BOCO(SH:600289)2024-04-29 15:02Financial Performance - In 2023, the company achieved operating revenue of CNY 195.25 million, a decrease of 25.29% compared to the previous year[6]. - The net profit attributable to the parent company was a loss of CNY 1,051.21 million, with a net profit loss of CNY 184.26 million after deducting non-recurring gains and losses[6]. - The operating cash flow for 2023 was negative at CNY -214.57 million, indicating a decline in cash generation capabilities[22]. - The total assets decreased by 41.58% to CNY 1,248.92 million compared to the end of 2022[22]. - The net assets attributable to shareholders dropped by 69.77% to CNY 423.68 million at the end of 2023[22]. - The basic earnings per share for 2023 was CNY -1.6658, reflecting a significant decline from the previous year[23]. - The weighted average return on equity was -113.22%, a decrease of 90.39 percentage points compared to the previous year[23]. - The company will not distribute profits for 2023 due to the net loss incurred during the year[6]. Operational Challenges - The company faced challenges in sales, R&D, and delivery due to the overall market environment and litigation issues, leading to higher operational costs[32]. - There were instances of non-operating fund occupation by controlling shareholders and related parties during the reporting period[8]. - The company received an audit report with a disclaimer of opinion from its auditor, indicating potential issues with financial reporting[5]. Research and Development - R&D expenses fell by 29.09% to CNY 88.32 million, reflecting a reduction in personnel costs due to fewer R&D staff[65]. - The company has 227 R&D personnel, representing 41.88% of the total workforce[79]. - The company is committed to R&D investment, with a clear ratio of market profit to R&D input, ensuring a solid foundation for long-term development despite ongoing legal challenges affecting business operations[57]. - The company aims to enhance its self-intelligent network management capabilities through AI solutions and advanced algorithms, supporting telecom operators in achieving higher levels of network management[59]. Strategic Initiatives - The company is focusing on enhancing its core competencies in operational management, big data, and artificial intelligence to drive digital transformation across various industries[34]. - The company is adapting to the rapid development of emerging technologies such as cloud computing and AI, which are driving innovation in the telecom equipment and services industry[32]. - The company signed a strategic cooperation agreement with China Mobile, enhancing profitability through the "Self-Intelligent Network" project and expanding ecological cooperation channels[35]. - The company is actively pursuing external collaborations to expand its non-telecom business, preparing for digital transformation in various sectors[36]. Market Position and Growth - The company achieved a 19.1% growth in emerging business revenue, totaling CNY 356.4 billion, driven by data centers, cloud computing, and IoT[45]. - The telecommunications industry saw a revenue increase of 6.2%, with total telecom business revenue reaching CNY 1.68 trillion[45]. - The company is expanding into non-telecom sectors such as energy, rail transportation, and smart cities, leveraging its existing technology advantages to create lightweight solutions[56]. - The company aims to deepen its core competitiveness in the communication sector while expanding into vertical markets such as energy, education, and industrial internet[97]. Governance and Compliance - The company has undergone changes in its board members, including the resignation of several directors and the appointment of new ones[128]. - The company is committed to improving its compliance and governance standards following past regulatory actions[131]. - The company has a structured compensation policy for directors and senior management based on performance and company objectives[127]. - The company has maintained a stable governance structure with independent directors overseeing key decisions[124]. Legal and Regulatory Issues - The company faces risks related to ongoing litigation from shareholder guarantees, which may impact its operational capabilities and new business opportunities[111]. - The company has ongoing significant litigation matters related to investor lawsuits, with multiple announcements made regarding the progress of these cases[171]. - The company has reported a total of RMB 91,906.42 million in illegal guarantees, which represents 65% of the latest audited net assets[163]. - The controlling shareholder, Yiyang Group, has been involved in multiple legal disputes leading to non-operating fund occupations, with a total of RMB 10.65 billion injected to resolve these issues during the restructuring process[161]. Future Outlook - The company provided a future outlook with a revenue guidance of 1.5 billion for the next fiscal year, indicating a growth target of 25%[117]. - The company plans to enhance its product offerings through modular design and iterative upgrades to meet new market demands[98]. - The company is focusing on market expansion and strategic acquisitions to drive growth in the upcoming fiscal year[123]. - The company aims to improve operational efficiency and increase profitability through strategic initiatives[123].