HLSY(000622)2019-06-20 16:00Financial Performance - The company's operating revenue for 2018 was CNY 195,407,098.34, representing a 232.70% increase compared to CNY 58,733,082.43 in 2017[19]. - The net profit attributable to shareholders for 2018 was CNY 3,152,629.54, a significant recovery from a loss of CNY 27,386,209.95 in 2017, marking an increase of 111.51%[19]. - The total assets at the end of 2018 were CNY 341,971,619.51, down 13.54% from CNY 395,522,663.69 at the end of 2017[20]. - The net assets attributable to shareholders increased by 1.68% to CNY 190,705,821.13 at the end of 2018, compared to CNY 187,553,191.59 at the end of 2017[20]. - The company reported a basic earnings per share of CNY 0.0074 for 2018, recovering from a loss of CNY 0.0644 in 2017, an increase of 111.49%[19]. - The company achieved a total revenue of approximately 19,540.71 million yuan in 2018, representing a year-on-year increase of 232.70%[50]. - The revenue from the bulk trade business was approximately 14,559.30 million yuan, contributing significantly to the overall revenue growth[52]. - The operating costs increased by 259.01% year-on-year, primarily due to the rise in costs associated with the bulk trade business[52]. - The company reported an asset disposal gain of approximately 1,222.89 million yuan, a significant increase of 9967.51% compared to the previous year[51]. - The net profit attributable to the parent company was 315.26 million yuan, with a reduction in operating losses by 78.23% compared to the previous year[50]. Shareholder Information - The company reported no cash dividends, stock bonuses, or capital increases from reserves for the year[7]. - The company did not propose any cash dividend distribution plan for the reporting period, indicating a focus on reinvestment or other financial strategies[115]. - The company has not reported any cash dividends in the previous three years, reflecting a consistent policy of retaining earnings[114]. - The company has maintained a stable shareholder base with no significant reductions in shareholding reported[110]. - The total number of ordinary shareholders at the end of the reporting period was 60,237, an increase from 48,171 at the end of the previous month[161]. - The largest shareholder, China Huayang Investment Holdings Co., Ltd., holds 17.99% of shares, totaling 76,496,653 shares, with 76,000,000 shares pledged[161]. - The company has not indicated any significant changes in its shareholder structure or major acquisitions during the reporting period[116]. Business Operations and Strategy - The company’s main business has not changed since its establishment, which was initiated in March 1993[17]. - The company has initiated new profit growth strategies, including battery raw material processing services[30]. - The company is focusing on the development of new energy vehicle air conditioning components, with ongoing projects for the H2 automotive air conditioning system and the Q22LEV model[42]. - The company plans to continue expanding its market presence and product offerings in the coming years[56]. - The company is actively seeking to establish long-term supply relationships with domestic and international automotive manufacturers to enhance its competitive edge[97]. - The company is exploring trade activities related to its core automotive air conditioning business to create sustainable profit sources[101]. - The company plans to enhance its innovation capabilities and expand its market presence while stabilizing its traditional automotive air conditioning business[100]. Risk Management - The company has faced no significant risks affecting its operations during the reporting period[6]. - The company’s future development outlook includes various risks and corresponding countermeasures detailed in the report[6]. - The company recognizes the investment and trade business risks influenced by national policies and macroeconomic conditions, and will enhance risk management systems[107]. - The company will implement measures to control cost fluctuations due to raw material price volatility, particularly for steel, non-ferrous metals, and rubber[106]. - The company faces risks from macroeconomic and industry policy changes that could adversely affect profitability if adjustments are required[105]. Research and Development - The company is enhancing its research and development capabilities, with a focus on high-tech enterprise applications and optimizing products based on customer requirements[42]. - The company developed 11 new projects during the year, with 2 projects entering mass production and 3 projects completing small batch trials[47]. - Research and development expenses decreased by 46.70% year-on-year, mainly due to the liquidation of the subsidiary Shanghai Hengan Air Conditioning Equipment Co., Ltd.[52]. Corporate Governance - The company has a governance structure that complies with the requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, ensuring effective operation of the shareholders' meeting, board of directors, and supervisory board[197]. - The board of directors consists of 9 members, including 3 independent directors with expertise in accounting, law, and strategy, meeting the standards set by the Corporate Governance Code[198]. - The company has implemented an employee performance evaluation system to enhance operational efficiency and promote a culture of teamwork and productivity[198]. - The company has not faced any penalties from the China Securities Regulatory Commission or Shenzhen Stock Exchange, ensuring compliance with regulatory standards[179][182]. Subsidiaries and Investments - The company established a wholly-owned subsidiary, Tianjin Hengsheng International Trade Co., Ltd., which generated approximately CNY 136.82 million in revenue and a net profit of about CNY 1.25 million in 2018[66]. - The company’s subsidiary, Yueyang Hengli Automotive Parts Co., Ltd., is actively expanding into emerging markets while maintaining relationships with major clients[30]. - The company’s subsidiary, Shanghai Heng'an Air Conditioning Equipment Co., Ltd., entered liquidation, with a reported net profit of approximately ¥13,555,273.97 for the year[91]. Legal and Compliance - The company has been actively involved in legal matters concerning its subsidiaries, which may impact future operational strategies[113]. - The company has disclosed various legal disputes, including a contract dispute that is currently pending trial, with no estimated impact on profits[152]. - The company has not reported any significant changes in its major contracts or asset evaluations during the reporting period[148]. Employee and Management - The company employed a total of 148 staff members, with 82 in production, 8 in sales, 7 in technical roles, 12 in finance, and 39 in administration[192]. - The total remuneration for directors and senior management during the reporting period amounted to CNY 3.1371 million[190]. - The company conducted 31 training sessions during the reporting period, with a total of 194 participants, achieving a training coverage rate of 45%[194].