*ST Gaosheng (000971):2019 Net Loss 575 Million Yuan In The First Quarter, A Loss Of 20 Million Yuan -3000 Million

Ge Long Hui April 15th *ST Gao Sheng (000971.SZ) disclosed the 2019 annual performance bulletin, realized total business income of 825 million yuan, down 8.46% compared to the same period last year, total profit -5.74 billion yuan, attributable to shareholders of listed companies net loss 575 million yuan, a loss in the same period last year 2 billion 278 million yuan; basic share loss 0.53 yuan.

The company's net profit in the year 2019 is expected to be 570 million yuan. The main reasons are as follows:

1, the company's wholly owned subsidiary, Shanghai Ying Yue Network Technology Co., Ltd. ("Shanghai Ying Yue") did not reach the net profit promised in the 2019 year. The company's wholly-owned subsidiary, Jilin Gaosheng Technology Co., Ltd. (Gaosheng Technology) declined in 2019 due to industry and market impact.

2, for the above reasons, according to the pre assessment of the company's goodwill by the evaluation agencies hired by the company, it is estimated that the company's impairment of goodwill is about 670 million yuan.

3, the company made a large amount of estimated liabilities in 2018 because of the violation guarantee matters. In 2019, the company returned to the court in accordance with the court's ruling invalidation. In 2019, the estimated liabilities for non guaranteed matters were not mentioned, and the total principal and interest required for joint borrowing. In the year of 2019, the balance was rushed back and the estimated liabilities were about 35 million yuan.

Ge Long Hui April 15th *ST Gao Sheng (000971.SZ) disclosed the first quarter earnings forecast for 2020. It is estimated that the net loss attributable to shareholders of listed companies is 20 million yuan to 30 million yuan, which was 44 million 978 thousand and 100 yuan in the same period last year. The loss per share is 0.02 yuan to 0.03 yuan per share. The reasons for the change are as follows:

1, during the reporting period, the overall operating conditions of the company did not change significantly. The company's main business is Internet cloud basic service, virtual private network service, and communication engineering construction planning and design services. During the reporting period, affected by the new crown epidemic, some customers failed to meet the conditions of resumption, and the contract signing and completion confirmation were affected.

2, the 2019 year performance of Shanghai Ying Yue Network Technology Co., Ltd., a wholly owned subsidiary of the company, did not meet the commitments made at the time of acquisition. The value of its original shareholder's compensation to the company in 2019 should be affected by the fair value change during the reporting period. The non recurring profit and loss items, after deducting the income tax, will affect the net profit of -2000 yuan to -3000 million.