LONCIN(SH:603766)2021-08-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 10,437,055,350.27, a decrease of 2.00% compared to 2019[26] - The net profit attributable to shareholders of the listed company was CNY 479,918,012.30, down 22.95% from the previous year[26] - The net profit after deducting non-recurring gains and losses was CNY 352,561,585.01, a decrease of 25.32% year-on-year[26] - Basic earnings per share decreased by 23.33% to CNY 0.23 in 2020 from CNY 0.30 in 2019[28] - The weighted average return on equity fell by 2.52 percentage points to 6.83% in 2020 compared to 9.35% in 2019[28] - The gross profit margin was 18.96%, a decrease of 4.74 percentage points year-on-year[74] - The motorcycle and engine business revenue was 5.789 billion yuan, a decline of 2.31% year-on-year, with a gross margin of 15.97%, down 3.11 percentage points[68] - Commercial generator revenue fell to 802 million RMB, down 34.29% year-on-year, with domestic sales at 685 million RMB, a decline of 29.99%[78] Cash Flow and Dividends - The net cash flow from operating activities was CNY 1,191,289,509.83, an increase of 7.68% compared to 2019[26] - The proposed cash dividend distribution is CNY 0.80 per 10 shares, totaling CNY 164,283,348.00, which accounts for 34.23% of the net profit attributable to shareholders[6] - The net cash flow from financing activities was -308,230,950.18, a decrease of 173.66% compared to the previous year[88] - The net cash inflow from operating activities was 119,128.95 million, an increase of 8,500.03 million, or 7.68% compared to the previous year[89] Revenue Breakdown - The motorcycle and engine business accounted for 55.47% of total revenue in 2020, a slight decrease of 0.17 percentage points from 2019[40] - The general machinery business saw a significant increase, contributing 27.81% to total revenue, up 7.17 percentage points from 2019[40] - Export revenue represented 61% of total revenue for the company in 2020[40] - The company sold 3.027 million general machinery products, generating revenue of 2.903 billion RMB, a year-on-year increase of 32.05%[74] Market and Industry Insights - In 2020, the motorcycle industry in China had a total sales volume of 17.07 million units, a year-on-year decrease of 0.38%, with domestic sales at 9.98 million units, down 0.32%[46] - The sales of electric motorcycles reached 2.9492 million units in 2020, showing a year-on-year growth of 28.12%[46] - The commercial generator market is valued at over $20 billion globally, with domestic demand primarily from data centers and infrastructure projects[50] - The industrial drone market is expected to grow significantly, with a projected annual growth rate of over 40% until 2025, indicating a strong market potential[142] Research and Development - The company has obtained 185 domestic patents in 2020, including 11 invention patents, bringing the total to 1,864 effective patents by year-end[56] - Research and development expenses totaled 372,001,375.91 CNY, accounting for 3.56% of total revenue, with 1,255 R&D personnel representing 14.48% of the total workforce[105] - The company plans to strengthen research and investment in smart control and energy storage technologies in response to the national carbon neutrality goals[141] Operational Efficiency and Strategy - The company has integrated over 2,600 suppliers into its digital management platform, enhancing supply chain efficiency[60] - The company is focusing on enhancing operational efficiency through digitalization and smart manufacturing processes[149] - The company plans to improve its organizational capabilities and talent development to drive performance and innovation[149] Risks and Challenges - The company faces risks related to macroeconomic changes, including the impact of the COVID-19 pandemic on export operations[154] - The company’s export revenue accounts for over 60% of total revenue, exposing it to foreign exchange risks[156] - The company is addressing potential cost risks due to fluctuations in raw material prices, including copper, steel, and aluminum[157] Corporate Governance and Compliance - The audit report for the financial statements was issued with a standard unqualified opinion by the accounting firm[5] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8] - The company received regulatory attention from the Shanghai Stock Exchange regarding its chairman and controlling shareholder on May 11, 2020[193] Future Outlook - The company aims to achieve a revenue of 12.5 billion yuan in 2021[144] - The capital expenditure budget for 2021 is set at 649.9 million yuan, focusing on technology innovation, quality improvement, and digitalization[150] - The company plans to enhance its product development capabilities, particularly in electric motorcycles and drones, with a focus on new product launches[145]