Stock Code: 200468 Short Form of the Stock: NJ TEL B Notice No.: 2019-020
Nanjing Putian Telecommunications Co., Ltd.
Summary of Annual Report 2018
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of annual report that published on media appointed by
CSRC.
Objection statement of directors, supervisors and senior executives
Name Position Content and reason
Statement
Other directors attending the Meeting for annual report deliberation except for the followed
Name of director absent Title for absent director Reasons for absent Attorney
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable □Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock NJ TEL B Stock code 200468
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
Name Li Jing Xiao Hong
No. 1 Putian Road, Qinhuai District Nanjing, No. 1 Putian Road, Qinhuai District Nanjing,
Office add.
Jiangsu Province Jiangsu Province
Fax. 86-25-52409954 86-25-52409954
Tel. 86-25-58962308 86-25-58962072
E-mail lijing@postel.com.cn xiaohong@postel.com.cn
2. Main business or product introduction in the reporting period
1.During the reporting period, main business and products as well as the utilization that the Company mainly engaged in, including
the operation mode, main performance drivers
The Company is a state-controlled communications equipment manufacturing Company, of which the main business is R&D,
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production and sales of information communication equipment. The products of the company and its subsidiaries cover optical
communication networks, wireless communication networks, data applications, and industrial electrical and other fields, the main
products are optical communication network connection equipment, private network communication products, multimedia
communication equipment, integrated wiring, and building intelligent products, etc., customers include domestic telecom operators,
tower companies and industry customers in the government, finance, electric power, medical and other fields, and the products cover
all provinces and cities in the country and are exported to foreign countries.
At present, the business of the company’s headquarters includes optical wiring network and communication supporting overall
solutions (ODN overall solution, optical network intelligent solution, energy-saving data center solution), private network
communication products. The optical wiring network and communication supporting overall solution are mainly used for domestic
communication network construction, radio and television network transformation, high-speed rail communication construction, urban
subway construction, etc., and have made breakthroughs in the e-commerce industry. The private network communication products
mainly produce and process ad-hoc network communication equipment according to customer requirements for establishing small and
medium-sized dedicated communication networks.
The business of main subsidiaries includes multimedia communication and application solutions, building intelligent integrated
solutions, industrial intelligent power distribution systems, solar street light control systems, etc., among them, the main business of the
subsidiary Nanjing Southern Telecom Co., Ltd. is to offer remote collaborative application solutions for large and medium-sized
industry customers in governments, finance, medical, education and other fields, and the main products are video conferencing
products. The subsidiary Nanjing Putian Telege Intelligent Building Co., Ltd. mainly provides medium- and high-end integrated
wiring and intelligent application solutions for customers. The subsidiary Nanjing Mennekes Electric Appliances Co., Ltd. provides
industrial intelligent power distribution products for various industrial sites such as rail transit, airports, ports, etc. The subsidiary
Nanjing Putian Datang Information Electronics Co., Ltd. mainly provides solar street lamp controllers and IOT street lamp monitoring
systems. .
The company has market networks covering all parts of the country, and its main customers include domestic telecom operators and
customers in various industries. The company mainly obtains business opportunities by participating in project bidding, designs
schemes according to the project requirements, produces or purchases the equipment required by the customer, and takes responsible
for the installation and debugging, and realizes the profit after deducting the cost from the contract price. The company’s operating
results are mainly affected by factors such as capital expenditures, informatization investment and bidding results, fluctuations in raw
material prices and changes in other costs of telecom operators and industry customers.
