LONCIN(SH:603766)2020-07-14 16:00Financial Performance - The company achieved operating revenue of 11.204 billion yuan, a year-on-year increase of 5.98%, with export revenue of 6.319 billion yuan, up 19.23%, accounting for 56.40% of total revenue, an increase of 6 percentage points year-on-year[67]. - The net profit attributable to the parent company was 919 million yuan, a year-on-year decrease of 4.69%, while the net profit after deducting non-recurring gains and losses was 740 million yuan, down 8.47% year-on-year[67]. - The company's operating revenue for 2018 was approximately ¥11.20 billion, representing a year-over-year increase of 5.98% compared to ¥10.57 billion in 2017[31]. - The net profit attributable to shareholders for 2018 was approximately ¥919.28 million, a decrease of 4.69% from ¥964.55 million in 2017[31]. - 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[31]. - The basic earnings per share for 2018 was ¥0.44, down 4.35% from ¥0.46 in 2017[32]. - The weighted average return on equity decreased to 14.18% in 2018, down 1.71 percentage points from 15.89% in 2017[32]. - 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[31]. - 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[31]. - The company reported a net profit of approximately ¥309.48 million in Q4 2018, with a significant increase in cash flow from operating activities to approximately ¥809.77 million[34]. Dividends and Profit Distribution - The company distributed a total cash dividend of RMB 443,747,787.76 for the year 2018, accounting for 48.27% of the net profit attributable to shareholders[7]. - The company plans not to distribute profits for the year 2018, which means no cash dividends or bonus shares will be issued[7]. Revenue Breakdown - Engine business accounted for 23.19% of total revenue, a decrease of 0.34 percentage points year-on-year[43]. - Motorcycle business contributed 36.12% to total revenue, down 3.24 percentage points year-on-year[43]. - Generator set business represented 23.28% of total revenue, an increase of 5.08 percentage points year-on-year[43]. - Four-wheeled low-speed electric vehicle business made up 9.18% of total revenue, decreasing by 3.10 percentage points year-on-year[43]. - Export revenue constituted 56.40% of total revenue during the reporting period[43]. Market Position and Industry Insights - The company ranked second in engine sales volume within the industry in 2018[47]. - The company achieved the industry's leading position in small household generator exports, maintaining the top spot, while large commercial generator exports ranked 8th overall[51]. - The global market for large commercial generator sets is approximately $22 billion, with domestic demand concentrated in various sectors[48]. - The company is focused on expanding its market presence in the electric vehicle sector, as indicated by the establishment of 山东骐风新能源汽车有限公司[148]. - The motorcycle export revenue remains the industry leader, while total production and sales volume ranks second in the industry[162]. Research and Development - The company’s R&D expenses increased by 14.26% to 243 million RMB, reflecting a focus on innovation[84]. - The company received 423 domestic patents and 1 foreign patent during the reporting period, with a total of 1,746 valid domestic patents as of December 31, 2018[65]. - The company has developed a new generation of variable frequency generator technology, achieving industry-leading performance and reliability[60]. - The company is currently developing a high-speed, lightweight water-cooled engine for entry-level street motorcycles, which is in the research phase[105]. Strategic Initiatives - The company plans to focus on the aviation equipment manufacturing industry, particularly through "drone + general aviation engine" initiatives, as part of its strategic plan for 2018-2022[126]. - The company is transitioning from traditional motorcycle manufacturing to new energy vehicle production, aiming to strengthen its position in the aviation equipment manufacturing sector[180]. - The company aims to achieve revenue of over 12 billion yuan in 2019, focusing on expanding its engine business and OEM collaborations[186]. Cash Flow and Financial Management - The company’s cash flow from operating activities was 1.39 billion RMB, an increase of 18.62% year-on-year[87]. - Cash inflows from financing activities increased by 43.82% to ¥1,174,139,921.38, primarily due to new working capital loans of ¥450 million received during the period[112]. - The net increase in cash and cash equivalents was ¥278,220,119.35, a significant improvement of 208.67% compared to the previous year[115]. - The total cash and cash equivalents at the end of the period reached ¥1,309,051,337.39, reflecting a 26.99% increase from ¥1,030,831,218.04[115]. Acquisitions and Investments - The company signed an agreement to acquire 66% of Jinye Machinery through capital increase and equity transfer, with a total investment of ¥650 million[131]. - The acquisition of Jinye Machinery has been completed, focusing on collaboration in lightweight aluminum alloy components[198]. Challenges and Risks - The company faces risks from macroeconomic changes and exchange rate fluctuations, with over 50% of its business being export-related[199][200].