Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2019
Stock Code: 200468 Short Form of the Stock: NJ TELB Notice No.: 2019-037
Putian Telecommunications Co., Ltd.
Summary of Semi-Annual Report 2019
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 M eeting 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
Tel. 86-25-58962308 86-25-58962072
E-mail lijing@postel.com.cn xiaohong@postel.com.cn
2. Main accounting data and Changes of shareholders
Whether it has retroactive adjustment or re-statement on previous accounting data
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Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2019
□ Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RM B) 757,197,371.80 966,850,604.95 -21.68%
Net profit attributable to shareholders of
-57,528,524.88 -10,421,705.60 -452.01%
the listed Company (RM B)
Net profit attributable to shareholders of
the listed Company after deducting -58,860,555.61 -43,592,615.47 -35.02%
non-recurring gains and losses (RM B)
Net cash flow arising from operating
-164,096,730.74 -225,275,228.93 27.16%
activities (RM B)
Basic earnings per share (RM B/Share) -0.27 -0.05 -440.00%
Diluted earnings per share (RM B/Share) -0.27 -0.05 -440.00%
Weighted average ROE -17.62% -3.02% -14.60%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 1,820,695,784.46 2,120,744,292.41 -14.15%
Net assets attributable to shareholder of
297,696,312.16 355,289,728.24 -16.21%
listed Company (RMB)
3. Number of shares and shares held
Total preference shareholders
Total common shareholders at with voting rights recovered
8,985 0
period-end at end of reporting period (if
applicable)
To ten shareholders
Number of share
Nature of Proportion of Number of Number of non-circulation stock
Shareholders pledged/frozen
shareholder shares held shares held held
State of share Amount
China Potevio
State-owned
Company 53.49% 115,000,000 115,000,000
corporation
Limited
GUOTAI
JUNAN
Foreign
SECURITIES( 2.70% 5,800,777 0
corporation
HONGKONG)
LIM ITED
Shenwan
Foreign
HongYuan 2.63% 5,646,500 0
corporation
(H.K.) Limited
Domestic
Zheng Enyue 1.14% 2,443,939 0
nature person
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Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2019
Domestic
Sun Huiming 0.93% 2,007,110 0
nature person
Guosen
Securities Foreign
0.88% 1,901,882 0
(H.K.) Broker corporation
Co., Ltd.
Domestic
Gu Jinhua 0.87% 1,862,371 0
nature person
BOCI
Foreign
SECURITIES 0.68% 1,466,945 0
corporation
LIM ITED
Domestic
Jin Yunhua 0.44% 950,162 0
nature person
Domestic
Xiang Yan 0.42% 910,602 0
nature person
Explanation on associated Among the top ten shareholders, China Potevio Company Limited is neither a related party nor a
relationship among the aforesaid person acting in concert with the others. It’s unknown by the Company whether there are related
shareholders parties or persons acting in concert among the other shareholders.
Shareholders involving margin
N/A
business (if applicable)
In Share
4. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Controlling shareholder of the Company has no changed in the Period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Actual controller of the Company has no changed in the Period
5. Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
No preferred stock in reporting period.
6. Corporation Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due
No
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Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2019
III. Discussion and Analysis of Operation
1. Operation in the period (brief)
Dose the Company need to comply with disclosure requirements of the special industry
No
During the reporting period, the Company continues to strengthen Company’s operation foundation, deepen the development of rules
and regulations and management improvement, strive to enhance the quality of development and core competitiveness by focus on
the key works mainly in aspect of expenditure reduction, increase revenue, innovation and assessment. At first half of the year,
operation revenue amounted as 757.2 million Yuan, net profit attributable to shareholder of listed company amounted as -57.53
million Yuan, the period expenses has the same as last period basically, net cash flow from operation has 61.18 million Yuan
decreased in out-flow from a year earlier. Overall development of the Company shows a steady trend.
