SG(SH:600734)2020-06-12 16:00Financial Performance - In 2019, the company's operating revenue was approximately ¥1.56 billion, a decrease of 76.97% compared to ¥6.76 billion in 2018[18]. - The net profit attributable to shareholders of the listed company was approximately -¥3.05 billion, representing a decline of 1,040.54% from -¥267 million in 2018[18]. - The net cash flow from operating activities was approximately -¥197 million, an improvement of 19.74% compared to -¥246 million in 2018[18]. - The company reported a negative distributable profit of approximately -¥373 million for the year, resulting in no profit distribution for 2019[4]. - The company faced a significant decline in revenue and profit, indicating potential challenges in market performance and operational efficiency[4]. - The net assets attributable to shareholders of the listed company decreased to -468.26 million RMB, a decline of 117.94% compared to the previous year[20]. - Total assets decreased by 64.31% to 2.62 billion RMB from 8.23 billion RMB in the previous year[20]. - Basic earnings per share were -4.89 RMB, a decrease of 1,041.33% compared to -0.43 RMB in the previous year[20]. - The company reported a net loss of 2.77 billion RMB in Q4 2019, with a significant drop in operating income to -513.60 million RMB[21]. - The total amount of non-recurring gains and losses for 2019 was 11.19 million RMB, a significant decrease from 63.86 million RMB in 2018[26]. - The company reported total revenue of CNY 155,698.51 million in 2019, a significant decrease of 76.97% compared to CNY 675,956.58 million in 2018[48]. - The net profit attributable to ordinary shareholders was CNY -304,702.84 million, worsening from CNY -26,715.57 million in the previous year[47]. - The company incurred significant impairment losses, including CNY 102,826.16 million for goodwill and CNY 137,494.39 million for inventory[47]. - The company reported a significant loss with undistributed profits at -3,172,094,908.65, a 2,436.33% increase in losses compared to -125,066,537.89 in the previous period[65]. Operational Challenges - The company faced severe liquidity issues due to dual pressures from financial institutions and debt repayments, impacting overall operational performance[38]. - Shenzhen Xingfei's revenue dropped by 79.45% to approximately CNY 1,339 million, with a net loss of CNY -216,890.86 million, compared to a profit of CNY 20,043.92 million in the previous year[42]. - The battery power supply business, operated by Ruide Electronics, saw a revenue decline of 23.42% to CNY 692 million, with a net loss of CNY -32,138.3 million, down from a profit of CNY 14,098 million in the previous year[43]. - The company reported a significant decline in production and sales volumes for key products, with smart phone sales down 86.83% year-over-year[53]. - The company has faced significant uncertainties regarding its ability to continue as a going concern due to consecutive annual losses and negative equity[155]. - The company has not achieved its original profit forecast for the reporting period, and the performance commitment completion status is not applicable[152]. Strategic Initiatives - The company plans to focus on improving operational strategies and addressing the challenges faced in the previous year[4]. - The company plans to expand its market presence by developing new products and enhancing its technology offerings in the IoT sector[44]. - The company is focusing on the development of lithium batteries for consumer electronics, which is anticipated to drive growth in the power supply market[72]. - The company is targeting growth in the IoT sector, particularly in smart warehousing, retail e-commerce, and public utilities, while also exploring overseas logistics markets[99]. - The company intends to maintain existing OEM and ODM partnerships while developing new communication terminal clients and expanding local manufacturing demands in Zhengzhou[103]. - The company is committed to integrating mobile internet and IoT strategies, focusing on smart hardware and software development, as well as big data operations[95]. - The company plans to enhance its core competitiveness in the security sector by developing a comprehensive defense system that includes intrusion detection and drone defense products[100]. - The company aims to achieve profitability and remove risk warnings by implementing cost reduction and efficiency improvement plans[101]. Legal and Compliance Issues - The company faced a lawsuit from China Construction Bank regarding a financial loan contract dispute, with the claimed amount totaling RMB 66,550,016.97[166]. - The company successfully repaid the principal and interest of the "17 Shida Bonds" on time, leading to the withdrawal of a lawsuit by China Trust in December 2019[169]. - The company is currently involved in multiple lawsuits, including a construction contract dispute with Kai Ji Ding Shi Development Co., with a claimed amount of RMB 15.64 million[176]. - The company has not recognized any contingent liabilities related to the ongoing lawsuits[176]. - Shenzhen Xingfei has been involved in multiple lawsuits, with a total claim amount of approximately 2,075.84 million for a financial loan dispute, which has been ruled in favor of the plaintiff[196]. - The company has settled several disputes, including a contract dispute with Kunshan Jieshun Precision Components Co., amounting to 18.73 million, which has been resolved[190]. Research and Development - Research and development expenses amounted to CNY 133,058,192.36, representing 8.55% of total revenue[60]. - The number of R&D personnel was 331, accounting for 16.15% of the total workforce[60]. - The company has developed multiple innovative products, including IoT perimeter security systems and smart monitoring devices, enhancing its technological capabilities[33]. - The company established a joint laboratory for IoT research and application with several institutions, enhancing its R&D capabilities[44]. - The company is increasing R&D investment in 5G technology to maintain competitiveness in the mobile communication terminal market[109]. Financial Management - The company has not proposed any capital reserve fund transfer plans in the last three years due to negative distributable profits[123]. - The company has pledged 70.00% equity of Shenzhen Xingfei and 51.00% equity of Zhongke Rongtong as collateral for the "17 Shida Bond" repayment[148]. - The company completed the repayment of the "17 Shida Bond" on time in November 2019, fulfilling its commitment[148]. - The company aims to enhance its financial situation by seeking significant financing from its controlling shareholder and related parties to alleviate liquidity issues[101]. - The company has committed to compensating for any losses incurred by Shenzhen Xingfei due to violations of the non-competition agreement[145].