471% stake in Tailin Microelectronics, which has leading technology in IoT chips[167]. Market Presence and Customer Base - The international workforce reached over 2,300 employees in 2018, with business from Hong Kong, Macau, and Europe/America accounting for 40% of total operations[4]. - The company has over 10,000 enterprise clients, showcasing a strong customer base and high user retention[67]. - The company has established a strong market presence with a mature marketing system and high customer trust across various industries, including government and finance[62]. - The company has formed a marketing service network covering major cities in China and regions in Southeast Asia, North America, and Europe, enhancing its global sales and service capabilities[68]. - The company’s overseas business accounted for 40.78% of total revenue, indicating rapid international expansion[95]. Research and Development - The company emphasizes its commitment to innovation and leveraging its 20 years of industry experience to enhance its cloud offerings[4]. - Research and development expenses increased by 6.51% year-on-year, totaling approximately 113 million RMB[87]. - The company will enhance R&D efforts, increasing capital and human resources to strengthen its core competitiveness[131]. - The company achieved CMMI-L5 software maturity certification, indicating advanced product development and project management capabilities, enhancing competitive advantage[62]. Corporate Governance and Social Responsibility - The company emphasizes corporate social responsibility, focusing on shareholder returns and employee development[183]. - The company has implemented a stable profit distribution policy and actively protects investor rights[185]. - The company has established a dedicated investor relations management position to enhance communication with investors[185]. - The company confirmed that it did not face any risks of suspension from listing during the reporting period[155]. Legal and Compliance Issues - The company was ordered to pay a total of RMB 39,116,128 for a dispute related to a sales contract, including interest losses and other fees, as per the arbitration ruling[157]. - The company is involved in a lawsuit where it claims RMB 86,515,475 from Wuhan Zhihui Ecological Technology Investment Co., Ltd. for contract payments and interest losses[157]. - The company did not report any significant accounting errors during the reporting period[154]. Future Outlook - The company aims to leverage the growing smart tourism market, which is projected to reach a scale of hundreds of billions in the coming years, by providing smart tourism management services to various levels of tourism management departments[75]. - The long-term goal is to achieve "100 years of Huasheng, 100 billion Tiancheng," aligning with national strategies and focusing on a trillion market for industrial upgrades[130]. - In 2019, the company plans to accelerate the development of industry clouds, aiming for profit growth and a mature business model[131].