LONCIN(SH:603766)2020-07-14 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,065,040.97 million, a decrease of 4.94% compared to 2018[26]. - The net profit attributable to shareholders for 2019 was CNY 62,284.72 million, down 32.25% from the previous year[26]. - The net cash flow from operating activities decreased by 20.23% to CNY 110,628.92 million in 2019[26]. - The basic earnings per share for 2019 was CNY 0.30, a decline of 31.82% compared to 2018[26]. - The weighted average return on equity decreased by 4.83 percentage points to 9.35% in 2019[26]. - The total assets at the end of 2019 were CNY 1,313,115.85 million, an increase of 9.59% from 2018[26]. - The company achieved operating revenue of 10.65 billion yuan, a year-on-year decrease of 4.94%, with export revenue at 6.26 billion yuan, down 0.98%[66]. - Net profit attributable to the parent company was 623 million yuan, a decline of 32.25%, while the net profit after deducting non-recurring items was 472 million yuan, down 36.21%[66]. - The comprehensive gross margin improved to 19.32%, an increase of 0.81 percentage points year-on-year[66]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares, totaling 205,354,185.00 RMB, which accounts for 32.97% of the net profit attributable to shareholders in 2019[6]. - The total number of shares for cash dividend distribution in 2019 is based on 2,053,541,850 shares[182]. - The cash dividend distribution plan for 2019 is set at RMB 1.00 per 10 shares[183]. - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profit to be distributed as cash dividends each year[181]. - The company did not distribute any dividends in 2018, focusing instead on share repurchase[182]. Audit and Compliance - The company reported a standard unqualified audit opinion from Xinyong Zhonghe Accounting Firm for the fiscal year 2019[5]. - The company’s financial report has been confirmed for accuracy and completeness by its responsible executives[4]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - The company has not provided any guarantees in violation of regulatory decision-making procedures[9]. Operational Risks and Strategies - The company emphasizes the importance of objective conditions for the realization of future plans and strategies, warning investors of potential risks[7]. - The company has disclosed potential risks in its operational analysis section, advising stakeholders to review these details[9]. - The company is actively working on resolving land use rights issues that may affect its operations[190]. - The company faces risks from macroeconomic changes, including potential impacts from the COVID-19 pandemic and ongoing US-China trade tensions[177]. Market and Industry Position - The company ranked second in total production and sales in the motorcycle industry and first in export revenue[44]. - The motorcycle industry in China achieved a total sales volume of 17.13 million units, a year-on-year increase of approximately 10%, with domestic sales reaching 10 million units, up 21.14%[44]. - The sales of large-displacement motorcycles (over 250cc) in China reached 177,200 units, a significant increase of 67% year-on-year[44]. - The general machinery products export revenue was $864 million in 2019, a year-on-year decrease of 17.21%, with exports to the U.S. dropping by 33.81% to $311 million[47]. - The commercial generator market had an export revenue of $2.509 billion in 2019, reflecting a year-on-year growth of 6.09%[48]. Research and Development - The company has developed a range of UAV products based on the VX-2 platform, including the XV-3, XV-5, and XV-6 models[62]. - The company has established a "Group Technology Center + Division Engineering Research Institute" R&D structure with over 1,200 R&D personnel[52]. - The total R&D expenditure amounted to 38,137.74 million RMB, representing 3.58% of operating revenue[91]. - The company launched 20 major R&D projects during the reporting period, with 7 in motorcycles and engines, 5 in general machinery, and 4 in commercial generator sets[92]. Acquisitions and Investments - The company completed the acquisition of a 66% stake in Zunyi Jinye Machinery Foundry Co., Ltd. for a total consideration of RMB 429,000,000, which was finalized on April 9, 2019[109]. - The valuation of goodwill related to Jinye Machinery was assessed at CNY 599.56 million as of December 31, 2019, with an estimated impairment of CNY 142.86 million, leading to a required goodwill impairment provision of CNY 92.96 million based on the company's 66% ownership[194]. - The company established a wholly-owned subsidiary in Vietnam with a total investment not exceeding USD 12,000,000 to enhance global operational capabilities[111]. Financial Position and Cash Flow - The company has a total of restricted assets amounting to RMB 1,732,345,558.59, including bank deposits of RMB 80,848,338.14 and other monetary funds of RMB 417,189,668.37[105]. - The cash and cash equivalents at the end of the period increased by 30.59% to 1,707,045,314.45 RMB[95]. - Net cash flow from operating activities decreased by CNY 280.60 million, a decrease of 20.23%, primarily due to reduced export tax rebates and increased tax payments[80]. - Net cash flow from investing activities decreased by CNY 906.99 million, a decrease of 654.38%, mainly due to increased purchases of government bonds and payments for the acquisition of Jinye Machinery[80]. - Net cash flow from financing activities increased by CNY 1,276.84 million, a growth of 148.75%, primarily due to new financing borrowings and reduced payments for bank acceptance guarantees compared to the previous year[80].