NSU(SZ:002089)2020-06-08 16:00Financial Performance - The company reported a total revenue of RMB 1.5 billion for the year 2017, representing a year-on-year increase of 15%[12]. - The net profit attributable to shareholders was RMB 200 million, which is a 10% increase compared to the previous year[12]. - The company's operating revenue for 2017 was ¥1,604,715,291.66, a decrease of 15.57% compared to ¥1,900,601,749.26 in 2016[6]. - The net profit attributable to shareholders was -¥183,547,177.00, representing a decline of 770.18% from a profit of ¥27,387,716.97 in the previous year[6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥227,227,721.11, a significant drop of 11,674.01% compared to ¥1,963,258.90 in 2016[6]. - The net cash flow from operating activities was ¥178,253,992.58, down 13.54% from ¥206,157,501.00 in 2016[6]. - The total assets at the end of 2017 were ¥4,544,619,057.16, a decrease of 15.46% from ¥5,375,449,361.89 at the end of 2016[6]. - The net assets attributable to shareholders were ¥1,672,089,609.74, down 11.85% from ¥1,896,876,875.22 in 2016[6]. - The company reported a basic and diluted earnings per share of -¥0.1340, a decline of 770.00% from ¥0.02 in 2016[6]. - The weighted average return on equity was -10.31%, a decrease of 11.76% compared to 1.45% in 2016[6]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next three years[12]. - Future guidance indicates a projected revenue growth of 18% for 2018, with a target revenue of RMB 1.77 billion[12]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[12]. - The company has established a strategic layout in the new energy electric vehicle industry, focusing on a complete supply chain from vehicle manufacturing to battery production[48]. - The company plans to strengthen its supply chain in the new energy electric logistics vehicle sector, focusing on lithium resource acquisition[95]. Research and Development - The company has allocated RMB 100 million for research and development in new technologies for the upcoming fiscal year[12]. - The company is focusing on the research and development of new lithium-ion batteries, which are critical for the growth of the electric vehicle market, with a goal of large-scale application by 2020[40]. - R&D investment amounted to ¥53,842,799.56 in 2017, a decrease of 29.96% from ¥76,879,652.76 in 2016, representing 3.36% of operating revenue[75]. - The number of R&D personnel decreased by 96.80% to 78 in 2017, with the proportion of R&D personnel dropping to 17.61% from 84.66% in 2016, a decline of 67.05%[75]. Product Development and Sales - New product development includes the launch of a smart energy management system, expected to generate an additional RMB 300 million in revenue in 2018[12]. - The company’s software services include IT outsourcing and mobile game development, aimed at enhancing operational efficiency and supporting new product development for clients[36]. - The company is actively involved in the development of new energy pure electric logistics vehicles, supported by government policies aimed at promoting the electric vehicle industry[39]. - The demand for new energy electric logistics vehicles is expected to surge due to the rapid growth of e-commerce logistics, with over 40 billion express deliveries recorded in 2017[39]. - The LED business revenue increased to 309 million yuan, representing a year-on-year growth of 44.07%[59]. - Communication network product revenue reached 145 million yuan, showing an impressive growth of 83.39% year-on-year[59]. - The software development business revenue declined by 50.14% to 187 million yuan compared to the previous year[59]. Risks and Challenges - Risks associated with market competition and regulatory changes have been identified, with strategies in place to mitigate these risks[4]. - The LED lighting industry is facing risks due to the gradual removal of government subsidies, which may negatively impact the sector[96]. - The LED chip industry is experiencing a capacity expansion, raising concerns about potential oversupply if downstream demand does not meet expectations[97]. - Military communication product sales are subject to fluctuations based on defense budget policies, indicating a level of volatility in revenue[100]. - The software outsourcing market is facing increased competition and declining gross margins due to rising costs, necessitating the launch of competitive products and effective market strategies[103]. Profit Distribution and Shareholder Relations - The company will not distribute cash dividends for the fiscal year 2017, opting to reinvest profits into business expansion[4]. - The company maintains a stable profit distribution policy, ensuring that cash dividends are not less than 10% of the distributable profits of the parent company[113]. - The company’s profit distribution policy allows for cash, stock, or a combination of both, prioritizing cash dividends when conditions permit[112]. - The company has a clear shareholder return plan for 2015-2017, emphasizing the importance of cash dividends based on profitability and cash flow[115]. - The company has established a transparent and operable dividend decision-making mechanism to protect the rights of minority shareholders[118]. Related Party Transactions - The company engaged in significant related party transactions, including the sale of materials at a market price of 3,331.08 million yuan, which accounted for 26.81% of the total transaction amount[143]. - The company also procured materials at a market price of 505.06 million yuan, representing 4.34% of the total transaction amount[144]. - The company provided labor services at a market price of 84.91 million yuan, which accounted for 1.56% of the total transaction amount[144]. - The total expected amount for related party transactions in 2017 is capped at 388.45 million CNY, while the actual amount incurred is 51.215 million CNY, which is within the expected range[146]. Legal and Compliance - The company has implemented changes in accounting policies in accordance with new regulations effective from May 28, 2017, and June 12, 2017, affecting the reporting of non-current assets and government grants[130][131]. - The company has maintained its accounting firm, Huapu Tianjian, for 8 years, with an audit fee of 3 million yuan for the current period[136]. - There were no significant accounting errors requiring restatement during the reporting period[134]. - The company reported no major litigation or arbitration matters during the reporting period[137]. Lease Agreements - The company has entered into multiple lease agreements, including a contract with Suzhou Fangbo Enterprise Management Service Co., Ltd. for a monthly rent of 13 CNY per square meter for a period of 96 months[154]. - The company has a total of 5,129.8 million CNY in related party transactions for the reporting period[146]. - The company signed a lease agreement with Suzhou Juyuan Electromechanical Engineering Co., Ltd. for a monthly rent of 15 RMB/sqm, covering a rental period of 6 months from January 1, 2018, to December 31, 2019[175]. Investor Relations - The company has strengthened investor relations management through various communication channels during the reporting period[199].