Important Notes, Directory, and Definitions
The Board of Directors, Supervisory Board, and the directors, supervisors, and senior management of the company guarantee that the content of the annual report is true, accurate, and complete, with no false records, misleading statements, or significant omissions, and bear individual and joint legal responsibility. The person in charge of the company, Qian Sujin, the person in charge of accounting work, Qian Sujin, and the head of the accounting institution (accounting supervisor), Qi Yingrui, declare: they guarantee the truthfulness, accuracy, and completeness of the financial report in this annual report. All directors have attended the board meeting to review this report. Xinyong Zhonghe Accounting Firm (Special General Partnership) issued a qualified audit report on the company's 2024 financial report and an unqualified internal control audit report with an emphasis paragraph on the effectiveness of the company's internal control for 2024. The Board of Directors and Supervisory Board have provided detailed explanations on relevant matters; investors are advised to read carefully.
According to the identification of significant deficiencies in the company's financial report internal control, there are no significant deficiencies in financial report internal control as of the internal control evaluation report benchmark date. Based on the identification of significant deficiencies in the company's non-financial report internal control, there are certain deficiencies in the company's non-financial report internal control as of the internal control evaluation report benchmark date. The company will take effective corrective measures to ensure the effectiveness of its non-financial report internal control. For detailed information, please refer to the company's disclosed internal control self-evaluation report; investors are advised to read carefully.
In 2024, the company achieved a net profit attributable to shareholders of the listed company of -1,132,359,667.94 yuan. The main reasons for the performance loss are:
- During the reporting period, due to intensified industry competition, increased costs, project delays, and budget reductions from major industry clients, the gross profit margin of the company's main business experienced a significant decline.
- The company's revenue structure changed, with a higher proportion of low-margin businesses and a lower proportion of high-margin businesses, leading to a substantial decline in overall gross profit margin, adversely affecting the company's operating performance in 2024.
- Due to budget reductions and project delays from major clients, the revenue scale of the asset group with goodwill decreased significantly, and the gross profit margin declined sharply. Based on comprehensive judgment and prudence principles regarding the future market development of the industry, the company commissioned an evaluation agency to conduct a goodwill impairment test, resulting in a provision for goodwill impairment of 505,813,424.53 yuan.
- Based on prudence principles and relevant provisions of the Accounting Standards for Enterprises, a provision for credit impairment and asset impairment (excluding goodwill) of 329,256,310.32 yuan was made during the period.
For details on the industry situation, main business, core competitiveness, etc., please refer to Section 3 "Management Discussion and Analysis" of this report. The company's main financial indicators are detailed in Section 2 "Company Profile and Main Financial Indicators" of this report, and there are no significant risks of continued operation. In Section 3 "Management Discussion and Analysis" of this report, the part "11. Outlook for the Company's Future Development" describes the risks that may exist in the company's operations and corresponding measures; investors are advised to pay attention to the relevant content.
The profit distribution plan approved by the board of directors is: based on 313,691,155 shares, a cash dividend of 0 yuan (including tax) will be distributed to all shareholders for every 10 shares, with 0 bonus shares (including tax), and 0 shares will be transferred to all shareholders from the capital reserve for every 10 shares.