四维图新(002405) - 2019 Q4 - 年度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, defines key terms used throughout the report, and highlights major risks faced by the company Important Notes The company's management guarantees the accuracy and completeness of the annual report and assumes legal responsibility for its content - Company management guarantees the truthfulness, accuracy, and completeness of the annual report and assumes corresponding legal responsibility[2] - The company's 2019 profit distribution plan proposes a cash dividend of 0.18 yuan per 10 shares (including tax), with no bonus shares or capital reserve conversion to share capital[3] Definitions This section defines key terms used in the report, such as company names and core technical concepts, to facilitate understanding - The report provides clear definitions for the company, its main subsidiary (AutoChips), and core technical terms such as Connected Vehicles, ADAS, and NDS[7] Risk Factors The company identifies key risks including market uncertainties, new business monetization challenges, talent competition, and intellectual property infringement - The company faces uncertainty risks from macroeconomic downturns, automotive industry pressures, and intense market competition[8] - Continuous investment in new businesses like high-precision maps, autonomous driving, and chips carries the risk of slower-than-expected monetization[9] - The company faces fierce talent competition and retention challenges in cutting-edge fields such as autonomous driving and artificial intelligence[10] - The company's electronic map and software products are exposed to copyright infringement risks, which could threaten economic revenue[11] Company Profile and Key Financial Indicators This section presents the company's fundamental information, including stock details, and summarizes its key financial performance and position for the reporting period Company Basic Information This section provides the company's registration details, stock information, contact methods, and confirms the absence of a controlling shareholder since 2014 | Item | Content | | :--- | :--- | | Stock Abbreviation | NavInfo | | Stock Code | 002405 | | Legal Representative | Wu Jinfeng | | Controlling Shareholder Status | No controlling shareholder or actual controller since 2014 | Key Accounting Data and Financial Indicators In 2019, revenue grew by 8.25% to 2.31 billion yuan, but net profit attributable to shareholders decreased by 29.20% to 339 million yuan | Key Financial Indicator | 2019 (yuan) | 2018 (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,309,742,643.97 | 2,133,659,113.98 | 8.25% | | Net Profit Attributable to Shareholders | 339,184,565.86 | 479,070,711.85 | -29.20% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Gains/Losses) | -158,012,256.09 | -1,057,466,402.08 | 85.06% | | Net Cash Flow from Operating Activities | 34,569,445.50 | 370,749,670.59 | -90.68% | | Basic Earnings Per Share (yuan/share) | 0.1759 | 0.2500 | -29.64% | | Weighted Average Return on Net Assets | 4.52% | 6.96% | -2.44% | | Total Assets (yuan) | 9,055,622,455.51 | 9,215,105,313.63 | -1.73% | | Net Assets Attributable to Shareholders (yuan) | 7,799,544,483.82 | 7,201,231,752.10 | 8.31% | Quarterly Key Financial Indicators Quarterly financial data shows a third-quarter loss, followed by a strong fourth-quarter rebound with 315 million yuan in net profit | Indicator (yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 521,929,835.43 | 561,782,133.25 | 451,332,158.85 | 774,698,516.44 | | Net Profit Attributable to Shareholders | 42,026,469.19 | 43,573,845.88 | -61,415,531.22 | 314,999,782.01 | Non-Recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 497 million yuan in 2019, significantly boosted by a 441 million yuan investment gain from subsidiary disposal - Non-current asset disposal gains and losses amounted to 441 million yuan, primarily from investment income generated by the disposal of subsidiary Beijing Sixfen Technology, serving as the core source of non-recurring gains and losses for the period[25] - The company obtained 30.11 million yuan in income from entrusted wealth management, representing another significant non-recurring gain[25] | Item | 2019 Amount (yuan) | Explanation | | :--- | :--- | :--- | | Non-current asset disposal gains and losses | 441,411,886.14 | Primarily investment income from the disposal of subsidiary Beijing Sixfen Technology | | Government grants included in current profit/loss | 1,214,536.38 | Company received government project subsidies | | Gains/losses from entrusted investment or asset management | 30,111,425.47 | Bank wealth management income | | Total | 497,196,821.95 | - | Business Overview This section outlines the company's core business segments, industry