Teamsun(600410)2019-07-15 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of -225,871,722.68 CNY, with an undistributed profit at the end of the year amounting to 832,272,730.14 CNY[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[32]. - 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[32]. - 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[32]. - 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[32]. - The basic earnings per share for 2018 was -CNY 0.2063, a decrease of 199.57% compared to CNY 0.2072 in 2017[32]. - The weighted average return on equity for 2018 was -4.74%, a decrease of 9.44 percentage points from 4.70% in 2017[32]. - The company reported a net profit loss of CNY 366,271,502.35 after deducting non-recurring gains and losses for 2018[32]. - The net assets attributable to shareholders at the end of 2018 were CNY 4,660,534,532.35, a decrease of 4.38% from CNY 4,874,110,614.44 at the end of 2017[32]. - The company reported a total revenue of approximately 5.166 billion RMB, reflecting a year-over-year decrease of 4.10%[90]. Business Model and Strategy - The company has transitioned to an industry cloud business model, focusing on providing cloud infrastructure products and industry application services[4]. - The company aims to expand its cloud services market, particularly in the industrial internet sector, with a goal of developing "hundreds of industry clouds"[4]. - The strategic focus includes deepening industry cloud services and leveraging partnerships with unique segment leaders for mutual growth[4]. - The company emphasizes innovation and execution, leveraging 20 years of industry experience to enhance its cloud offerings[4]. - The company’s innovative business in cloud computing is expected to drive future growth, with a focus on hybrid cloud management and automation platforms[48]. - The company aims to become a leading player in the industry cloud market in 2019, leveraging over 20 years of experience and technology accumulation[131]. - The company intends to focus on industry cloud development while streamlining peripheral businesses to improve operational efficiency[131]. Investments and Acquisitions - The company invested in key technologies, including a significant investment in IoT chip company TaiLing Microelectronics, which has been applied in products for major clients like Intel and GE[4]. - The acquisition of GridDynamic, a cloud computing service company, has enhanced the company's capabilities in big data and machine learning, serving major global clients[4]. - The company has committed RMB 1 billion to the Beijing Integrated Circuit Advanced Chip Equity Investment Center, with an initial investment of RMB 400 million completed[166]. - The company completed the transfer of 100% equity of its subsidiary, Changtian Technology, for a consideration of RMB 158 million, resulting in an investment income of approximately RMB 123 million[119]. Revenue Streams and Market Presence - The international business accounted for 40% of total operations in 2018, with over 2,300 overseas employees[4]. - The company's main business, traditional IT system solutions, accounted for over 70% of total revenue, primarily from system integration and application software development[44]. - The company achieved a profit from the disposal of non-current assets amounting to RMB 124,386,503.68 in 2018, up from RMB 110,372,415.46 in 2017[36]. - The company has over 10,000 government and enterprise clients, showcasing a strong customer base and high user stickiness[66]. - 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[66]. Research and Development - Research and development expenses increased by 6.51% to approximately 113 million RMB, reflecting the company's commitment to innovation[85]. - The number of R&D personnel was 1,073, making up 27.44% of the total workforce[99]. - The company plans to increase R&D investment in proprietary products in 2019 to enhance its core competitiveness[131]. Profit Distribution and Shareholder Relations - The company will not implement a profit distribution for 2018 due to the negative net profit[9]. - The board decided not to implement any profit distribution for 2018 due to the negative net profit[142]. - The company emphasizes a cash dividend policy, aiming for a minimum annual cash distribution of 10% of the distributable profit[137]. - The company has committed to maintaining a stable profit distribution policy, with cumulative cash distributions over the last three years not less than 30% of the average annual distributable profit[137]. - The company is committed to protecting the rights and interests of suppliers and customers, ensuring compliance with intellectual property laws[183]. Legal and Compliance Matters - The company reported a payment of 39,116,128 RMB for a dispute with Shenzhou Digital, including interest losses and legal fees, following an arbitration ruling[153]. - The company is involved in a lawsuit where it claims 86,515,475 RMB from Wuhan Smart Ecology Technology Investment Co., including interest losses and related litigation costs[153]. - The company has not disclosed any new product developments or technological advancements in this report[198]. - The company is not listed as a key pollutant discharge unit by the Beijing Environmental Protection Bureau as of March 28, 2018, and adheres to various environmental protection laws without any penalties during the reporting period[185].