Automotive Financing Performance - In 2018, the total number of automotive financing transactions increased by 21% year-on-year to approximately 484,000 transactions[7]. - The total automotive financing amount reached approximately RMB 38 billion, representing a year-on-year growth of 26%[7]. - New car financing transactions grew by 15% year-on-year to approximately 273,000 transactions, while the overall new passenger car sales in China declined by 4%[8]. - Used car financing transactions increased by 31% year-on-year to approximately 211,000 transactions, exceeding the 11% year-on-year growth in used passenger car sales in China[8]. - As of December 31, 2018, the cumulative number of automotive financing transaction customers exceeded 1.1 million, indicating strong customer engagement and potential for monetization[13]. Revenue and Profitability - Revenue for the year ended December 31, 2018, increased by 42% year-on-year to RMB 5.533 billion, driven by growth in loan facilitation services and self-operated financing leasing services[9]. - Loan facilitation service revenue surged by 126 times year-on-year to RMB 539 million[9]. - The overall gross profit increased by 13% year-on-year to RMB 2.475 billion, although the gross margin decreased from 56% to 45%[9]. - Adjusted operating profit decreased by 33% year-on-year to RMB 328 million, while adjusted net profit decreased by 26% year-on-year to RMB 345 million[10]. - The company's total revenue for the year ended December 31, 2018, was RMB 5.533 billion, a 42% increase from RMB 3.906 billion in 2017, driven by growth in loan facilitation services and self-operated financing[15]. Operational Efficiency - The company's operating loss decreased by 70% to RMB 183.8 million from RMB 604.6 million in the previous year, demonstrating improved operational efficiency[15]. - The management team highlighted a 10% reduction in operational costs due to improved efficiency measures implemented in the last quarter[84]. Strategic Focus and Future Outlook - The company shifted its strategic focus to scalable and high-margin loan facilitation services, resulting in a significant increase in transactions facilitated through this service[8]. - The company expects continued growth in 2019, particularly in scalable and high-margin loan facilitation services, with plans to expand its network of banking partners[12]. - The company plans to invest $200 million in research and development over the next three years to drive innovation[86]. Financial Position and Capital Structure - The total borrowings increased by 20% to RMB 30.20 billion as of December 31, 2018, compared to RMB 25.10 billion as of December 31, 2017[53]. - The total cash and cash equivalents decreased by 64% to RMB 2.12 billion as of December 31, 2018, down from RMB 5.82 billion as of December 31, 2017[53]. - The debt-to-asset ratio increased to 62% as of December 31, 2018, from 55% as of December 31, 2017, due to an increase in net debt[66]. Research and Development - The company's research and development expenses increased by 10% to RMB 239.5 million, reflecting a commitment to enhancing technological capabilities and data analytics[15]. - Research and development expenses increased by 10% from RMB 218 million in 2017 to RMB 239 million in 2018, driven by higher stock-based compensation and employee benefits[36]. Shareholder and Governance Matters - The company did not recommend a final dividend for the year ended December 31, 2018, consistent with the previous year[45]. - The board of directors has approved a share buyback program worth $100 million to enhance shareholder value[82]. - The company has made appropriate insurance arrangements for directors in relation to their responsibilities[149]. Related Party Transactions - The total amount of related party transactions for the group was RMB 84,948,662, with a projected increase to RMB 182,000,000 by December 31, 2019[174]. - JD.com holds a 10.74% stake in the company, classifying it as a related party under listing rules, which affects transaction disclosures[173]. Agreements and Partnerships - The automotive financing cooperation framework agreement with WeBank was established on August 7, 2018, allowing the company to provide various automotive financing services to customers[188]. - The company has established a structured financing framework agreement with a total amount of RMB 134,205,376 for the year ending December 31, 2018, remaining stable at RMB 190,000,000 for the following year[174]. Employee and Compensation Matters - As of December 31, 2018, the total employee count was 4,483, a decrease from 4,743 in the previous year[74]. - The total compensation cost for the group was RMB 1.142 billion for the year ending December 31, 2018, down from RMB 1.620 billion in 2017[74].