Lettall Electronic(SH:603629)2019-04-15 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥1.59 billion, a decrease of 4.51% compared to ¥1.67 billion in 2017[22]. - Net profit attributable to shareholders was approximately ¥92.45 million, reflecting a 5.02% increase from ¥88.02 million in the previous year[22]. - The net cash flow from operating activities was negative at approximately -¥68.95 million, a significant decline of 140.10% compared to ¥171.92 million in 2017[22]. - The total assets at the end of 2018 reached approximately ¥1.93 billion, an increase of 30.53% from ¥1.48 billion in 2017[22]. - The net assets attributable to shareholders increased by 117.37% to approximately ¥946.83 million from ¥435.59 million in 2017[22]. - Basic earnings per share for 2018 was ¥1.23, up 5.13% from ¥1.17 in 2017[25]. - The weighted average return on net assets decreased by 3.29 percentage points to 19.19% in 2018 from 22.48% in 2017[25]. - The company reported a total of ¥3.92 million in government subsidies for 2018, compared to ¥3.52 million in 2017[30]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥89.17 million, an increase of 4.61% from ¥85.24 million in 2017[22]. - The company's gross profit margin for 2018 was 21.58%, an increase of 0.87 percentage points compared to the previous year, driven by higher margins in base and component products[55]. Dividend Policy - The company plans to distribute a cash dividend of RMB 2.80 per 10 shares, totaling RMB 28 million (including tax) to all shareholders[6]. - The company maintains a cash dividend policy, aiming for a minimum of 30% of average distributable profits over three years to be distributed as cash dividends[118]. - The cash dividend distribution is contingent upon conditions such as earnings per share being no less than 0.1 yuan and the absence of major investment plans exceeding 30% of total assets[119]. - The company plans to distribute at least 10% of the distributable profits in cash annually for the three years following its IPO, with a cumulative cash distribution of no less than 30% of the average distributable profits over any three consecutive fiscal years[126]. - In 2018, the company distributed a cash dividend of 2.80 RMB per 10 shares, totaling 28 million RMB, which accounted for 30.29% of the net profit attributable to ordinary shareholders[128]. Operational Risks and Governance - The company reported no significant risks that could materially affect its operations during the reporting period[9]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures for providing guarantees[9]. - The company has established a strict management system for related party transactions to ensure fairness and transparency, protecting shareholder interests[180]. - The company committed to minimizing related party transactions and ensuring they are conducted at market prices[180]. - The actual controllers of the company hold 67.64% of the total shares, which may pose risks related to decision-making and corporate governance[108]. Market Position and Strategy - The company primarily engages in the design, production, and sales of precision metal structural components and electronic components for LCD televisions, with major clients including Hisense, TCL, Konka, and Foxconn[33]. - The company has established a stable position in the supply chain of major domestic television brands, maintaining strong relationships with clients[44]. - The company is recognized as a leading manufacturer of curved precision metal stamping components, having developed and mass-produced such products ahead of competitors[46]. - The company aims to significantly increase its metal structure component production capacity within three years, enhancing market share[103]. - The company plans to focus on innovation-driven strategies, particularly in the design of new products to meet market demands, including 8K and flexible screen televisions[104]. Production and Capacity - The company has a production capacity of nearly 20 million sets of precision metal stamping backplates and rear shells annually, supported by 15 production lines and various stamping machines[43]. - The company invested 51.03 million RMB in new production equipment in 2018, over 90% of which was for specialized production equipment, to alleviate capacity constraints[56]. - The company’s production capacity utilization rate approached 100%, indicating a saturation of production capacity that limited further expansion[53]. Research and Development - The company has a comprehensive R&D system, enabling rapid response to new product development requests from clients[46]. - Research and development expenses amounted to 61.99 million RMB, representing 3.89% of operating revenue, with seven new R&D projects initiated during the year[55]. Cash Flow and Financing - Net cash flow from operating activities fell significantly by 140.10% to -¥68,949,666.87 from ¥171,924,476.56 in the previous year[63]. - Net cash flow from investing activities improved by 40.31% to -¥45,833,424.20, reflecting a reduction in investment activities[63]. - Net cash flow from financing activities surged by 1,725.47% to ¥433,227,894.06, attributed to increased funds from the initial public offering[63]. Shareholder Commitments and Regulations - The company’s actual controllers have committed to not transferring or entrusting their shares for 36 months post-IPO, with additional conditions for share transfer during the lock-up period[135]. - Major shareholders are restricted to transferring no more than 25% of their shares annually after the lock-up period[137]. - The company will implement stock repurchase measures to stabilize the stock price if certain conditions are met[141]. - The total amount used for stock repurchase should not exceed the total funds raised from the initial public offering[141]. - The company must announce the stock repurchase plan within 10 trading days after the triggering conditions are met[145]. Compliance and Legal Matters - The company has implemented measures to avoid illegal occupation of its funds and assets by related parties[180]. - The company has not faced any risks of suspension from listing during the reporting period[192]. - No significant litigation or arbitration matters reported for the year[193]. - The integrity status of the company and its major stakeholders is good during the reporting period[193].