Y-o-y changes of main financial data
In RM B
Current period Same period of last year Y-o-y increase/decrease Reasons for changes
Operating revenue 757,197,371.80 966,850,604.95 -21.68%
Operating costs 633,095,768.07 824,358,695.32 -23.20%
Sales expenses 78,513,462.05 79,696,183.64 -1.48%
Administration expenses 47,259,575.67 47,390,575.27 -0.28%
The interest and expenses
on financing increased on
Finance expenses 15,823,806.65 10,198,465.39 55.16%
a y-o-y basis in the
period
Income tax expenses 2,066,779.65 1,646,117.70 25.55%
R & D revenue 35,909,040.49 36,398,106.80 -1.34%
Net cash flow arising
-164,096,730.74 -225,275,228.93 27.16%
from operating activities
The net cash collected by
disposal of fixed assets,
Net cash flow arising
intangible assets and
from investment -5,724,565.30 22,505,195.83 -125.44%
other long-term assets are
activities
declined from a year
earlier
Net cash flow arising
46,654,376.14 49,041,298.97 -4.87%
from financing activities
Net increase of cash and
-123,166,919.90 -153,821,091.18 19.88%
cash equivalent
Profit from joint stock
Investment income -442,230.16 407,793.10 -208.44% enterprise declined on a
y-o-y basis
There is no material
Assets disposal income 98,840.67 30,156,818.80 -99.67% assets disposed in the
period
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Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2019
The government subsidy
reckoned into
Non operating income 1,312,115.17 2,825,854.15 -53.57% non-operating income in
the period declined on a
y-o-y basis
Operation profit -52,902,524.60 -3,522,499.41 -1,401.85% Decreased in the period,
Total profit -51,829,061.47 -1,005,231.26 -5,055.93% mainly because: 1.
Net profit -53,895,841.12 -2,651,348.96 -1,932.77% affected by the reduction
of customer demand and
fierce price competition,
sales revenue decreased
on a y-o-y basis, and the
Net profit attributable to Company’s fixed costs
the owner of the parent -57,528,524.88 -10,421,705.60 -452.01% were relatively high in
Company the adjustment of
industrial structure; and
2. non-recurring earnings
decreased from a year
earlier.
2. 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 fiscal period
√Applicable □ Not applicable
Changes in accounting policies
(1) Changes in accounting policies arising from changes in CASBEs
The Company prepared the financial statements for the year ended December 31, 2019 in accordance with “Notice of the M inistry of
Finance on Revising and Issuing Financial Statement Templates for General Enterprises” (numbered C ai Kuai [2019] 6), its
interpretations and CASBEs, and changes in accounting policies are applicable to retrospective application method. Financial
statement items and amounts significantly affected of 2018 are as follows:
Original financial statement items and amounts Revised financial statement items and amounts
Notes receivable and accounts Notes receivable 46,475,656.01
987,544,115.36
receivable
Accounts receivable 941,068,459.35
Notes payable and accounts Notes payable 84,374,916.99
827,403,870.61
payable Accounts payable 743,028,953.62
Available-for-sale financial Other equity instrument
741,953.00 741,953.00
assets investments
Less:Assets impairment loss 3,030,783.16 Add:Assets impairment loss -3,030,783.16
2) The Company has adopted “CASBE 22 – Recognition and measurement of Financial Assets”, “CASBE 23 – Transfer of Financial
Assets”, “CASBE 24 - Hedging” and “CASBE 37 - Presentation of Financial Instruments” (collectively, the “revised financial
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Putian Telecommunications Co., Ltd. Summary of Semi-Annual Report 2019
instrument standard”) revised by M inistry of Finance of PRC. Pursuant to regulations on convergence between old and new standards,
no adjustment shall be made on comparable information, and the difference arising from adoption on the adopting date shall be
retrospectively adjusted into retained earnings or other comprehensive income at the beginning of the reporting period.
The revised financial instrument standard changes classification and measurement method of financial assets, and determines three
major categories of measurement: amortized cost; fair value through other comprehensive income; fair value through profit or loss.
The Company makes the above classification based on its own business model and the contractual cash flow characteristics of t he
financial assets. The Company measures equity investments at fair value through profit or loss, but may make an irrevocable election
at initial recognition to measure them at fair value through other comprehensive income.
The revised financial instrument standard requires for a “expected credit loss model” instead of “incurred loss model”, which is
applicable to financial assets at amortized cost, financial assets, contract assets, lease receivable at fair value through other
comprehensive income.
(2) Major accounting errors within reporting period that needs retrospective restatement
√Applicable □ Not applicable
According to the relevant requirements addressed by the Jiangsu Securities Regulatory Bureau in the Decision Relating to Issu e of
Warning Letter to Nanjing Potevio Communication Co., Ltd. on 10 July 2018, 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 t he 10th
meeting of the 7th session of the board of the Company held on 13 July 2018. For details, please refer to the Announcement dated 14
July 2018 relating to correction of prior accounting errors.
(3) Particulars about the change of consolidation range compared with the financial report of last fiscal
period
□ Applicable √ Not applicable
The Company had no change of consolidation range in reporting period.
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
30 August 2019
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