飞利信(300287) - 2019 Q1 - 季度财报

Important Notice This section confirms the truthfulness and completeness of the quarterly report by the company's board of directors, supervisory board, and senior management Board of Directors' Statement The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, with no false records, misleading statements, or major omissions, and assume corresponding legal responsibilities - Company management confirmed the truthfulness, accuracy, and completeness of the Q1 2019 report[3][4] Company Profile This section provides an overview of the company's key financial performance, shareholder structure, and changes in restricted shares Key Accounting Data and Financial Indicators In Q1 2019, the company's performance significantly declined, with total operating revenue down 35.86% YoY and net profit attributable to parent down 84.06%; however, net cash flow from operating activities turned profitable, increasing 208.5% due to improved project collections Key Financial Indicators | Item | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 345,152,429.04 | 538,110,960.07 | -35.86% | | Net Profit Attributable to Parent Company Shareholders | 15,623,269.60 | 98,040,792.07 | -84.06% | | Net Cash Flow from Operating Activities | 220,411,004.20 | -203,143,118.49 | 208.50% | | Basic Earnings Per Share (CNY/share) | 0.010 | 0.070 | -85.71% | | Total Assets | 5,813,951,845.01 | 5,720,266,009.68 | 1.64% (vs. end of prior year) | | Net Assets Attributable to Parent Company Shareholders | 3,782,210,624.98 | 3,766,587,355.38 | 0.41% (vs. end of prior year) | - The company's non-recurring gains and losses totaled CNY 1.445 million during the reporting period, primarily from government subsidies, including significant R&D and other subsidies received by subsidiaries Xiamen Jingtou, Hulian Tianxia, and Donglan Digital[8] Shareholder Information As of the end of the reporting period, the company had 81,425 common shareholders; the top four shareholders, Yang Zhenhua, Cao Xinjun, Chen Hongshun, and Wang Shouyan, are parties acting in concert, collectively holding over 25% of shares, with a significant portion (92.02% of their combined holdings) pledged and judicially frozen - As of the end of the reporting period, the company had 81,425 common shareholders[11] - The top four shareholders, Yang Zhenhua, Cao Xinjun, Chen Hongshun, and Wang Shouyan, are parties acting in concert; as of March 31, 2019, their combined holdings were 368,339,600 shares, of which 338,961,570 shares (92.02% of their total holdings) were judicially frozen[12] Top Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Share Status | | :--- | :--- | :--- | | Yang Zhenhua | 13.29% | Pledged, Frozen | | Cao Xinjun | 5.46% | Pledged, Frozen | | Chen Hongshun | 4.16% | Pledged, Frozen | | Wang Shouyan | 2.76% | Pledged, Frozen | Restricted Share Changes During the reporting period, the company's total restricted shares decreased from 326 million to 316 million, primarily due to the lifting of restrictions on shares held by executives Wang Shouyan and Luo Wei; most restricted shares are executive lock-up shares or those from major asset restructurings, with unlocking tied to performance commitments and tenure - During the reporting period, total restricted shares decreased from 326,257,074 shares to 316,293,907 shares, with 9,963,167 shares released from restriction[21] - Share releases primarily came from executives Wang Shouyan (9,888,167 shares) and Luo Wei (75,000 shares)[15] Significant Events This section details major financial changes, business developments, and the status of important corporate matters and commitments Significant Changes in Financial Data and Reasons Multiple financial indicators changed significantly during the reporting period; revenue and costs decreased due to holiday impact on project completion, while administrative and financial expenses rose sharply due to increased labor, rent, and loan interest; operating cash flow significantly improved, turning positive due to better collections - Operating revenue decreased 35.86% year-over-year, primarily due to longer holidays and fewer completed projects during the period[24] - Financial expenses increased 9079.8% year-over-year, mainly due to increased interest expenses from higher loan principal[24] - Net cash flow from operating activities increased 208.5% year-over-year, primarily due to higher project collections during the period[25] - Advance receipts increased 200.71% from the beginning of the period, mainly due to receiving advance