TC(SH:603085)2019-04-25 16:00Financial Performance - The company's operating revenue for 2018 was ¥957,967,600.19, representing a 22.33% increase compared to ¥783,092,965.28 in 2017[21] - The net profit attributable to shareholders decreased by 47.88% to ¥36,545,959.96 from ¥70,121,183.16 in the previous year[21] - The net profit after deducting non-recurring gains and losses fell by 69.19% to ¥19,938,483.86 compared to ¥64,704,700.32 in 2017[21] - The company's total assets increased by 52.28% to ¥2,324,084,801.10 from ¥1,526,164,173.30 in 2017[21] - The basic earnings per share decreased by 45.83% to ¥0.13 from ¥0.24 in 2017[22] - The weighted average return on net assets dropped to 3.71%, a decrease of 3.65 percentage points from 7.36% in the previous year[22] - The cash flow from operating activities was negative at -¥62,546,467.36, an improvement of 46.96% compared to -¥117,933,015.92 in 2017[21] - The company's total revenue for Q4 2018 was 338,296,287.72 RMB, with a total annual revenue of 1,058,967,600.06 RMB[25] - The net profit attributable to shareholders for Q4 2018 was -4,128,646.62 RMB, resulting in an annual net profit of 36,545,959.44 RMB[25] Revenue Breakdown - The main business revenue accounted for 97.08% of total revenue, with the combined revenue from passenger car seats, aviation seats, engineering machinery, and commercial vehicle seats making up 88.27% of the main business revenue[38] - The company's main business revenue increased from CNY 779,046,951.71 in 2017 to CNY 930,020,168.59 in 2018, representing a growth of 19.38%[48] - The revenue from aircraft seats reached CNY 162,742,812.15 in 2018, with a significant increase as there was no revenue from this segment in 2017[48] - The aviation seating business generated sales revenue of 193 million RMB in the second half of 2018, with a total order reserve exceeding 90 million GBP (approximately 780 million RMB) by the end of 2018[51] - The engineering machinery seating segment achieved sales of 269 million RMB, reflecting a year-on-year growth of 14.38%, driven by a 44.64% increase in sales to Sany Heavy Industry[52] - The commercial vehicle seating revenue reached 275 million RMB, marking a growth of 17.02%, with sales to Beiqi Foton Daimler increasing by 1032.21%[53] Investments and Acquisitions - In 2018, the company acquired Acro Aircraft Seating Limited, entering the aircraft seat market, and has since achieved rapid growth in business scale and sales revenue[39] - The company completed the acquisition of 100% equity of Acro Holdings Limited in July 2018, with the transaction being approved at the first extraordinary general meeting of shareholders[173] - The company established a wholly-owned subsidiary in Ningde, Fujian, with a registered capital of RMB 30 million on August 28, 2018[91] - The company plans to invest RMB 2.2 billion in an automotive seat project in Shiyan Industrial New District[93] - The company plans to invest RMB 1 billion in a manufacturing base for automotive parts in Ningde[93] Research and Development - The company has established a complete R&D, procurement, production, and sales system, focusing on customer needs for new product development[30] - The company has five R&D centers in Shanghai, Zhejiang, and London, focusing on automotive, aviation, and engineering machinery sectors, and has obtained numerous patent authorizations[43] - Research and development expenditures totaled 54,651,569.97 CNY, representing 5.70% of total operating revenue, with 272 R&D personnel accounting for 12.98% of the total workforce[80] - The company completed 33 new product launches in the engineering machinery and commercial vehicle seating sectors, achieving a completion rate of 106%[58] - The company plans to develop 45 new products in the engineering machinery and commercial vehicle sectors in 2019, including 16 for engineering machinery and 24 for commercial vehicles[125] Market Position and Strategy - The company’s passenger car seat market is the largest globally, benefiting from China's position as the world's largest automobile producer for ten consecutive years[38] - The company aims to become a leading supplier in the domestic passenger car seat and child safety seat markets by the end of 2026, targeting top three positions[115] - The company plans to increase its market share in passenger car seats, aiming for a production and sales breakthrough of 500,000 units by 2020[118] - The company aims to enhance its global aviation seat business and increase the proportion of Chinese procurement to improve overall strength and profitability[117] - The company targets sales of over 40,000 units in the child safety seat business, with a goal of selling over 10,000 units through flagship stores on Tmall and JD.com[122] Financial Management and Shareholder Policies - The company has established a cash dividend policy, with a clear distribution standard and process, aiming to enhance shareholder returns and promote long-term investment[141] - In 2018, the company distributed cash dividends totaling ¥11,639,445.28, which accounted for 31.85% of the net profit attributable to ordinary shareholders[144] - The company has a structured approach to communication with minority shareholders, ensuring their rights and interests are protected through various engagement channels[142] - The company reported a commitment to not transfer or delegate management of shares held prior to the IPO for 36 months from the listing date[149] - The company will announce any share reduction plans three trading days in advance and will conduct reductions through block trades or other legal methods[153] Risks and Challenges - The company anticipates risks from cyclical fluctuations in the engineering machinery and commercial vehicle markets and plans to balance domestic and international markets to mitigate these risks[135] - Major raw materials such as steel, fabric, and sponge accounted for a significant portion of production costs, with the company having limited bargaining power, making it vulnerable to price fluctuations[136] - The company has recognized potential bad debt from clients facing operational difficulties, such as the case with Zhidou Electric Vehicle Co., Ltd., and is taking measures to monitor and collect receivables[137] Compliance and Legal Matters - The company has implemented changes in accounting policies in accordance with new financial reporting standards effective January 1, 2018[166] - There are no significant litigation or arbitration matters reported for the year[169] - The company is involved in a lawsuit with Zhido Electric Vehicle Co., Ltd., with a claim amount of ¥29,859,536.5, which has not formed an expected liability[170] - The court ruled that Zhido Electric Vehicle Co., Ltd. must pay the company ¥29,490,223.25 in principal and ¥321,914.92 in penalty within ten days after the judgment becomes effective[170] Share Structure and Ownership - The company’s stock was listed on the Shanghai Stock Exchange on June 30, 2015, following approval from the China Securities Regulatory Commission[187] - The total number of shares held by the company’s major shareholders decreased by 44,850,000 shares after the lock-up period expired on October 15, 2018[188] - The company’s major shareholders included Zhejiang Tiancheng Technology Co., Ltd. with 140,400,000 restricted shares[191] - The company has no strategic investors or general legal entities becoming top ten shareholders during the reporting period[199] - The controlling shareholder is Zhejiang Tiancheng Investment Co., Ltd., which was established on December 22, 2009[199]