2. Industry development status and industry position of the company during the reporting period
During the reporting period, China’s external environment was complex and severe, and the economy was facing downward pressure,
but the national economy was generally stable. However, during the reporting period, the 4G investment of operators entered the later
stage, and the investment in 4G construction slowed down, and the competitive pressure in the industry market further increased. The
information and communication industry was developing rapidly, the information and communication industry was in the midst of a
major transformation period of system innovation and intelligence leading, new technologies such as big data, cloud computing,
artificial intelligence, internet of things, and 5G continued to break through and integrated with manufacturing and energy, and new
products, new models, and new business forms were emerging one after another, pushing human development to accelerate into the age
of intelligence. Therefore, the company is still in a period of valuable development opportunities, the company will adhere to the initial
intention and responsibility of the national team of information and communication, focus on high-quality development, continuously
strengthen the company’s technological innovation capabilities, and increase the training and development of independent industries
and independent products.
As a state-owned holding communication equipment manufacturer, the company has good brand strength and influence in the industry
market. In 2018, the company won the “Top 10 Most Competitive Enterprises in China’s Optical Transmission and Network Access
Equipment” for the consecutive eleventh year, and the “Internet of Things Platform Based on NB-IoT Technology” products won
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the China Potevio Innovation Award; completed the corresponding communication support tasks of Two Sessions, Shanghai
Cooperation Organization summit, World Internet Conference, and the International Import Expo; Telege Building Company’s six
types of integrated wiring and security cable products helped the construction of the 2022 Beijing Winter Olympics venue; the mixed
cloud management solution provided by Southern Telecom for Guodu Securities won the “2018 China Information Communication
and Big Data Application Innovation Outstanding Achievement Award”, and the “Ruijing” audio video digital integrated solution
was awarded the “2017 China Information Technology Annual Best Solution Award” by the China Information Technology
Executive Conference.
3. Main accounting data and financial indexes
(1) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □No
Reasons for retrospective adjustment or restatement
Correction of accounting error
In RMB/CNY
Changes over
2017 2016
last year
2018
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
1,995,627,772. 2,254,399,406. 2,254,399,406. 1,853,911,278. 1,853,911,278.
Operating revenue (RMB) -11.48%
60 04 04 83 83
Net profit attributable to
shareholders of the listed 5,859,214.84 11,885,170.28 8,982,857.76 -34.77% -6,434,558.27 -5,063,843.89
Company(RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -21,461,955.87 9,156,761.14 6,254,448.62 -443.15% -11,286,693.14 -9,915,978.76
non-recurring gains and
losses(RMB)
Net cash flow arising from -155,418,733.8
-47,217,136.32 -47,220,769.58 -229.13% 109,145,940.57 109,087,237.73
operating activities(RMB) 3
Basic earnings per share
0.03 0.06 0.04 -25.00% -0.03 -0.02
(RMB/Share)
Diluted earnings per share
0.03 0.06 0.04 -25.00% -0.03 -0.02
(RMB/Share)
Weighted average ROE 1.66% 3.43% 2.60% -0.94% -1.87% 1.47%
Changes over
End of 2017 End of 2016
end of last year
End of 2018
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
2,120,744,292. 2,116,312,318. 2,114,332,229. 2,304,519,167. 2,307,031,427.
Total assets (RMB) 0.30%
41 51 50 54 07
Net assets attributable to
shareholder of listed Company 355,289,728.24 352,228,571.54 350,248,482.53 1.44% 339,838,415.21 340,760,638.72
(RMB)
Reasons of accounting policy change and accounting error correction
According to the relevant requirements addressed by the Jiangsu Securities Regulatory Bureau in the Decision Relating to Issue of
Warning Letter to Nanjing Putian Communications Co., Ltd., the Company made correction to the accounting errors for the financial
statements for the years 2014 to 2017 under retrospective restatement method as discussed and approved at the 10 th session of the 7th
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BOD of the Company held on 13 July 2018. For details, please refer to the Notice on Correction of Earlier Accounting Errors
released on 14 July 2018.
