LH(SH:600099)2019-03-29 16:00Financial Performance - In 2018, Linhai Co., Ltd. achieved a net profit of CNY 2.65 million, a 37.41% increase compared to CNY 1.93 million in 2017[5]. - The company's operating revenue for 2018 was CNY 526.09 million, representing a 16.32% increase from CNY 452.27 million in 2017[20]. - The net profit attributable to shareholders was 26.48 million yuan, reflecting a year-on-year growth of 37.41%[40]. - Basic earnings per share for 2018 were CNY 0.0121, up 37.50% from CNY 0.0088 in 2017[22]. - The company's total comprehensive income for the current period was ¥2,647,795.91, compared to ¥1,926,997.50 in the previous period, marking an increase of 37.4%[182]. - The company reported a total profit of ¥3,963,789.45, compared to ¥3,892,757.39 in the previous period, showing a slight increase of 1.8%[182]. - The company reported a net cash flow from operating activities of ¥4,483,637.41, a significant improvement compared to the previous year's net cash flow of -¥16,587,582.54[188]. Assets and Liabilities - The total assets of the company increased by 6.30% to CNY 590.89 million at the end of 2018, compared to CNY 555.85 million at the end of 2017[21]. - The total liabilities amounted to 117.64 million yuan, with a debt-to-asset ratio of 19.91%, an increase of 4.57 percentage points year-on-year[40]. - The total liabilities increased to ¥117,641,058.01 from ¥85,244,360.02, marking a rise of around 38%[177]. - The total equity attributable to shareholders was 473.25 million yuan, a slight increase of 0.56% from the previous year[40]. - Shareholders' equity totaled ¥473,246,942.02, slightly up from ¥470,601,946.11, showing a marginal increase of about 0.6%[177]. Research and Development - Research and development expenses rose to 4.98 million yuan, an increase of 85.82% compared to the previous year, due to increased investment in new agricultural machinery and special vehicles[43]. - The total R&D investment accounted for 1.33% of total operating revenue, with 96 R&D personnel representing 16.58% of the company's total workforce[57]. - Research and development expenses increased to ¥4,978,027.53, up 86.0% from ¥2,678,891.21, indicating a strong focus on innovation[181]. Market and Sales Performance - The company achieved a significant increase in sales of rice transplanters, with approximately 73,000 units sold in 2018, generating sales revenue of about 2.8 billion yuan[33]. - The special vehicles industry generated revenue of 230.16 million yuan, with a gross margin of 7.90%, up 2.26 percentage points from the previous year[45]. - The international market contributed 251.17 million yuan in revenue, representing a year-on-year increase of 106.55%[46]. - The production volume of special vehicles increased by 54.25% year-on-year, while sales volume rose by 53.50%[48]. - The company achieved sales revenue of ¥315,537,146.29 from goods and services, up from ¥248,900,718.03 in the previous year, indicating a growth of approximately 26.7%[188]. Corporate Governance and Management - The company has a governance structure in place that adheres to the Company Law and corporate governance standards[137]. - The company operates under a performance-based remuneration system for its directors and senior management, linked to company performance[137]. - The company has a dedicated financial management team, with 韩保进 serving as the financial director[136]. - The company has appointed new board members, including 常康忠 and 刘斌, as part of the board expansion[138]. - The company has established a performance evaluation mechanism for senior management, with specific operational target responsibility indicators set annually[153]. Strategic Initiatives and Future Outlook - Linhai Co., Ltd. plans to retain earnings for new product development and market expansion, opting not to distribute profits for 2018[5]. - The company aims to enhance product competitiveness and innovate business models, focusing on high-displacement and high-quality special vehicles[77]. - The company anticipates challenges in the special vehicle industry due to US-China trade tensions and stricter emission standards in the motorcycle sector[83]. - The company plans to enhance internal management systems to improve efficiency and ensure safety standards are met[82]. - The company committed to restructuring and integrating assets and businesses over the next three years to fundamentally address related party transaction issues[90]. Environmental and Social Responsibility - The company maintained compliance with environmental regulations and achieved ISO 14001 certification[109]. - The company reported no safety or production accidents during the year, demonstrating a commitment to social responsibility[109]. - The company emphasized a focus on green and low-carbon development, aligning with national energy-saving policies[109].