Gosuncn(SZ:300098)2020-04-27 16:00Business Focus and Strategy - In 2019, the company focused on two main business areas: vehicle networking and standardized law enforcement, achieving significant operational results despite a challenging macroeconomic environment[3]. - The company aims to enhance its product performance, usability, and cost competitiveness to achieve the leading position in the law enforcement standardization sector[5]. - The overall strategy is to integrate and absorb market opportunities while striving to become a global leader in smart city IoT products and services[7]. - The company plans to focus on core technology competitiveness and project management to ensure long-term strategic success[6]. - The company is committed to building a more complete marketing system and improving organizational management efficiency to better respond to market demands[6]. Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[20]. - The company's operating revenue for 2019 was ¥2,693,234,817.06, a decrease of 24.41% compared to ¥3,562,832,789.72 in 2018[25]. - The net profit attributable to shareholders was -¥1,157,254,386.07, representing a decline of 314.48% from a profit of ¥539,568,122.77 in 2018[25]. - The basic earnings per share for 2019 were -¥0.67, a decrease of 316.13% from ¥0.31 in 2018[25]. - The company reported a significant decrease in financial expenses by 16.20%, amounting to -¥63,528,040.10, due to increased interest income[152]. Research and Development - The company made substantial investments in product and technology research and development, particularly in the vehicle networking sector, which saw major market breakthroughs, including the successful testing of self-developed C-V2X modules[4]. - The company is investing in R&D, allocating 10% of its revenue towards developing new technologies, particularly in AI and IoT[20]. - Research and development investment reached CNY 553.82 million, an increase of 36.48% compared to the previous year, focusing on core business areas[125]. - The company has a total of 1,196 patents and 1,042 software copyrights, indicating high market recognition and value[110]. - The company has developed a unified big data analysis framework, supporting the efficient retrieval and analysis of over 100 billion data points[109]. Market Expansion and Partnerships - The company established strategic partnerships with Geely and Qualcomm, becoming Qualcomm's 5G vehicle alpha customer, with plans to jointly launch 5G-connected vehicles in 2021[5]. - Market expansion plans include entering three new provinces, aiming to increase market share by 5% in these regions[20]. - The company has formed significant advantages in both domestic and overseas markets for vehicle networking, with ongoing efforts to expand partnerships with international Tier 1 suppliers[65]. - The company has diversified its customer base, serving over 1,000 clients globally across various sectors, including telecommunications and public security[120]. Product Development and Innovation - New product launches included an advanced smart traffic management system, expected to contribute an additional 200 million RMB in revenue[20]. - The company has launched multiple vehicle-mounted terminal products targeting the front and rear market, including the self-developed T-Box product, which has achieved significant breakthroughs[57]. - The company has completed the development and testing of 5G-V2X products GM850A and GM860A, marking a significant step in the commercialization of V2X technology[58]. - The company has developed a comprehensive product and solution system in the law enforcement standardization field, including intelligent case handling platforms and mobile law enforcement audio-visual systems, establishing a strong competitive edge[71]. Operational Efficiency and Management - The company is committed to building a more complete marketing system and improving organizational management efficiency to better respond to market demands[6]. - The company has implemented a new customer engagement strategy, which is expected to improve customer retention rates by 15%[20]. - The company has established a comprehensive supply chain management system, including a raw material and supplier selection library, enhancing resource sharing across the group[129]. - The company has implemented multiple stock incentive plans to enhance employee cohesion and motivation[114]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[20]. - The 5G and new infrastructure policies are expected to provide significant growth opportunities for the company in the coming years[6]. - The company anticipates significant growth in IoT connections, with projections indicating that the number of connections in China will exceed 100 billion within three years[37]. - The company aims to explore a comprehensive smart transportation layout that integrates C-V2X devices, solutions platforms, and applications[65]. Challenges and Risks - The company reported a goodwill impairment provision of CNY 1.02 billion due to acquisitions, reflecting financial prudence amid market challenges[125]. - The company recognized an impairment loss on goodwill of CNY 1,024,478,509.36, significantly impacting the net profit for the year[163]. - The company experienced a 66.94% decline in revenue from the Southwest region, totaling ¥279.57 million[143].