LH(SH:600099)2020-06-19 16:00Financial Performance - In 2019, Linhai Co., Ltd. achieved a net profit of CNY 5,799,058.04, representing a 119.01% increase compared to the previous year's net profit of CNY 2,647,795.91[6]. - The company's operating revenue for 2019 was CNY 578,073,230.43, which is a 9.88% increase from CNY 526,091,429.85 in 2018[24]. - The basic earnings per share for 2019 was CNY 0.0265, up 119.01% from CNY 0.0121 in 2018[25]. - The total profit reached CNY 6.58 million, reflecting a growth of 66.03% compared to the previous year[46]. - Net profit attributable to shareholders was CNY 5.80 million, marking a significant increase of 119.01% year-on-year[46]. - The company reported a net profit of 5.799 million RMB for 2019, with a dividend payout ratio of 151.14%[91]. - The company reported a revenue of 10 billion yuan for the fiscal year, representing a year-over-year growth of 15%[132]. - The company provided guidance for the next fiscal year, expecting a revenue growth of 12% to 15%[132]. Assets and Liabilities - The total assets of the company at the end of 2019 were CNY 614,631,408.67, reflecting a 4.02% increase from CNY 590,888,000.03 at the end of 2018[24]. - The company's total assets amounted to CNY 614.63 million, up 2.90% from the end of the previous year[43]. - Total liabilities amounted to CNY 130,263,555.41, up from CNY 117,641,058.01, indicating a growth of 10.3%[174]. - Total equity rose to CNY 12,625,405.01, an increase of about 74.5% from the previous year's CNY 7,243,983.47[97]. - The total equity attributable to the parent company at the end of 2019 was 478,543,411.18 RMB, an increase from 473,246,942.02 RMB at the end of 2018, reflecting a growth of about 1.1%[187]. Cash Flow - The net cash flow from operating activities for 2019 was negative CNY 4,531,282.77, compared to negative CNY 19,680.26 in 2018[24]. - The company reported a net cash flow from operating activities of -CNY 4.53 million, indicating a significant cash outflow[45]. - The net cash flow from operating activities was negative CNY 4,531,282.77, an improvement from negative CNY 19,680.26 in the previous year[61]. - The net cash flow from operating activities for 2019 was -15,697,128.96 RMB, a decrease from 4,483,637.41 RMB in 2018, indicating a decline of approximately 450%[185]. - Total cash inflow from operating activities decreased to 267,948,272.30 RMB in 2019 from 324,091,205.54 RMB in 2018, representing a decline of about 17.2%[185]. Research and Development - The total R&D expenditure was CNY 6,788,987.74, accounting for 1.17% of total revenue, with a 20.58% increase in R&D expenses compared to the previous year[60]. - Research and development expenses increased to CNY 6,002,475.90 in 2019, compared to CNY 4,978,027.53 in 2018, marking a rise of 20.5%[178]. - The company is investing 500 million yuan in R&D for new technologies aimed at enhancing product efficiency[132]. Market and Industry Insights - In the special vehicle segment, the company maintained a leading market share in certain European markets and saw a notable increase in export volume to the Americas[40]. - The motorcycle segment experienced double-digit growth in both domestic and international markets, aided by promotional events and product launches[40]. - The ATV market in China is expected to grow due to increasing demand in various sectors, with over 90% of products being exported[70]. - The motorcycle industry in China saw production and sales of 17.37 million units, a year-on-year increase of 11.5% and 10.0% respectively[71]. - The demand for high-displacement motorcycles is rising, driven by higher income levels and changing consumer preferences[73]. Corporate Governance and Shareholder Information - The largest shareholder, China Fuma Machinery Group Co., Ltd., holds 42.10% of the shares, totaling 92,256,920 shares[122]. - The company has no major litigation or arbitration matters reported for the year[104]. - The company has a total of 572 employees, with 484 in the parent company and 88 in major subsidiaries[142]. - The company has established a performance evaluation mechanism for senior management, with specific operational target responsibility indicators set annually[151]. - The company’s governance structure follows the regulations set by the Company Law and the Corporate Governance Guidelines for Listed Companies[138]. Risk Management and Future Outlook - The company has outlined potential industry risks in the report, advising investors to be cautious[9]. - The company is facing significant uncertainty in production and operations due to the COVID-19 pandemic, particularly affecting sales in key overseas markets[86]. - The company plans to strengthen its market presence in the agricultural machinery sector, particularly in rice paddy machinery, to become a leading supplier in China[81]. - The company recognizes the impact of national agricultural policies and the trend towards mechanization in rice planting as significant factors for future growth[76].