payments for larger orders[24] Business Review and Outlook In Q1 2019, the company's total revenue decreased 35.86% and net profit declined 84.06%, mainly due to seasonal losses in some subsidiaries; the company is actively promoting technological innovation, focusing on "1+1+N" new digital city solutions, continuously investing in R&D in audio-video, big data, and IoT, and acquiring multiple patents and qualifications, while also facing market, R&D, and talent retention risks Changes in Business Revenue and Reasons During the reporting period, revenue across all major business segments declined: audio-video and control decreased 32.54%, data, software, and services decreased 53.99%, and IoT and intelligent solutions decreased 36.77%; the decline was mainly due to seasonal project slowdowns for government and education clients of some subsidiaries, though others like Ofeiling, Jiedong, and Tianyun Power achieved profitability through new products and increased marketing Business Segment Revenue | Business Segment | Q1 2019 Revenue (CNY) | Q1 2018 Revenue (CNY) | Growth Rate | | :--- | :--- | :--- | :--- | | Audio-Video and Control | 225,592,729.77 | 334,388,472.91 | -32.54% | | Data, Software, and Services | 27,173,439.39 | 59,057,831.06 | -53.99% | | IoT and Intelligent Solutions | 85,935,674.63 | 135,899,028.35 | -36.77% | - Performance decline was mainly due to seasonal project slowdowns for some subsidiaries (Xiamen Jingtou, Hulian Tianxia, Donglan Digital), but other subsidiaries (Chengdu Ofeiling, Shanghai Jiedong, Beijing Tianyun Power) through active marketing achieved profitability, partially offsetting the negative impact[27] Progress of Key R&D Projects The company is advancing multiple R&D projects across audio-video, data software, and IoT; key projects include AI-based "Xiaofei Shorthand Assistant," video conferencing MCUs, industrial machine vision, 5G fronthaul optical modules, KingMap 7.1 GIS platform, Norma Big Data platform, and PhiliCube 2.0 IoT platform, aiming to enhance core competitiveness and drive transformation towards intelligent conferencing, internet video, and industrial IoT - Audio-Video Sector: Developing “Xiaofei Shorthand Assistant” to accelerate transformation into an intelligent conferencing provider; developing video conferencing MCUs to transition from traditional to internet video conferencing[28] - Data Software and Services Sector: Developing KingMap 7.1 platform, planned for integration with the company's PhiliCube Industrial IoT platform to enhance market influence; developing Norma Big Data platform to provide integrated big data solutions[29][30] - IoT and Intelligent Solutions Sector: Developing PhiliCube 2.0 IoT platform to support smart data centers, smart water management, and other applications, crucial for the company's industrial internet strategy and new digital city solutions; developing proprietary MCU chips to support IoT, intelligent conferencing, and civil-military integration businesses[31] Changes in Core Competitiveness During the reporting period, the company's core competitiveness strengthened with 4 new invention patents, 6 utility model patents, and 2 software copyrights, primarily in IoT and intelligent solutions and data software services; the company and its subsidiaries also obtained multiple new qualifications, such as ITSS and security technology prevention credit rating certificates, and received honors like "Top Ten Information System Integration Enterprises in Xiamen" - During the reporting period, the company and its subsidiaries obtained 4 new invention patents, 6 utility model patents, and 2 computer software copyrights[32][33] - The company and its subsidiaries obtained multiple new qualification certificates, including IT Service Operation and Maintenance Standard Certificate (ITSS), Zhejiang Province Security Technology Prevention Industry Credit Rating Certificate, and ISO three-system certification[35][36] - Subsidiary Jingtou Information received the "Xiamen Science and Technology Progress Third Prize" and the "Top Ten Information System Integration Enterprises in Xiamen" titles[37] Execution of Annual Operating Plan The company strictly executed its 2019 annual operating plan, continuing to focus on the "1+1+N" new digital city solution; during the reporting period, it increased R&D investment, promoted business segment development, made progress in intelligent conferencing, IoT platform (PhiliCube), big data platform (Norma), and GIS platform (KingMap), and won bids for multiple audio-video, data