landscape, strategic progress, and competitive advantages within the intelligent vehicle ecosystem Principal Businesses The company's core businesses include navigation, ADAS/autonomous driving, chips, location big data, and connected vehicle services, all aligned with its "Intelligent Vehicle Brain" strategy - The company's main business segments include navigation, advanced driver-assistance systems (ADAS) and autonomous driving, chips, location big data services, and connected vehicle services[29] - Navigation Business: Provides basic maps, high-precision maps, navigation software, and compilation services, with data accuracy reaching sub-meter level and update capability reaching hourly level[29][30][31] - Advanced Driver-Assistance Systems (ADAS) and Autonomous Driving Business: Offers ADAS maps, HD maps, high-precision positioning, and integrated solutions, with L3-level solutions already obtaining road test licenses[31] - Chip Business: Designs and sells IVI in-vehicle infotainment system chips, MCU body control chips, TPMS tire pressure monitoring chips, and other automotive electronic chips; self-developed MCU and TPMS chips have achieved mass production[32] - Location Big Data Services: Leverages the MineData platform to provide big data solutions for government and industry users, applied in smart cities, intelligent transportation, and other fields[32][33] - Connected Vehicle Business: Includes dynamic traffic information, passenger vehicle connected services (undertaken by associate company NavInfo Connected), and commercial vehicle connected services[33][34][35] Industry Development Overview and Company Position The company maintains a leading position in navigation maps and has made significant strides in autonomous driving and automotive chips amidst rapid industry transformation - Navigation Electronic Map Industry: The company, through its forward-looking strategy and high-quality products, has consistently led China's pre-installed in-car navigation market for years, serving as a key partner for mainstream automakers and tech companies like Tencent and Didi[36] - Autonomous Driving Industry: L2/L2.5 autonomous driving products are mass-produced, while the commercialization of L3 and higher levels is slow; the company secured China's first L3-level mass production order in high-precision maps and obtained a Beijing road test T3 license for its L3-level low-cost solution, demonstrating industry leadership[37][38][39] - Automotive Electronic Chip Industry: The global market is dominated by international giants, but demand for domestic substitution is growing; the company entered this field through the acquisition of AutoChips, and its self-developed MCU and TPMS chips have broken international monopolies and achieved mass production[40][41] - Location Big Data Service Industry: Demand growth is driven by smart city initiatives and industrial internet transformation; the company's MineData platform has established a client base in intelligent transportation, public security, and insurance sectors[42][43] - Connected Vehicle Industry: The industry is entering a critical phase of large-scale implementation; the company maintains a leading position in dynamic traffic information, with its commercial vehicle connected solutions holding over 70% market share, and its passenger vehicle connected services are managed through associate company NavInfo Connected[44][45] Progress of Prior Development Strategies and Business Plans In 2019, the company made substantial progress across all business segments, including securing L3-level autonomous driving map orders and achieving mass production for self-developed chips - Navigation Business: Launched the third-generation production system, Fastmap3.0, achieving hourly update capabilities, and AR navigation solutions achieved pre-installed mass production[47] - Advanced Driver-Assistance Systems and Autonomous Driving: Signed an L3-level autonomous driving map service agreement with BMW and established a strategic partnership with Huawei in high-precision maps; the L3-level low-cost autonomous driving solution obtained a Beijing road test T3 license[48][49][50] - Chip Business: Self-developed body control MCU chips and TPMS tire pressure monitoring chips achieved mass production and secured orders[50][51] - Location Big Data Services: MineData 3.0 platform was released, and significant projects were signed with Xi'an and Jinan traffic police, the Ministry of Public Security, and China Reinsurance Group[51][52][53] - Connected Vehicle Business: Signed a CNS service agreement with BMW to provide services for mass-produced vehicles from 2021-2029; commercial vehicle connected solutions serve 8 mainstream automakers; established Mandian Mobility to accelerate commercialization of new energy