*ST Gaosheng (000971):2019 Net Profit Loss In The First Three Quarters Of 10 Million -2000

In October 15th, *ST Gaosheng (000971) released the first three quarters of 2019 performance forecast: net profit is expected to be the highest loss of 20 million yuan.

Notice shows that during the performance notice period: in September 30th January 1, 2019 -2019, the net profit attributable to shareholders of listed companies was 10 million yuan -2000 yuan, and the basic earnings per share were 0.009-0.018 yuan.

It is understood that the reason for the change in performance is the company's main business for the Internet cloud basic services, virtual Internet business, and communication engineering industry infrastructure construction. At present, due to the influence of market environment and policies, the performance of the company decreased significantly in the 1-9 months of 2019 compared with the same period last year, especially the basic service business, which was affected by the monopoly effect of the Internet industry giants. The overall market price was low, and the gross profit margin declined significantly.

At the end of 2018, due to the failure of the Department's performance, the company confirmed that the performance of the 2018 year did not meet the expected number of shares to be repaid, and the difference between the expected performance and actual performance in the expected residual performance compensation period should be predicted. The number of compensation shares should be measured on the basis of the fair value of the balance sheet date. In 2019, part of the compensatory shares should be affected by fair value changes, which will affect the decrease in current profits and losses.