LONCIN(SH:603766)2021-04-23 16:00Financial Performance - In 2020, the company's operating revenue was approximately CNY 10.44 billion, a decrease of 2.00% compared to 2019[25]. - The net profit attributable to shareholders was approximately CNY 518.04 million, down 16.83% from the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 390.68 million, a decrease of 17.24% year-on-year[25]. - Basic earnings per share decreased by 16.67% to CNY 0.25 in 2020 from CNY 0.30 in 2019[27]. - The weighted average return on equity fell by 2.00 percentage points to 7.35% in 2020 compared to 9.35% in 2019[27]. - The company achieved total revenue of 10.437 billion yuan in 2020, a year-on-year decrease of 2%[66]. - The net profit attributable to the parent company was 518 million yuan, down 16.83% year-on-year, with a net profit of 391 million yuan after deducting non-recurring gains and losses, a decrease of 17.24%[66]. Cash Flow and Assets - The net cash flow from operating activities was approximately CNY 1.19 billion, an increase of 7.68% compared to 2019[25]. - The cash and cash equivalents at the end of the period amounted to 1,867,398,330.95 CNY, reflecting a 9.39% increase from the previous year[114]. - Net cash outflow from investing activities was CNY 687.55 million, a decrease of CNY 358.05 million compared to the previous year[86]. - Net cash outflow from financing activities was CNY 308.23 million, an increase of CNY 726.69 million compared to the previous year[89]. - The total amount of receivables financing was CNY 336,622,956.10 at the end of the reporting period, showing a slight decrease from CNY 326,143,015.23[37]. Dividends and Shareholder Returns - The proposed cash dividend is CNY 0.80 per 10 shares, totaling approximately CNY 164.28 million, which accounts for 31.71% of the net profit attributable to shareholders[6]. - The company’s cash dividend policy stipulates that at least 10% of the distributable profit should be distributed as cash dividends, with a cumulative distribution of at least 30% over any three consecutive years[166]. - The proposed cash dividend for 2020 is RMB 164.28 million, which is 31.71% of the net profit attributable to shareholders[171]. - The company has not proposed a cash dividend distribution plan for the reporting period despite having positive distributable profits[172]. Business Segments and Revenue Sources - The company's main business segments include motorcycles and engines (55.47% of revenue), general machinery (27.81%), commercial generator sets (7.69%), low-speed four-wheel electric vehicles (3.63%), high-end components (3.19%), and unmanned helicopters (0.36%) for the reporting period[39]. - Export revenue accounted for 61% of the company's total revenue during the reporting period[39]. - The motorcycle and engine business generated revenue of 5.789 billion yuan, a decline of 2.31% year-on-year, with a gross margin of 15.97%, down 3.11 percentage points[67]. - General machinery product sales reached 2.903 billion yuan, a year-on-year increase of 32.05%, with a gross margin of 18.96%, down 4.74 percentage points[73]. - The company achieved sales revenue of 36.57 million yuan in the drone market, marking a breakthrough in market expansion[78]. Market Trends and Industry Insights - The motorcycle industry in China saw a total sales volume of 17.07 million units in 2020, a slight decline of 0.38% year-on-year, while sales of electric motorcycles increased by 28.12% to 2.9492 million units[45]. - The general machinery product export scale reached $1.012 billion in 2020, a year-on-year increase of 17.13%, with exports to the U.S. growing by 30.55% to $406 million[46]. - The commercial generator set market faced a decline, with exports dropping by 14.71% to $1.523 billion in 2020, particularly affected by the pandemic[49]. - The low-speed electric vehicle segment experienced a decline in sales due to industry regulations and competition from A00 level new energy vehicles[50]. - The industrial drone market is projected to grow significantly, with an expected compound annual growth rate higher than that of the consumer drone market over the next five years[148]. Research and Development - The company leverages a robust R&D framework to enhance product development efficiency and meet market demands effectively[53]. - Research and development expenses totaled 372,001,375.91 CNY, accounting for 3.56% of total revenue[107]. - The company holds 1,864 valid patents, including 278 invention patents, reflecting its strong R&D capabilities[55]. - The company plans to enhance its technical capabilities by advancing from reverse development to original design based on simulation, with a focus on improving internal combustion engine thermal efficiency and electric motor control capabilities[152]. Risks and Challenges - The company faces risks related to macroeconomic changes, including the impact of the COVID-19 pandemic and trade protectionism on export operations[157]. - The company’s export revenue constitutes over 60% of total revenue, making it vulnerable to exchange rate fluctuations, which could lead to financial losses[159]. - The company has a goodwill value of 602.6 million yuan on its balance sheet, which poses a risk of impairment if subsidiary performance does not meet expectations[160]. - The controlling shareholder, Longxin Holdings, has pledged 1,027,688,574 shares, representing 99.94% of its holdings, and all shares are currently under pledge or freeze, indicating uncertainty in pledge performance capability[162]. Legal and Regulatory Matters - The company faced a lawsuit regarding a breach of a share transfer agreement, with the plaintiff seeking a ruling for the defendant to continue fulfilling the agreement and pay legal fees of 1.08 million RMB[194]. - The first-instance judgment rejected all claims from the plaintiff, and the case is currently in the second-instance stage with an uncertain ruling date and outcome[194]. - The company received regulatory attention from the Shanghai Stock Exchange for its chairman and controlling shareholder in May 2020[197]. - The company and its controlling shareholder have been listed as executors and restricted consumers by multiple courts due to debt disputes[198].