charging services[54][55][56] - Investment and Cooperation: Established Hefei as its second headquarters; subsidiary Sixfen Technology completed capital increase and share expansion, introducing strategic investors like China Telecom; established Mandian Mobility; invested in Guangdong Weichen to strategically position in intelligent connected vehicle security[57][58] Core Competitiveness Analysis The company's core strengths lie in its cross-industry integration, robust ecosystem with key partners, deep talent pool, and innovation-driven corporate culture - The company possesses cross-industry integration capabilities to serve top automakers and internet giants (e.g., Didi, Tencent, Huawei), holding dual qualifications for navigation electronic map production and internet map services[62] - A strong industrial ecosystem has been built through deep cooperation with leading domestic and international enterprises and research institutions (e.g., HERE, Tsinghua University), and by introducing strategic investors (e.g., China Telecom, Bosch Group)[64][65][66] - The company boasts an experienced professional technical team in navigation electronic maps, computer vision, deep learning, chips, and big data, having accumulated 448 domestic and international patent authorizations and 1,233 copyrights[67] - Focusing on Innovation and Integration, the company has formed a corporate culture centered on "passion, responsibility, innovation, and integrity," actively fulfilling its social responsibilities[68][69] Management Discussion and Analysis This section provides a detailed analysis of the company's operational performance, including revenue, costs, expenses, R&D, cash flow, and asset/liability status Overview In 2019, total revenue increased by 8.25% to 2.31 billion yuan, but net profit attributable to shareholders declined by 29.20% to 339 million yuan due to chip business downturn and increased investments | Business Segment | Operating Revenue (billion yuan) | YoY Growth Rate | | :--- | :--- | :--- | | Navigation Business | 0.831 | 7.18% | | Advanced Driver-Assistance Systems and Autonomous Driving | 0.104 | 96.48% | | Chip Business | 0.408 | -29.57% | | Location Big Data Services | 0.240 | 36.64% | | Connected Vehicle Business | 0.697 | 28.53% | | Total | 2.310 | 8.25% | - Net profit attributable to shareholders was 339 million yuan, a year-on-year decrease of 29.20%, primarily due to reduced profit from the chip business and increased losses from associate company Mapbar Technology Limited[70] Main Business Analysis This section analyzes the revenue, cost, expense, R&D, and cash flow performance of each main business segment, highlighting growth drivers and profit pressures Revenue and Cost Navigation business remained the largest revenue source with high gross margin, while chip business revenue and gross margin declined significantly 2019 Segment Operating Revenue Composition | Segment | Operating Revenue (yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Navigation | 830,789,863.00 | 35.97% | 7.18% | | Advanced Driver-Assistance Systems and Autonomous Driving | 103,991,976.00 | 4.50% | 96.48% | | Chip | 407,780,193.88 | 17.65% | -29.57% | | Location Big Data Services | 240,116,835.55 | 10.40% | 36.64% | | Connected Vehicle | 696,889,451.09 | 30.17% | 28.53% | 2019 Main Business Gross Margin | Segment | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Navigation | 830,789,863.00 | 47,090,156.00 | 94.33% | +3.03% | | Chip | 407,780,193.88 | 198,405,305.28 | 51.35% | -3.01% | | Location Big Data Services | 240,116,835.55 | 61,743,599.64 | 74.29% | -3.73% | | Connected Vehicle | 696,889,451.09 | 398,930,213.54 | 42.76% | -10.78% | - The scope of consolidation changed during the period, with the addition of Hefei NavInfo and Beijing Mandian Mobility, and the reduction of NavInfo Investment (Hong Kong) and Beijing Sixfen Technology[81] Expenses In 2019, selling, administrative, and R&D expenses all decreased, while financial expenses turned positive due to reduced interest income | Expense Item | 2019 (yuan) | 2018 (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 119,730,779.31 | 131,558,133.01 | -8.99% | | Administrative Expenses | 398,747,274.19 | 478,157,042.00 | -16.61% | | Financial Expenses | -4,350,308.01 | -30,548,999.89 | 85.76% | | R&D Expenses | 1,189,589,631.52 | 1,276,435,895.41 | -6.80% | Research and Development Investment Total R&D investment increased by 12.26% to 1.31 billion yuan, representing 56.67% of revenue, with a significant rise in capitalized R&D | R&D Investment Status | 2019 | 2018 | Change Percentage | | :--- | :--- | :--- | :--- | | Number of R&D Personnel (persons) | 2,718 | 2,408 | 12.87% | | R&D Investment Amount (yuan) | 1,309,030,841.11 | 1,166,094,706.39 | 12.26% | | R&D Investment as % of Operating Revenue | 56.67% | 54.65% | 2.02% | | Capitalized R&D Investment Amount (yuan) | 199,029,585.32 | 74,515,422.62 | 167.10% | | Capitalized R&D Investment as % of Total R&D Investment | 15.20% | 6.39% | 8.81% | - The capitalization rate of R&D investment significantly increased, primarily because the autonomous driving map update and application development project entered the development phase during this period, with a capitalized amount of 125 million yuan for this project[89][92] Cash Flow Operating cash flow significantly deteriorated, decreasing by 90.68% to 34.57 million yuan, primarily due to reduced cash receipts from sales | Cash Flow Item (yuan) | 2019 | 2018 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 34,569,445.50 | 370,749,670.59 | -90.68% | | Net Cash Flow from Investing Activities | -679,190,272.19 | -932,225,528.82 | 27.14% | | Net Cash Flow from Financing Activities | 141,162,747.94 | 915,896,285.83 | -84.59% | | Net Increase in Cash and Cash Equivalents | -502,923,467.86 | 391,824,242.49 | -228.35% | - The significant difference between net cash flow from operating activities and net profit is primarily due to the recognition of a large amount of non-cash investment income from the disposal of subsidiary Beijing Sixfen Technology during this period[94] Non-Principal Business Analysis Non-principal businesses, particularly investment income from equity disposal, significantly contributed to the company's 2019 profit, accounting for 96.76% of total profit | Item | Amount (yuan) | % of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 255,541,154.63 | 96.76% | Primarily investment income from disposal of equity investments, long-term equity investment income accounted for by equity method, and bank wealth management income | | Other Income | 139,250,644.10 | 52.73% | Primarily VAT refunds for software products and government grants related to daily operations | | Fair Value Change Gains/Losses | 20,000,000.00 | 7.57% | Primarily gains/losses from changes in trading financial assets | Assets and Liabilities Analysis Total assets slightly decreased to 9.06 billion yuan, while liabilities significantly reduced due to land transfer payments, improving the asset-liability ratio to 11.75% - The year-end balance of accounts receivable increased compared to the beginning of the year, primarily due to an increase in accounts receivable from sales[97] - Development expenditures significantly increased, mainly due to the company's increased investment in the development of autonomous driving maps, commercial vehicle connected services, and big data platforms[97] - Other payables significantly decreased, primarily due to the payment of land transfer fees during this period[98] - Share capital increased, primarily due to the conversion of capital reserves into share capital during this period[98] Investment Analysis Total investments increased by 67.15% to 344 million yuan, primarily for establishing the Hefei second headquarters, with most raised funds utilized as planned - Investment amount for the reporting period was 344 million yuan, an increase of 67.15% compared to 206 million yuan in the previous year, primarily due to the investment in establishing the Hefei second headquarters during this period[102] - Funds raised from the 2010 initial public offering have been cumulatively used for 1.363 billion yuan, with 15.61 million yuan remaining unused; funds raised from the 2017 non-public offering, totaling 3.327 billion yuan, have been used for 2.929 billion yuan to pay for the acquisition of AutoChips equity, with the remaining 398 million yuan and interest used for additional investment in the Beijing Zhongguancun Yongfeng High-Tech Industrial Base construction project[106][107][114][116] Future Development Outlook The company anticipates significant opportunities from automotive industry transformation and new infrastructure, aiming to become a trusted autonomous driving solution provider - Opportunities: The global automotive industry restructuring, national policy support for intelligent vehicles, and the acceleration of new infrastructure like 5G and AI present development opportunities for the company's autonomous driving, chip, and connected vehicle businesses[127][128][129] - Challenges: Market uncertainties arising from the reshaping of the automotive industry landscape, and intense talent competition in autonomous driving and AI fields[130] - Future Strategy: Continue to focus on the "Intelligent Vehicle Brain" vision, building a "data + cloud + AI + chip + software-hardware integration" solution, and establishing a leading edge in core areas such as navigation, high-precision maps, high-precision positioning, and automotive chips[131][132] - 2020 Business Plan: Across the five major