BOCO(SH:600289)2020-05-29 16:00Financial Performance - In 2019, the company achieved a net profit of CNY 1,502.22 million, with a net profit attributable to shareholders of CNY 1,502.87 million[5]. - The company's operating revenue for 2019 was CNY 733.96 million, a decrease of 41.46% compared to CNY 1,253.76 million in 2018[23]. - The net profit attributable to shareholders was CNY 1,502.87 million, while the net profit after deducting non-recurring gains and losses was CNY -279.53 million[38]. - The basic earnings per share for 2019 were CNY 2.38, a significant improvement from negative CNY 2.34 in 2018[24]. - The company reported a net profit of -280 million RMB after deducting extraordinary gains and losses for the year 2019[147]. - The company reported a comprehensive income total of -CNY 1,168,610,227.95 for the reporting period[188]. Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 129.70 million, worsening from negative CNY 18.65 million in the previous year[23]. - The company's cash flow situation remains critical, with ongoing financial difficulties impacting employee morale and project delivery capabilities[30]. - The net cash flow from operating activities for 2019 was a negative RMB 129,695,451.92, compared to a negative RMB 18,647,443.30 in 2018, indicating a significant decline in operational performance[169]. - The company experienced a decrease in cash flow from operating activities, which may impact future investment and expansion plans[171]. - The overall financial health of the company appears to be under pressure, with negative cash flows in both operating and investing activities[170]. Assets and Liabilities - The total assets at the end of 2019 were CNY 2,406.34 million, down 11.22% from CNY 2,710.33 million at the end of 2018[23]. - The company recognized a provision for liabilities of 1.175 billion yuan, which accounted for 48.84% of total assets, reflecting a significant decrease of 60.59% compared to the previous period[57]. - The anticipated credit loss for the guarantee contracts was measured based on various factors, confirming an expected liability of 612 million yuan[57]. - The total liabilities at the end of the reporting period were CNY 3,087,197,669.12, reflecting an increase from CNY 1,612,702,390.68 in the previous year[183]. Operational Challenges - The company faced severe operational challenges due to the freezing of multiple bank accounts, leading to a significant decline in revenue from traditional telecom operations and a halt in new business opportunities, particularly in the 5G sector[30]. - The company has ongoing major litigation matters, including contract disputes involving multiple parties, disclosed in previous announcements[87]. - The company is currently under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[149]. - The company faced disciplinary actions from the Shanghai Stock Exchange due to violations in information disclosure and internal controls, resulting in a 10-year disqualification for the actual controller from holding senior positions[126]. Strategic Focus and Future Outlook - The company plans to focus on the traditional telecommunications market and leverage 5G network construction as a breakthrough to capture new market opportunities[196]. - The company aims to enhance its unified basic technology platform by increasing R&D investment and optimizing existing technology applications[197]. - The company is focusing on expanding its market share in sectors like smart cities, intelligent transportation, and smart healthcare through innovative applications of AI and microservices[66]. - The company has not provided specific guidance for future performance due to the ongoing restructuring and operational challenges[6]. Research and Development - Research and development expenses totaled CNY 277.60 million, representing 38.66% of operating revenue[50]. - The company achieved significant technological advancements, including the completion of 44 software copyright certificates and 23 invention patents during the reporting period, showcasing its commitment to innovation[37]. - The company is developing a smart city platform and healthcare data-sharing platforms, collaborating with hospitals and research institutions to accumulate key technological capabilities in medical big data and AI[33]. Governance and Management - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board[192]. - The company has maintained a consistent leadership structure, with key executives serving since 2017, ensuring stability in management[120]. - The company has a structured remuneration policy for its directors and senior management based on performance and company objectives[124]. - The company is actively cooperating with the China Securities Regulatory Commission's investigation and is working to improve its operating conditions[86].