Changfang Group's Earnings And Losses In 2018 Turned To 159 Million Yuan

- Feb 24, 2019-

On February 20, Changfang Group issued its annual performance report for 2018, which realized a total operating income of 1.583 billion yuan, a decrease of 9.59% compared with the previous year; the net loss of shareholders belonging to listed companies was 159 million yuan, compared with 36.2384 million yuan in the same period last year; and the basic loss of 0.20 yuan per share.

The main reasons for the decline of the company's performance are as follows: in 2018, due to the influence of financial derailment and macroeconomic downturn, the company's operating income and gross interest rate decreased slightly compared with the same period last year; secondly, after the company changed its actual controller in May 2018, it adjusted the company's development strategy direction, established a return to the main industry of LED, and implemented the development strategy of "focus, coordination and openness". During the reporting period, the business income and gross profit of the parent company declined slightly compared with the same period last year. Thirdly, due to the gradual optimization of the existing product structure of light source packaging and the progress of LED industry technology, the light source products with long storage life and the main and auxiliary raw materials were communicated with the business department, combined with the current market situation and according to the company's relevant inventory. The system of depreciation preparation is based on the principle of accounting prudence. As the parent company gradually adjusts the existing product structure, some of the original light source equipment can not meet the production needs of high-end and middle-end new products and has a long life. After the evaluation by the professional asset appraisal company hired by the company, some light source packaging equipment has signs of impairment, so the fixed assets impairment allowance is proposed. In the end, due to the influence of the financial environment in 2018, the whole society is short of liquidity, financing is difficult, and some customers can not repay in time, which leads to the extension of the age of accounts receivable. According to the principle of accounting prudence, the corresponding provision for bad debts receivable is made.

At the end of the reporting period, the total assets of the company were 3.478 billion yuan, down 8.61% from the beginning of the reporting period; the equity of shareholders belonging to listed companies was 1.617 billion yuan, down 25.33% from the beginning of the reporting period, mainly due to the purchase of minority shareholders'rights and interests of controlling subsidiary Kang Mingsheng (Shenzhen) Technology Co., Ltd. during the reporting period.