LONCIN(SH:603766)2019-06-04 16:00Financial Performance - The company reported a non-distribution of profits for 2018, opting not to issue cash dividends or bonus shares[7]. - The company’s operating revenue for 2018 was CNY 11,203,793,392.01, representing a year-on-year increase of 5.98% compared to CNY 10,572,102,650.03 in 2017[29]. - The net profit attributable to shareholders for 2018 was CNY 919,284,265.12, a decrease of 4.69% from CNY 964,550,908.31 in 2017[29]. - The basic earnings per share for 2018 was CNY 0.44, down 4.35% from CNY 0.46 in 2017[30]. - The weighted average return on equity decreased by 1.71 percentage points to 14.18% in 2018 from 15.89% in 2017[30]. - The total assets at the end of 2018 were CNY 11,982,623,219.48, reflecting a year-on-year increase of 5.29% from CNY 11,380,100,043.17 in 2017[29]. - The net assets attributable to shareholders decreased by 3.43% to CNY 6,398,010,158.59 at the end of 2018 from CNY 6,625,258,067.28 at the end of 2017[29]. - The company reported a net profit of CNY 309,480,787.23 in Q4 2018, which was the highest quarterly profit for the year[32]. - The company received government subsidies amounting to CNY 116,041,812.53 in 2018, which were closely related to its normal business operations[34]. - The company’s cash flow from operating activities was 1.39 billion RMB, an increase of 18.62% year-on-year[85]. - The company reported a net profit attributable to the parent company of 919 million RMB, a decrease of 4.69% compared to the previous year[81]. Dividend Distribution - The company implemented a cash dividend distribution totaling RMB 443,747,787.76 for the year 2018, representing 48.27% of the net profit attributable to shareholders[7]. Audit and Compliance - The company received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[6]. - The company has a commitment to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. Revenue Breakdown - Engine business accounted for 23.19% of total revenue, a decrease of 0.34 percentage points year-on-year[41]. - Motorcycle business contributed 36.12% to total revenue, down 3.24 percentage points year-on-year[41]. - Generator set business represented 23.28% of total revenue, an increase of 5.08 percentage points year-on-year[41]. - Four-wheeled low-speed electric vehicle business made up 9.18% of total revenue, decreasing by 3.10 percentage points year-on-year[41]. - Export revenue constituted 56.40% of total revenue during the reporting period[41]. Market Position and Sales - The company ranked second in engine sales volume within the industry in 2018[45]. - The company achieved the first position in motorcycle export revenue in 2018, while maintaining the second position in total motorcycle production and sales volume[158]. - The company’s small household generator export revenue remains the highest in the industry, although U.S.-China trade tensions may impact exports[161]. Research and Development - The company’s R&D expenses increased by 14.26% to 243 million RMB, reflecting a focus on innovation and product development[82]. - The company is currently developing a high-speed, lightweight water-cooled engine for entry-level street motorcycles[101]. - The company is focusing on the development of industrial-grade drones, with new products achieving long-duration hovering and autonomous flight capabilities[61]. - The company has developed a new generation of variable frequency generator technology, achieving industry-leading performance and reliability[58]. Investment and Capital Expenditures - The company plans to invest ¥100,475.50 million in capital expenditures for 2018, with actual spending of ¥71,475.95 million[128]. - The company’s investment activities generated a cash outflow of 138.6 million RMB, a significant improvement from a cash outflow of 871.7 million RMB in the previous year, indicating better investment management[85]. Challenges and Risks - The company faces risks from macroeconomic changes, including potential declines in exports to the U.S. due to trade tensions and domestic GDP growth adjustments[194]. - The company has over 50% of its business in exports, making it vulnerable to RMB/USD exchange rate fluctuations, which it is mitigating through various financial strategies[195]. - The company emphasized the importance of objective conditions for the realization of future plans and strategies, warning investors of potential risks[8]. Subsidiaries and Business Structure - The company has a total of 24 subsidiaries, indicating a diversified business structure and potential for market expansion[132]. - The company established a wholly-owned subsidiary, Nanjing Longxin, with an investment of ¥30 million, completed registration on July 26, 2018[123]. Product Development and Innovation - The company is actively participating in electric and lightweight automotive component projects to optimize product structure in response to industry trends[192]. - The company is enhancing the reliability and efficiency of its XV-2 drone product while promoting the XV-3 and XV-5 models to establish a strong market presence[188].