STS(SH:603322)2025-04-29 15:18Financial Performance - The company achieved operating revenue of CNY 1.67 billion in 2024, a decrease of 31.57% compared to CNY 2.44 billion in 2023[23]. - The net profit attributable to shareholders of the listed company was a loss of CNY 61.76 million in 2024, down 428.73% from a profit of CNY 18.79 million in 2023[26]. - The basic earnings per share for 2024 was -CNY 0.39, a decline of 425.00% compared to CNY 0.12 in 2023[24]. - The weighted average return on equity decreased to -23.35% in 2024, down 31.29 percentage points from 7.94% in 2023[24]. - The company reported a net cash flow from operating activities of -CNY 133.72 million in 2024, a significant decline from CNY 2.26 million in 2023[23]. - The company experienced a significant decline in its core business revenue due to intensified market competition[26]. - The company fully recognized credit impairment losses and asset impairment losses, contributing to the substantial drop in net profit[26]. - The revenue from the telecommunications business dropped by 45.12% year-on-year, primarily due to intensified market competition[72]. - Operating costs amounted to CNY 1,502,650,325.41, down 33.18% year-on-year[68]. - Research and development expenses were CNY 53,447,513.29, a decrease of 14.46% compared to the previous year[68]. Corporate Governance - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[3]. - The company has received a qualified audit opinion from the accounting firm Xin Yong Zhong He[5]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity of the annual report[8]. - The company held four shareholder meetings during the reporting period, effectively protecting the rights of all shareholders[115]. - The board of directors consists of seven members, including three independent directors, and held ten meetings to oversee business operations and decision-making[115]. - The supervisory board, comprising three members, held six meetings to monitor the board's decisions and ensure compliance with regulations[116]. - The company adheres to strict information disclosure practices, ensuring transparency and protecting the rights of minority shareholders[116]. - The company has implemented measures to manage insider information and prevent leaks, maintaining a robust confidentiality system[117]. Strategic Initiatives - The company successfully delivered the first batch of its proprietary "Yuanxing" brand customized servers, marking a major breakthrough in market expansion[36]. - The company initiated the construction of a new computing center in Jiangsu, covering an area of 37,000 square meters, which is a significant project for 2024[40]. - The company signed contracts worth 171 million and 511 million for data center construction, showcasing its strong project management capabilities[42]. - The company established a joint venture, Xunxi Intelligent, to enhance its investment in the computing industry chain, focusing on chip technology services and server production[45]. - The company is actively pursuing opportunities in the computing field by partnering with Muxi Co., extending its business into hardware for computing equipment[44]. - The company is committed to accelerating the construction of its computing network, aiming to drive significant growth in its computing rental business[42]. - The company has secured new projects in the renewable energy sector, including maintenance for the Chongqing Tower Energy Charging Station and construction for the Jiangsu Tower Charging Piles, expanding its business scope[48]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the report[8]. - The company faces risks related to customer concentration, particularly its reliance on China Mobile, and plans to diversify its customer base to mitigate this risk[109]. - The company is also addressing the high proportion of accounts receivable and potential bad debt risks by strengthening dynamic management and maintaining good customer relationships[110]. - The company will enhance its risk assessment framework to better identify and manage internal and external risks, particularly focusing on credit risk indicators[146]. - The company has committed to strengthening accounts receivable management through proactive communication with clients and implementing a dedicated collection mechanism[146]. Shareholder Relations - The company plans not to distribute cash dividends, issue bonus shares, or increase capital reserves for the fiscal year 2024[6]. - The company has a clear cash dividend policy, adhering to regulations and ensuring protection for minority shareholders[138]. - The company has not proposed any cash profit distribution plan despite having positive distributable profits for shareholders[140]. - The total number of shares held by the chairman, Liang Jianhua, decreased from 42,285,000 to 32,285,000, reflecting a reduction of 10,000,000 shares due to an agreement transfer[118]. - The total number of shares held by the independent director, Zhou Wei, increased from 0 to 58,680 shares, representing an incentive share release due to meeting performance conditions[118]. Internal Control and Compliance - The company has established a comprehensive internal control system that meets regulatory requirements but identified significant deficiencies in credit management for certain clients, leading to overdue receivables[144]. - The board acknowledges the internal control audit report with an emphasis on the overdue receivables issue and plans to implement corrective measures, including improved client credit assessments and stricter approval processes[145]. - The company has committed to improving risk management and control capabilities to prevent operational risks[166]. - The company has reported a commitment to comply with laws and regulations, ensuring no misuse of funds or assets[159]. Market Expansion and Innovation - The company is actively developing AI capabilities, with its AI app "Lingxi Miaobi" launched in major domestic app stores, focusing on generative AI functionalities[61]. - The company aims to achieve over 60% of new computing power concentrated at national hub nodes by the end of this year, with over 80% of new large data centers using green electricity[53]. - The company has established a competitive compensation system based on job roles and levels, ensuring internal fairness[136]. - The company is focused on developing new technologies and products to drive future growth and market expansion[120]. Legal Matters - The company is involved in a significant lawsuit against Lanzhou Kewen Tourism for the return of cooperation intention funds, with a court ruling in favor of the company[172]. - The company has initiated legal proceedings against Lanzhou Kewen Tourism for the repayment of the RMB 200 million cooperation intention funds, with a civil judgment received in June 2024[178].