XEMC(SH:600416)2019-04-25 16:00Financial Performance - The company reported a net loss attributable to shareholders of -1,911,796,321.85 RMB for 2018, compared to a profit of 91,197,298.82 RMB in 2017, marking a significant decline [5]. - Operating revenue for 2018 was 6,199,039,073.31 RMB, a decrease of 36.13% from 9,705,970,007.56 RMB in 2017 [20]. - Basic earnings per share for 2018 were -2.02 RMB, compared to 0.1 RMB in 2017, indicating a substantial drop in profitability [22]. - The weighted average return on equity was -34.68% for 2018, a decrease of 36.04 percentage points from 1.36% in 2017 [22]. - The net cash flow from operating activities was 24,000,813.51 RMB, a decline of 78.21% from 110,166,084.20 RMB in 2017 [20]. - The company achieved operating revenue of CNY 6.20 billion in 2018, a decrease of 36.13% year-on-year [42]. - The net profit attributable to shareholders was CNY -1.91 billion, with a basic earnings per share of -CNY 2.02 [47]. Asset Management - The company's total assets decreased by 7.46% to 20,391,858,605 RMB at the end of 2018, down from 22,035,506,543.70 RMB in 2017 [21]. - The company reported a significant increase in fixed asset value by 16% during the acquisition process, leading to a valuation adjustment [122]. - The company’s accounts receivable amounted to ¥6,852,874,389.03, with a bad debt provision of ¥928,081,632.99, resulting in a net value of ¥5,924,792,756.04, which is a significant portion of total assets [196]. Market and Industry Trends - The company faced a 36.6% decline in new wind power installations from 2015 to 2017, impacting its wind power business performance in 2018 [32]. - The market for wind power installations showed a recovery in 2018, with a 17% increase compared to 2017, indicating potential growth opportunities [32]. - The domestic electric motor industry is experiencing high competition and increasing concentration, with larger enterprises gaining market share [86]. - The wind power industry is transitioning to a competitive pricing model, which may lead to significant changes in project development and market dynamics [90]. Research and Development - The company has 404 valid patents and has established 55 national and industry standards, receiving multiple national science and technology awards [35]. - The company’s R&D expenses decreased by 39.7% to CNY 168.87 million, reflecting a strategic shift in resource allocation [49]. - Total R&D expenditure was ¥417,775,185.32, accounting for 6.74% of total revenue, with 59.58% of R&D costs capitalized [61]. - The company capitalized research and development expenses totaling ¥1,218,557,221.96 related to the development of a comprehensive power system for ships, contingent upon meeting specific capitalization criteria [198]. Corporate Governance - The company has engaged Da Xin Accounting Firm for auditing services, with a remuneration of 50,000 RMB for the annual audit [106]. - The company’s board of directors consists of 11 members, including 4 independent directors, and held 8 meetings during the reporting period [181]. - The company has implemented a performance evaluation mechanism for senior management, linking compensation to key performance indicators such as profit, sales revenue, and cash collection [186]. - The company has a stable board with no significant changes in shareholding among directors, indicating consistent leadership [164]. Strategic Initiatives - The company is actively pursuing international market expansion, particularly in alignment with the national "Belt and Road" initiative [43]. - The company is committed to enhancing its manufacturing capabilities in line with the "Made in China 2025" initiative, focusing on intelligent manufacturing [38]. - The company plans to invest approximately 387 million in various projects from 2018 to 2020, with 317 million coming from government financial support [140]. - The company aims to achieve a sales revenue of 8.1 billion RMB in 2019 as part of its revitalization plan [94]. Shareholder Relations - The company distributed a cash dividend of 0.3 RMB per 10 shares, totaling approximately 28.38 million RMB to shareholders [99]. - The company did not distribute any cash dividends in 2018, maintaining a net profit allocation of 0% to common shareholders [101]. - The largest shareholder, Xiangdian Group, holds 317,203,123 shares, accounting for 33.54% of total shares, with 64,392,713 shares under lock-up [154]. - The company has established a stable profit distribution policy and dividend plan to return value to shareholders [142]. Legal and Compliance Issues - The company faced significant litigation matters during the year, with announcements made regarding the freezing of fundraising accounts due to disputes [107]. - The company has ongoing litigation related to contract disputes, which may impact future financial performance [112]. - The company reported a debt of 1,331.63 million due to a lawsuit involving transportation disputes [110]. - The company has a pending claim of 10,092.44 million related to jurisdictional disputes in the Supreme Court [111]. Social Responsibility - The company successfully helped 596 impoverished individuals to achieve poverty alleviation in 2018 [139]. - The company aims to complete the poverty alleviation tasks for 7 households and 18 individuals in the upcoming year [140]. - The company received recognition for its poverty alleviation efforts, with team members awarded for their contributions [139]. - The company has established a long-term stable income mechanism for impoverished households to promote economic development [140].