business segments—navigation, autonomous driving, chips, big data, and connected vehicles—the company will continue to increase R&D investment, optimize product structure, accelerate commercialization, and expand market share[133][134] Significant Matters This section details important corporate actions such as profit distribution, significant equity disposals, and analyses of major subsidiaries and associated companies Profit Distribution and Capital Reserve Conversion to Share Capital The 2019 profit distribution plan proposes a cash dividend of 0.18 yuan per 10 shares, without bonus shares or capital reserve conversion Cash Dividends for the Last Three Years | Dividend Year | Cash Dividend Amount (incl. tax, yuan) | % of Net Profit Attributable to Parent | Total Cash Dividend (incl. other methods, yuan) | % of Net Profit Attributable to Parent | | :--- | :--- | :--- | :--- | :--- | | 2019 | 35,308,137.06 | 10.41% | 35,308,137.06 | 10.41% | | 2018 | 18,317,392.24 | 3.82% | 48,318,874.83 | 10.09% | | 2017 | 54,997,781.24 | 20.74% | 54,997,781.24 | 20.74% | - 2019 Profit Distribution Plan: Based on a total share capital of 1,961,563,170 shares, a cash dividend of 0.18 yuan per 10 shares (including tax) will be distributed, with no capital reserve conversion[143] Disposal of Significant Equity Interests The company disposed of a portion of Beijing Sixfen Technology's equity, resulting in a 442 million yuan net profit increase and deconsolidation of the subsidiary - The company disposed of 4.82% of Beijing Sixfen Technology's equity through a third-party capital increase, with a transaction price of 54 million yuan[122] - This equity disposal contributed 442 million yuan to the listed company's net profit, accounting for 144.28% of total net profit[122] Analysis of Major Holding and Associate Companies Beijing Century High-Tech and Hefei AutoChips were key profit contributors, while Mapbar Technology Limited incurred significant losses impacting overall company profit Major Subsidiaries and Associate Companies 2019 Performance | Company Name | Type | Principal Business | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Century High-Tech Co., Ltd. | Subsidiary | Location Big Data and Dynamic Traffic Information Services | 289,630,912.67 | 99,354,080.87 | | Zhonghuan Satellite Navigation & Communication Co., Ltd. | Subsidiary | Commercial Vehicle Connected Services | 357,750,895.26 | -42,966,121.91 | | Hefei AutoChips Technology Co., Ltd. | Subsidiary | Automotive Electronic Chips | 407,780,193.88 | 66,806,205.87 | | Mapbar Technology Limited | Associate Company | Connected Vehicle Product Technology Development | 310,585,396.02 | -466,603,515.35 | - During the reporting period, the company established two new subsidiaries, Hefei NavInfo and Beijing Mandian Mobility, and lost control over Beijing Sixfen Technology due to a third-party capital increase, resulting in its deconsolidation[126] Equity Incentive and Employee Stock Ownership Plans The company actively implemented equity incentive plans in 2019, including share repurchases, new grants, and unlocks, incurring 30.17 million yuan in related costs - The company repurchased and canceled a portion of unvested restricted shares from certain resigned incentive recipients[161][162] - The company granted 1,475,300 reserved restricted shares to 56 incentive recipients and completed the first vesting period for restricted shares initially granted in 2018[161] - In 2019, the company recognized 30.1742 million yuan in costs due to the implementation of equity incentives, which reduced the company's total profit[163] Significant Related Party Transactions The only significant related party transaction involved the capital increase of subsidiary Beijing Sixfen Technology, where an associated fund participated as an investor - The capital increase of subsidiary Beijing Sixfen Technology constituted a related party transaction because one of the investors, Beijing Siwei Interconnected Fund Management Center (Limited Partnership), is a related party of the company; this capital increase resulted in the company's shareholding in Sixfen Technology decreasing to 40.18%, leading to its deconsolidation from the consolidated financial statements[167] Share Changes and Shareholder Information This section reports on changes in the company's share capital structure and provides an overview of its major shareholders and actual control status Share Capital Changes The company's total share capital increased from 1.31 billion to 1.96 billion shares due to capital reserve conversion, equity incentive grants, and share repurchases | Item | Before This Change (shares) | After This Change (shares) | Reason for Change | | :--- | :--- | :--- | :--- | | Restricted Shares | 266,110,589 | 386,012,962 | Equity incentive