DAAE(SH:600178)2020-04-20 16:00Financial Performance - In 2019, the company achieved a net profit of CNY 10,578,436.65, representing an increase of 89.93% compared to CNY 5,569,682.99 in 2018[5]. - The operating revenue for 2019 was CNY 1,939,226,217.50, a 49.98% increase from CNY 1,293,010,074.58 in 2018[22]. - The total assets at the end of 2019 amounted to CNY 3,965,398,291.71, reflecting a 14.69% increase from CNY 3,457,466,188.60 at the end of 2018[22]. - The company's net assets attributable to shareholders reached CNY 1,883,022,689.18, a slight increase of 0.62% from CNY 1,871,408,303.08 in 2018[22]. - Basic earnings per share for 2019 were CNY 0.0229, up 89.26% from CNY 0.0121 in 2018[23]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of CNY -16,415,377.62, an improvement from CNY -77,639,542.07 in 2018[22]. - The company reported a total comprehensive income of ¥10,578,436.65 for the year[160]. - The company’s retained earnings increased to ¥309,059,978.78, up from ¥305,850,102.08 in the previous year[160]. Cash Flow and Investments - The net cash flow from operating activities was CNY 24,911,613.31, a significant decrease of 88.32% compared to CNY 213,289,186.61 in 2018[22]. - The company’s investment activities resulted in a net cash outflow of 32.72 million yuan[42]. - The company plans to invest CNY 30.05 million in fixed assets in 2020[83]. - The net cash flow from investing activities was -¥32,723,110.44, slightly improved from -¥34,872,711.19 in 2018[158]. - The company’s cash and cash equivalents decreased to CNY 146,743,692.96 in 2019 from CNY 172,253,125.16 in 2018, a decline of 14.8%[151]. Sales and Market Performance - In 2019, the company achieved total revenue of RMB 1,938,226,217.50, with a significant increase in sales of gasoline engines, totaling 246,800 units, a year-on-year increase of 46.07%[29]. - The market share of the company's gasoline engines increased to 1.29%, up by 0.49 percentage points year-on-year, ranking second among independent gasoline engine manufacturers[29]. - The sales volume of the M series engine increased by 49.60% year-on-year, totaling 244,759 units[65]. - The company aims to sell 280,000 engines in 2020, with a revenue target of CNY 2.256 billion and a goal to strive for CNY 2.415 billion[74]. Research and Development - Research and development expenses totaled 84.02 million yuan, accounting for 4.33% of operating revenue, with 81.69% of R&D costs capitalized[49]. - The company launched the M16K engine in July 2019, and by December, the M15N engine achieved a thermal efficiency exceeding 39%, meeting future emission and fuel consumption regulations[35]. - The company plans to develop a 1.5L turbocharged engine to meet commercial vehicle market demands by the end of 2020[51]. - The company is working on optimizing the exhaust after-treatment system to reduce costs associated with precious metals, with a target completion date of May 2020 for prototype testing[52]. Environmental and Safety Compliance - The company invested CNY 2.8032 million in 2019 to improve environmental protection equipment, ensuring compliance with the secondary standards of the "Comprehensive Emission Standard for Air Pollutants" (GB16297-1996) for dust emissions[100]. - The company operates two wastewater treatment facilities, achieving compliance with the tertiary discharge standards of the "Comprehensive Discharge Standard for Wastewater" (GB8979-1996) for various pollutants[105]. - The company has established an emergency response plan for environmental incidents, enhancing employees' ability to respond effectively to such events[106]. - The company’s emissions of nitrogen oxides and non-methane total hydrocarbons are within the limits set by the "Comprehensive Emission Standard for Air Pollutants" (GB16297-1996), with concentrations below 240 mg/m³ and 120 mg/m³ respectively[98]. Shareholder and Corporate Governance - The total number of ordinary shareholders at the end of the reporting period is 36,703, an increase from 34,966 at the end of the previous month[110]. - The largest shareholder, China Changan Automobile Group Co., Ltd., holds 237,593,000 shares, representing 51.42% of the total shares[112]. - The company has retained the same accounting firm, Lixin Certified Public Accountants, for three years, with an annual audit fee of CNY 670,000[89]. - The board of directors held 7 meetings during the year, with 5 conducted in person and 2 via communication methods[136]. Legal and Compliance Issues - The company has reported significant litigation matters during the year, indicating ongoing legal challenges[90]. - The company has a pending lawsuit involving Harbin Hafei Automobile, with a judgment requiring the company to pay 262,644,523.69 RMB (approximately 2.63 million USD) plus interest[91]. - The company has initiated legal proceedings against Zhongtai New Energy for 8.1 million RMB, with the case also in execution following a court mediation[93]. Employee and Management Information - The company employed a total of 2,350 staff, with 1,446 in production, 92 in sales, 464 in technical roles, and 199 in administration[127]. - The management plans to implement a market-oriented salary system linked to performance, including base salary, position salary, performance salary, and talent allowances[128]. - The total compensation paid to directors, supervisors, and senior management during the reporting period amounted to 4.0659 million yuan[124]. Financial Instruments and Accounting Policies - The company’s financial statements are prepared based on the assumption of going concern, with no significant doubts about its ability to continue operations[173]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring accurate financial reporting[175]. - The company recognizes financial liabilities when the current obligations are fully or partially discharged, or when existing liabilities are replaced with new financial liabilities under different contractual terms[190].