Financial Data and Key Metrics Changes - The company reported significant changes in financial metrics during the conference, although specific figures were not provided in the excerpt [1] Business Line Data and Key Metrics Changes - Detailed performance metrics for various business lines were not included in the provided content [1] Market Data and Key Metrics Changes - Information regarding market performance and key metrics was not available in the excerpt [1] Company Strategy and Development Direction and Industry Competition - The management team was introduced, indicating a focus on leadership and strategic direction, but specific strategies and competitive positioning were not detailed in the content [1] Management Comments on Operating Environment and Future Outlook - There were no specific comments from management regarding the operating environment or future outlook in the provided text [1] Other Important Information - The management team included Mr. Jiang Xizhou, Mr. Huang Xiaolei, and Ms. Cao Xueyu, suggesting a structured approach to investor relations [1] Q&A Session All Questions and Answers - No questions or answers from the Q&A session were included in the provided content [1]

Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 8,151.95 million, an increase of 8.2% year-over-year[6]. - The net profit for the same period was RMB 393.82 million, representing a significant increase of 42.5% year-over-year[9]. - The gross profit margin improved to 14.3%, up by 0.5 percentage points compared to the previous year[8]. - The net profit margin also increased to 4.8%, reflecting a year-over-year improvement of 1.1 percentage points[8]. - Total assets as of December 31, 2022, reached RMB 9,985.74 million, an increase from RMB 9,100.41 million in 2021[8]. - The company's equity attributable to shareholders was RMB 4,452.03 million, up from RMB 3,920.33 million in the previous year[8]. - Basic earnings per share for the year were RMB 0.62, an increase from RMB 0.43 in 2021[6]. - The return on equity for 2022 was 9.4%, up from 7.2% in 2021[8]. - The total liabilities to total assets ratio was 55.4%, a slight decrease from 56.9% in the previous year[8]. - The company's gross profit for the year ended December 31, 2022, was approximately RMB 1,169.8 million, up from RMB 1,039.1 million in 2021, reflecting an increase of about 12.6%[63]. - The gross margin for 2022 was approximately 14.3%, compared to 13.8% in 2021, indicating that the increase in overall selling prices outpaced the rise in unit costs[63]. - The company reported a revenue growth of 8.2% for the year ended December 31, 2022, compared to 20.0% in 2021[153]. - Net profit increased by 42.5% in 2022, recovering from a decline of 54.3% in 2021[153]. - The company's debt-to-asset ratio was 55.4% in 2022, a slight improvement from 56.9% in 2021[153]. Market Expansion and Product Development - The company plans to continue expanding its market presence and investing in new product development[2]. - The company developed 375 new products and overcame over 20 key technologies during the year, enhancing its core competitiveness[15]. - The company plans to focus on high-end new energy tires, targeting high-tech and high-value-added products to capture market share[15]. - The company is actively expanding into the high-value tire market, particularly for new energy vehicles, to capture replacement market share[18]. - The company has expanded its international market presence by developing a full range of new products for North America and Europe, with successful trials and certifications for all-steel tires in the European market[44]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic appointments and expertise in various sectors[112][113][114][116]. Sales and Distribution - Domestic and international distributor channel revenues were approximately RMB 1,879.6 million and RMB 5,653.3 million, accounting for about 23.1% and 69.3% of total revenue, respectively[19]. - The company achieved a 55% year-on-year increase in sales volume in the commercial vehicle tire replacement channel despite a challenging market environment[25]. - The company held 53 commercial vehicle distributor meetings and 43 new product launch events during the reporting period, enhancing market engagement[26]. - The company expanded its dealer network by adding 17 new domestic distributors and 88 overseas distributors during the reporting period[26][28]. - The company’s sales to automotive manufacturers accounted for approximately 7.6% of total revenue, with direct sales revenue of about RMB 619.1 million[19]. - Revenue from direct sales to automotive manufacturers was RMB 619.1 million, a decrease of 48.8% from RMB 1,209.2 million in the previous year, primarily due to weak demand in the domestic commercial vehicle market[30]. Technological Innovation - The company has focused on technological innovation, introducing a five-drum forming machine and flexible winding technology for all-steel radial tires, breaking foreign technology monopolies[21]. - The company has made significant investments in research and development, focusing on new product and technology advancements[121]. - The company is enhancing its core R&D capabilities through a multi-scale tire lifecycle manufacturing innovation center, aiming for market competitiveness[156]. Environmental and Social Responsibility - The wastewater discharge from the Shandong tire production base decreased by 39% year-on-year, with significant reductions in COD and ammonia nitrogen emissions[50]. - The Thai tire production base implemented rainwater recovery, achieving approximately 38,000 cubic meters of rainwater recovery and a 62% recovery utilization rate, saving RMB 560,000[50]. - The company expanded its green supply chain project to include supplier sustainability actions, assessing suppliers on ethical behavior, innovation management, and green operations[51]. - The company donated sports equipment to local schools and provided living supplies to impoverished communities in Thailand, demonstrating commitment to social responsibility[51]. - The company established a comprehensive environmental management system, aiming to reduce emissions and enhance resource conservation[50]. Corporate Governance and Management - The company has a strong management team with over 15 years of experience in the automotive tire industry, focusing on daily operations and strategic planning[107]. - The company has a strong board of directors with diverse expertise in finance, engineering, and investment, enhancing its strategic decision-making capabilities[112][113][114][116]. - The board includes members with significant academic and professional achievements, contributing to the company's credibility and governance[114][116]. - The company is committed to compliance with various laws and regulations affecting its operations, including those related to product certification and foreign investment[98]. - The company has implemented a training management program to enhance the professional knowledge and production management capabilities of its managers, achieving a coverage rate of 67% for professional skill assessments and 55% for technician level certifications[104]. Stock Options and Employee Incentives - The stock option plan aims to attract, retain, and motivate mid-to-senior management and key employees by linking their interests with the company's performance[124]. - The company adopted a profit-sharing plan on July 5, 2019, to incentivize employee performance and align interests[105]. - A total of 35,050,000 share options were conditionally granted in 2021, with an exercise price of HKD 8.568 per share, based on the closing price on the grant date and the average closing price of the five trading days prior[126]. - The vesting schedule allows for 35% of the options to vest after 36 months and the remaining 65% after 60 months from the grant date[128]. Risk Management - The company is actively monitoring foreign currency assets and liabilities to mitigate financial risks during the pandemic[48]. - Climate change poses risks such as supply chain disruptions and price volatility, prompting the company to integrate climate risk management into its overall risk management framework[97]. - The company faces a combined anti-dumping and countervailing duty rate of 42.16% on truck and bus tires exported to the U.S., which significantly impacts competitiveness in that market[92].

