Langbo Technologies(SH:603655)2020-04-28 16:00Financial Performance - In 2019, the company achieved a net profit of RMB 22,923,536.35, a decrease of 24.11% compared to 2018[5]. - The total revenue for 2019 was RMB 159,977,931.07, reflecting an 8.22% decline from RMB 174,312,410.84 in 2018[22]. - The net cash flow from operating activities was RMB 27,567,436.97, down 27.85% from RMB 38,206,134.09 in the previous year[22]. - The basic earnings per share for 2019 was RMB 0.22, a decrease of 21.43% from RMB 0.28 in 2018[23]. - The weighted average return on equity decreased to 4.71% in 2019 from 6.4% in 2018, a reduction of 1.69 percentage points[23]. - The total profit for 2019 was 2,653.41 million CNY, down 24.69% year-on-year, with net profit attributable to the parent company at 2,292.35 million CNY, a decrease of 24.11%[41]. - The gross profit margin for the company was 41.47%, which is nearly a 1 percentage point decrease from the previous year[43]. - The company’s domestic revenue was 157,071,052.18 CNY, a decrease of 5.98%, while foreign revenue dropped by 25.32% to 2,203,002.09 CNY[45]. Cash Flow and Assets - The company's total assets increased by 1.50% to RMB 521,900,817.99 at the end of 2019, compared to RMB 514,190,186.62 at the end of 2018[22]. - The company reported a net asset value of RMB 493,131,578.67 at the end of 2019, an increase of 2.56% from RMB 480,808,042.32 at the end of 2018[22]. - Total current assets increased to CNY 342,222,630.01 in 2019 from CNY 337,877,979.00 in 2018, representing a growth of approximately 1.0%[186]. - Cash and cash equivalents decreased slightly to CNY 114,772,300.07 in 2019 from CNY 115,232,907.53 in 2018, a decline of about 0.4%[185]. - Accounts receivable rose to CNY 75,963,151.86 in 2019, up from CNY 60,173,284.06 in 2018, indicating an increase of approximately 26.3%[185]. - Total liabilities decreased to CNY 28,769,239.32 in 2019 from CNY 33,382,144.30 in 2018, a reduction of about 13.7%[187]. Operational Insights - The company specializes in the R&D, production, and sales of rubber components, primarily for automotive and high-speed train applications[29]. - The company experienced a decline in both sales revenue and comprehensive gross margin in 2019 due to the automotive industry's downturn[26]. - The automotive industry is cyclical and has been experiencing a slowdown due to macroeconomic pressures, leading to increased competition[34]. - The company’s main products, including O-rings and shaft seals, experienced a decline in production and sales volumes due to the downturn in the automotive industry[46]. - The company has established long-term stable relationships with major clients such as Huayu Three Electric, Chongqing Construction, and Nanjing Aotajia, which are key players in the domestic automotive air conditioning compressor sector[37]. Research and Development - The company has developed various high-performance rubber sealing products, including low-friction rubber oil seals, and holds 8 invention patents and 20 utility model patents, indicating a strong R&D capability[35]. - The company’s R&D expenses were 8,601,551.04 CNY, a slight decrease of 2.28% compared to the previous year[42]. - The company has a strong human resource advantage with many senior technical personnel having over 15 years of industry experience, which supports continuous technological advancement[38]. Market and Competition - The automotive industry is transitioning from a growth phase to maturity, facing challenges such as slowing growth and overcapacity, with market share increasingly concentrated among leading companies[63]. - The company faces risks from increased market competition, particularly from foreign and joint venture firms that hold significant market shares[71]. - The company’s product structure is heavily concentrated in automotive air conditioning systems, posing risks if market prices decline in this sector[72]. Shareholder and Governance - The company plans to distribute a cash dividend of RMB 0.7 per 10 shares, subject to approval at the annual general meeting[5]. - The company has a cash dividend policy that mandates a minimum distribution of 20% of the distributable profit, with a cash dividend of 0.1 RMB per share for the 2018 fiscal year[76]. - The company emphasizes the protection of shareholder rights and actively engaged with investors through various communication channels[132]. - The company has not proposed any share buyback plans during the reporting period[78]. Compliance and Regulations - The company has not faced any penalties from securities regulatory authorities in the past three years[160]. - The company has committed to ensuring effective implementation of its compensation measures as per the regulations set by the China Securities Regulatory Commission[110]. - The company is committed to taking necessary measures to ensure compliance with future regulations from regulatory bodies[109]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue increase of 25% and aiming for a total revenue of 45 million[81]. - The company plans to enhance its product development capabilities, focusing on new products for automotive power and braking systems, while maintaining a competitive edge in automotive air conditioning systems[66]. - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget of 2 million for the upcoming year[79].