BOCO(SH:600289)2019-04-26 16:00Financial Performance - The company reported a net profit of -1,474.95 million RMB for 2018, a decrease from -2,482.91 million RMB in 2017, indicating an improvement of 40.5% year-over-year[5]. - Total revenue for 2018 was 1,253.76 million RMB, down 7.11% from 1,349.69 million RMB in 2017[23]. - The company's net cash flow from operating activities was -18.65 million RMB, a significant improvement from -1,343.23 million RMB in 2017[23]. - The company's net assets attributable to shareholders were -770.32 million RMB at the end of 2018, a decline of 209.26% from 705.03 million RMB at the end of 2017[23]. - Basic earnings per share for 2018 were -2.3366 RMB, an improvement from -3.9346 RMB in 2017[24]. - The company reported a significant non-operating loss of approximately -1.39 billion in 2018, compared to -1.66 billion in 2017[29]. - The net profit attributable to shareholders was CNY -1,474.50 million, an increase of 40.61% year-on-year[43]. - The company reported a net loss of -¥3,087,197,669.12 in retained earnings, compared to -¥1,612,702,390.68 previously[165]. - The company reported a net loss of 1.475 billion RMB for the period, with a year-end net asset value of -774 million RMB[199]. Operational Challenges - The company faced non-operating fund occupation by the controlling shareholder amounting to 588 million RMB[7]. - The company is currently taking legal measures to protect its rights and interests amid debt disputes involving the controlling shareholder[8]. - The company faced significant operational challenges due to account freezes, impacting traditional business expansion and new project contracts[38]. - The company is actively working to resolve legal disputes and improve cash flow to ensure normal business operations[32]. - The company faces significant risks due to the freezing of multiple accounts, which has impacted normal bidding and resulted in a decrease in new contract amounts[75]. - Due to litigation matters, multiple bank accounts and subsidiary equity have been frozen, significantly impacting the company's operations[199]. Strategic Initiatives - The company aims to stabilize its market position in the telecommunications sector while exploring new profit growth points through big data, AI, cloud computing, and IoT applications[31]. - The company plans to leverage the commercial rollout of 5G to enhance its market position and drive the development of new applications in ultra-high definition, vehicle networking, and smart healthcare[65]. - The company is committed to expanding its applications in non-telecom sectors such as smart cities, intelligent transportation, and smart healthcare, utilizing AI and microservices[71]. - The company plans to maintain healthy, stable, and sustainable development in 2019, assuming no significant changes in the internal and external economic environment[43]. - The company plans to strengthen its traditional communication market while exploring new profit growth points through new business and technology[199]. Research and Development - Research and development expenses increased by 10.59% to CNY 264.94 million, while management and sales expenses decreased by 14.62% and 20.99%, respectively[53]. - The company achieved CMMI Level 5 certification and added 103 software copyrights and 11 new patent applications during the reporting period[36]. - The company is focusing on enhancing its core competitiveness through continuous investment in new technologies and product development, particularly in the areas of security and big data[39]. - The company has made progress in AI and big data applications in non-telecom sectors, establishing partnerships with hospitals and research institutions to accumulate key technology capabilities[36]. - The company plans to continue focusing on cost reduction and efficiency improvements in the upcoming periods to enhance profitability[171]. Legal and Regulatory Issues - The company is currently under investigation by the China Securities Regulatory Commission, which may lead to a risk of suspension of its stock listing if significant violations are confirmed[89]. - The company has initiated judicial reorganization to protect its assets and restore liquidity, with a shareholder meeting approving the application for reorganization on October 15, 2018[91]. - The controlling shareholder, Yiyang Group, has been declared bankrupt and has applied to the court to remove its status as a dishonest executor[95]. - The company has been involved in multiple litigation cases, including financing contract disputes and financial loan contract disputes, with announcements made in June, September, and November 2018[93]. Shareholder and Management Structure - The total number of ordinary shareholders at the end of the reporting period is 43,415, an increase from 41,898 in the previous month[110]. - The top ten shareholders hold a total of 207,573,483 shares, representing 32.89% of the company, with 64,459,419 shares frozen[113]. - The actual controller of the company is Deng Wei, who is also the chairman and CEO[118]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 2,097.76 million CNY[123]. - The company has maintained a consistent management team since March 2017, with several members serving until March 2020[124]. Financial Health and Liabilities - The company recognized a total estimated liability of ¥2,981,977,591.40, a 79.32% increase from the previous period[61]. - The company incurred a total of ¥14.03 billion in extraordinary expenses related to legal liabilities, significantly impacting profits[59]. - The company reported a total of CNY 1,410,500,904.71 in capital reserves, which is a critical component of its equity structure[187]. - The total equity attributable to the parent company at the end of the period is CNY 631,052,069.00, with a decrease of CNY 2,524,476,707.84 during the year[183]. - The comprehensive income for the period shows a total loss of CNY 2,482,908,647.95, significantly impacting the overall equity[185].