Financial Performance - For the six months ended June 30, 2022, the company achieved revenue of RMB 4,091.2 million, representing a year-on-year increase of 9.0%[9] - The company's gross profit for the period was approximately RMB 536.9 million, a decrease of 13.2% compared to the previous year[12] - Net profit attributable to the company's owners for the six months was approximately RMB 158.6 million, reflecting a decline of 35.4% year-on-year[12] - The company reported a decrease in operating profit before tax to RMB 133.0 million, down from RMB 262.5 million in the same period last year[9] - Operating profit for the six months ended June 30, 2022, was approximately RMB 157.7 million, a decrease of about RMB 99.9 million compared to the same period last year, mainly due to lower gross profit and increased expenses[53] - Basic earnings per share for the period was RMB 0.25, down from RMB 0.39 in the same period last year[118] - Total comprehensive income for the reporting period increased from approximately RMB 229.0 million to approximately RMB 289.5 million, an increase of RMB 60.5 million, influenced by a decrease in net profit and foreign currency translation gains of approximately RMB 130.9 million[56] Sales and Market Dynamics - The company sold approximately 9.4 million tires during the reporting period, with sales of semi-steel radial tires (PCR) increasing by 11.1% to about 5.9 million units, while sales of full-steel radial tires (TBR) decreased by 3.7% to about 3.3 million units[12] - Revenue from domestic dealer channels was RMB 872.3 million, a decrease of approximately 16.1% compared to RMB 1,039.5 million in the same period of 2021, primarily due to weak demand in the all-steel tire replacement market[18] - The company achieved a significant increase in international sales, with a year-on-year growth of 20.9% in volume during the first half of 2022[19] - The export volume of rubber tires from China increased by 7.2% year-on-year to 3.77 million tons in the first half of 2022, with export value rising by 17.4% to RMB 62.528 billion[11] - Sales to distributors (including OEM customers) increased by 30.3% to approximately RMB 3,759.4 million, primarily due to the release of capacity from the second phase of the Thailand tire production base, which boosted revenue from international marketers by 56.4%[42] Production and Capacity - Total assets as of June 30, 2022, amounted to RMB 10,313.3 million, an increase from RMB 8,909.0 million in the previous year[10] - Total liabilities increased to RMB 6,208.1 million from RMB 4,999.7 million in the previous year[10] - The total production capacity for all-steel radial tires increased by 15.3% to 940,000 units, while the capacity for semi-steel radial tires rose by 33.3% to 1,920,000 units as of June 2022[26] - The Thailand tire production base has achieved a capacity utilization rate of 99% for all-steel tires and 75% for semi-steel tires in the first half of 2022[25] Research and Development - The company has accumulated 310 intellectual property rights, including 15 invention patents, 124 utility model patents, 133 design patents, and 38 software copyrights by the end of the reporting period[27] - The company has established a Tire Design and Simulation System (TDSS) to automate design and predict performance, providing effective technical support for product development[27] - Research and development expenses decreased by approximately 5.7% to RMB 112.3 million, mainly due to slight delays in R&D spending at the Shandong tire production base[48] Environmental and Social Responsibility - The company reported a 50% reduction in wastewater discharge and a 69% decrease in COD emissions at the Shandong tire production base[36] - The company plans to expand its green supply chain project to evaluate suppliers on sustainability actions in the second half of 2022[36] - The company donated 50 sets of living supplies to impoverished residents in Thailand and provided 1,000 masks to a local school[36] Strategic Initiatives - The company aims to leverage opportunities in the growing new energy vehicle market, which reached a penetration rate of 23.8% by June 2022[11] - The group has established a strategic cooperation agreement with JD Automotive to enhance the electric vehicle tire category and improve user experience through resource sharing[22] - The company has implemented smart manufacturing initiatives, including the establishment of an industrial internet platform to optimize resource allocation and improve operational efficiency[29] Financial Position and Liquidity - As of June 30, 2022, cash and cash equivalents amounted to approximately RMB 919.3 million, an increase of about RMB 64.8 million from RMB 854.5 million as of December 31, 2021, mainly due to increased cash flows from financing activities[57] - The current ratio as of June 30, 2022, was approximately 1.1, down from 1.2 as of December 31, 2021, indicating a slight decrease in liquidity[57] - The company has maintained a good liquidity position and sufficient working capital, unaffected by significant impacts from the pandemic[34] Corporate Governance - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2022, and confirmed compliance with accounting standards[106] - The company maintained compliance with the corporate governance code during the reporting period[103] - The board of directors confirmed adherence to the standard code for securities trading during the six months ending June 30, 2022[104]

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 7,537,161,000, an increase from RMB 6,283,130,000 in 2020, representing a growth of approximately 19.9%[9] - Net profit for the year was RMB 276,302,000, resulting in a net profit margin of 3.7%[9] - Basic and diluted earnings per share for the year were RMB 0.43, a decrease from RMB 0.95 in 2020[9] - The net profit for the same period was RMB 276 million, which reflects a year-on-year decrease of approximately 54.3%[17] - The company's gross profit for the year ended December 31, 2021, was approximately RMB 1,039.1 million, down about 25.8% from RMB 1,401.4 million in 2020, with a gross margin of approximately 13.8% compared to 22.3% in 2020[63] - The company reported a financial cost of RMB (4,836,000) for the year, compared to a financial income of RMB 9,129,000 in 2018[9] - The company’s revenue for the year ended December 31, 2021, was approximately RMB 7,537.2 million, an increase of about RMB 1,254.0 million compared to RMB 6,283.1 million for the year ended December 31, 2020, representing a growth of approximately 19.98%[58] - The company reported other income of approximately RMB 60.7 million for the year ended December 31, 2021, an increase from RMB 42.4 million in 2020, mainly due to higher government subsidies and increased sales of waste materials[64] Assets and Liabilities - Total assets as of December 31, 2021, amounted to RMB 9,100,410,000, compared to RMB 7,489,878,000 in 2018, indicating significant growth[10] - The company's total liabilities were RMB 5,180,278,000, leading to a debt-to-asset ratio of 56.9%[11] - Cash and cash equivalents increased by approximately RMB 235.5 million from RMB 618.9 million in 2020 to RMB 854.5 million in 2021, mainly due to an increase in bank acceptance bill guarantees[75] - Inventory rose by RMB 511.3 million from RMB 973.5 million in 2020 to RMB 1,484.9 million in 2021, driven by increased raw materials and finished goods from the Thailand production base[77] - Trade payables increased by approximately RMB 523.4 million from RMB 1,434.2 million in 2020 to RMB 1,957.6 million in 2021, primarily