grants and capital reserve conversion | | Unrestricted Shares | 1,043,360,393 | 1,575,550,208 | Capital reserve conversion and partial restricted share unlocking | | Total Shares | 1,309,470,982 | 1,961,563,170 | Capital reserve conversion, equity incentives, share repurchase and cancellation | - The primary reason for the increase in shares was the implementation of the 2018 equity distribution plan, which involved converting capital reserves into share capital at a rate of 5 shares for every 10 shares held by all shareholders[181] Shareholders and Actual Control Status As of year-end, the company had 177,588 shareholders and no controlling shareholder or actual controller, with China Siwei and Tencent as the largest shareholders - The company has no controlling shareholder or actual controller; this status has been in place since China Siwei transferred a portion of its equity to Tencent Industry Investment Fund in 2014[189][190] Top Ten Shareholders' Shareholding (as of 2019 year-end) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | China Siwei Surveying and Mapping Technology Co., Ltd. | State-owned Legal Person | 9.96% | 195,378,651 | | Shenzhen Tencent Industry Investment Fund Co., Ltd. | Domestic Non-State-owned Legal Person | 9.76% | 191,363,690 | | Tianan Property Insurance Co., Ltd. - Baoying No. 1 | Other | 3.50% | 68,742,655 | | Central Huijin Asset Management Co., Ltd. | State-owned Legal Person | 3.32% | 65,180,925 | | Beijing Xindongneng Investment Fund (Limited Partnership) | Domestic Non-State-owned Legal Person | 1.80% | 35,252,643 | Directors, Supervisors, Senior Management, and Employees This section provides information on the company's board, supervisory board, senior management, including their shareholdings, appointments, and overall employee structure Changes in Shareholdings of Directors, Supervisors, and Senior Management Shareholdings of directors, supervisors, and senior management increased due to capital reserve conversion, with some executives also reducing their stakes | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | | Wu Jinfeng | Chairman | 0 | 0 | | Sun Yuguo | Vice Chairman | 17,668,323 | 20,812,985 | | Cheng Peng | Director, General Manager | 5,218,365 | 5,870,660 | Appointments of Directors, Supervisors, and Senior Management This section details the professional backgrounds and work experiences of the company's management team, highlighting their diverse expertise across relevant industries - Chairman Mr. Wu Jinfeng possesses a profound background in the aerospace and satellite communication industries, having served as a senior executive at China Satcom Group and other companies[198] - The Board of Directors has a diverse composition, including Mr. Zhan Weibiao and Mr. Zhong Xiangping from Tencent, and Mr. Li Xiang, founder of CHJ Automotive, reflecting the company's deep integration with the internet and automotive industries[199][200] - Senior management team members are largely cultivated internally or are seasoned industry professionals, possessing extensive experience in their respective business areas such as mapping, chips, and connected vehicles[203][204][205] Company Employee Information As of 2019 year-end, the company employed 4,696 staff, with technical personnel comprising 57.88% and over 70% holding bachelor's degrees or higher | Professional Composition | Number (persons) | | :--- | :--- | | Production Personnel | 1228 | | Sales Personnel | 257 | | Technical Personnel | 2718 | | Financial Personnel | 72 | | Administrative Personnel | 421 | | Total | 4696 | - In 2019, total employee compensation amounted to 1.163 billion yuan, accounting for 47.51% of the company's total costs[216] Corporate Governance This section describes the company's corporate governance framework, its adherence to regulatory requirements, and the independent operation of its various committees Basic Corporate Governance Status The company operates in strict compliance with regulations, maintaining an independent corporate governance structure without a controlling shareholder - The company's actual corporate governance status does not materially differ from the Company Law and relevant regulations of the China Securities Regulatory Commission[219] - The company is a listed entity without an actual controller or controlling shareholder, maintaining independence from shareholders holding 5% or more in terms of business, personnel, assets, organization, and finance[220] - During the reporting period, the four special committees under the Board of Directors—Strategy, Remuneration and Appraisal, Audit, and Nomination—all actively fulfilled their responsibilities[227] Corporate Bonds Information This section provides details on the company's outstanding corporate bonds, including their terms, credit