NEW JCM(SZ:300157)2020-05-28 16:00Financial Performance - The company reported a significant amount of goodwill from acquisitions since its listing in 2011, which requires annual impairment testing, posing a risk if future operating conditions deteriorate [12]. - The company's operating revenue for 2019 was ¥1,064,171,650.10, a decrease of 28.50% compared to ¥1,488,450,311.14 in 2018 [30]. - The net profit attributable to shareholders was -¥1,113,263,626.00, representing a decline of 3,739.77% from a profit of ¥30,586,094.28 in the previous year [30]. - The net cash flow from operating activities was -¥46,771,618.72, a decrease of 135.76% compared to ¥130,786,883.93 in 2018 [30]. - The total assets at the end of 2019 were ¥4,596,557,677.43, down 16.98% from ¥5,536,392,601.60 in 2018 [30]. - The net assets attributable to shareholders decreased by 24.05% to ¥2,513,802,456.77 from ¥3,309,818,082.04 in 2018 [30]. - The basic earnings per share for 2019 was -¥1.56, a decline of 4,000.00% from ¥0.04 in 2018 [30]. - The weighted average return on equity was -37.89%, down 38.82% from 0.93% in the previous year [30]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2019, representing a year-over-year increase of 12% [61]. - The gross margin for the year was reported at 45%, an improvement from 42% in the previous year [62]. Acquisitions and Investments - The company completed acquisitions of several key companies, including Langfang New Saipu and Xian Aohua, enhancing its position as a comprehensive energy service provider [10]. - The company is exploring potential acquisitions to bolster its technology portfolio and expand its service offerings [61]. - The company made a significant equity investment of 90 million yuan, acquiring a 1.26% stake in a non-securities investment management firm [140]. - The total investment in another non-securities business amounted to approximately 99.96 million yuan, with a 49% ownership stake [142]. Research and Development - The company invested 200 million RMB in R&D for new technologies, focusing on advanced seismic data processing solutions [61]. - The company has a strong focus on software development for oil and gas exploration, with multiple versions of seismic interpretation and fracture prediction software released over the years [69]. - The company has made significant advancements in the field of oil well logging technology, with multiple patents related to neutron logging methods and data processing [86]. - The company has a robust pipeline of new technologies aimed at improving the efficiency of oil extraction and processing operations [85]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2022 [61]. - The company aims to expand its business into high-end equipment fields such as oil and gas pipeline transportation and supercritical CO2 compression power generation [44]. - The company is actively pursuing market expansion through the development of new technologies and software solutions tailored for the oil and gas industry [66]. - The company is focusing on market expansion in Southeast Asia, targeting a 20% market share increase in the region by 2021 [63]. Financial Management and Risks - The company has set up measures to manage accounts receivable risks, including provisions for bad debts [13]. - The company acknowledges potential adverse impacts from uncontrollable factors such as political and economic changes [17]. - The company faces risks related to intellectual property infringement due to the high market value and application of its proprietary technologies [9]. - The company has established independent financial departments and accounting systems to ensure financial independence from its controlling shareholders [167]. Governance and Compliance - The company has committed to maintaining transparency and timely disclosure of information to protect the rights of all shareholders [176]. - The company must distribute at least 30% of the average distributable profit over the last three years in cash dividends, unless special circumstances arise [160]. - The company’s cash dividend distribution plan must be approved by a majority of the board and independent directors [162]. - The company has not conducted any profit distribution in 2018 and 2017, maintaining a consistent policy of no cash dividends [164]. Technology and Innovation - The company has developed various software products, including GasPro (V4.1) and BeneDes (V4.0), enhancing its service offerings in oil and gas field development [72]. - The company is actively expanding its cloud-based solutions, such as the vCloudDesk and IUser platforms, to improve operational efficiency [72]. - The company has developed a method for predicting remaining oil in isolated fracture-cave bodies, which is currently under review [82]. - The company emphasizes the importance of software innovation in driving its business strategy and market expansion [67]. Operational Challenges - The company did not report any significant differences between financial data under international and Chinese accounting standards [33]. - The company has established a collaborative cloud platform for exploration and development, enhancing teamwork and project management capabilities [72]. - The company has reported a significant focus on R&D, with multiple patents related to seismic imaging and reservoir prediction technologies authorized in 2019 [80]. - The company has no significant influence from related party debts on its operating results and financial statements [191].