S&X(002298)2023-05-19 09:11Financial Performance - In 2022, the company reported a net profit attributable to shareholders of -85,982.52 million CNY, with the smart energy business segment contributing a profit of 8,739.36 million CNY, while the wholly-owned subsidiary Beijing Zhongdian Xingfa incurred a loss of -54,416.44 million CNY due to goodwill impairment of 40,305.44 million CNY [21]. - In Q1 2023, the company recorded a net profit attributable to shareholders of -2,636.74 million CNY, with the smart energy business generating a profit of 2,657.56 million CNY, while the smart city business reported a loss of -5,294.29 million CNY, primarily due to losses from the Yunnan Unicom mixed reform project and a decline in revenue from Beijing Zhongdian Xingfa [9][10]. Business Challenges - The company faced significant losses in Q4 2022, attributed to several factors: 1. Ongoing pandemic control measures led to reduced net income from roaming settlement and related businesses in Yunnan [21]. 2. Increased government pandemic-related expenditures resulted in overdue accounts receivable, necessitating provisions for bad debts and asset impairments [21]. 3. Heightened government fiscal burdens caused delays in existing projects and a reduction in new projects [21]. Strategic Focus - The company aims to enhance the development of smart city and smart energy businesses, focusing on resource integration, expanding sales channels, and improving internal control management [3][10]. - The strategic direction emphasizes "self-controllable and domestic substitution" in technology research and development, with a commitment to high-quality growth in smart energy and new energy sectors [4][10]. Market Position and Future Outlook - The company is recognized as a leading provider of smart city core technologies and solutions, with a strong focus on smart energy products and services [4][10]. - The management expresses confidence in the company's future performance, aiming to achieve profitability in 2023 through strategic initiatives and market expansion [18][19]. Investor Relations - The company acknowledges the impact of macroeconomic factors on stock performance and emphasizes the importance of rational investment [5][18]. - Shareholder actions, such as stock reductions, are attributed to personal financial needs rather than a lack of confidence in the company's prospects [5][21].