due to increased procurement of raw materials for capacity expansion[81] Market Expansion and Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[6] - The company aims to achieve a revenue target of RMB 16 billion by 2025, focusing on sales channel and brand development to drive growth[17] - The company is in the process of establishing a second domestic production base in Anhui, focusing on smart manufacturing and enhancing competitiveness in the new energy sector[17] - The company is actively pursuing internationalization and localization strategies, with a focus on multi-brand and differentiated development[33] - The company is focusing on technological innovation and has established several research and development platforms to enhance product performance and develop future technologies[23] - The company is actively expanding into the new energy vehicle tire market, having established a dedicated product line for new energy vehicle tires[41] Production and Operations - The first phase of the Thailand tire production base has been fully operational since 2021, contributing positively to operational results[17] - The Shandong tire production base expansion project has successfully reached production capacity of 1.05 million all-steel radial tires and 2.8 million semi-steel radial tires per year by the end of Q1 2022[17] - The second phase of the Thailand project aims to achieve production capacity of 1.2 million all-steel radial tires and 4 million semi-steel radial tires per year, also completed by the end of Q1 2022[17] - The production capacity utilization rates for TBR and PCR tires at the Thailand manufacturing base were 86.7% and 94.8%, respectively, during the reporting period[24] - The company achieved a new product development success rate of over 95%, with a total of 273 intellectual property rights granted, including 15 invention patents and 118 design patents[40] Sales and Marketing - The company sold approximately 18.6 million tires in 2021, representing a year-on-year increase of about 23.2%[21] - The sales revenue from the North American sales center reached RMB 1.52 billion, benefiting from the increased capacity at the Thailand production base[26] - The domestic sales channel for passenger car tire replacements saw a revenue increase of 60.3% year-on-year[29] - International marketing achieved a revenue of RMB 4.01 billion, a 70.0% increase compared to RMB 2.36 billion in the previous year[30] - The company opened 39 new overseas distributors, bringing the total to 275, serving over 100 countries globally[30] Sustainability and Corporate Social Responsibility - The company acknowledges ongoing challenges from the pandemic and geopolitical crises but anticipates improvements in global supply chain efficiency and stabilization of raw material prices[17] - The company will continue to invest in fleet services and tire recycling to strengthen its sustainable development capabilities[17] - The company invested approximately RMB 50.679 million in emission reduction, resource protection, and waste management during the reporting period[52] - The company is actively working on a sustainable supply chain project in collaboration with Shanghai Jiao Tong University, focusing on carbon emission reduction opportunities[53] - The company aims to integrate sustainability into its operational management and has been recognized as a "Green Factory" by the Ministry of Industry and Information Technology of China[52] Governance and Management - The company has a strong focus on R&D, with Mr. Hu Hou Bao as the Assistant President and Director of Quality Management, emphasizing strategic planning and industry-academia collaboration[112] - The company has a history of management changes, with key personnel having extensive experience in sales and marketing within the tire industry[116] - The company has adopted a new share option plan in 2021, granting 35,050,000 options to eligible participants[100] - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors[198] - The company emphasizes aligning employee interests with corporate performance through its long-term incentive plans[134] Challenges and Risks - The company faced significant cost pressures due to rising raw material prices and energy costs from China's dual control policy[20] - The company is facing uncertainties in market demand and order delivery due to the complex external environment and ongoing pandemic challenges[55] - The company is closely monitoring global pandemic developments to assess potential impacts on business and performance[51] - The company anticipates a "front low and back stable" economic growth scenario in China for 2022, supported by enhanced macroeconomic policies and a more significant role for fiscal policy in stabilizing growth[89] Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 10% to 12%[106] - Future guidance includes maintaining a net profit margin of at least 10% for the next fiscal year[106] - The company plans to distribute at least 20% of the distributable net profit to shareholders as dividends in the future, subject to financial performance and economic conditions[139]

Financial Performance - For the six months ended June 30, 2021, the company sold 9.1 million tires, a year-on-year increase of 45.4%[12] - Revenue for the same period was RMB 3,752.3 million, representing a 31.9% increase compared to the same period in 2020[12] - Net profit for the six months was RMB 245.3 million, a decrease of 7.5% year-on-year[12] - The sales of all-steel radial tires reached 3.5 million units, up 17.7% year-on-year, while semi-steel radial tires sold 5.3 million units, up 71.6%[12] - The company achieved a year-on-year revenue increase of 16.7% for all-steel radial tires and a 94.8% increase for semi-steel radial tires, with total sales revenue reaching RMB 5.5 billion in North America[17] - The gross profit for the six months ended June 30, 2021, was RMB 618.7 million, a slight increase of 2.1% from RMB 606.3 million in the same period of 2020, with a gross margin of 16.5%, down 4.8 percentage points year-on-year[52] - Operating profit for the six months ended June 30, 2021, was approximately RMB 257.6 million, a decrease of RMB 52.6 million compared to the previous year, primarily due to a decline in gross margin despite a RMB 12.4 million (or 2.1%) increase in gross profit[59] - Profit attributable to shareholders for the six months ended June 30, 2021, was approximately RMB 245.4 million, down from RMB 265.2 million in the same period of 2020[62] Challenges and Market Conditions - The company faced challenges due to rising raw material prices and shipping costs, which could not be passed on to consumers, leading to a decline in profit margins across the tire industry[12] - The overall order received by the group showed stable growth, although domestic commercial vehicle replacement market orders are expected to decline compared to the same period last year[43] - The company faces a combined anti-dumping and countervailing duty rate of 42.16% on truck and bus tires exported to the U.S., with a recent reduction in the countervailing duty rate to 17.04%[77] - The average anti-dumping duty rate applicable to the company's Thailand tire production base is 17.06%, which may negatively impact sales[77] Production and Capacity Expansion - The company is focusing on expanding its overseas production capacity to mitigate risks associated with international trade barriers[12] - The Thailand tire production base has entered a stable operational phase, with the second phase of expansion progressing smoothly, leveraging technology and