ST Gaosheng (000971): It Is Estimated That The Net Profit Of Half Year In 2019 Is -5000.0 To 25 Million.

In July 12th, *ST issued a notice of performance. The company expects net profit of -5000.00 to shareholders of Listed Companies in 2019 1-6 to 25 million, an increase of -189.64% to -55.18% over the same period, and an average net profit growth rate of -0.80% in the communications equipment industry.

The company made the above prediction based on the following reasons: the main business of the company was to provide comprehensive cloud based services. In the first half of 2019, influenced by the market environment and policies of the industry, and by the monopoly effect of the Internet giants, the overall market price was low, the gross profit margin of the industry decreased significantly, and the loss of large customers was serious, resulting in a significant decline in the company's main business profits over the same period last year. In 2018, the company's subsidiary Shanghai Ying Yue Network Technology Co., Ltd. failed to fulfill its performance commitments, and the company's holding of Beijing Hua Qi Communications Technology Co., Ltd. the long-term equity investment impairment was triggered by the original shareholder compensation clause. In the first half of 2019, the above compensation shares were included in the trading financial assets of the company, resulting in a decrease in current profits and losses as a result of changes in stock prices.