LONCIN(SH:603766)2019-04-02 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥11.20 billion, an increase of 5.98% compared to ¥10.57 billion in 2017[26]. - The net profit attributable to shareholders for 2018 was approximately ¥919.28 million, a decrease of 4.69% from ¥964.55 million in 2017[26]. - The net cash flow from operating activities increased by 18.62% to approximately ¥1.39 billion in 2018, compared to ¥1.17 billion in 2017[26]. - The basic earnings per share for 2018 was ¥0.44, down 4.35% from ¥0.46 in 2017[27]. - The weighted average return on equity decreased by 1.71 percentage points to 14.18% in 2018 from 15.89% in 2017[27]. - The total assets at the end of 2018 were approximately ¥11.98 billion, an increase of 5.29% from ¥11.38 billion at the end of 2017[26]. - The net assets attributable to shareholders decreased by 3.43% to approximately ¥6.40 billion at the end of 2018, compared to ¥6.63 billion at the end of 2017[26]. - The company reported a net profit of approximately ¥309.48 million in Q4 2018, which was the highest quarterly profit for the year[29]. - The company received government subsidies amounting to approximately ¥116.04 million in 2018, which were closely related to its normal business operations[31]. - The fair value changes of investment properties positively impacted the profit by approximately ¥106.73 million in 2018[34]. Revenue Breakdown - The engine business accounted for 23.19% of total revenue, a decrease of 0.34 percentage points year-on-year[38]. - The motorcycle business represented 36.12% of total revenue, down 3.24 percentage points year-on-year[38]. - The generator set business contributed 23.28% to total revenue, an increase of 5.08 percentage points year-on-year[38]. - The four-wheeled low-speed electric vehicle business made up 9.18% of total revenue, decreasing by 3.10 percentage points year-on-year[38]. - The automotive parts business accounted for 7.26% of total revenue, an increase of 1.64 percentage points year-on-year[38]. - Export revenue constituted 56.40% of total revenue during the reporting period[38]. Market Position and Sales - The company ranked second in the industry for engine sales volume in 2018[42]. - The motorcycle business saw a total sales volume of 1,557.05 million units, a year-on-year decline of 9.13%[42]. - The generator set exports reached 742,000 units, a year-on-year increase of 13.7%[43]. - The large commercial generator set market's total export revenue was $2.365 billion, a year-on-year increase of 30.49%[43]. - The company ranked 2nd in the national sales of four-wheeled low-speed electric vehicles in 2018[46]. - The company achieved the industry's leading position in small household generator exports in 2018, while ranking 4th among domestic generator manufacturers[46]. Research and Development - The company has developed a new generation of variable frequency generator technology, achieving industry-leading performance and reliability[55]. - The CMD22 aviation engine product has completed EASA certification, marking a significant milestone in the company's aviation engine development[59]. - The company has established a leading general power testing center with over 100 testing capabilities, recognized by the China National Accreditation Service for Conformity Assessment (CNAS)[51]. - The company has successfully launched a high-end large-displacement motorcycle brand "Wuji," showcasing its competitive advantage in design and manufacturing[54]. - The company has implemented range-extending hybrid technology in low-speed electric vehicles, enhancing product range and reducing charging frequency[57]. - The company has developed the XV-3 and XV-5 industrial drones, which demonstrate advanced capabilities in autonomous flight and agricultural applications[58]. Strategic Plans and Investments - The company plans to focus on the aviation equipment manufacturing industry, particularly through acquisitions and resource integration, as part of its strategic plan for 2018-2022[120]. - The company invested ¥71,475.95 million in capital expenditures in 2018, with significant spending on engine and motorcycle projects[126]. - The company established a wholly-owned subsidiary, Nanjing Longxin, with an investment of ¥30 million to enhance its operational capabilities[121]. - The company completed the acquisition of a 66% stake in Jinye Machinery through a capital increase and share transfer, with a total investment of ¥6,500 million for the capital increase and ¥36,400 million for the share transfer[125]. Risks and Challenges - The company faces risks from macroeconomic changes, with GDP growth adjusted to 6%-6.5%, potentially impacting product sales and market expansion[193]. - Over 50% of the company's export business is sensitive to RMB/USD exchange rate fluctuations, prompting measures to mitigate risks associated with currency volatility[194]. - Rising prices of raw materials pose a cost risk to the company, potentially affecting profitability[197]. - The company is advancing in aviation equipment manufacturing but faces risks related to the expected expansion of drone applications and the certification of general aviation engines[198]. Corporate Governance and Compliance - The company received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[6]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has detailed potential risks in its report, which investors should review carefully[9]. - The company’s registered address is located at No. 99 Hualong Avenue, Jiulongpo District, Chongqing[20]. - The company’s stock is listed on the Shanghai Stock Exchange under the code 603766[22]. - The company’s financial report is available at the board office for review[21]. - The company’s future plans and strategies are subject to objective conditions and do not constitute a commitment to investors[8]. - The company’s legal representative is Gao Yong[18].