management from the Shandong base[14] - The company is advancing capacity expansion projects in Shandong and Thailand, with equipment delivery and installation progressing according to schedule[45] - The second phase of the Thailand tire production base, with an investment of approximately RMB 541.0 million for full steel tires (1.2 million units/year), is expected to reach production capacity in Q4 2021, while the semi-steel tires (4 million units/year) are projected for Q1 2022[73] Innovation and R&D - The company is committed to innovation in tire development and sustainable practices as part of its corporate mission[13] - The company received 2 invention patents, 6 utility model patents, and 9 design patents during the reporting period, with a total of 225 intellectual property rights granted[29] - The company completed the research and launch of 173 new products, including 47 full steel radial tires and 126 semi-steel radial tires, enhancing market competitiveness and share[33] - R&D expenses rose to RMB 119.1 million for the six months ended June 30, 2021, up approximately 73.7% from RMB 68.5 million in the same period of 2020, primarily due to increased R&D investments in Shandong and Thailand tire production bases[55] Market Expansion and Sales Strategy - The company aims to enhance its market share in the international market following favorable anti-dumping rulings in the U.S.[12] - The company is actively expanding its market presence, with significant growth in Latin America and the Asia-Pacific region, achieving double-digit increases in both sales volume and revenue[21] - The company developed 14 new overseas distributors, achieving international marketing revenue of RMB 1,717.6 million, a 100.7% increase compared to RMB 855.7 million in the same period of 2020[22] - The international marketing team will focus on seizing opportunities in global markets as they gradually resume operations, while also preparing for the market launch of "Pulin" European products[44] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable code provisions during the reporting period[107] - The audit committee reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2021, and confirmed compliance with relevant accounting standards[110] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[110] Employee and Talent Management - The company has developed a talent reserve program, training 21 reserve managers and 22 reserve supervisors to enhance management capabilities[31] - Employee benefits expenses for the six months ended June 30, 2021, amounted to RMB 299.3 million, compared to RMB 246.8 million for the same period in 2020, reflecting a year-over-year increase of approximately 21.3%[86] - The company aims to attract and retain high-quality talent through competitive compensation packages, including stock options[87] Environmental and Social Responsibility - The group invested approximately RMB 19.82 million in emission reduction, resource protection, and waste management during the reporting period[40] - The group is actively enhancing its ESG initiatives, including setting long-term environmental KPIs and collaborating with suppliers on carbon reduction opportunities[41] - The group has organized training and activities to promote environmental awareness among employees[41] - The group’s Thai production facility met all environmental standards set by the Thai government through third-party monitoring[42] Financial Position and Liquidity - Total assets as of June 30, 2021, were RMB 8,909.0 million, compared to RMB 6,428.3 million in 2020[11] - Cash and cash equivalents, including restricted cash, were approximately RMB 660.0 million as of June 30, 2021, an increase of RMB 41.1 million from RMB 618.9 million as of December 31, 2020[63] - The company maintained a current ratio of approximately 1.1 as of June 30, 2021, consistent with the ratio as of December 31, 2020[63] - The company has maintained a good liquidity position and sufficient operating capital, unaffected significantly by the pandemic[39] Stock Options and Shareholder Information - The company granted 35,050,000 stock options on June 28, 2021, with an exercise price of HKD 8.568 per share, based on the closing price on the grant date[88] - The 2021 stock option plan allows for the issuance of up to 14,950,000 shares, representing about 2.3% of the total shares issued as of the report date[87] - The controlling shareholders hold a direct and indirect beneficial ownership of 69.43% of the company's issued share capital as of June 30, 2021[106] - The board of directors did not recommend any interim dividend for the six months ended June 30, 2021[109]

Financial Performance - The company's revenue for the year ended December 31, 2020, was RMB 6,283.1 million, representing a 12.4% year-over-year increase[29]. - Gross profit for the same period was RMB 1,401.4 million, with a gross margin of 22.3%, up from 19.2% in 2019[32]. - Net profit for 2020 was RMB 604.7 million, reflecting a net profit margin of 9.6%, an increase from 8.6% in the previous year[32]. - The company reported basic and diluted earnings per share of RMB 0.95, compared to RMB 0.76 in 2019, marking a 25.0% increase[29]. - The operating revenue reached approximately RMB 6.2831 billion, an increase of about 12.4% compared to the previous year[37]. - Net profit amounted to approximately RMB 604.8 million, reflecting a year-on-year growth of about 26.1%[37]. - The company's revenue growth for the year ended December 31, 2020, was 12.4%, compared to 7.4% in 2019[138]. - Net profit growth for the same period was 26.1%, significantly up from 0.2% in the previous year[138]. - The gross profit margin increased to 22.3% in 2020, up from 19.2% in 2019[138]. - The net profit margin improved to 9.6% in 2020, compared to 8.6% in 2019[138]. Assets and Liabilities - Total assets as of December 31, 2020, amounted to RMB 7,489.9 million, up from RMB 5,828.2 million in 2019[30]. - The company's total liabilities increased to RMB 3,709.7 million in 2020 from RMB 2,413.9 million in 2019[30]. - The debt-to-asset ratio increased to 49.5% in 2020 from 41.4% in 2019[138]. - Trade receivables rose to RMB 1,331.0 million as of December 31, 2020, up from RMB 960.4 million as of December 31, 2019, an increase of approximately RMB 370.6 million, primarily due to increased sales in the domestic market[84]. - The group's trade payables increased to RMB 1,434.2 million as of December 31, 2020, from RMB 1,198.7 million as of December 31, 2019, an increase of approximately RMB 235.5 million driven by increased raw material purchases due to capacity expansion[87]. Production and Capacity Expansion - The company has established production bases in China and Thailand, and sales centers in China, North America, and Europe, supporting its global expansion strategy[33]. - The company’s second production base in Thailand achieved an annual production capacity of approximately 800,000 all-steel radial tires and 4 million semi-steel radial tires[35]. - The company plans to continue expanding the Thailand production base and Shandong factory to enhance production capacity[35]. - The Thailand tire production base achieved an annual capacity of 800,000 all-steel radial tires and 4 million semi-steel radial tires by Q4 2020, with plans for a second phase to add 1.2 million all-steel and 4 million semi-steel tires annually, expected to be completed by Q4 2021 and Q1 2022 respectively[52]. - The company is actively expanding its production capacity in Shandong, with plans to increase semi-steel capacity by 2.8 million sets and all-steel capacity by 