GOHIGH(SZ:000851)2018-08-20 16:00Financial Performance - The company's operating revenue for the reporting period reached ¥5,105,221,277.67, representing a 33.56% increase compared to the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥36,449,116.25, a decrease of 12.13% year-on-year[20]. - The net cash flow from operating activities was -¥1,155,067,892.29, reflecting a decline of 71.42% compared to the previous year[20]. - The total assets at the end of the reporting period amounted to ¥8,632,015,566.36, an increase of 5.68% from the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were ¥3,323,403,571.52, up 2.15% from the previous year[20]. - Basic earnings per share decreased to ¥0.0412, down 11.40% from the previous year[20]. - Diluted earnings per share also fell to ¥0.0402, a decrease of 13.55% year-on-year[20]. - The company reported non-recurring gains and losses totaling ¥1,391,565.85 for the period[25]. - The company reported a significant increase in accounts receivable, totaling CNY 939,522,998.54, compared to CNY 907,873,045.97, an increase of 3.5%[166]. - The company’s long-term borrowings rose to CNY 139,446,255.90 from CNY 137,000,000.00, reflecting a growth of 1.8%[164]. Investment and Capital Structure - The company implemented a capital reserve conversion to increase its total share capital from 648,307,048 shares to 907,629,867 shares[19]. - The company plans to raise up to 110 million CNY for its subsidiary Henan Ronghe through external investors, with a maximum of 10 investors holding no more than 70% of the shares[118]. - The total share capital increased from 648,307,048 shares to 907,629,867 shares following a capital reserve conversion plan, distributing 4 new shares for every 10 existing shares[122]. - The basic earnings per share decreased from 0.2869 to 0.2028 after the capital increase, reflecting a change of -0.0841[125]. - The diluted earnings per share also decreased from 0.2811 to 0.1998, with a change of -0.0813[125]. - The net asset value per share attributable to ordinary shareholders dropped from 5.02 to 3.58, a decrease of -1.44[125]. - The company issued 13,377,775 shares to specific investors, which became tradable on January 18, 2018[124]. - The company has completed a capital increase for its subsidiary, raising up to 162 million RMB for investments in upstream and downstream industries, product development, and working capital[116]. Business Strategy and Market Position - The company aims to become a leading provider of IoT and integrated communication technology and services for enterprise information applications and mobile internet services for individual consumers[28]. - The IT sales business is the main revenue source, with significant partnerships with major retailers like Suning and JD.com, focusing on expanding online and offline sales channels[29]. - The company is focusing on strategic emerging industries such as vehicle networking and information security, with ongoing research and exploration[38]. - The company plans to accelerate its smart manufacturing segment through acquisitions and is actively seeking targets in the industrial software sector[41]. - The company plans to expand its market presence and enhance its product offerings through strategic investments and partnerships[56]. - The company is focusing on sustainable business development by establishing a three-tier business chain system, including mature, growth, and seed businesses[69]. Operational Efficiency and Challenges - The company reported a 46.29% decrease in cash funds due to increased payment expenditures, while accounts receivable grew by 64.59% due to increased sales volume[32]. - Inventory increased by 78.48% as a result of transitioning construction projects to inventory and increased costs in enterprise information and IT sales businesses[32]. - The gross margin for the information services business decreased by 3.4% due to intensified competition in the market[43]. - The company anticipates potential risks in its information services business due to increased competition and market pressure[67]. - The company aims to optimize its inventory turnover and receivables management to mitigate financial risks associated with business expansion and acquisitions[68]. Social Responsibility and Community Engagement - The company actively engages in targeted poverty alleviation efforts, focusing on the national-level impoverished county of Shenqiu[106]. - The company aims to expand its contact center and promote the "Smart Shenqiu" initiative as part of its poverty alleviation strategy[106]. - The company has established a dedicated working group for targeted poverty alleviation to ensure effective project implementation[106]. - The company emphasizes the development of rural e-commerce as part of its social responsibility initiatives[106]. - The company has successfully implemented a financial assistance program that benefits 600 impoverished households, providing each household with an annual dividend of 2,000 RMB, totaling support for 656 households[108]. Debt and Financial Management - The company maintained a loan repayment rate of 100.00% and an interest payment rate of 100.00% during the reporting period[152]. - The company's total liabilities increased slightly to CNY 4,730,060,077.18 from CNY 4,708,533,568.38, a change of 0.5%[164]. - The total approved guarantee amount for subsidiaries during the reporting period was CNY 233.5 million, with actual guarantees amounting to CNY 170.32 million[103]. - The company’s bond proceeds are fully utilized for supplementing working capital, ensuring operational needs are met[145]. - The company’s bond issuance complies with the Shenzhen Stock Exchange regulations and is aimed at qualified investors[142]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 68,841[129]. - The largest shareholder, Telecom Science and Technology Research Institute, holds 12.81% of shares, totaling 116,232,472 shares[129]. - The total number of restricted shares granted to senior management at the end of the period was 2,351,300 shares, with 1,679,500 shares granted during the reporting period[137]. - The total number of restricted shares held by directors and senior management increased from 2,062,925 shares to 2,888,096 shares, reflecting an increase of 825,171 shares during the reporting period[137].