Luxin Co.,(SH:600783)2019-04-29 16:00Financial Performance - The net profit attributable to the parent company for 2018 was CNY 186.92 million, with a total distributable profit of CNY 1.644 billion after accounting for the beginning retained earnings and legal surplus reserve [5]. - The proposed cash dividend distribution is CNY 0.10 per share, totaling CNY 74.44 million, based on a total share capital of 744,359,294 shares [5]. - The company reported a retained earnings of CNY 384.29 million for the parent company as of the end of 2018 [5]. - The company's operating income for 2018 was CNY 206.88 million, a decrease of 4.12% compared to CNY 215.76 million in 2017 [25]. - Investment income decreased by 16.63% to CNY 467.16 million in 2018 from CNY 560.34 million in 2017 [25]. - Net profit attributable to shareholders increased by 333.18% to CNY 186.92 million in 2018, compared to CNY 43.15 million in 2017 [30]. - The basic earnings per share for 2018 was CNY 0.25, up 316.67% from CNY 0.06 in 2017 [28]. - The weighted average return on equity increased by 4.06 percentage points to 5.25% in 2018 from 1.19% in 2017 [28]. - The net cash flow from operating activities was negative CNY 131.60 million in 2018, an improvement from negative CNY 185.17 million in 2017 [25]. - Total assets at the end of 2018 were CNY 573.52 million, an increase of 2.25% from CNY 560.90 million at the end of 2017 [25]. - The company's net assets attributable to shareholders increased by 3.40% to CNY 362.33 million at the end of 2018 from CNY 350.41 million at the end of 2017 [25]. - The company reported a total of CNY 4.42 million in non-recurring gains and losses for 2018, compared to CNY 20.39 million in 2017 [32]. - The total profit reached 305.12 million RMB, an increase of 144.91% compared to the previous year [54]. - The company’s fund management income for 2018 was 3.4317 million CNY, a decrease of 81.04% compared to 2017 due to the liquidation of the Shandong Province Technology Venture Capital Fund [50]. Risk Management - The company has not identified any significant risks that would adversely affect its future development strategy or ongoing operations during the reporting period [6]. - The company will actively respond to operational risks faced in its development, as detailed in the section discussing future risks [6]. - The company is actively enhancing its risk management and compliance mechanisms to safeguard assets and maintain creditworthiness [53]. - The company faces management risks related to investment decisions and project management, which could adversely affect future earnings [96]. - The company acknowledges liquidity risks if funds are tied up in projects, hindering cash flow and investment capabilities [96]. - The company is building a comprehensive risk prevention system to enhance real-time monitoring and early warning capabilities [92]. Business Strategy and Outlook - The company plans to carry forward the remaining distributable profits to the next fiscal year after the dividend distribution [5]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 1.32 billion RMB [16]. - New product launches are expected to contribute an additional 200 million RMB in revenue over the next year [16]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025 [16]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5% in the upcoming fiscal year [16]. - Overall, the company remains committed to sustainable growth and innovation in its core business areas [16]. - The company aims to become a leading professional alternative asset management platform, focusing on venture capital and private equity investment [88]. - The company plans to advance its fund transformation strategy to achieve high-quality development in 2019 [89]. Research and Development - Research and development expenses increased by 30%, totaling 150 million RMB, focusing on innovative technologies [16]. - R&D expenses increased by 1,014.24 million yuan, a growth of 254.04%, mainly due to new R&D projects [65]. - R&D investment accounted for 6.83% of operating revenue [66]. - The number of R&D personnel was 25, representing 4.21% of the total workforce [69]. - The company is increasing R&D efforts for new products and expanding market reach to strengthen the core competitiveness of its industrial sector [92]. - The company’s subsidiary won the highest technical achievement award in the abrasive tools industry for its high-quality abrasive products manufacturing technology [50]. Investment Activities - The company completed a strategic acquisition of a tech startup for 300 million RMB to enhance its product offerings [16]. - The company has established 41 funds and investment platforms with a total subscribed scale of 15.2 billion RMB and an available capital scale of 9.9 billion RMB by the end of 2018 [45]. - In 2018, the company completed 25 investment projects with a total investment amount of 560 million RMB, focusing on biotechnology, information technology, new energy materials, and high-end equipment industries [45]. - The company launched a 1 billion RMB fund aimed at major projects in Shandong Province's new and old kinetic energy conversion [45]. - The company is focusing on expanding its investment in five domestic regions and three overseas markets, including North America and Europe [45]. - The company has successfully issued 500 million RMB in corporate bonds with a maturity of 10 years, providing strong support for future investments [45]. - The company is actively participating in the overseas market investment and establishing overseas funds [43]. - The company completed investments in TCR2 Therapeutics Inc. and conducted due diligence negotiations with XJet Limited, enhancing its international asset allocation strategy [47]. Corporate Governance - The company has engaged Ruihua Certified Public Accountants for auditing services, with a fee of 130,000 RMB for the current year [108]. - The company has a structured compensation decision-making process involving the shareholders' meeting and the board of directors [188]. - The company’s financial management department is currently led by Liu Mei, who has held the position since March 2016 [184]. - The company’s legal affairs are overseen by Ma Guanghui, who has been the legal director since December 2017 [184]. - The company has established a performance evaluation system for its senior management based on annual operational goals [188]. - The company has complied with governance standards set by regulatory bodies, ensuring accurate and timely information disclosure [197]. Environmental Responsibility - The company emphasizes its commitment to corporate social responsibility, integrating it into its development strategy and operations [146]. - The company has not faced any penalties for environmental violations during the reporting period, adhering to various environmental protection laws [149]. - The company operates 25 dust removal devices in its abrasive tools business, ensuring emissions are processed through two levels of treatment before being released [149]. - The company has achieved a 99% dust removal efficiency in its grinding wheel factory, maintaining all pollution control equipment in normal operating condition [149]. - The company has established an emergency response system for environmental incidents, with a plan filed with the local environmental protection department [149]. - The company’s subsidiary, Shuanglun Co., has implemented effective pollution control measures, including an 85% efficiency oil fume purification device [150]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 52,334, down from 60,933 in the previous month [159]. - Shandong Lixin Investment Holding Group Co., Ltd. holds 69.57% of the shares, totaling 517,861,877 shares, with an increase of 7,716,522 shares during the reporting period [159]. - The company does not have any other shareholders holding more than 10% of shares [169]. - The top ten unrestricted shareholders collectively hold 69.57% of the company’s shares [162]. Employee Information - The total number of employees in the parent company is 594, with 84 employees in major subsidiaries, totaling 594 employees [192]. - The professional composition includes 332 production personnel, 53 sales personnel, 59 technical personnel, 17 financial personnel, 92 administrative personnel, and 41 investment personnel [192]. - The educational background of employees shows 5 with a doctorate, 66 with a master's degree, 61 with a bachelor's degree, 120 with an associate degree, and 342 below associate degree [192]. - Employee training programs are designed to enhance skills and knowledge, with a focus on industry information and expert-led sessions [194].