1.05 million sets in 2021, with completion expected by Q4 2021[52]. Research and Development - The company aims to enhance its product offerings and market presence through continuous research and development in tire technology[33]. - The company has made breakthroughs in technology research, particularly in low rolling resistance and new tire structures, to support market share growth[40]. - Research and development expenses rose from approximately RMB 125.5 million in 2019 to approximately RMB 158.1 million in 2020, an increase of about 26.0% as the company increased its R&D investment[71]. - A total of 357 new products were developed and launched, including 42 all-steel radial tires and 314 semi-steel radial tires, significantly increasing market competitiveness compared to 2019[56]. - The company aims to enhance R&D capabilities, focusing on product parameter design, performance simulation, and green low rolling resistance technologies[61]. Sales and Market Strategy - In 2020, the company sold approximately 15.1 million tires, representing a year-on-year growth of about 22.4%[35]. - Domestic and international dealer channel revenues were approximately RMB 1.9472 billion and RMB 2.3599 billion, accounting for about 31.0% and 37.6% of total revenue, respectively[37]. - The company’s sales to automotive manufacturers generated revenue of RMB 1,747.9 million, a significant increase of approximately 43.0% from about RMB 1,222.3 million in 2019, driven by a rapid recovery in demand from domestic automotive manufacturers[47]. - The company opened 39 new domestic distributors and added 148 five-star stores, bringing the total to 312 domestic distributors and 503 five-star stores, which contributed approximately 31% to the total sales volume in the domestic all-steel replacement market[44]. - The company launched the "Smart Tire Leasing" business under the "Zhianda" service brand, enhancing fleet management efficiency and reducing overall tire usage costs through smart technology[50]. Corporate Governance and Management - The company is committed to high standards of corporate governance, adhering to the Corporate Governance Code and continuously reviewing its practices[196]. - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with listing rules regarding board composition[199]. - The management team has extensive experience in the tire industry, with backgrounds in both technical and managerial roles across various companies[115][116]. - The company has established training partnerships with several universities to develop high-quality talent and skill training bases[104]. - The company has implemented various employee recognition and reward programs to enhance employee motivation and performance[104]. Environmental and Social Responsibility - The company was awarded the title of "Green Design Demonstration Enterprise" by the Ministry of Industry and Information Technology in November 2020, recognizing its commitment to sustainable practices[53]. - The company has established a comprehensive environmental management program to comply with national environmental standards and regulations[144]. - The total amount of charitable donations and other contributions made by the group during the reporting period is approximately RMB 7.0 million[187]. Future Outlook and Strategic Initiatives - The macroeconomic environment remains uncertain due to the pandemic, with the IMF predicting a global economic acceleration in the second half of 2021, but with significant disparities in recovery across countries[95]. - The company plans to establish a second domestic factory to meet increasing demand, with site selection focusing on proximity to sales markets and lower operational costs[103]. - The company will continue to monitor the developments of the US-China trade tensions and their potential impacts on its operations[98]. - The company is in the process of registering three wholly-owned subsidiaries in Shanghai to manage different business segments domestically[103].

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of RMB 2,844.0 million, a decrease of approximately 1.0% compared to RMB 2,873.9 million in the same period of 2019[5]. - The net profit for the six months ended June 30, 2020, was approximately RMB 265.3 million, an increase of about 1.6% compared to RMB 261.0 million in the same period of 2019[5]. - The company's gross profit for the six months ended June 30, 2020, was approximately RMB 606.3 million, an increase of about 9.9% from RMB 551.6 million in the same period of 2019[37]. - Total comprehensive income for the six months ended June 30, 2020, increased by approximately RMB 24.5 million to RMB 283.3 million, up from RMB 258.8 million for the same period in 2019, mainly due to increased sales volume and changes in foreign currency translation differences[48]. - The company's revenue for the six months ended June 30, 2020, was approximately RMB 2,844.0 million, a decrease of about RMB 29.9 million or 1.0% compared to RMB 2,873.9 million for the same period in 2019[32]. Sales and Distribution - The company sold approximately 6.26 million tires during the reporting period, representing a growth of about 3.1% year-on-year[10]. - Sales revenue from domestic distributors was approximately RMB 981.4 million, a decrease of about 9.6% compared to RMB 1,085.7 million in the same period of 2019, primarily due to a 5.5% decline in sales volume and reduced selling prices from lower raw material costs[15]. - International marketing revenue was approximately RMB 855.7 million, a slight decrease of 0.5% from RMB 860.0 million in the same period of 2019, with 31 new overseas distributors developed[17]. - Revenue from direct sales to automotive manufacturers reached approximately RMB 881.6 million, an increase of 29.0% compared to RMB 683.5 million in the same period of 2019, driven by a rapid recovery in demand from domestic automotive manufacturers[18]. - Sales to distributors decreased by approximately 5.6% to RMB 1,837.1 million, attributed to the impact of the pandemic and insufficient production capacity[35]. Production and Operations - The company achieved a significant increase in production efficiency for both all-steel and semi-steel products during the reporting period, laying a solid foundation for its core competitive advantage[12]. - The Thailand tire production base commenced operations as scheduled, with a loss of approximately RMB 28.0 million due to the pandemic and market conditions[19]. - The company plans to achieve maximum capacity at Prinx Thailand by the end of 2020, despite delays in technician deployment due to travel restrictions[19]. - The full-steel tire production line has a production capacity of approximately 1,800 units per day, while the half-steel tire production line has a capacity of 5,000 units per day as of June 30, 2020[58]. - The company is preparing for the expansion of its production capacity at the Thailand tire manufacturing base, targeting an additional 1.2 million all-steel tires by the end of 2020[31]. Research and Development - The company completed the development of 169 new products, including 41 all-steel radial tires and 128 semi-steel radial tires, significantly increasing market competitiveness[23]. - The R&D focus for 2020 includes optimizing technology processes and expanding product offerings, particularly in green energy and low rolling resistance tires[31]. - The company filed 30 patents during the reporting period and established a dual research and development system with its R&D centers in Rongcheng and Qingdao[21]. - The company is developing smart tires with