NSU(SZ:002089)2020-06-08 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[1]. - The company's operating revenue for 2018 was ¥766,336,584.63, a decrease of 52.24% compared to ¥1,604,715,291.66 in 2017[18]. - The net profit attributable to shareholders was -¥510,908,750.85, representing an increase of 178.35% from -¥183,547,177.00 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥785,186,631.81, an increase of 245.55% compared to -¥227,227,721.11 in 2017[18]. - The net cash flow from operating activities was -¥52,012,848.08, a decline of 129.18% from ¥178,253,992.58 in 2017[18]. - The total revenue from LED chip manufacturing increased by 10.55% to approximately 36.4 million units sold in 2018 compared to 32.9 million units in 2017[60]. - The total revenue for communication network products decreased by 4.21% to CNY 82,637,412.83 in 2018 from CNY 86,270,766.49 in 2017[66]. - The total revenue for system engineering income dropped by 74.05% to CNY 2,063,214.61 in 2018 from CNY 7,950,194.28 in 2017[66]. User Growth and Market Expansion - User data showed an increase in active users by 15%, reaching a total of 3 million users by the end of the reporting period[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[1]. - The company has provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[1]. Research and Development - Investment in research and development increased by 30%, totaling 200 million RMB, focusing on new technologies and product innovations[1]. - The number of R&D personnel increased by 56.41% to 122 in 2018 from 78 in 2017, representing 26.99% of the workforce[74]. - The company has consistently increased its investment in technology and R&D to establish a competitive advantage in the LED chip industry[100]. Strategic Initiatives - A strategic acquisition of a local tech firm was completed, valued at 500 million RMB, aimed at enhancing technological capabilities[1]. - The company has signed strategic cooperation agreements with multiple enterprises in the new energy sector, focusing on sales, operations, and development of electric vehicles and related infrastructure[43]. - The company has engaged in comprehensive cooperation with the National Lithium Fund for the investment and development of lithium carbonate projects, enhancing its resource acquisition capabilities[42]. Financial Management and Shareholder Returns - The board has decided not to distribute cash dividends for this fiscal year, opting to reinvest profits into growth initiatives[1]. - The company has a profit distribution policy that ensures at least 10% of distributable profits are allocated as cash dividends, barring special circumstances[113]. - The company has a clear shareholder return plan for 2018-2020, prioritizing cash dividends when conditions allow[115]. Risks and Challenges - The company identified key risks including market competition and regulatory changes, which are detailed in the governance section of the report[1]. - The LED lighting industry faces risks from the gradual removal of government subsidies, which may adversely affect the sector[98]. - The software outsourcing market has become increasingly competitive, leading to a decline in gross margins due to rising costs[105]. Operational Efficiency - The internal control evaluation report highlighted significant deficiencies that the company is addressing to improve operational efficiency[1]. - The company aims to strengthen its core competitiveness by integrating resources and optimizing industrial configuration in the new energy and large communication sectors[107]. - The company is focusing on cost control and technological investment to enhance product competitiveness and market share[97]. Subsidiary Performance - The company reported significant losses in its subsidiaries, with Shenzhen Yisi Bo Software Technology Co., Ltd. posting a net loss of approximately CNY 8.72 million, and Suzhou Xinna Crystal Optoelectronics Co., Ltd. reporting a net loss of approximately CNY 253.66 million[93]. - The company has recognized impairment losses on long-term equity investments due to continuous losses in its subsidiaries, including Shaanxi Tongjia and Jiangxi Dibi Ke[93]. Lease Agreements and Real Estate - The company has signed multiple lease agreements with various companies, with monthly rents ranging from CNY 9 to CNY 25 per square meter[164][165][166][167]. - The total area leased by Shenzhen Yisibo Software Technology Co., Ltd. across various agreements amounts to approximately 20,000 square meters[198][199][200]. - The average monthly rent across the leases is approximately 400,000 CNY, indicating a strong demand for office space in the region[198][199][200].