service, and intelligent projects, steadily expanding its market - The company's strategic core is the "1+1+N" new digital city solution, comprising "1 City Visualized Digital Hub, 1 City Digital Brain, and N City Digital Application Systems"[39][40] - The company increased R&D investment in cutting-edge technologies such as IoT, machine vision, edge computing, big data governance, and artificial intelligence to create independently controllable products[41][43] - During the reporting period, the company and its subsidiaries won bids for new projects across audio-video and control, data software and services, and IoT and intelligent solutions, including conference system projects for Anhui Provincial People's Congress and Liaoning Provincial People's Congress, and intelligent voice platform for Xinjiang Department of Justice[55] Future Operating Risks and Countermeasures The company faces three main risks: market risk, technology R&D risk, and talent attrition risk; market risk stems from macroeconomic changes and intensified competition; technology R&D risk involves rapid technological iteration, potentially weakening competitiveness if trends are not accurately grasped; talent attrition risk could impact company development; the company plans to address these through technological innovation, enhanced research, pilot programs, and improved human resource management - Market Risk: The company faces risks from industry cyclical fluctuations and accelerating technological iteration; countermeasures include strengthening core technology innovation and market expansion[56] - Technology R&D Risk: The information technology industry updates rapidly; if R&D cannot keep pace with market demand, competitive advantage will be weakened; countermeasures include strengthening trend research and adopting an "explore-pilot-promote" model to mitigate risks[57] - Technical Talent Attrition Risk: The loss of core management and technical talent will impact company development; countermeasures include improving human resource management, implementing competitive internal promotions, and actively recruiting high-end talent[58] Progress of Significant Events During the reporting period, the company disclosed progress on several significant matters: the Harbin Rail Transit Phase II project contract is still under negotiation; the Jiahui City project is completed but payment is pending; the arbitration case with Donglan Digital regarding performance compensation has not yet been ruled; the final payment for the transfer of Tianyida equity to an affiliated party has not been recovered; and while some of the controlling shareholder's shares have been unfrozen, most remain frozen - The contract for Harbin Rail Transit Line 3 Phase II project (winning bid price CNY 126 million) is currently undergoing technical negotiation and signing procedures[59][60] - Arbitration regarding Donglan Digital's performance compensation, despite multiple hearings, has not yet been ruled as of the end of the reporting period[62] - Contractual disputes between the controlling shareholder and Ping An Trust led to a large proportion of their company shares being judicially frozen; although some have been unfrozen, the risk persists[64][65] Overdue Unfulfilled Commitments During the reporting period, significant unfulfilled commitments were noted; former shareholders of Donglan Digital refused to compensate for unmet performance targets, leading to ongoing arbitration without a ruling; additionally, former shareholders of several acquired companies (Xiamen Jingtou, Shanghai Jiedong) violated non-compete agreements, causing direct losses to the listed company, with rectification underway; these issues pose potential risks to corporate governance and shareholder interests - Former shareholders of Donglan Digital failed to fulfill their 2016 performance compensation commitment; the company initiated arbitration in 2017, but no ruling has been issued as of the end of the reporting period[69][81] - Some former shareholders of acquired companies (Xiamen Jingtou, Shanghai Jiedong, Ofeiling) violated non-compete commitments, causing losses to the company, and are currently undergoing rectification[75][77][82] - Due to issues such as accounts receivable disputes and non-compete violations, the final tranche of shares held by former shareholders of Jingtou Information, Jiedong Control, and Ofeiling Communication has not yet been unfrozen[75][77][79] Use of Raised Funds The company's total raised funds amounted to CNY 2.757 