BOCO(SH:600289)2018-06-15 16:00Financial Performance - In 2017, the company reported a net profit of -247,958 million RMB, with a net profit attributable to shareholders of -247,936 million RMB, resulting in no profit distribution for the year[5]. - The company's operating revenue for 2017 was 1,325,553,409.38 RMB, a decrease of 0.41% compared to 2016[22]. - The basic earnings per share for 2017 was -3.9289 RMB, a significant decline of 1,861.84% compared to the previous year[23]. - The total assets at the end of 2017 were 2,982,266,352.57 RMB, reflecting a decrease of 28.06% from the previous year[22]. - The company experienced a net cash flow from operating activities of -1,343,228,278.64 RMB in 2017, indicating a substantial decline in cash generation capabilities[22]. - The weighted average return on equity for 2017 was -124.63%, a drop of 130.14 percentage points compared to 2016[23]. - The company’s net assets attributable to shareholders decreased by 78.06% to 708,581,966.86 RMB at the end of 2017[22]. - The net profit attributable to shareholders of the parent company was -247.94 million RMB, a year-on-year decline of 2,009.9%[35]. - The net profit attributable to shareholders of the parent company, excluding non-operating gains and losses, was -81.68 million RMB, a decrease of 735.92% year-on-year[35]. - The company reported a net profit of -CNY 2,480,000,000 for the period, primarily due to the inclusion of estimated litigation compensation[82]. - The company reported a net loss of 2.48 billion yuan for the year 2017, with total assets amounting to 706 million yuan at year-end[110]. Legal and Compliance Issues - The company is currently conducting a special investigation regarding other receivables amounting to 477 million RMB related to Beijing Wuzhou Botong Technology Co., Ltd[9]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company is currently under investigation by the China Securities Regulatory Commission for information disclosure violations, with no conclusion reached yet[107]. - The company has filed a report with the police regarding unauthorized guarantee documents related to its controlling shareholder, ensuring legal action is taken to protect investor interests[176]. - The company is currently taking necessary legal measures to protect its and its shareholders' legitimate rights and interests due to a debt dispute involving its controlling shareholder[130]. - The company has engaged the same accounting firm, Deloitte, for auditing services, with a fee of 1 million yuan for the year[118]. - The company is involved in multiple significant litigation and arbitration cases, including disputes related to loan agreements and contract breaches[119]. - The company disclosed a significant number of legal cases, reflecting ongoing financial and operational challenges that may impact future performance[121]. Research and Development - The company has made significant investments in R&D for 5G technology and artificial intelligence applications in network optimization[38]. - The total R&D investment amounted to CNY 29,992,184.07, representing 2.26% of the operating revenue[67]. - The company’s capitalized R&D expenses were CNY 14,189,419.48, making up 47.31% of total R&D expenditures[67]. - The company employed 2,486 R&D personnel, which constitutes 86.08% of the total workforce[67]. - The company has established multiple joint laboratories focusing on SDN and big data through collaboration with research institutions[96]. - The company plans to continue its big data development strategy, enhancing software R&D capabilities while stabilizing its business in network management, optimization, information security, smart cities, and intelligent transportation[96]. - The company is investing heavily in the development of big data platforms, expanding applications into smart cities, intelligent transportation, and power industries[94]. Operational Challenges - The company faced challenges in expanding new business areas due to ongoing legal disputes, impacting its financial performance in 2018[37]. - The company faced challenges with customer relationships due to litigation, impacting project settlement accounts and revenue recognition[52]. - The company has experienced a decline in new contract amounts due to the freezing of multiple accounts related to a debt lawsuit involving its controlling shareholder, posing a risk to its ongoing operations[97]. - The company is focusing on strengthening regional service teams to ensure cash flow and maintain normal operations amid judicial account freezes[89]. Market and Business Strategy - The company launched new solutions such as integrated customer portals, IoT network management, and IDC operation management platforms to enhance its market presence[30]. - The company has expanded its market presence in non-telecom sectors such as smart healthcare and environmental management, leveraging its nationwide marketing network[36]. - The company actively participated in the TM Forum annual summit in Nice, France, and announced a strategic cooperation with China Mobile on "Next-Generation OSS Driven by Converged Networks"[40]. - The company signed a strategic cooperation agreement with Aria Networks, focusing on multi-level collaboration in technology and market[40]. - The company is committed to a dual growth strategy, combining organic growth with external expansion to capture opportunities in the mobile internet sector[94]. Financial Management - The company is enhancing its budget management and financial approval processes to strictly control financial risks[41]. - The company is implementing a management strategy that includes budget control and performance assessment to effectively reduce operational costs[95]. - The company is increasing its human resources expenditure to attract high-level technical talent and maintain a stable talent pool[41]. - The company has reported a significant increase in sales expenses, rising by 36.78% to CNY 192,389,516.13 compared to the previous year[66]. - The company’s financial expenses showed a significant decrease of 125.81%, resulting in a negative value of CNY -2,357,686.19[66]. Employee and Management Information - The company employed a total of 2,888 staff members, with 2,486 being technical personnel, representing 86.08% of the total workforce[161]. - The active turnover rate for employees decreased to 12.5% in 2017, down from 14.5% in 2016[164]. - The company has implemented a strict control on the number of employees, resulting in a decrease in formal staff numbers by the end of 2017 compared to the end of 2016[162]. - The total compensation for all directors, supervisors, and senior management at the end of the reporting period amounted to 6.5768 million yuan[158]. Corporate Governance - The company established an investor complaint handling system in compliance with regulatory requirements, ensuring governance practices align with the standards set by the China Securities Regulatory Commission[170]. - The internal control self-assessment report is available on the Shanghai Stock Exchange website, indicating the company's commitment to transparency[174]. - The company reported no significant discrepancies in governance practices compared to the requirements of the China Securities Regulatory Commission[170]. - The company has taken measures to improve the management of its official seal usage to prevent unauthorized use[175].