JIN LEI(SZ:300443)2018-04-09 16:00Economic Challenges - The company reported a significant challenge due to the global economic slowdown, which has affected the green energy sector, potentially impacting future performance[5]. - The main raw material, steel ingots, has seen price volatility, which poses risks to market strategy and profitability; the company is focusing on procurement management and process optimization to mitigate these risks[6]. - The company has a high exposure to foreign exchange risks due to substantial export activities, which could lead to significant exchange losses if not managed properly[8]. Financial Performance - The company's operating revenue for 2017 was CNY 596,281,601, a decrease of 6.29% compared to CNY 636,297,655.75 in 2016[24]. - The net profit attributable to shareholders for 2017 was CNY 150,277,457.47, down 28.40% from CNY 209,883,568.91 in 2016[24]. - The net cash flow from operating activities was CNY 202,433,398.05, a decrease of 12.77% compared to CNY 232,067,863.21 in 2016[24]. - The company's total assets at the end of 2017 were CNY 1,736,698,685.45, an increase of 0.39% from CNY 1,729,977,863.14 at the end of 2016[24]. - The company achieved a diluted earnings per share of CNY 0.6313, a decrease of 30.68% from CNY 0.9107 in 2016[24]. - The company reported a total of CNY 10,468,936.40 in non-recurring gains and losses for 2017, compared to a loss of CNY 3,421,774.84 in 2016[29]. Market Position and Strategy - The company's market share in the global wind power market reached 14.20%, while the domestic market share increased by 2.07 percentage points to 13.72%[34]. - The company focuses on high-quality domestic clients, strengthening partnerships with major players like GE and Siemens-Gamesa, while also exploring opportunities with other promising wind turbine manufacturers in China[38]. - The company aims to expand its international market presence, particularly in Germany, the USA, and Spain, while maintaining strong relationships with existing partners[38]. - The company has developed advanced production technologies, including forging simulation and automated painting, positioning itself as a leader in the industry with over 20 technical reserves and multiple patents[39]. - The company has successfully developed 18 new spindle products, including those for Vestas, enhancing its brand value and market influence[45]. Production and Operations - The company has increased its production capacity through completed fundraising projects, improving automation levels and product quality[45]. - The company has implemented lean management practices to enhance production efficiency and reduce costs amid fluctuating raw material prices[39]. - The company has achieved a significant increase in the contribution of high-value products to its sales revenue, further enhancing its competitiveness and profitability[40]. - The company has maintained a strong focus on technological innovation and collaboration with research institutions to stay ahead in the wind turbine spindle manufacturing sector[39]. Investment and Development - The company established a wholly-owned subsidiary, Shandong Jinlei New Energy Co., Ltd., with a registered capital of 50 million yuan, focusing on wind farm construction projects[60]. - The company plans to accelerate the development of free forging products while continuing to enhance its core wind power business[56]. - Research and development investment reached ¥22,177,045.81, constituting 3.72% of operating revenue[65]. - The company has committed to investing 100 million RMB in research and development for new technologies over the next two years[110]. Shareholder and Dividend Policies - The profit distribution plan approved by the board includes no cash dividends or stock bonuses, indicating a focus on reinvestment[11]. - The company did not distribute any cash dividends for the fiscal year 2017, maintaining a cash dividend ratio of 0.00%[97]. - The company has significant capital expenditure plans for 2018, influencing the decision to not distribute dividends in 2017[97]. - The company is in a growth phase, which is a factor in its decision to retain earnings rather than distribute dividends[97]. Governance and Management - The company has a structured training program aimed at improving operational and management skills among employees[175]. - The company has established four specialized committees: Compensation and Assessment Committee, Audit Committee, Nomination Committee, and Strategic Development Committee, all composed of directors[179]. - The company emphasizes investor relations management, ensuring timely and accurate information disclosure through various channels[181]. - The independent directors attended all required board meetings and provided constructive suggestions that were adopted by the company[188]. Compliance and Internal Control - The company reported no significant internal control deficiencies during the reporting period[193]. - The internal control self-assessment report indicated that 100% of the total assets and revenue were included in the evaluation scope[193]. - The internal control audit report confirmed effective internal controls related to financial statements as of December 31, 2017[195]. - The company received a standard unqualified opinion from the auditing firm, indicating no significant issues with financial reporting[199].