CORUN(SH:600478)2019-04-15 16:00Financial Performance - The company's total distributable profit for 2018 was -31,820,282.84 CNY, resulting in a year-end undistributed profit of -186,200,571.91 CNY, leading to no profit distribution for the year[6]. - The company reported a negative cumulative undistributed profit, which is in accordance with the provisions of the Company Law and the Articles of Association[6]. - The company's operating revenue for 2018 was CNY 1,892,632,403.82, representing a 20.93% increase compared to CNY 1,565,058,882.24 in 2017[29]. - The net profit attributable to shareholders decreased by 1.34% to CNY 21,720,705.01 from CNY 22,015,648.54 in the previous year[29]. - The net cash flow from operating activities turned negative at CNY -50,716,975.12, a decline of 293.63% compared to CNY 26,192,568.11 in 2017[29]. - The company's total assets decreased by 5.78% to CNY 6,349,008,097.65 from CNY 6,738,428,966.08 in 2017[29]. - Basic earnings per share for 2018 was CNY 0.015, down 6.25% from CNY 0.016 in 2017[30]. - The weighted average return on equity decreased to 1.03% from 1.59% in the previous year, a reduction of 0.56 percentage points[30]. - The net profit after non-recurring gains and losses for 2018 was 166,557,596.79 RMB, compared to 124,343,501.82 RMB in 2017, reflecting a year-over-year increase of approximately 34%[41]. - The company achieved total revenue of 1,892.63 million yuan and a net profit attributable to shareholders of 21.72 million yuan in 2018[66]. Audit and Compliance - The audit report issued by Da Xin Accounting Firm was a standard unqualified opinion[5]. - The company’s financial report has been confirmed by its responsible persons to be true, accurate, and complete[4]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not provided guarantees in violation of regulatory decision-making procedures[8]. - The company has established a cash dividend policy, mandating a minimum of 10% of distributable profits to be distributed as cash dividends in profitable years[135]. - The company has commitments from its actual controllers and shareholders to avoid competition in the same industry, effective since September 2007 and remains valid long-term[140]. - The company has reduced and standardized related party transactions since September 2007, with commitments being strictly fulfilled[140]. - The company has not disclosed any major related party transactions during the reporting period[156]. - The company has appointed Da Xin Accounting Firm for the 2018 financial and internal control audit, with a remuneration of 900,000[148]. Research and Development - Research and development expenses rose by 66% to CNY 25,841,170.49, reflecting increased investment in R&D[34]. - The total R&D investment amounted to RMB 269,184,830.01, representing 14.22% of the operating revenue[98]. - The company has 710 R&D personnel, accounting for 23.14% of the total workforce[98]. - The capitalized R&D investment constituted 90.40% of the total R&D expenditure[98]. - The company has 450 valid domestic patents, including 180 invention patents, and has received the National Science and Technology Progress Award for its research on high-safety, wide-temperature range, long-life secondary batteries[64]. - Significant progress has been made in the performance of membrane electrodes for hydrogen fuel cells, with nearly 20 patents applied for during the reporting period[76]. - The company is a leading domestic and third globally in nickel-hydride battery R&D and mass production, supplying to major automakers like Toyota and Honda[119]. Market and Industry Outlook - The market for hybrid vehicles (HEV and PHEV) is still in the cultivation stage, with national policies favoring the development of these vehicles[48]. - The company’s strategy focuses on the integration of hybrid power systems and the promotion of green travel, aiming to drive the development of related industries[44]. - By 2020, the sales proportion of hybrid vehicles in China is expected to reach 8%, approximately 2.4 million units, increasing to 20% (6 million units) by 2025 and 25% (7.5 million units) by 2030[52]. - The company anticipates significant growth opportunities in the hybrid vehicle sector due to stricter fuel consumption standards[107]. - The Chinese hybrid vehicle market is significantly below the global average, with only 16.23% of sales being HEVs compared to a global average of 63.04%[117]. - The company is positioned to benefit from the rapid growth of China's energy-saving and new energy vehicle industry, driven by favorable national policies[118]. Environmental Management - The company has implemented a comprehensive pollution prevention and control system, ensuring stable and efficient operation of pollution control facilities[180]. - The company has established emergency response plans for environmental incidents in compliance with national regulations[185]. - The company has developed a self-monitoring plan for environmental protection in accordance with relevant laws and regulations for the year 2018[187]. - The company has implemented daily monitoring of pollutant emissions, ensuring stable compliance with environmental standards[192]. - No instances of pollutant exceedance were reported during the reporting period[192]. - The company has restructured its environmental management teams to enhance accountability and resource allocation for environmental protection efforts[192]. Strategic Partnerships and Investments - The company signed a cooperation agreement with Geely Group on April 3, 2018, to develop and manufacture hybrid electric vehicles (HEVs) using the integrated hybrid power system developed by Koli Yuan International Cooperation[168]. - The strategic investment from Geely resulted in a total shareholding of 11.10% in the company, making Geely the second-largest shareholder[68]. - The company plans to invest ¥2,176 million (approximately ¥128.6 million) in Koli Me Automotive Power Battery Co., Ltd. to increase its registered capital, with the investment expected to be executed in July 2019[157]. - The company is enhancing its hybrid system sales and market share through partnerships with major automakers like Geely, Changan, and Dongfeng[63]. Operational Challenges - The company faces intensified global competition in the energy-saving and new energy vehicle sector, necessitating increased investment in research and development[131]. - The company plans to strengthen its sales system and expand sales channels to mitigate policy risks in the new energy vehicle industry[131]. - The company is committed to optimizing resource allocation across finance, human resources, production capacity, and R&D to align with strategic goals[122].