ratings, and any significant changes during the reporting period Corporate Bond Basic Information The company's "17 Siwei 01" bond, with a balance of 1.19 million yuan, matures in November 2020, and its coupon rate was adjusted from 6.00% to 4.00% | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (million yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | 17 Siwei 01 | 112618 | 2017-11-23 | 2020-11-23 | 1.1911 | 4.00% | - During the reporting period, the issuer chose to reduce the coupon rate of the "17 Siwei 01" bond for its third year from 6.00% to 4.00%, triggering the investor put option; ultimately, 488,089 bonds were put back, totaling 48.8089 million yuan[233] - United Credit Ratings Co., Ltd. rated the company's corporate credit rating as AA, with a "stable" outlook, and rated this bond issue's credit rating as AAA[237] Financial Report This section presents the audited financial statements, including the balance sheet, income statement, and cash flow statement, along with detailed notes Audit Report The auditor issued an unqualified opinion on the 2019 financial statements, highlighting goodwill impairment testing and the deconsolidation of Beijing Sixfen Technology as key audit matters - The audit opinion type is a standard unqualified opinion[246][247] - Key Audit Matter 1: Goodwill impairment testing; as of year-end, the original value of goodwill was 3.225 billion yuan, and the impairment testing process is complex and involves significant judgments[250][251] - Key Audit Matter 2: Beijing Sixfen Technology was not consolidated this year; due to a capital increase and share expansion, the company lost control, and this matter had a significant impact on the consolidated financial statements, generating 442 million yuan in investment income[251] Financial Statements This section presents the company's consolidated and parent company financial statements for 2019, including balance sheets, income statements, and cash flow statements Consolidated Balance Sheet As of year-end 2019, total assets were 9.06 billion yuan, total liabilities 1.06 billion yuan, and owners' equity 7.99 billion yuan, indicating a sound financial structure Consolidated Balance Sheet Summary (December 31, 2019) | Item | Amount (yuan) | | :--- | :--- | | Total Current Assets | 2,728,608,663.93 | | Total Non-Current Assets | 6,327,013,791.58 | | Total Assets | 9,055,622,455.51 | | Total Current Liabilities | 1,045,343,314.32 | | Total Non-Current Liabilities | 18,914,508.48 | | Total Liabilities | 1,064,257,822.80 | | Total Owners' Equity Attributable to Parent Company | 7,799,544,483.82 | | Total Owners' Equity | 7,991,364,632.71 | Consolidated Income Statement In 2019, total operating revenue was 2.31 billion yuan, with net profit attributable to parent company shareholders reaching 339 million yuan, significantly boosted by investment income Consolidated Income Statement Summary (2019) | Item | Amount (yuan) | | :--- | :--- | | I. Total Operating Revenue | 2,309,742,643.97 | | II. Total Operating Costs | 2,448,397,883.14 | | Including: R&D Expenses | 1,189,589,631.52 | | Investment Income (Losses indicated by "-") | 255,541,154.63 | | III. Operating Profit (Losses indicated by "-") | 262,412,102.73 | | IV. Total Profit (Total Losses indicated by "-") | 264,105,573.44 | | Net Profit Attributable to Parent Company Owners | 339,184,565.86 | Consolidated Cash Flow Statement Operating cash flow significantly decreased to 34.57 million yuan, while investment activities resulted in a net outflow of 679 million yuan, leading to a net decrease in cash Consolidated Cash Flow Statement Summary (2019) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 34,569,445.50 | | Net Cash Flow from Investing Activities | -679,190,272.19 | | Net Cash Flow from Financing Activities | 141,162,747.94 | | Net Increase in Cash and Cash Equivalents | -502,923,467.86 | | Cash and Cash Equivalents at End of Period | 1,578,876,284.59 | Notes to Consolidated Financial Statements This section provides detailed explanations for key financial statement items, including goodwill, long-term equity investments, and significant related party transactions - Goodwill's original book value is 3.225 billion yuan, of which 3.043 billion yuan was formed from the acquisition of Hefei AutoChips; no goodwill impairment provision was made this year[436][437] - Among long-term equity investments, the year-end book value of the investment in associate company Mapbar Technology Limited was 1.032 billion yuan[419] - In related party transactions, sales of goods and provision of services to Beijing NavInfo Connected Technology Co., Ltd. totaled 178 million yuan; sales of goods and provision of services to Shanghai Anji NavInfo Information Technology Co., Ltd. totaled 121 million yuan[574]