DVX(SZ:300167)2018-05-30 16:00Financial Performance - The company's operating revenue for 2017 was CNY 557,472,620.70, representing a 25.03% increase compared to CNY 445,888,898.15 in 2016[16]. - The net profit attributable to shareholders was a loss of CNY 5,849,871.34, a decrease of 119.91% from a profit of CNY 29,385,675.51 in 2016[16]. - The net cash flow from operating activities was a negative CNY 58,816,251.47, an improvement of 47.95% compared to a negative CNY 113,006,268.67 in 2016[16]. - The total assets at the end of 2017 were CNY 1,296,229,588.05, a decrease of 5.08% from CNY 1,365,644,671.82 at the end of 2016[16]. - The net assets attributable to shareholders decreased by 2.48% to CNY 708,867,061.15 from CNY 726,861,015.71 in 2016[16]. - The basic earnings per share for 2017 was -CNY 0.0195, a decline of 119.92% from CNY 0.0979 in 2016[16]. - The weighted average return on net assets was -0.81%, down from 4.13% in 2016, indicating a significant decline in profitability[16]. - The operating profit was CNY -4.47 million, a decline of 111.29% compared to the previous year, while the net profit attributable to the parent company was CNY -5.85 million, down 119.91% year-on-year[36]. - The company reported a net loss of 262,800 yuan from its investment in a smart city project, indicating challenges in achieving profitability in this area[63]. - The company reported a net loss of ¥5,849,871.34 for 2017, indicating a challenging financial year[83]. Revenue and Sales - Total revenue for the fourth quarter reached ¥255,898,948.68, with a year-on-year increase compared to previous quarters[18]. - The revenue from the communications sector was CNY 394.44 million, accounting for 70.76% of total revenue, with a year-on-year increase of 8.57%[41][42]. - The company achieved total revenue of CNY 557.47 million in 2017, a year-on-year increase of 25.03%[36]. - Total operating revenue for the period reached CNY 557,472,620.70, an increase from CNY 445,888,898.15 in the previous period[199]. Operational Challenges - The company faced risks related to accounts receivable, particularly due to long payment cycles from local government clients, which can extend from 1 to 3 years[76]. - The company reported a net cash flow from operating activities of -¥24,262,944.54 in the fourth quarter, reflecting cash flow difficulties[18]. - The company reported a decrease in undistributed profits to CNY 83,110,141.01 from CNY 115,883,288.37, a drop of about 28.3%[193]. - Cash and cash equivalents decreased by ¥134,481,327.28, reflecting a significant decline of 323.34% year-on-year[56]. - The company reported a decrease in cash and cash equivalents to CNY 49,914,395.82 from CNY 115,244,848.58, a decline of approximately 56.7%[195]. Strategic Initiatives - The company plans to focus on its core business and expand market share while enhancing operational management capabilities[4]. - The company is actively exploring innovative business models and collaborations to alleviate resource and market mismatches[5]. - The company aims to enhance its market presence by leveraging its existing customer base, particularly in government and public sectors[33]. - The company has initiated the "Green Ecological Poverty Alleviation Industrial Park Project" in Hotan, which is expected to create 20,000 jobs locally[37]. - The company is committed to enhancing its service quality through talent acquisition and training, focusing on high-level personnel in technology and management[72]. Research and Development - Research and development (R&D) investment was ¥20,768,692.70, accounting for 3.73% of operating revenue, a decrease from 5.95% in the previous year[55]. - The number of R&D personnel decreased to 665, representing 68.56% of the total workforce, up from 49.31% in the previous year[54]. - The company has accumulated 84 valid patents, with 61 authorized, including 26 invention patents, showcasing its commitment to innovation[34]. Governance and Compliance - The company has not reported any significant discrepancies between financial reports under different accounting standards, ensuring consistency in financial reporting[19]. - The company has maintained a 100% compliance rate in its internal control evaluation, with no significant deficiencies identified in financial or non-financial reporting[173][174]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors[157]. - The board of directors consists of 6 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[155]. Employee and Management - The company has a total of 970 employees, with 665 in technical roles, 53 in sales, and 25 in production[149]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 2.8026 million[147]. - The company has implemented a performance evaluation mechanism to enhance employee motivation during the reporting period[150]. - The company has established a comprehensive talent training system to enhance employee capabilities and support strategic goals[151]. Asset Management - The company reported a total inventory balance of ¥121,691,977.12 as of December 31, 2017, with a provision for inventory impairment of ¥17,919,143.47[182]. - Accounts receivable increased from ¥216,439,016.31 to ¥276,271,162.98, indicating a growth of approximately 27.7%[190]. - Inventory decreased significantly from ¥147,810,772.24 to ¥103,772,833.65, a reduction of about 29.8%[190]. - The company’s total liabilities were CNY 533,477,400.91, a slight decrease from CNY 549,585,145.94, indicating a reduction of about 2.9%[192].