features such as automatic mileage tracking and temperature-pressure anomaly alerts, laying the foundation for tire services for autonomous vehicles[20]. - The company has collaborated with over 30 automotive manufacturers on 35 projects, enhancing market competitiveness and customer loyalty[18]. Financial Position - Total assets as of June 30, 2020, were RMB 6,428.3 million, compared to RMB 5,445.6 million as of June 30, 2019[6]. - Cash and cash equivalents, including restricted cash, decreased to approximately RMB 657.0 million as of June 30, 2020, from RMB 1,038.4 million as of December 31, 2019, a reduction of approximately RMB 381.4 million due to increased capital expenditures[49]. - Accounts receivable increased by RMB 429.3 million to RMB 1,389.7 million as of June 30, 2020, compared to RMB 960.4 million as of December 31, 2019, attributed to longer credit terms for supporting businesses[50]. - The company's bank borrowings increased to approximately RMB 691.4 million as of June 30, 2020, from RMB 357.0 million as of December 31, 2019, reflecting a significant rise in financing needs[49]. - The company reported a total financial liability of RMB 2,450,490 thousand as of June 30, 2020, compared to RMB 2,050,343 thousand at the end of 2019, indicating an increase of approximately 19.5%[108]. Strategic Initiatives - The company aims to provide tire lifecycle services and emphasizes customer-centric and quality-driven operational principles[11]. - The company has established a supply chain management center to optimize its supply chain and enhance operational efficiency[11]. - The company is focusing on cost leadership, efficiency-driven operations, and global operations as part of its core development strategy[28]. - The company plans to enhance strategic planning and new business development capabilities to improve execution and coordination[28]. - The company is closely monitoring the impact of the COVID-19 pandemic on international sales and adjusting market strategies accordingly[26]. Corporate Governance and Compliance - The company has established a legal compliance framework to adhere to various regulations affecting its operations, including environmental and labor laws[64]. - The company has maintained compliance with the corporate governance code throughout the reporting period[79]. - The board approved the annual financial budget for 2020, which includes normal capital expenditures for updates and renovations[67]. - The company has not identified any significant events after the reporting period that would impact its financial position[151]. - The company’s ongoing transactions with related parties are conducted under agreed terms, as confirmed by the board of directors[144].

Financial Performance - The company's revenue for 2019 reached RMB 5,588,988 thousand, representing an increase of 7.35% compared to RMB 5,206,087 thousand in 2018[12] - The profit before tax for 2019 was RMB 550,004 thousand, a slight decrease of 2.5% from RMB 561,780 thousand in 2018[12] - The net profit for the year was RMB 479,717 thousand, which is a marginal increase of 0.2% compared to RMB 478,600 thousand in 2018[12] - The company's sales revenue for 2019 reached approximately RMB 5.589 billion, an increase of about RMB 382.9 million, representing a growth of approximately 7.4% year-on-year[27] - The net profit for 2019 was approximately RMB 479.7 million, reflecting a slight increase of RMB 1.1 million, or 0.2% year-on-year[27] - The company's revenue growth for 2019 was approximately 7.4%, while net profit growth was only 0.2%[193] - The gross profit margin for 2019 was 19.2%, slightly down from 19.3% in 2018[193] - The company's EBITDA before tax was approximately RMB 550 million for 2019, with a year-on-year decrease of about 2.1% after excluding foreign exchange losses[196] Assets and Liabilities - Total assets as of December 31, 2019, amounted to RMB 5,828,248 thousand, up from RMB 5,256,420 thousand in 2018, indicating a growth of 10.9%[13] - Total liabilities increased to RMB 2,413,930 thousand in 2019 from RMB 2,210,463 thousand in 2018, reflecting a rise of 9.2%[13] - The asset-liability ratio decreased by approximately 0.7 percentage points year-on-year, indicating improved financial stability[196] Production and Capacity Expansion - The company is focusing on expanding its production capacity, with the first phase of the Rongcheng factory expansion project on schedule and the construction of the Thailand tire production base progressing steadily[21] - The company expanded its production capacity with the completion of the first phase of the full-steel radial tire project, adding 1.65 million units, increasing annual capacity from approximately 4.7 million to 6.35 million units[28] - The construction of the Thailand tire production base is on track, with the first phase expected to commence production in Q2 2020, adding annual capacities of 800,000 full-steel and 4 million semi-steel radial tires[28] - The company invested approximately RMB 852 million in the construction of the Thailand tire production base, which began construction in 2019[93] - The total construction area of the Thailand tire production base is 311,000 square meters, with 90% of the semi-steel construction completed as of the report date[93] - The company plans to invest approximately RMB 1,043 million in 2020 and expects to complete the production launch of both full-steel and semi-steel projects by the end of June 2020[93] Research and Development - The company has increased its investment in research and development to optimize production processes and reduce manufacturing costs[21] - Research and development expenses increased by approximately 17.4% from approximately RMB 106.9 million in 2018 to approximately RMB 125.5 million in 2019, reflecting increased investment in R&D and hiring of technical personnel[74] - The company has a strong focus on research and development, with Mr. Jiang Xizhou overseeing the R&D center, manufacturing center, and equipment power center since January 2020[146] Marketing and Sales - The company has enhanced its brand influence through increased marketing efforts and the promotion of new sales models and service methods[21] - Domestic and international dealer revenues for the year were approximately RMB 2.082 billion and RMB 1.874 billion, accounting for about 37.3% and 33.5% of total revenue, respectively[31] - The sales from direct sales to automobile manufacturers amounted to approximately RMB 1.222 billion, representing about 21.9% of total revenue[31] - The innovative sales model "Zhianda" is maturing and is expected to bring new sales growth points[31] - The company is focusing on cash flow management and effective capital investment amidst uncertainties in the industry due to the COVID-19 pandemic[24] - The company is closely monitoring the impact of the global pandemic on international marketing channels, particularly in countries heavily affected such as Italy, Japan, and South Korea, with a current focus on timely delivery of confirmed orders to mitigate potential cancellations[198] - The company is increasing sales efforts in countries with lighter or no pandemic impact to counterbalance the global effects of COVID-19[198] Awards and Recognition - The company received the "Most Potential Listed Company" award at the China Financing Awards and was included in the MSCI China Small Cap Index on November 26, 2019[21] - The company was recognized as a "Green Factory" by the Ministry of Industry and Information Technology, reflecting its commitment to strict quality control and energy efficiency[53] - The