Camel Group(SH:601311)2019-04-11 16:00Financial Performance - The net profit attributable to the parent company for 2018 was CNY 559,464,934.52, with a distributable profit of CNY 3,572,470,224.14 after accounting for cash dividends and statutory surplus reserves[6]. - The company's operating revenue for 2018 was ¥9,223,771,198.21, representing a 21.08% increase compared to ¥7,617,980,446.75 in 2017[31]. - The net profit attributable to shareholders for 2018 was ¥559,464,934.52, a 15.83% increase from ¥483,022,820.52 in 2017[31]. - The net cash flow from operating activities for 2018 was ¥538,658,757.69, a significant recovery from a negative cash flow of -¥75,973,597.54 in 2017[31]. - The company's total assets increased by 12.92% to ¥10,702,249,179.91 at the end of 2018, up from ¥9,477,476,529.02 at the end of 2017[31]. - The basic earnings per share for 2018 was ¥0.66, reflecting a 15.79% increase from ¥0.57 in 2017[32]. - The weighted average return on equity for 2018 was 9.84%, an increase of 0.47 percentage points from 9.37% in 2017[32]. - The company's net profit for 2018 was CNY 57,382,240, an increase of 10.12% year-on-year[88]. - In 2018, the company achieved a revenue of CNY 9,223,771,198.21, representing a year-on-year growth of 21.08%[88]. - The company reported a total revenue of 18,052.24 million, with a decrease of 7.2% compared to the previous year[131]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares (including tax) to all shareholders, with no stock distribution or capital reserve increase planned for this year[6]. - The cash dividend policy requires a minimum distribution of 10% of the annual distributable profit, with a cumulative distribution of at least 30% of the average annual distributable profit over the last three years[162]. - The board of directors must consider the company's financial condition and funding needs when proposing profit distribution plans, which must be approved by the shareholders' meeting[166]. - The independent directors are responsible for ensuring that the profit distribution process complies with regulations and adequately considers the interests of minority shareholders[166]. - The company did not issue stock dividends or capital reserve transfers for the 2018 fiscal year, focusing solely on cash dividends[171]. - The company’s cash dividend proposal for 2017 was approved, distributing 0.57 CNY per 10 shares, totaling 48,358,660.35 CNY, which was 10.01% of the net profit for that year[171]. - The company must communicate with minority shareholders and consider their opinions before finalizing cash dividend proposals[166]. - Any adjustments to the cash dividend policy require a two-thirds majority approval from the shareholders' meeting[167]. Production and Capacity Expansion - The company is expanding its production capacity and investing in three major sectors: lead-acid batteries, recycled lead, and new energy, including plans for equipment upgrades and the construction of a research center in Wuhan[6]. - The company is constructing its first overseas factory in Malaysia, which is expected to start production in 2019 to meet export demands in Southeast Asia and Africa[45]. - The company plans to establish a battery production and recycling facility in Uzbekistan, projected to be the largest in Central Asia, with a capacity of 2 million KVAH[86]. - The company plans to continue expanding its production and recycling bases both domestically and internationally to enhance its scale and collaborative advantages[73]. - The company has established a recycling capacity of 550,000 tons per year for used lead-acid batteries, with plans to exceed 1 million tons per year in the future[48]. - The company has formed a circular industrial chain layout in the battery and electric control sectors, focusing on cost reduction and efficiency improvement[49]. Market Position and Sales - The market share for the company's lead-acid batteries in the domestic original equipment market and maintenance replacement market remained around 39% and 25%, respectively[44]. - The online order volume for lead-acid batteries increased by 255% compared to 2017, indicating strong growth in e-commerce sales[44]. - The sales volume in the maintenance and replacement market grew by approximately 13% year-on-year, supported by a nationwide sales network covering nearly 300 cities[72]. - The production of lead-acid batteries was 23,094,845 units, with a sales volume of 23,528,403 units, reflecting a sales increase of 3.83% year-over-year[2]. - The company has over 100 million users served through its extensive sales network across China and overseas[48]. - The company’s sales network now covers all 31 provinces in China, enhancing its market penetration and service quality[85]. Research and Development - The company's R&D expenditure increased by 9.66% compared to the previous year, focusing on advanced battery technologies including lithium and fuel cells[68]. - The company has obtained 64 authorized patents in the field of new energy, with 29 additional applications pending, showcasing its technological capabilities[75]. - The company has established a three-in-one R&D center in the U.S., Wuhan, and Xiangyang, ensuring it stays at the forefront of battery technology trends[68]. - The company is focusing on the development of 48V and 12V start-stop batteries, as well as PHEV series products to meet market demands[141]. - The company has established a fuel cell development department and is working on core components, having obtained 3 core patents with additional applications in progress[141]. Environmental and Regulatory Compliance - The company is actively responding to environmental policies by investing in product recycling and implementing green practices throughout its operations[153]. - The company aims to achieve a 40% collection rate for waste lead-acid batteries by 2020 and 70% by 2025, as part of the national pollution prevention action plan[140]. - The company is developing a circular economy model for lead-acid batteries, integrating production, sales, recycling, and resource regeneration[140]. - The overall industry gross margin for new energy power batteries is declining due to the reduction of government subsidies, leading to increased pressure on accounts receivable[119]. - The company is monitoring changes in government subsidy policies for new energy vehicles, which significantly impact its new energy business[156]. Strategic Partnerships and Acquisitions - In 2018, the company acquired Hubei Jinyang Metallurgy Co., Ltd. and Jiangxi Jinyang Metallurgy Co., Ltd. to enhance its recycling capabilities[48]. - The company has formed strategic partnerships with over 200 major OEMs, capturing nearly 40% of the market share in the original equipment market[70]. - The company has formed a joint venture with Rimac Automobili to develop high-speed electric motors, with the first production line expected to be completed in 2019[50]. - The company plans to acquire 100% equity of its subsidiary, Camel Automotive Parts E-commerce Co., Ltd., from Hubei Tuofeng Investment Co., Ltd. for a transaction amount of RMB 34.05 million[187]. - The actual transaction amount for purchasing lead-acid battery separators from Dai Rui Mi Ke Xiangyang Battery Separator Co., Ltd. was RMB 181.64 million (including tax), which was lower than the expected amount due to product upgrades[186]. Challenges and Market Trends - The company is facing intensified competition in the lead-acid battery industry due to the presence of numerous small and unregulated manufacturers[151]. - The domestic automotive market is expected to maintain low growth, with the total number of vehicles reaching 240 million in 2018, indicating a significant opportunity in the lead-acid battery replacement market[132]. - The production of new energy vehicles in China grew by 59.9%, indicating a positive market trend for the company's lithium battery products[13]. - Lead prices account for approximately 70% of the production costs of lead-acid batteries, and the company has established a lead price linkage mechanism to mitigate price fluctuations[148]. - The company is actively expanding its overseas operations in Southeast Asia and Central Asia, which may become major production bases[157].