JLU COMMUNICATION(SZ:300597)2024-04-25 12:37Financial Performance - The revenue from communication network design and engineering services increased by 5.23% compared to the same period last year[4]. - The net profit attributable to shareholders decreased by 83.24% year-on-year, primarily due to increased upfront investment in the "Smart Canteen" product solutions and external expenses from litigation[4]. - The company's operating revenue for 2023 was CNY 555,246,899.78, an increase of 5.23% compared to CNY 527,643,086.06 in 2022[22]. - The net profit attributable to shareholders for 2023 was CNY 3,758,238.66, representing a decrease of 83.24% from CNY 22,427,532.12 in 2022[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 12,126,749.64, down 41.28% from CNY 20,651,693.68 in 2022[22]. - The net cash flow from operating activities for 2023 was CNY -49,105,303.83, an improvement of 25.16% compared to CNY -65,614,298.14 in 2022[22]. - The total assets at the end of 2023 were CNY 1,437,117,735.07, an increase of 3.16% from CNY 1,392,779,387.28 at the end of 2022[22]. - The net assets attributable to shareholders at the end of 2023 were CNY 1,070,280,442.33, a slight decrease of 0.07% from CNY 1,070,953,718.67 at the end of 2022[22]. - The basic earnings per share for 2023 were CNY 0.01, down 88.89% from CNY 0.09 in 2022[22]. - The diluted earnings per share for 2023 were also CNY 0.01, reflecting the same decline of 88.89% from CNY 0.09 in 2022[22]. - The weighted average return on equity for 2023 was 0.35%, a decrease of 2.20% from 2.55% in 2022[22]. - The company reported a significant decline in quarterly net profit in Q4 2023, with a loss of CNY 8,500,359.47 compared to profits in the previous three quarters[25]. Revenue Growth and Business Segments - The company reported a non-current asset disposal gain of 181,439.25 million in 2023, a significant increase from a loss of 13,450.95 million in 2022[29]. - Government subsidies recognized in the current period amounted to 2,336,797.75 million in 2023, up from 1,318,589.38 million in 2022, reflecting a 77.1% increase[29]. - The company's total income from fixed internet broadband access reached 262.6 billion in 2023, representing a 7.7% growth compared to the previous year[35]. - Emerging business revenue, including data centers and cloud computing, grew by 19.1% in 2023, totaling 356.4 billion, which contributed 3.6 percentage points to overall telecom revenue growth[35]. - Fixed asset investment in the telecom sector was 420.5 billion in 2023, a slight increase of 0.3% year-on-year, with 5G investments reaching 190.5 billion, up 5.7%[36]. - By the end of 2023, the total number of mobile communication base stations reached 11.62 million, with 5G base stations accounting for 3.38 million, representing 29.1% of the total[36]. - The company established 97 new gigabit cities in 2023, bringing the total to 207 gigabit cities nationwide[37]. Digital Economy and Technological Development - The digital economy in China surpassed 50 trillion, accounting for 41.5% of the GDP, indicating significant growth potential in the sector[39]. - The Philippines is identified as a key international market, with a government plan to build 200,000 wireless network sites by 2026, enhancing future collaboration opportunities[41]. - The company has developed into a specialized communication and information technology service provider with strong service capabilities and high technical standards, holding 122 patents and 146 software copyrights[48]. - The company actively participates in standardization efforts, having contributed to 9 national standards and 10 industry standards, enhancing its technical level across various fields[48]. - The communication technology service industry is experiencing rapid growth, driven by macroeconomic changes and technological advancements, which presents significant development opportunities for the company[44]. - The company is positioned to benefit from the increasing importance of information infrastructure globally, as countries enhance their communication networks[43]. - The market scale of the communication industry is influenced by regional economic development, with the western regions of China expected to see rapid growth due to increased policy support[45]. International Expansion and Strategic Initiatives - The company has established a subsidiary in the Philippines to expand its international business, leveraging opportunities from the "Belt and Road" initiative[49]. - The company aims to accelerate the construction and commercialization of 5G networks, which is expected to drive significant information consumption demand[50]. - The company is focused on integrating information services across society, expanding beyond traditional communication operator services[49]. - The company is actively involved in the international design consulting market, aiming to enhance its competitiveness and influence by 2035[50]. - The company is collaborating with global operators and industry partners to develop a robust 5G messaging service ecosystem, enhancing the value of messaging-related services[50]. Research and Development - The company is committed to promoting high-quality development during the "14th Five-Year Plan" period, emphasizing innovation-driven growth and structural reforms[50]. - The company has set specific goals for network development and enhancement, with a focus on achieving dual-gigabit network capabilities by 2023[50]. - The company is focusing on enhancing the quality of 5G services through regular monitoring and user evaluations to address service issues promptly[50]. - The company is focusing on the digital transformation of the group meal industry to improve quality, reduce costs, and increase efficiency in a competitive market[55]. - The company is committed to leveraging digital technologies to minimize food waste in university canteens, supporting the dual carbon strategy[55]. - The company is focusing on developing smart city information transmission solutions to support the digital economy[104]. - The company has completed research on key technologies for IoT core network construction, which will improve its capabilities and meet the demands of construction units[105]. Governance and Management - The company has established a comprehensive internal management and control system to improve governance and compliance with regulatory requirements[159]. - The board of directors consists of 11 members, including 4 independent directors, ensuring compliance with legal and regulatory standards[162]. - The company has implemented a "Quality Return Dual Improvement" action plan to enhance service quality and operational efficiency[157]. - The company has established a fair and transparent performance evaluation and incentive mechanism, continuously improving it[165]. - The company respects and safeguards the legitimate rights of stakeholders, issuing the 2023 ESG report to highlight its social responsibilities[166]. - The company strictly adheres to information disclosure regulations, ensuring equal access to information for all shareholders[167]. - The company operates independently from its controlling shareholders in terms of personnel, assets, finance, and business, maintaining a complete and autonomous operational capability[168]. Employee and Management Structure - The total number of employees at the end of the reporting period is 2,184, with 1,119 from the parent company and 1,065 from major subsidiaries[199]. - The professional composition includes 716 production personnel, 73 sales personnel, 1,244 technical personnel, 26 financial personnel, and 125 administrative personnel[199]. - The educational background of employees shows 84 with master's degrees or above, 847 with bachelor's degrees, and 1,253 with college diplomas or below[199]. - The company has increased its R&D personnel to 507 in 2023, a 9.50% increase from 463 in 2022[108]. - The company has implemented a multi-scenario smart dining system to enhance customer dining experiences, with a capitalized R&D amount of ¥622,322.73[110]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[186]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[186]. - Future guidance includes a focus on sustainable practices, aiming for a 15% reduction in carbon emissions by 2025[186].