TC(SH:603085)2020-06-28 16:00Financial Performance - In 2019, the company's operating revenue was CNY 1,456,138,935.80, representing a 52% increase compared to CNY 957,967,600.19 in 2018[20] - The net profit attributable to shareholders was a loss of CNY 535,138,770.67, a significant decline of 1,564.29% from a profit of CNY 36,545,959.96 in 2018[20] - The total assets decreased by 10.84% to CNY 2,072,079,447.03 at the end of 2019, down from CNY 2,324,084,801.10 in 2018[20] - The company's net assets attributable to shareholders fell by 52.13% to CNY 476,642,118.61 at the end of 2019, compared to CNY 995,659,484.67 at the end of 2018[20] - The basic earnings per share for 2019 was -CNY 1.84, a decrease of 1,515.38% from CNY 0.13 in 2018[21] - The weighted average return on equity dropped to -72.71% in 2019, a decrease of 76.42 percentage points from 3.71% in 2018[21] - The company did not distribute profits or increase capital reserves in 2019 due to a net loss and negative retained earnings[5] Cash Flow and Investments - The cash flow from operating activities showed a net inflow of CNY 16,082,755.92, recovering from a net outflow of CNY 62,546,467.36 in 2018[20] - The company reported a significant increase in cash paid for labor, which rose by 51.39% to 366,700,822.97 CNY, reflecting higher wage payments[74] - The company’s cash outflow for fixed asset investments decreased by 34.62% to 128,634,660.38 CNY, indicating reduced capital expenditures[74] - Cash flow from financing activities included an increase in bank loans, with cash received from borrowings rising by 24.37% to 1,034,795,171.22 CNY[74] Revenue Breakdown - The aviation business generated sales revenue of 396 million RMB, an increase of 143.28%, while aviation seat accessories revenue reached 57 million RMB, growing by 91.21%[47] - The passenger vehicle business saw sales revenue grow from 115 million RMB in 2018 to 353 million RMB in 2019, with the Zhengzhou factory contributing 270 million RMB and the Nanjing factory contributing approximately 86 million RMB[46] - The engineering and commercial vehicle business maintained slight growth, with total revenue increasing from 623 million RMB to 631 million RMB[48] - The company’s main business revenue accounted for 99.27% of total revenue, with passenger car seats, aircraft seats, engineering machinery, and commercial vehicle seats collectively contributing 91.25% to main business revenue[34] Research and Development - The company’s R&D expenditure increased by 31.20% to 8,156,827, driven by the growth in aircraft seat development[39] - The total R&D investment amounted to 85,064,222.26 CNY, representing 5.84% of total revenue, with 22.11% of R&D costs capitalized[72] - The company has established five R&D centers in Shanghai, Zhejiang, and London, focusing on automotive, aviation, and engineering machinery sectors, and holds numerous patent authorizations[40] Market Position and Strategy - The company is focused on expanding its product offerings and enhancing its R&D capabilities to meet customer demands and industry standards[30] - The company has established a close partnership with SAIC Motor, enhancing its market influence and industry position in the passenger car seat sector[102] - The company aims to become a leading supplier in the passenger car seat and child safety seat sectors domestically, and a global leader in aviation and commercial vehicle seats by the end of 2026[104] Risks and Challenges - The company faced significant risks regarding future development, as noted in the risk statement section of the report[7] - The company is facing risks related to price negotiations with major clients in the seating industry, which may affect product pricing[126] - The company anticipates a 55% decline in passenger revenue in 2020 due to the impact of COVID-19 on the global aviation industry, with significant revenue losses projected[124] Corporate Governance and Compliance - The board of directors has approved a stock incentive plan to align management interests with shareholder value creation[179] - The company has a well-defined mechanism for evaluating and incentivizing senior management, which is continuously improved[199] - The company’s governance structure complies with the requirements set by the China Securities Regulatory Commission[192] Shareholder Information - The company reported a net profit attributable to ordinary shareholders of -535.14 million RMB for 2019, with no cash dividends proposed[131] - The company has established a three-year shareholder return plan for 2020-2022, which was approved at the 2019 extraordinary general meeting[129] - The largest shareholder, Zhejiang Tiancheng Ke Investment Co., Ltd., holds 141,945,700 shares, accounting for 48.78% of total shares[168] Future Outlook - The company plans to achieve over 30% revenue growth in the engineering machinery and commercial vehicle business in 2020[107] - The company is actively pursuing mergers and acquisitions to strengthen its competitive position in the industry[179] - The management team highlighted the successful launch of new products, including high-strength lifting shock-absorbing seats and intelligent memory electric seats, contributing to increased market share[181]