SERES(SH:601127)2019-03-25 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥20.24 billion, a decrease of 7.72% compared to ¥21.93 billion in 2017[17]. - The net profit attributable to shareholders for 2018 was approximately ¥106.32 million, down 85.33% from ¥724.77 million in 2017[17]. - The basic earnings per share for 2018 was ¥0.12, a decline of 85.19% from ¥0.81 in 2017[18]. - The weighted average return on equity decreased to 2.21% in 2018, down 15.44 percentage points from 17.65% in 2017[18]. - The traditional automotive business segment's net profit for 2018 was ¥1.05 billion, a decrease of 4.5% from ¥1.099 billion in the previous year[19]. - The company reported a net profit excluding non-recurring items of approximately -¥152.39 million in 2018, a decline of 123.84% from ¥639.27 million in 2017[19]. - The company's net profit for 2018 was ¥507,837,272.31, with a net profit attributable to the parent company of ¥106,321,766.38[90]. - The company's operating cash flow and investment income are the primary sources for future debt repayment[143]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 0.80 RMB per 10 shares to all shareholders based on the total share capital as of the dividend registration date for the 2018 profit distribution[3]. - The company has not proposed a cash profit distribution plan despite having positive distributable profits for ordinary shareholders[98]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 23.3 million yuan[179]. - The company approved a stock incentive plan allowing for the unlocking of 4.92 million shares on October 17, 2018, as part of its employee incentive measures[107]. Audit and Compliance - The company has received a standard unqualified audit report from Da Xin Certified Public Accountants[2]. - The audit was conducted in accordance with Chinese Certified Public Accountant auditing standards[200]. - The audit report elaborates on the responsibilities of the certified public accountant regarding the financial statements[200]. - The company maintained independence and adhered to professional ethics throughout the audit process[200]. - The company reported no significant deficiencies in internal controls during the reporting period, indicating a robust control environment[195]. Risk Management - The company has detailed potential risks in its report, which investors should be aware of[5]. - The company emphasizes a comprehensive risk management system to address strategic, market, operational, financial, legal, and compliance risks[85]. - The company anticipates risks from potential slowdowns in domestic automotive market sales growth and price pressures on components due to market competition[86][87]. - The company is closely monitoring the policies related to new energy vehicle subsidies and their impact on financial performance[88]. Research and Development - The company’s R&D expenditure surged by 217.98% to approximately 1.42 billion yuan, driven by investments in smart electric vehicle development[31]. - The company is focusing on the development of smart electric vehicles, with the first new electric product, SF5, expected to achieve mass production in 2019[27]. - The company’s R&D efforts led to the development of the EV.R platform, addressing range anxiety and charging difficulties for electric vehicles[36]. - Research and development investment totaled RMB 1,662,311,101.49, accounting for 8.21% of operating revenue, with capitalized R&D expenses making up 70.94% of the total[58]. Market and Sales Performance - In 2018, the company achieved total vehicle sales of 347,800 units, with revenue of 20.24 billion yuan, reflecting a year-on-year decline of 7.72%[34]. - The company’s SUV sales accounted for over 50% of total vehicle sales, with SUV revenue reaching approximately 11.85 billion yuan, down 8.23% year-on-year[37]. - The production and sales of basic passenger cars (sedans) decreased by 3.95% and 2.70%, respectively, while the SUV segment saw a smaller decline of 3.19% and 2.52%[29]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in sales in that region over the next two years[172]. Environmental and Social Responsibility - The company achieved a 59.67% reduction in energy consumption per unit of output in 2018 through investments in energy-saving and emission-reduction projects[124]. - The company is committed to maintaining compliance with environmental regulations and has passed the ISO14001 environmental management system certification[124]. - The company actively participated in poverty alleviation efforts, including purchasing agricultural products from impoverished areas to help increase local income[121]. - The company has established a training program for villagers to improve their skills and capabilities as part of its poverty alleviation strategy[122]. Strategic Initiatives - The company is focusing on expanding its new electric vehicle and three-electric system business, while maintaining its traditional automotive manufacturing[24]. - The company plans to invest ¥251,025.00 million in the Chongqing Jinkang New Energy Vehicle Co., with an expected production capacity of 50,000 units by 2019[68]. - The company aims for 100% pure electric drive in its mid-term business plan, with a rolling R&D investment target of 10 billion RMB over five years[82]. - The company is enhancing its R&D capabilities and increasing investment in technology innovation to ensure product upgrades and cost optimization[87]. Financial Position - The total assets at the end of 2018 were approximately ¥26.56 billion, an increase of 12.02% from ¥23.71 billion at the end of 2017[17]. - The company's total assets as of December 31, 2018, amounted to CNY 26,563,884,130.19, with total liabilities of CNY 19,369,625,278.93, resulting in a debt-to-asset ratio of 72.92%, a decrease of 2.5 percentage points from the previous year[143]. - The company's asset-liability ratio improved from 75.44% in 2017 to 72.92% in 2018, indicating a better capital structure[151]. Employee and Management Information - The company has a total of 14,710 employees, with 262 in the parent company and 14,448 in major subsidiaries[181]. - The number of employees with a bachelor's degree or higher is 4,300, while those with a diploma is 3,156[182]. - The company has implemented a salary system based on value creation, optimizing the compensation standard system[183]. - The performance salary is primarily linked to the company's operational performance, determined by annual performance assessments[179].