Stock Code: 200468 Short Form of the Stock: NJ TEL B Notice No.: 2020-021
Nanjing Putian Telecommunications Co., Ltd.
Summary of 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 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
Putian Technology Pioneer Park, No.8 Putian Technology Pioneer Park, No.8
Office add. Fenghui Avenue, Yuhuatai District, Nanjing, Fenghui Avenue, Yuhuatai District, Nanjing,
Jiangsu Province Jiangsu Province
Fax. 86-25-52416518 86-25-52416518
Tel. 86-25-69675809 86-25-69675865
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E-mail lijing@postel.com.cn xiaohong@postel.com.cn
2. Main business or product introduction in the reporting period
The Company is a state-controlled communications equipment manufacturing Company, of which the main
business is R&D, production and sales of information communication equipment. The products of the company and
its subsidiaries involved 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, rail transit 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 etc. 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 and e-commerce industry etc. 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 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 Electronic 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.
During the reporting period, the situation at home and aboard was complex and severe, the downward pressure on
domestic economy increased. In terms of industry environment, 4G construction has been basically completed,
operator capital investment has slowed, competition in the communications equipment industry has intensified,
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and the company’s operating pressure has further increased. On the other hand, the promotion of industrial
policies such as 5G construction, smart grid construction, and domestic informatization in the telecom industry
has also brought new development opportunities to the company. As a state-owned communications equipment
manufacturing company, the company will continue to strengthen its technological innovation capabilities,
increase the cultivation and development of independent products, and further enhance its market competitiveness
by relying on the established brand strength and influence in the industry market.
In 2019, the company became a member unit of the Jiangsu Information Technology Application Innovation
Industry Alliance, and joined the Information Technology Application Innovation Working Committee of the
China Electronics Standardization Association, and became a member unit of the Information Technology
Application Innovation Working Committee, which helped the company to improve the technical research,
product adaptation, and industrial collaboration capabilities of basic hardware products, and provided users with
safer and more reliable products and solutions. At the same time, the company has obtained first-level dealer
qualification of Huawei’s intelligent security systems (machine vision), and expanded the channel scale for the
further development.
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
In RMB/CNY
Changes (+,-)
2019 2018 compared with the 2017
previous year
Operating revenue (RMB) 1,338,284,194.21 1,995,627,772.60 -32.94% 2,254,399,406.04
Net profit attributable to
shareholders of the listed Company -169,088,516.69 5,859,214.84 -2,985.86% 8,982,857.76
(RMB)
Net profit attributable to
shareholders of the listed Company
-171,904,933.41 -21,461,955.87 -700.98% 6,254,448.62
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
22,686,114.91 -155,418,733.83 114.60% -47,220,769.58
operating activities (RMB)
Basic earnings per share
-0.79 0.03 -2,733.33% 0.04
(RMB/Share)
Diluted earnings per share
-0.79 0.03 -2,733.33% 0.04
(RMB/Share)
Weighted average ROE -66.55% 1.66% -68.21% 2.60%
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Changes (+,-)
compared with the
Year-end of 2019 Year-end of 2018 Year-end of 2017
year-end of previous
year
Total assets (RMB) 1,652,005,519.44 2,120,744,292.41 -22.10% 2,114,332,229.50
Net assets attributable to
shareholder of listed Company 169,543,106.29 355,289,728.24 -52.28% 350,248,482.53
(RMB)
(2) Quarterly main accounting data
In RMB/CNY
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 489,849,942.04 267,347,429.76 277,519,139.93 303,567,682.48
Net profit attributable to
-36,835,612.35 -20,692,912.53 -16,033,203.08 -95,526,788.73
shareholders of the listed Company
Net profit attributable to
shareholders of the listed Company
-37,608,907.37 -21,251,648.24 -17,529,611.58 -95,514,766.22
after deducting non-recurring gains
and losses
Net cash flow arising from
-196,430,725.42 32,333,994.68 -10,104,059.42 196,886,905.07
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 8,918 8,861 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
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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
Shenwan
Foreign
HongYuan 2.63% 5,646,500 0
corporation
(H.K.) Limited
GUOTAI
JUNAN
Foreign
SECURITIES( 2.55% 5,480,114 0
corporation
HONGKONG)
LIMITED
Domestic
Zheng Enyue 1.14% 2,449,739 0
nature person
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% 1,871,371 0
nature person
BOCI
Foreign
SECURITIES 0.68% 1,466,945 0
corporation
LIMITED
Domestic
Xiang Yan 0.42% 910,602 0
nature person
Domestic
Zhen Hongquan 0.39% 849,200 0
nature 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
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The Company had no shareholders with preferred stock held in the reporting.
