LONCIN(SH:603766)2018-08-15 16:00Financial Performance - The company's operating revenue for the first half of 2018 was RMB 5,133,178,382.61, representing an increase of 8.27% compared to RMB 4,741,022,507.13 in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 16.71% to RMB 417,387,056.87 from RMB 501,149,466.75 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was RMB 380,098,524.90, down 10.26% from RMB 423,557,994.28 in the same period last year[20]. - The basic earnings per share for the first half of 2018 was RMB 0.1975, a decrease of 16.73% compared to RMB 0.2372 in the previous year[21]. - The weighted average return on net assets decreased by 1.78 percentage points to 6.22% from 8.00% in the same period last year[21]. - The net cash flow from operating activities was RMB 282,798,413.85, an increase of 4.14% compared to RMB 271,548,007.24 in the previous year[20]. - The total assets at the end of the reporting period were RMB 11,123,494,330.18, a decrease of 2.25% from RMB 11,380,100,043.17 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company decreased by 4.28% to RMB 6,341,421,971.71 from RMB 6,625,258,067.28 at the end of the previous year[20]. Revenue Breakdown - The company achieved a revenue of 5.133 billion yuan, representing a year-on-year growth of 8.27%, with export revenue accounting for 2.818 billion yuan, or 54.90% of total revenue, up 15.16% year-on-year[34]. - The engine business generated revenue of 1.277 billion yuan, down 3.06% year-on-year, with sales of road engines declining by 15.67% to 605 million yuan[35]. - The motorcycle business reported revenue of 1.877 billion yuan, a decrease of 6.92% year-on-year, with domestic sales revenue dropping by 23.13%[37]. - The generator set business achieved revenue of 1.065 billion yuan, a year-on-year increase of 39.98%, with small household generator sets revenue growing by 75.63%[38]. - The company exported small household generator sets worth 507 million yuan to the U.S., marking a year-on-year increase of 128.03%[38]. - The company’s non-road engine business saw revenue increase by 10.34% to 662 million yuan, with exports to the U.S. reaching 297 million yuan, up 10%[35]. - The company’s large commercial generator set business generated revenue of 415 million yuan, a year-on-year increase of 11.00%, with significant growth in export revenue[39]. - The company’s new product, a hybrid engine for four-wheel low-speed electric vehicles, saw sales increase by 152.30% to 6,676 units[35]. - The four-wheeled low-speed electric vehicle business achieved sales of 21,600 units, a year-on-year increase of 6.15%, with revenue of 480 million yuan, up 17.80%[40]. - The hybrid system four-wheeled low-speed electric vehicles sold 8,291 units, marking a significant year-on-year growth of 158.37%[40]. - The lightweight automotive parts business generated revenue of 384 million yuan, representing an 80.58% increase year-on-year[45]. - CMD automotive parts revenue was 99 million yuan, a decline of 9.45% year-on-year, while Chongqing Liteway and Nanjing Longni companies saw revenue of 268 million yuan, up 201.92%[45]. Research and Development - Research and development expenses increased by 11.75% to 158.6 million yuan, indicating a focus on innovation[47]. - The company added 192 new patents during the reporting period, bringing the total to 1,745 valid patents as of June 30, 2018[32]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.70 per 10 shares, totaling approximately RMB 147,681,614.50, which accounts for 35.38% of the net profit attributable to shareholders for the first half of 2018[6]. - The total number of ordinary shareholders reached 51,162 by the end of the reporting period[136]. - The company’s total share capital is 2,113,077,350 shares, with 2,077,678,975 shares being unrestricted[131]. - The company’s largest shareholder, Longxin Holdings, holds 49.48% of the shares, amounting to 1,045,591,564 shares[139]. Risks and Challenges - The company faces macroeconomic risks due to the impact of the US-China trade war, which includes tariffs on non-road engines and small household generators[78]. - Currency fluctuation risks are present as the depreciation of the RMB against the USD may lead to foreign exchange losses despite potential gains[79]. - Market risks include a decline in motorcycle production and sales, as well as uncertainties in the national technical standards for low-speed electric vehicles[79]. - The top five customers accounted for 23.31% of the company's revenue in the first half of 2018, indicating a risk of dependency on major clients[80]. - Rising prices of raw materials pose a risk of increased costs for the company[81]. - The company faces risks in expanding its unmanned helicopter products into other application areas and in scaling its agricultural aviation business[82]. Corporate Governance and Compliance - The company has no major litigation or arbitration matters during the reporting period[96]. - There were no significant changes in the company's accounting firm during the audit period[96]. - The company has not disclosed any major related party transactions during the reporting period[102]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[96]. - The company has not issued any non-standard audit reports for the previous year's financial statements[96]. - The company has implemented administrative regulatory measures against a former director for violations of stock management rules[96]. - The company has committed to maintaining transparency and accuracy in its financial reporting, as outlined in its compliance documents[92]. Environmental and Social Responsibility - The company invested CNY 99.36 million in poverty alleviation projects, focusing on supporting enterprises in the western region[109]. - The company has implemented a cash procurement strategy to support the development of western enterprises[110]. - The company plans to continue implementing targeted poverty alleviation measures based on its development situation[111]. - The company has established effective pollution control facilities that are in good working condition and operate effectively[120]. - The company adheres to environmental protection laws and regulations, strictly controlling various pollutants generated[121]. - The company has completed the environmental protection facilities for new construction and renovation projects, including plastic coating waste gas treatment and water-based paint transformation projects[122]. Future Outlook - The company provided a positive outlook for the second half of 2018, projecting a revenue growth of 10% to 12%[93]. - New product launches are expected to contribute an additional 300 million RMB in revenue by the end of 2018[94]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2020[92]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of 500 million RMB allocated for this purpose[94]. - A new strategic partnership was announced, expected to generate an additional 200 million RMB in revenue over the next two years[91]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of 2018[93]. Financial Position - The total assets as of June 30, 2018, amounted to RMB 11,123,494,330.18, a decrease from RMB 11,380,100,043.17 at the beginning of the period[148]. - The company's current assets totaled RMB 5,040,600,348.23, down from RMB 5,125,899,174.01 at the beginning of the period[148]. - The total liabilities were RMB 4,164,626,427.65, slightly up from RMB 4,152,637,529.94 at the beginning of the period[149]. - The owner's equity decreased to RMB 6,958,867,902.53 from RMB 7,227,462,513.23[150]. - Cash and cash equivalents were RMB 1,566,062,428.70, down from RMB 1,724,071,265.98[148]. - Accounts receivable increased to RMB 1,959,473,599.22 from RMB 1,733,559,820.67[148]. - Inventory rose to RMB 745,492,627.41 from RMB 629,100,321.18[148]. - Short-term borrowings increased significantly to RMB 150,014,350.69 from RMB 53,958,690.15[149]. - The company reported a decrease in retained earnings to RMB 3,386,966,326.11 from RMB 3,666,894,794.74[150].