JSZY(SH:600770)2019-04-19 16:00Financial Performance - In 2018, the company's total revenue was CNY 471,998,948.95, a decrease of 37.29% compared to CNY 752,622,631.99 in 2017[20] - The net profit attributable to shareholders was CNY 53,767,148.07, an increase of 20.24% from CNY 44,716,721.48 in the previous year[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -105,132,661.24, a significant decline of 928.52% compared to CNY 12,689,207.47 in 2017[20] - The net cash flow from operating activities was CNY 65,344,195.25, down 66.44% from CNY 194,736,494.15 in the previous year[20] - The total assets at the end of 2018 were CNY 5,803,599,747.80, a decrease of 11.18% from CNY 6,534,175,577.79 at the end of 2017[20] - The net assets attributable to shareholders were CNY 3,458,164,346.94, a slight decrease of 1.70% from CNY 3,518,011,649.54 in 2017[20] - The basic earnings per share for 2018 were CNY 0.0414, an increase of 20.35% from CNY 0.0344 in 2017[22] - The company did not propose any profit distribution or capital reserve transfer due to negative distributable profits at the end of the period[5] Revenue Challenges - The company faced significant challenges due to a large goodwill impairment loss and losses on available-for-sale financial assets, impacting the net profit[23] - The decline in revenue was primarily attributed to reduced income from overseas power station transfers and business adjustments in subsidiaries[20] - In Q1, the company reported operating revenue of approximately ¥137.71 million, which decreased to ¥101.85 million in Q4, reflecting a decline of about 26%[25] - The net profit attributable to shareholders was ¥3.18 million in Q1 but turned negative in Q4 with a loss of ¥31.36 million, indicating a significant downturn in profitability[25] - The company faces challenges in the mobile gaming sector due to increased competition and a lack of new product performance, impacting its revenue growth[48] Investment and Asset Management - The company is focusing on managing existing projects and prioritizing high-quality projects for IPO or acquisition[82] - The company is actively seeking to optimize its asset management and exit strategies to enhance overall investment returns[82] - The company aims to optimize asset allocation by seeking potential buyers for its solar power plants while enhancing operational efficiency[53] - The company has pledged bank deposits of ¥310,000,000 to secure bank loans from Minsheng Bank[98] - The company has also mortgaged land use rights and property ownership for a maximum guarantee of ¥70,000,000 from China Construction Bank[99] Research and Development - The company has been focusing on the information technology sector, particularly in chip design and application, which remains a key area for development[32] - The integrated circuit business faced challenges due to market shifts, leading to a strategic pivot towards developing proprietary hearing aid chips, which have completed trial production and testing[36] - The company plans to enhance its core technology team to improve product and service quality in anticipation of potential competition in the internet lottery market upon its possible reopening[144] - The company is increasing its investment in research and development to maintain or exceed its current industry position amid rapid technological advancements[147] Solar Power Operations - The company's solar power plants had a total installed capacity of 88.54 MW by the end of 2018, generating stable revenue primarily from grid electricity sales and government subsidies[49] - In 2018, the European solar power plants generated revenue of €951.86 million, while the New Jersey solar power plant achieved revenue of $828.04 million[57] - The company has established a robust operational strategy for its solar power plants, focusing on maintenance and management to enhance overall profitability[53] - The Romanian green energy card trading policy has been extended from 1 year to 15 years, potentially increasing the company's revenue from solar projects in that region[52] Market Trends and Future Outlook - The global aging population is expected to increase the demand for hearing aids, with a rising focus on improving the quality of life for the hearing impaired[116] - The domestic digital hearing aid industry is in its infancy, with no fully independent intellectual property products, and is largely dominated by foreign brands[116] - The smart card market in China remains volatile, influenced by government information technology initiatives, despite having development potential[118] - The mobile gaming industry is experiencing a slowdown, with market concentration expected to increase as smaller companies struggle to compete against larger firms[122] Corporate Governance and Compliance - The company has maintained its auditor, Lixin Accounting Firm, for 19 years without any changes during the reporting period[166] - There were no significant litigation or arbitration matters reported for the year[168] - The company has no major issues regarding the integrity of its controlling shareholders or actual controllers during the reporting period[168] - The company is focused on strengthening its internal operations and compliance during the ongoing industry restructuring[159] Social Responsibility - The company emphasizes its commitment to social responsibility, focusing on sustainable development and community support initiatives[181] - The company plans to enhance its social responsibility management system and continue participating in various social welfare activities in 2019[182]