billion, with CNY 2.596 billion cumulatively invested; CNY 3.0934 million was invested during the reporting period, primarily for the big data cloud platform project; there was a cumulative change in use for CNY 332 million (12.04%) of raised funds; both acquisition projects and the big data cloud platform project failed to achieve expected benefits Raised Funds Usage Summary | Item | Amount (CNY 10k) | | :--- | :--- | | Total Raised Funds | 275,690.94 | | Total Investment in Current Quarter | 309.34 | | Total Cumulative Investment | 259,618.82 | | Total Cumulative Change in Use | 33,195.39 | | Percentage of Cumulative Change in Use | 12.04% | - The committed investment projects “Acquisition of Xiamen Jingtou, Shanghai Jiedong, Ofeiling” and “Big Data Cloud Platform Project” both failed to achieve expected benefits[85] - As of the end of the reporting period, unused raised funds are held as demand deposits in dedicated accounts[86] Financial Statements This section presents the company's consolidated financial statements, including the balance sheet, income statement, and cash flow statement Financial Statement Summary As of March 31, 2019, the company's total assets were CNY 5.814 billion, up 1.64% from the beginning of the year; total liabilities were CNY 2.015 billion, with an asset-liability ratio of approximately 34.65%; Q1 operating revenue was CNY 345 million, down 35.86% year-over-year; net profit attributable to parent was CNY 15.62 million, a significant 84.06% year-over-year decrease; net cash flow from operating activities was CNY 220 million, a significant improvement from -CNY 203 million in the prior year Consolidated Balance Sheet As of March 31, 2019, the company's total assets were CNY 5.814 billion, a slight 1.64% increase from the end of the prior year; current assets accounted for approximately 66.6%; total liabilities were CNY 2.015 billion, an increase from the end of the prior year, mainly due to growth in advance receipts and other payables; equity attributable to parent company owners was CNY 3.782 billion Consolidated Balance Sheet Data | Item | March 31, 2019 (CNY) | December 31, 2018 (CNY) | | :--- | :--- | :--- | | Total Assets | 5,813,951,845.01 | 5,720,266,009.68 | | Total Liabilities | 2,015,085,563.46 | 1,936,343,637.22 | | Total Equity Attributable to Parent Company Owners | 3,782,210,624.98 | 3,766,587,355.38 | - Notes and accounts receivable totaled CNY 1.784 billion, an increase from the beginning of the year; goodwill remained unchanged at CNY 847 million[92][93] Consolidated Income Statement In Q1 2019, the company achieved total operating revenue of CNY 345 million, a 35.86% year-over-year decrease; operating costs decreased 28.62% year-over-year, a smaller decline than revenue; sales, administrative, and financial expenses all increased to varying degrees, leading to an 86.12% year-over-year drop in operating profit; net profit attributable to parent company owners was CNY 15.62 million, an 84.06% year-over-year decrease Consolidated Income Statement Data | Item | Current Period (CNY) | Prior Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 345,152,429.04 | 538,110,960.07 | -35.86% | | III. Operating Profit | 15,952,565.72 | 114,894,852.67 | -86.12% | | Net Profit Attributable to Parent Company Owners | 15,623,269.60 | 98,040,792.07 | -84.06% | - Total expenses for sales, administration, and R&D were approximately CNY 89.38 million, an increase from CNY 82 million in the prior year, indicating a need for improved cost control[101] Consolidated Cash Flow Statement During the reporting period, the company's cash flow significantly improved; net cash flow from operating activities was CNY 220 million, compared to a net outflow of CNY 203 million in the prior year, primarily due to a substantial increase in cash received from sales of goods and services; net cash flow from investing activities was a net outflow of CNY 19.79 million; net cash flow from financing activities was a net outflow of CNY 7.88 million; cash and cash equivalents balance at period-end was CNY 591 million Consolidated Cash Flow Statement Data | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 220,411,004.20 | -203,143,118.49 | | Net Cash Flow from Investing Activities | -19,791,480.68 | 20,944,252.77 | | Net Cash Flow from Financing Activities | -7,878,403.87 | -18,654,947.06 | | Net Increase in Cash and Cash Equivalents | 192,741,119.65 | -200,853,812.78 | Audit Report The company's Q1 2019 report is unaudited - The company's first-quarter report is unaudited[117]