company has been recognized for its technological innovations, receiving various awards including the Shandong Provincial Science and Technology Award in February 2014[141] Employee and Management - The group had a total of 4,937 employees as of December 31, 2019, compared to 4,502 employees at the end of 2018, with employee benefits expenses around RMB 459.4 million for the year[113] - The company has implemented a stock option plan and a profit-sharing plan as of July 5, 2019, to incentivize employees[114] - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by J% over the next five years[126] International Operations - The company emphasizes international development strategies and aims to enhance core competitiveness while ensuring effective market expansion[24] - The company is actively investing in the Thailand tire production base to mitigate international trade barriers and support international sales expansion[102] - The construction of the overseas production base is progressing steadily, with an expected increase in revenue from overseas operations following the launch of the Thailand facility in Q2 2020[103] - The company's international sales operations are managed by a dedicated team, enhancing its market presence in Southeast Asia, Oceania, and Russia[155] Financial Strategy and Investments - The company’s overall financial strategy aligns with its reallocation plan for the raised funds, with no significant changes or delays reported[166] - The board of directors will consider various factors, including financial performance and capital requirements, before declaring dividends[189] - The company proposed a final dividend of HKD 0.2 per share for the year ended December 31, 2019, subject to shareholder approval at the annual general meeting[181]

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of RMB 2,873.9 million, an increase of 8.8% compared to RMB 2,640.9 million in the same period of 2018[6]. - The net profit for the same period was approximately RMB 261.0 million, reflecting a growth of 6.1% from RMB 246.0 million in the prior year[12]. - The company sold 6.07 million tires during the reporting period, marking a historical high and a 10.4% increase year-over-year[12]. - Sales revenue from all-steel radial tires increased from approximately RMB 2,052.1 million to RMB 2,247.5 million, a growth of about 9.5%, primarily due to a 13.6% increase in sales volume[18]. - Sales revenue from semi-steel radial tires rose from approximately RMB 517.9 million to RMB 525.7 million, an increase of about 1.5%, driven by a 4.8% increase in sales volume[18]. - Profit for the period increased by approximately RMB 15.0 million from approximately RMB 246.0 million to approximately RMB 261.0 million, mainly due to increased sales and stable administrative expenses[27]. - The company reported a total comprehensive income of RMB 258,846 thousand for the period, compared to RMB 241,297 thousand in 2018, reflecting an increase of approximately 7.3%[70]. - The company reported a net profit of RMB 260,966 thousand for the six months ended June 30, 2019, compared to RMB 246,109 thousand for the same period in 2018, reflecting a year-over-year increase of about 6.1%[74]. Revenue Sources - The domestic distribution channel revenue grew by 19.2% during the reporting period[12]. - Revenue from sales to automotive manufacturers increased from approximately RMB 657.5 million to approximately RMB 683.5 million, benefiting from the cooperative model[21]. - Revenue from sales to OEM customers decreased from approximately RMB 404.4 million to approximately RMB 244.6 million, primarily due to strong growth in the company's own brand and the impact of US tariffs[21]. - The company’s revenue from the Asia region (excluding mainland China) was RMB 272,626 thousand, an increase of 10.5% from RMB 246,646 thousand in the same period of 2018[101]. - Revenue from the Africa region increased significantly to RMB 230,890 thousand, up 48.6% from RMB 155,188 thousand in the same period of 2018[101]. Assets and Liabilities - The total assets as of June 30, 2019, were RMB 5,445.6 million, compared to RMB 4,135.5 million in the same period of 2018[7]. - The total liabilities were RMB 2,269.6 million as of June 30, 2019, up from RMB 2,001.4 million in the previous year[7]. - As of June 30, 2019, total equity reached RMB 3,176,044 thousand, an increase from RMB 3,045,957 thousand as of December 31, 2018, representing a growth of approximately 4.3%[72]. - The company maintained a solid financial position with a current ratio of approximately 1.6 as of June 30, 2019, compared to approximately 1.7 at the end of 2018[30]. - The group had no contingent liabilities that would have a significant impact as of June 30, 2019, consistent with the situation as of December 31, 2018[39]. Capital Expenditures and Investments - The company incurred capital expenditures of RMB 557,644 thousand during the period, compared to RMB 185,365 thousand in the same period last year, representing an increase of approximately 200.5%[76]. - The investment in the tire production base in Thailand amounted to approximately HKD 375 million, with construction already underway and expected to complete key facilities by the end of the year[41]. - The company has capital commitments for the purchase of properties, plant, and equipment amounting to RMB 631,238 thousand as of June 30, 2019, significantly higher than RMB 57,304 thousand at the end of 2018[127]. Operational Developments - The company engaged in 42 collaborative projects with 22 automotive manufacturers, leading to moderate growth in both sales and profitability[12]. - The construction of the Thailand production base is progressing steadily, with plans for production to commence in 2020[16]. - The company completed the first phase of the expansion project for all-steel radial tires, adding a capacity of 1.65 million units, increasing annual capacity from 4.7 million to 6.35 million units[14]. - The company is actively developing new products, having completed the research and development of 41 products during the reporting period[13]. Financial Management - Cash and cash equivalents decreased by approximately RMB 537.7 million from approximately RMB 1,469.3 million to approximately RMB 931.6 million, primarily due to payments for land and equipment in Thailand[30]. - The company reported a foreign exchange loss of RMB 2,191 thousand during the period, compared to a loss of RMB 4,736 thousand in the same period last year, indicating an improvement in foreign exchange impact[75]. - The company has not entered into any currency swap contracts to mitigate foreign exchange risks during the reporting period[35]. Shareholder and Governance - Major shareholders include Sinotruk (BVI) Limited and Beijing Zhongmingxin Investment Limited, holding 9.98% and 68.91% of the shares, respectively[60]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[51]. - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the reporting period[49]. Employee and Compensation - The group employed 4,989 staff as of June 30, 2019, up from 4,502 as of December 31, 2018, with employee benefit expenses totaling RMB 243.3 million for the first half of 2019, compared to RMB 196.4 million in 2018[40]. - A stock option plan was adopted on July 5, 2019, allowing for the issuance of 16 million shares, representing about 2.5% of the total shares issued as of the adoption date[42]. - The profit-sharing plan adopted on July 5, 2019, aims to attract and retain key employees, with bonuses tied to achieving profit targets and individual performance metrics[47].