(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
During the reporting period, the situation at home and abroad was complicated and severe, Sino-US trade frictions
continued, the downward pressure on domestic economy increased, the industry in which the company was
located was fiercely competitive, and the company faced great operating pressure and difficulties. The company
focused on the four key aspects of opening up sources, reducing expenditures, innovation, and assessment,
continuously improved the company’s development quality, strive to strengthen the company’s business
foundation, and spared no efforts in “compensating for shortcomings, strengthening the weaknesses” through
resource focus and optimized allocation, improved the basic situation of the company’s development and
promoted the company’s healthy operation. Affected by macroeconomic situation and investment condition in the
communication equipment industry, the further adjustment to the industrial structure and site relocation, in 2019,
the company achieved operating income of 1.338 billion yuan, a year-on-year decrease of 32.94%, and the net
profit attributable to shareholders of listed companies was -169,088,500 yuan.
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
365,004,501.66 77,940,838.99 21.35% -16.68% -11.45% 1.26%
conference
products
Main business
revenue-General 359,232,741.86 91,639,901.59 25.51% 9.05% 18.11% 1.96%
cabling products
Main business
revenue-Low-volt
125,526,053.59 25,402,799.58 20.24% -21.52% -16.04% 1.32%
age distribution
products
Main business
revenue-Private
network 186,594,827.60 3,115,220.35 1.67% -43.45% -60.76% -0.74%
communication
products
Main business
revenue-Wiring
316,048,396.10 49,175,461.55 15.56% -57.40% -61.59% -1.70%
and other
products
Interior offset -35,711,960.47 -1,077,281.57 3.02% 50.37% -251.78% 4.01%
Other business
21,589,633.87 4,312,887.06 19.98% -68.42% -78.42% -9.26%
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
2019 2018
(RMB) (%)
Operating revenue 1,338,284,194.21 1,995,627,772.60 -657,343,578.39 -32.94%
Operating cost 1,087,774,366.66 1,643,115,522.38 -555,341,155.72 -33.80%
Net profit attributable to -169,088,516.69 5,859,214.84 -174,947,731.53 -2985.86%
shareholders of the listing
corporation
In 2019, the company achieved operating income of 1.338 billion yuan, a year-on-year decrease of 32.94%, and
the net profit attributable to shareholders of listed companies was -169,088,500 yuan. The main reasons for the
decline in revenue and negative net profit during the reporting period were that the company further adjusted its
industrial structure, contracted old industries, and cultivated new industries, at the same time, due to the impact of
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the macroeconomic situation and investment in the communications equipment industry, its operating
performance declined; the company carried out site relocation for further resource integration during the reporting
period, the current business development was affected to a certain extent, and the operation and management costs
increased. The extraordinary gains/losses of the Company for 2018 was 27.32 million yuan and there was no
extraordinary gains/losses with major amount occurred in the year; according to relevant regulation of the
accounting standards, the assets impairment provision accrual in the period was 7,3035,900 yuan.
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
In reporting period, according to requirement of the relevant accounting standards, accounting policy has been changed by the
Company.
1. In accordance with the Notice of Ministry of Finance on Revising and Issuing the Format of General Enterprise Financial
Statement for 2019 (CK [2019] No.6), Notice of Ministry of Finance on Revising and Issuing the Format of Consolidated Financial
Statement for 2019 (CK [2019] No.16) and interpretation for the Notice, the Company prepared the financial statement of 2019 in
line with the requirement of Accounting Standards,
2. The Company implemented the Accounting Standards for Business Enterprise No.22- Recognition and Measurement of Financial
Instrument, Accounting Standards for Business Enterprise No.23- Transfer of Financial Assets, Accounting Standards for Business
Enterprise No.24- Hedging and Accounting Standards for Business Enterprise No.37-Presentation of Financial Instrument that
revised by Ministry of Finance since 1 Jan. 2019.
3. The Company implemented the revised Accounting Standards for Business Enterprise No.7- Non-monetary Assets Exchange since
10 June 2019 and the revised Accounting Standards for Business Enterprise No.12- Debt restructuring since 17 June 2019.
For details, please refer to section XII Financial Report - Significant accounting policies and estimates -27 changes of important
accounting policies and accounting estimates in the full text of the annual report. (2) Major accounting errors within reporting period
that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(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.
28 April 2020
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