(2) Quarterly main accounting data
In RMB/CNY
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 579,271,964.31 387,578,640.64 445,518,808.43 583,258,359.22
Net profit attributable to
-6,411,052.72 -4,010,652.88 -7,943,829.27 24,224,749.71
shareholders of the listed Company
Net profit attributable to
shareholders of the listed Company
-29,910,522.65 -13,682,092.82 -2,803,874.44 24,934,534.04
after deducting non-recurring gains
and losses
Net cash flow arising from
-181,745,941.41 -43,529,287.52 -26,400,359.58 96,256,854.68
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the Company’s quarterly report and semi-annual report
□Yes √ No
4. Share capital and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered
and top ten shareholders
In Share
Total
preferenc
Total e Total preference
common sharehold shareholders with
Total common stock
stock ers with voting rights
shareholders at end of
shareholder 8,628 8,979 voting 0 recovered at end of 0
last month before
s in rights last month before
annual report disclosed
reporting recovered annual report
period-end at end of disclosed
reporting
period
Top ten shareholders
Number of shares
Full name of Nature of Proportion of Amount of
Amount of restricted shares held pledged/frozen
Shareholders shareholder shares held shares held
State of share Amount
China Potevio
State-owned
Company 53.49% 115,000,000 115,000,000
corporation
Limited
GUOTAI Foreign 3.23% 6,950,095 0
4
JUNAN corporation
SECURITIES(
HONGKONG)
LIMITED
Shenwan
Foreign
HongYuan 2.63% 5,646,500 0
corporation
(H.K.) Limited
Domestic
Zheng Enyue 1.14% 2,443,939 0
nature person
Domestic
Sun Huiming 0.93% 2,007,110 0
nature person
Domestic
Wang Xiaoyan 0.93% 1,992,590 0
nature person
Domestic
Gu Jinhua 0.87% 1,862,371 0
nature person
Guosen
Securities Foreign
0.87% 1,861,882 0
(H.K.) Broker corporation
Co., Ltd.
BOCI
Foreign
SECURITIES 0.80% 1,716,945 0
corporation
LIMITED
LI SHERYN Foreign nature
0.53% 1,146,700 0
ZHAN MING person
Explanation on associated Among the top ten shareholders, China Potevio Company Limited is neither a related party nor a
relationship or concerted action person acting in concert with the others. It’s unknown by the Company whether there are related
among the aforesaid shareholders parties or persons acting in concert among the other shareholders.
Explanation on shareholders
involving margin business (if N/A
applicable)
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
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(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
State-owned Assets Supervision and Administration Commission of the State Council
100%
China Putian Corporation
100%
China Potevio Company Limited
53.49%
Nanjing Putian Telecommunications Co., Ltd.
5. Corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but
not fully cashed on the approval date of annual report
No
III. Discussion and Analysis of Operation
1. Operation in reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
During the reporting period, the company focused on the main business of information and communication, increased the scientific and
technological innovation according to market demand, promoted product structure adjustment, explored new cooperation, opened up
new markets, continuously expanded business areas, promoted the industrial transformation and upgrading, and strived to create new
situation for development of the main business, and the business development was generally stable. Affected by factors such as the
shrinking scale of telecom operators’ 4G construction and the decline in the market price of industrial products, during the reporting
period, the company achieved operating income of 1.996 billion Yuan, a decrease of 11.48% on a year-on-year basis; realized total
profit of 28,907,200 Yuan, a decrease of 17.81% on a year-on-year basis; and realized net profit attributable to the owner of parent
company was 5,859,200 Yuan, a decrease of 34.77% on a year-on-year basis.