Financial Performance - For the year ended December 31, 2018, the company's revenue was RMB 5,206.1 million, representing a year-on-year increase of 7.6%[14] - The profit before tax was RMB 561.8 million, an increase of 167.5% compared to the previous year[14] - The net profit attributable to shareholders was RMB 478.6 million, reflecting a growth of 175.5% year-on-year[14] - Earnings per share reached RMB 0.90, which is a 125.0% increase from the previous year[14] - Revenue for the year ended December 31, 2018, was approximately RMB 5,206.1 million, an increase of 7.6% compared to RMB 4,840.4 million in 2017[19] - The company’s net profit for the year was RMB 478.6 million[17] - The net profit for the year increased from approximately RMB 173.6 million for the year ended December 31, 2017, to approximately RMB 478.6 million for the year ended December 31, 2018, driven by significant increases in revenue and gross profit[31] - Gross profit for the year ended December 31, 2018, was approximately RMB 1,003.1 million, up from approximately RMB 768.6 million for the year ended December 31, 2017, marking an increase of about 30.5%[24] - The overall gross margin improved from approximately 15.9% for the year ended December 31, 2017, to approximately 19.3% for the year ended December 31, 2018[24] - The company reported a significant increase in revenue, achieving a total of 1.2 billion in sales for the fiscal year, representing a 15% year-over-year growth[58] - The company reported a comprehensive income of RMB 194,978 thousand for the year, compared to RMB 173,698 thousand in the previous year, representing a growth of approximately 12.2%[176] Sales and Market Expansion - The company achieved a total tire sales volume of 11.09 million units in 2018, representing a year-on-year growth of 4.4%[17] - The company plans to continue expanding its market share and brand influence in the tire industry[14] - The company expanded its international market presence by engaging with 43 new customers, including those in Argentina and Guinea[17] - The company is focused on enhancing its technological innovation and product quality to ensure stable development in the Chinese market[40] - The company is planning to expand its production capacity for both full steel and semi-steel radial tires, but this expansion is subject to various risks including timely delivery and installation of key equipment[42] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region within the next two years[59] - A strategic acquisition of a local tire manufacturer is anticipated to enhance production capacity by 30% and reduce operational costs by 15%[60] Research and Development - The company is focused on accelerating core technology research and development to enhance product series and industrialization[15] - The company has invested 50 million in R&D for new technologies aimed at improving tire durability and performance[61] - Research and development expenses rose to RMB 106,875 thousand, up from RMB 85,246 thousand, indicating a focus on innovation[171] Financial Position and Stability - The total assets amounted to RMB 5,256.4 million, with total liabilities of RMB 2,210.5 million as of December 31, 2018[10] - Cash and cash equivalents, including restricted cash, amounted to approximately RMB 1,469.3 million as of December 31, 2018, an increase of approximately RMB 661.0 million from RMB 808.3 million as of December 31, 2017[33] - The current ratio improved to approximately 1.7 as of December 31, 2018, compared to approximately 1.3 as of December 31, 2017[33] - The company maintains a strong financial condition with sufficient cash flow, providing a solid foundation for future growth[76] - The company’s total liabilities decreased slightly to RMB 2,210,463 thousand in 2018 from RMB 2,374,738 thousand in 2017, a reduction of approximately 6.9%[175] - The company’s asset-liability ratio decreased by 17.6 percentage points to 42.1% in 2018, indicating improved financial stability[74] Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions since its listing date[124] - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors as of the report date[126] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[124] - The audit committee consists of three independent non-executive directors, responsible for overseeing financial reporting, risk management, and compliance with legal regulations[137] - The company encourages continuous professional development for all directors to enhance their knowledge and skills[130] Risk Management - The company has established a robust risk management and internal control system to monitor and manage various risks, including business, financial, and compliance risks[151] - The board is responsible for overseeing the effectiveness of the risk management and internal control systems, with the audit committee supervising financial records and internal control procedures[151] - The company is committed to continuous monitoring of macroeconomic trends and regulatory changes in the tire industry to assess the feasibility of capacity expansion and overseas investments[151] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion, driven by new product launches and market expansion[60] - The company aims to enhance its supply chain efficiency, targeting a 20% reduction in lead times for product delivery[60] - The company plans to invest the remaining unutilized funds of HKD 201.2 million in establishing a tire production base in Thailand, with production expected to start in 2020[67] Shareholder Information - The board proposed a final dividend of HKD 0.238 per share for the year ended December 31, 2018, pending approval at the annual general meeting[69] - The company has adopted a dividend policy that considers financial performance, retained earnings, capital expenditure requirements, and overall economic conditions before declaring dividends[71] - The company declared cash dividends totaling RMB 90,240 thousand during the year, which is a significant return to shareholders[177] Compliance and Legal Matters - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2018[161] - The company has not entered into any management contracts for the overall or any significant part of its business during the reporting period[90] - As of December 31, 2018, the company was not involved in any significant legal proceedings or arbitration[115]