ST Gaosheng (000971):2018 Loss 2 Billion 196 Million

In April 27th, ST Gaosheng released its annual report in 2018. The company achieved operating income of 901 million yuan in 2018 1-12, an increase of 3.76% over the same period last year. The communication equipment industry has disclosed that the average annual operating revenue growth rate of the annual reports is -1.48%; the net profit attributable to shareholders of listed companies is -21.96 billion yuan, a decrease of 1504.47% in the same ratio; the communications equipment industry has disclosed that the average annual net profit growth rate of the annual reports is 8.80%; the company's earnings per share are -2.13 yuan.

At the same time, the company released the first quarter results announcement in 2019, and expected 2019-01-01 to 2019-03-31 performance: net profit -1000 10000 yuan to 5 million yuan, basic earnings per share -0.009 yuan to 0.005 yuan; performance in the same period last year: net profit 26 million 296 thousand and 400 yuan, basic earnings per share 0.024 yuan;

Regarding the reasons for the first quarter performance change in 2019, the company said that it was influenced by industry policies, industry investment and mergers and acquisitions, which further improved customer concentration. IDC business gradually developed towards scale and centralization.

Internet companies own IT demand rapid Xiang Yun platform migration, under the pressure of cloud manufacturers' strong prices and brands, coupled with the national policy of reducing fees and speeding up, the market has seen widespread price cuts, leading to the continued decline in gross margins of traditional Internet industry customers.

During the reporting period, the impact of the company's non recurring gains and losses on net profit is about 400 thousand yuan.