TAM(SH:603789)2019-04-26 16:00Financial Performance - In 2018, the company's operating revenue was approximately ¥595.81 million, a decrease of 6.67% compared to ¥638.39 million in 2017[21]. - The net profit attributable to shareholders was a loss of ¥58.55 million, representing a decline of 331.47% from a profit of ¥25.29 million in 2017[21]. - The net profit after deducting non-recurring gains and losses was a loss of ¥62.84 million, a decrease of 517.18% compared to a profit of ¥15.06 million in the previous year[21]. - The basic earnings per share for 2018 was -¥0.2239, a decline of 331.78% from ¥0.0966 in 2017[23]. - The weighted average return on net assets was -5.48%, a decrease of 7.82 percentage points from 2.34% in 2017[23]. - The company's total operating revenue for 2018 was 595.81 million yuan, a decline of 6.67% from 2017, with main business revenue decreasing by 6.85%[76]. - The company's operating costs were 467.12 million yuan, down 3.26% year-on-year, indicating that the decrease in operating costs was less than the decline in revenue[76]. - The company reported a net profit attributable to shareholders of -58.55 million yuan, a decrease of 331.47% year-on-year, and a net profit of -62.84 million yuan after deducting non-recurring gains and losses, down 517.18% year-on-year[69]. Assets and Liabilities - The company's total assets increased by 10.29% to ¥1.62 billion at the end of 2018, up from ¥1.47 billion at the end of 2017[22]. - The net assets attributable to shareholders decreased by 4.74% to ¥1.03 billion from ¥1.08 billion in 2017[22]. - The total accounts receivable increased by 87.80% year-on-year, reaching 433,220,578.07 yuan, primarily due to extended credit policies[94]. - The company's accounts receivable rose by 202.75 million yuan, reflecting an increase of 88.09% due to intensified market competition[45]. - The company's fixed assets decreased slightly by 0.27% year-on-year, totaling 344,132,740.83 yuan[95]. Cash Flow - The cash flow from operating activities showed a negative ¥91,546,985.73 in Q1, positive cash flow of ¥11,113,779.78 in Q2, and ¥2,249,649.10 in Q3, with a negative cash flow of ¥56,051,972.65 in Q4[25]. - The net cash flow from operating activities was -13,423.55 million yuan, a decline of 3,022.24 million yuan compared to the previous year[91]. Market and Competition - The company exported agricultural machinery worth 51.63 million yuan in 2018, a significant decrease of 56.71% from the previous year[65]. - Sales revenue from rice and wheat combine harvesters was 320.50 million yuan, down 31.63% year-on-year, primarily due to market saturation and increased competition[66]. - The sales volume of combine harvesters decreased by 30.55% year-on-year to 4,299 units, attributed to structural adjustments in the agricultural machinery industry[80]. - The company recognizes the risk of revenue structure being overly reliant on its rice and wheat combine harvester, which accounts for 53.79% of total revenue[123]. - The company faces intensified market competition due to industry adjustments and price declines, which may impact sales volume and pricing[125]. Research and Development - R&D investment for the year was 28.09 million yuan, a decrease of 24.79% compared to the previous year, indicating a focus on enhancing R&D capabilities[64]. - The total R&D expenditure amounted to 28,089,088.31 yuan, representing 4.71% of operating revenue[89]. - The company is focusing on optimizing product performance and reliability while transitioning towards intelligent and precise agricultural machinery[64]. - The company aims to increase research and development efforts in emerging fields and new products, particularly in cotton and peanut harvesting machines, to enhance its product series and structure[115]. Product Development and Innovation - The company has established a comprehensive mechanization product system covering six major crops, including rice, wheat, and corn, enhancing its product line through R&D and acquisitions[30]. - The company aims to provide a complete supply and after-sales service package to meet the bulk and complete procurement needs of new agricultural operators, thereby diversifying operational risks[30]. - The company has expanded its product line to include self-propelled forage harvesters, corn harvesters, and other new models, enhancing its competitive edge[46]. - The company has developed new businesses, including rotary tillers and dryers, which are now maturing and entering a growth phase[48]. - The company emphasizes user-centered R&D, ensuring product adaptability and reliability through continuous improvement based on user feedback[49]. Strategic Goals and Future Outlook - The company aims for a comprehensive mechanization rate of 75% for major crops by 2025, with specific targets for different regions and types of agriculture[106]. - The company plans to focus on new business areas such as cotton pickers, silage machines, and balers, aligning with rural revitalization and environmental policies[72]. - Future outlook includes a focus on sustainable practices and technological advancements to enhance productivity and reduce environmental impact[35]. - The company anticipates a shift in the agricultural machinery market towards more environmentally friendly products due to new subsidy policies and competition from foreign brands[109]. Shareholder and Governance - The company has a cash dividend policy that mandates a minimum of 30% of distributable profits to be paid as dividends, although no dividends were declared for the 2018 fiscal year due to a net loss of CNY -58,548,912.72[132][133]. - The company has established a shareholder return plan, committing to a cash dividend of no less than 30% of the distributable profit each year from 2016 to 2018[172]. - The company prioritizes stock buybacks, but if it fails to meet legal listing requirements, the first alternative is for the controlling shareholder to increase their stake[140]. - The company will hold a shareholder meeting within 30 days of the board's decision to approve stock buybacks[140]. - The company has committed to ensuring that its stock price does not fall below the net asset value per share for three consecutive trading days[139]. Environmental and Social Responsibility - The company has maintained a commitment to environmental management, achieving ISO9001, ISO14000, and OHSAS18000 certifications without any environmental pollution incidents in 2018[167]. - The company has actively participated in charitable activities, supporting around 400 university students since 2011 through scholarship programs[169]. - The company is committed to addressing agricultural waste pollution through efficient and rapid resource recycling and soil restoration technologies[174]. - The company developed a fish farming system that achieves zero wastewater discharge, contributing to both economic and ecological benefits[175]. Risks and Challenges - The company is aware of potential risks from macro policy adjustments that could affect its sales revenue and profitability if its products do not meet new subsidy or environmental standards[126]. - The company faces risks related to innovation and R&D capabilities, as the demand for agricultural machinery performance increases with the scale of agricultural operations in China[127]. - Rising labor and raw material costs, particularly steel, could adversely affect product costs and profitability[129]. - The company has faced risks related to inventory devaluation due to increased competition and potential declines in sales revenue[128].