NSU(SZ:002089)2021-04-27 16:00Financial Performance - The company reported a significant increase in revenue for 2018, reaching RMB 1.5 billion, representing a growth of 20% compared to the previous year[13]. - The net profit for the year was RMB 200 million, which is a 15% increase year-over-year[13]. - The company's operating revenue for 2018 was approximately ¥766.34 million, a decrease of 52.24% compared to the previous year[18]. - The net profit attributable to shareholders was approximately -¥512.51 million, representing an increase in loss of 178.35% year-over-year[18]. - The company reported a basic and diluted earnings per share of -¥0.37 for 2018[18]. - The net cash flow from operating activities was -¥52.01 million, a decline of 129.18% compared to the previous year[18]. - The company reported non-recurring gains of approximately ¥274.28 million for 2018, significantly higher than the previous year[25]. - The total revenue for communication network products decreased by 4.21% to CNY 82,637,412.83 in 2018, compared to CNY 86,270,766.49 in 2017[66]. - The total revenue from system engineering income dropped by 74.05% to CNY 2,063,214.61, reflecting a substantial decline in this segment[66]. User Growth and Market Expansion - User data showed an increase in active users by 30%, reaching a total of 1 million users by the end of 2018[13]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2020[13]. - The company has established strategic partnerships in the "new energy" sector with several firms, focusing on electric vehicle sales and core components development[50]. - The company is actively integrating resources to prepare for future developments in both "new energy" and "big communication" sectors[49]. Research and Development - New product development includes the launch of a smart energy management system, expected to generate an additional RMB 100 million in revenue in 2019[13]. - The company has allocated RMB 50 million for research and development in new technologies for the upcoming fiscal year[13]. - The company has increased R&D investment in electric logistics vehicles and related power batteries, enhancing its competitive edge[45]. - Research and development expenses decreased by 30.39% to CNY 37,479,533.94, while the number of R&D personnel increased by 56.41% to 122[74]. Risks and Challenges - The company is facing risks related to market competition and regulatory changes, which are detailed in the risk assessment section of the report[4]. - The company is facing policy risks in the LED lighting industry due to the gradual removal of government subsidies[97]. - The company is addressing market competition risks in the LED industry by increasing technology and R&D investments to establish competitive advantages[99]. Subsidiary Performance - The company reported a significant decline in net profit for its subsidiary Suzhou Xinajing Optoelectronics, with a net loss of approximately 253.66 million yuan due to market fluctuations in the LED industry[92]. - The subsidiary Shenzhen Yisi Bo Software Technology recorded a net loss of approximately 8.72 million yuan, indicating challenges in its software development and sales operations[92]. - The company has recognized impairment losses on long-term equity investments in its subsidiaries due to continuous losses, particularly in Shaanxi Tongjia and Jiangxi Dibeike, affected by policy changes in the new energy vehicle sector[92]. - The overall financial condition of the company has been significantly influenced by the performance of its major subsidiaries, with some contributing over 10% to the net profit[91]. Profit Distribution and Shareholder Returns - No cash dividends will be distributed to shareholders for the year, as the company aims to reinvest profits into growth initiatives[5]. - The company maintains a continuous and stable profit distribution policy, ensuring that cash dividends are prioritized when conditions allow[111]. - The annual cash dividend distribution must not be less than 10% of the distributable profits of the parent company, barring special circumstances[112]. - The company has a three-year shareholder return plan (2018-2020) that emphasizes cash dividends as the primary form of profit distribution[114]. Asset Management and Investments - The total assets at the end of 2018 were approximately ¥4.73 billion, an increase of 4.14% from the previous year[19]. - The company has invested in various subsidiaries, including those specializing in electric logistics vehicles and lithium-ion battery production[30][31]. - The company has made significant investments in lithium carbonate projects, aiming to secure 100% ownership of the Moblan lithium mine project[50]. - The company has established a strategic layout in the new energy electric vehicle industry, forming a supply chain with "complete vehicles as the leader and batteries as the supporting" structure[40]. Leasing and Rental Agreements - The company signed multiple leasing contracts with various companies, with monthly rents ranging from 9 to 25 RMB per square meter, for properties in Suzhou Industrial Park[165][166][168][170]. - The company has a total of 19 leasing contracts with different companies, indicating a diversified rental income stream[170]. - The rental income from the leases contributes significantly to the company's revenue stream, with some agreements extending up to 12 years[191][197]. - The company is actively expanding its leasing portfolio in Shenzhen, with a focus on technology and service sectors[192][196]. Legal and Compliance Issues - The company is involved in a lawsuit regarding a performance compensation payment of 233.17 million yuan, with a court application for asset preservation filed on April 3, 2018[148]. - The audit report issued by Da Xin Accounting Firm contained a qualified opinion due to insufficient evidence regarding the financial status and operating results of Jiangxi Dibi Ke[137]. - The company is actively negotiating with relevant parties regarding performance compensation matters related to Jiangxi Dibike[131].