YSDZ(SZ:002289)2019-04-24 16:00Financial Performance - The company reported a net profit of negative value for both 2017 and 2018, leading to a "delisting risk warning" for its stock after the 2018 annual report disclosure[6]. - The company's operating revenue for 2018 was ¥324,317,943.36, a decrease of 19.10% compared to ¥400,884,702.27 in 2017[18]. - The net profit attributable to shareholders for 2018 was -¥154,320,452.15, representing a decline of 21.08% from -¥127,454,061.93 in 2017[18]. - The net cash flow from operating activities was -¥40,596,536.22 in 2018, a significant decrease of 112.76% compared to ¥318,205,591.37 in 2017[18]. - Total assets at the end of 2018 were ¥599,598,626.90, down 18.30% from ¥733,880,740.41 at the end of 2017[18]. - The company's net assets attributable to shareholders decreased by 32.76% to ¥316,739,989.67 at the end of 2018 from ¥471,060,441.82 at the end of 2017[18]. - The company reported a basic earnings per share of -¥0.5506 for 2018, a decline of 21.06% from -¥0.4548 in 2017[18]. - The company reported a total revenue of CNY 324.32 million in 2018, a decrease of 19.10% compared to the previous year[35]. - The net profit attributable to shareholders was CNY -154.32 million, representing a decline of 21.08% year-on-year[35]. Business Operations - The company operates in the electronic equipment manufacturing industry, focusing on the R&D, production, and sales of LCD screens and modules, touch screens, and integrated touch display modules[27]. - The company has not experienced significant changes in its main business during the reporting period[27]. - The company is focusing on expanding its non-consumer electronic product touch display solutions to improve performance amid economic pressures[35]. - The company has established a comprehensive product line including touch screen sensors and modules, enhancing its competitive edge in the market[31]. - The company is actively responding to market demands in specialized display applications such as automotive, medical, and smart finance[34]. - The company aims to improve its performance by consolidating and enhancing its main business while expanding subsidiary operations[35]. Risks and Challenges - The company has faced market volatility, industry competition risks, and funding risks, which are detailed in the report's section on future development outlook[6]. - The company emphasizes the importance of risk awareness for investors regarding future plans and performance forecasts[6]. - The company faces risks from market fluctuations and industry competition, with uncertainties in global macroeconomic conditions potentially impacting production and sales[85]. - Increased competition and rising raw material costs are expected to elevate material costs, affecting the company's profitability[86]. - There is a risk of talent shortages, particularly in skilled labor, which could hinder the company's production and market expansion capabilities[87]. Shareholder and Capital Management - The company plans not to distribute cash dividends, issue bonus shares, or increase capital using reserves[7]. - The company has established a clear cash dividend policy, but has not distributed dividends in 2016, 2017, or 2018 due to negative retained earnings[91][93]. - The company plans to maintain its capital reserve without issuing dividends or increasing share capital through reserves for the reporting period[96]. - The company’s total procurement from the top five suppliers was ¥48,560,239.04, accounting for 24.59% of total annual procurement[49]. - The company’s financial expenses decreased by 56.08% to ¥12,572,731.55, primarily due to a reduction in financing scale[50]. Fundraising and Investments - The total amount of funds raised from the initial public offering in 2009 was RMB 29,378 million, with a net amount of RMB 26,708.65 million after deducting fees[62]. - As of December 31, 2018, the cumulative amount of raised funds used was RMB 67,195.47 million, with 39.59% of the funds remaining unused[63]. - The company has a remaining balance of RMB 399.84 million in raised funds as of December 31, 2018, including interest income[64]. - The company reported a total of RMB 4,481.16 million allocated for permanent working capital from the raised funds[64]. - The company has committed to using all raised funds for the capacitive touchscreen project, as approved in a board meeting in February 2011[69]. Governance and Compliance - The company has committed to ensuring the independence of its personnel, assets, finance, and operations, with a focus on maintaining a complete and independent organizational structure[97]. - The company has established a long-term commitment to maintaining independence in its operations, ensuring asset integrity and financial independence[108]. - The company guarantees the independence of its operational activities, possessing the necessary assets, personnel, and capabilities to conduct business autonomously in procurement, production, and sales[101]. - The company is committed to transparency and will not engage in insider trading or market manipulation[108]. - The company has undertaken measures to ensure the independence of its governance structure, including the board of directors and supervisory board, in accordance with legal and regulatory requirements[101]. Strategic Planning and Future Outlook - The company aims to achieve profitability in 2019 by optimizing resource allocation and improving asset utilization efficiency[84]. - The company anticipates that the 5G technology development will create significant market opportunities and challenges in the next 2-3 years[79]. - The company is committed to reducing management and production costs while implementing lean production and quality management practices[82]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5% in the upcoming year[198]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[198]. Related Party Transactions - The company engaged in a related party transaction involving a loan of CNY 100 million from Zhongzhi Chuangxin Investment, with a term of 12 months and an interest rate of 12.98%[120]. - The company recorded a loss of RMB 218.66 million from the sale of assets to a related party, with the transaction price being RMB 1.910 billion against a book value of RMB 1.90866 billion[123]. - The company has a total of RMB 1.145 billion in receivables from related parties, with RMB 732.19 million being newly added during the reporting period[126]. - The company has no significant other related party transactions during the reporting period[128]. - The company will ensure that any related transactions are disclosed adequately and comply with the company's articles of association[105]. Management and Human Resources - The company has established a comprehensive human resources management system to support employee development and maintain a fair performance evaluation mechanism[139]. - The remuneration for directors, supervisors, and senior management is determined based on the company's established compensation system, linking salaries to annual performance[200]. - Independent directors received an annual allowance of 100,000 RMB (tax included) for 2018, while non-independent directors and supervisors received 60,000 RMB (tax included) per year[200]. - Senior management compensation consists of basic salary, performance salary, and bonuses, determined by evaluation results[200]. - The company experienced several management changes, including the resignation of four senior executives due to personal reasons or job changes[189].