2. Whether the main business had major change in the reporting period
□ Yes √ No
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3. About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □Not applicable
In RMB/CNY
Increase/decrease Increase/decrease Increase/decrease
Operating
Products Operating profit Gross profit ratio of operating of operating of gross profit
revenue
revenue y-o-y profit y-o-y ratio y-o-y
main business
revenue-Video
438,095,192.19 88,015,931.70 20.09% -12.90% -2.22% 2.19%
conference
products
main business
revenue-General 329,431,898.41 77,586,999.60 23.55% -6.70% 4.02% 2.43%
cabling products
main business
revenue-Low-volt
159,936,978.03 30,254,887.00 18.92% -2.21% -19.95% -4.19%
age distribution
products
main business
revenue-Private
network 329,938,045.09 7,937,913.20 2.41% -35.66% -66.18% -2.17%
communication
products
main business
revenue-Wiring
741,819,481.65 128,020,436.20 17.26% -4.13% -5.67% -0.28%
and other
products
Interior offset -71,956,850.03 709,764.80 -0.99% 25.35% 100.00% -0.99%
other business
68,363,027.26 19,986,317.70 29.24% 53.30% 63.47% 1.82%
revenue
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit
attributable to common stock shareholders of listed company or composing the previous reporting period
√Applicable □Not applicable
Increase/decrease y-o-y Increase/decrease y-o-y
2018 2017
(RMB) (%)
Operating revenue 1,995,627,772.60 2,254,399,406.04 -258,771,633.44 -11.48%
Operating cost 1,643,115,522.38 1,880,588,070.75 -237,472,548.37 -12.63%
Net profit attributable to
shareholders of the listing 5,859,214.84 8,982,857.76 -3,123,642.92 -34.77%
corporation
Affected by factors such as the shrinking scale of telecom operators’ 4G construction and the decline in the market price of industrial
products, during the reporting period, the operation revenue and net profit attributable to shareholder of listed company are declined
from a year earlier.
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6. Particular about suspended and delisting
□ Applicable √ Not applicable
7. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
√Applicable □ Not applicable
Accounting policy changes due to the change of Accounting Standards for Business Enterprises
1) In accordance with the Notice of Ministry of Finance on Revising and Issuing the Format of General Enterprise Financial
Statement for 2018 (CK [2018] No.15) and interpretation for the Notice, the Company prepared the financial statement of 2018 in
line with the requirement of Accounting Standards, therefor, the accounting policy change adopts the retrospective adjustment. The
items and amount with major influence in financial statement of 2017 are as:
Item and amount in original statement Item and amount in new statement
Note receivable 32,477,463.59 Note receivable and account 812,567,071.00
Account receivable 780,089,607.41 receivable
Note payable 20,161,687.14 Note payable and account 826,833,861.31
Account payable 806,672,174.17 payable
Interest payable 531,667.36 Other account payable 63,027,802.63
Dividend payable 1,692,213.38
Other account payable 60,803,921.89
Administrative expenses 143,924,331.99 Administrative expenses 76,037,302.46
R&D expenses 67,887,029.53
2)In 2017, the Ministry of Finance issued the “Accounting Standards for Business Enterprises Interpretation No. 9 - Accounting
Treatment of Net Loss of Investment Under the Equity Method”, “Accounting Standards for Business Enterprises Interpretation No.
10 - Depreciation Method Based on Income from the Use of Fixed Assets”, “Accounting Standards for Business Enterprises
Interpretation No. 11 - Amortization Method Based on Income from the Use of Intangible Assets” and “Accounting Standards for
Business Enterprises Interpretation No. 12 - If the Provider and Recipient Served by Key Managers Are Related Parties. The
company has implemented the above-mentioned interpretations of the accounting standards for business enterprises since January 1,
2018, and the implementation of the above interpretations had no impact on the company’s financial data at the beginning of the
period.
The change of the accounting policy was approved by the 22nd meeting of the Seventh BOD.
(2) Major accounting errors within reporting period that needs retrospective restatement
√Applicable □Not applicable
According to the relevant requirements of the Decision on the Adoption of Warning Letters for Nanjing Putian Telecommunications
Co., Ltd. ([2018] No. 38) made by Jiangsu Securities Regulatory Bureau, and reviewed and approved by the 10 th meeting of the
seventh board of directors of the company held on July 13, 2018, the company adopted the retrospective restatement method to
correct the accounting errors in the 2014-2017 financial reports. For details, please refer to the “Announcement on Correction of
Previous Accounting Errors” disclosed by the company on July 14, 2018.
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(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
□ Applicable √ Not applicable
The consolidation scope has no changes in the period.
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
23 April 2019
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