Tianyong(SH:603895)2019-04-19 16:00Financial Performance - In 2018, the net profit attributable to shareholders was CNY 36,118,080.94, with a legal surplus reserve of CNY 3,726,035.86, leaving a distributable profit of CNY 32,392,045.08[5]. - The company's operating revenue for 2018 was CNY 506,064,813.04, representing a year-on-year increase of 19.37% compared to CNY 423,940,933.44 in 2017[23]. - The net profit attributable to shareholders for 2018 was CNY 36,118,080.94, a decrease of 41.76% from CNY 62,010,844.03 in 2017[23]. - The basic earnings per share for 2018 was CNY 0.3392, down 55.66% from CNY 0.765 in 2017[24]. - The total profit for 2018 was CNY 39.76 million, a decrease of 45% compared to the previous year, while the net profit attributable to shareholders of the parent company was CNY 36.12 million, down 42% year-on-year[78]. - The comprehensive gross profit margin decreased by 1.06 percentage points to 27.77% in 2018, although the absolute gross profit increased by CNY 18.32 million compared to 2017[79]. - The company's operating costs rose by 21.15% to CNY 365.54 million in 2018, while selling expenses increased by 23.06% to CNY 15.53 million[83]. - The net cash flow from operating activities for 2018 was negative CNY 59,384,764.11, compared to negative CNY 38,552,322.12 in 2017[23]. - The company reported an increase in asset impairment provisions by CNY 41.57 million in 2018 due to tight funding in the automotive industry and delayed customer payments[80]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, totaling CNY 6,484,800, while retaining the remaining undistributed profits for future years[5]. - The company proposed a cash dividend of RMB 2.50 per 10 shares, totaling RMB 19,300,000 distributed to shareholders for the 2017 fiscal year[158]. - The company plans to distribute at least 15% of the annual distributable profits as cash dividends if the net profit attributable to shareholders is positive[148]. - In 2018, the company reported a net profit of RMB 36,118,080.94, with a cash dividend payout ratio of 17.95%[161]. - The company maintains a policy of prioritizing cash dividends over stock dividends when conditions allow[147]. - The board of directors is responsible for proposing dividend distribution plans based on the company's financial situation and funding needs[153]. Risks and Challenges - The company faced significant risks with accounts receivable, particularly from Beiqi Yinxiang, leading to a provision for bad debts of CNY 19,098,385.34 on receivables of CNY 38,196,770.68[8]. - The total asset impairment provision related to Beiqi Yinxiang amounted to CNY 22,239,611.27, significantly impacting the overall profit for the year[8]. - The company reported a decline in the collection of accounts receivable, which did not meet expectations, particularly affecting the welding division's performance[8]. - The company has recognized a significant bad debt risk related to overdue accounts from a major client, which has led to a provision for asset impairment totaling approximately 22.24 million RMB[140]. - The overall profit for 2018 is expected to decline significantly due to the impairment provisions, which will impact the net profit attributable to shareholders by approximately 20.30 million RMB[141]. Market Position and Strategy - The company has successfully entered the supplier system of major automotive manufacturers, including SAIC Group and BAIC Group, enhancing its market position[31]. - The company is focusing on the development of a digital manufacturing management system (MES) for battery PACK production, enhancing real-time data collection and quality control[44]. - The company is adapting to the demand for shorter vehicle model replacement cycles to enhance product competitiveness[48]. - The company aims to strengthen its leading position in the domestic powertrain automation assembly system market while expanding its international business to maintain and grow market share[130]. - The international business department is expected to become a new major growth point, with a focus on the assembly of new energy motors and batteries, leveraging long-term technological expertise[131]. Research and Development - The company has a strong focus on R&D, leveraging its technical expertise to expand its product offerings in the automotive sector[31]. - Research and development expenses grew by 16.4% to CNY 34.98 million, reflecting the company's commitment to innovation and technology development[83]. - The total R&D expenditure rose by 101.85% to ¥34.98 million, indicating a significant investment in innovation[92]. - The number of R&D personnel is 182, representing 33.39% of the total workforce[94]. - The company is increasing investment in R&D for technologies such as robotics and MES systems to maintain competitive advantage, but faces inherent risks in innovation outcomes[135]. Corporate Governance - The board of directors emphasized the importance of ensuring the accuracy and completeness of the financial report, taking legal responsibility for any misstatements[7]. - The company did not engage in any non-operational fund occupation by controlling shareholders or provide guarantees in violation of decision-making procedures[7]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, which began on January 22, 2018[163]. - Major shareholders are restricted to selling no more than 5% of their shares annually after the lock-up period ends, with a minimum selling price set at the issuance price[164]. - The company has established a commitment to ensure that all directors and senior management adhere to fair practices and do not harm company interests[166]. Investment and Financial Management - The company has utilized idle raised funds for wealth management, with a total amount of RMB 250 million, of which RMB 190 million remains unexpired[176]. - The company has invested RMB 130 million in a wealth management product with a 4.55% annual yield, which has been fully recovered[178]. - The company has also invested RMB 50 million in a structured product with a 4.45% yield, which has been fully recovered[178]. - A total of RMB 30 million was placed in a principal-protected product with a 4.50% yield, which has been fully recovered[178]. - The company has a wealth management plan in place for future investments[178]. Shareholder Information - The largest shareholder, Shanghai Mingjia Investment Co., Ltd., holds 67.39 million shares, representing 62.35% of total shares[195]. - The number of ordinary shareholders increased from 14,078 to 15,083 during the reporting period[193]. - The company’s earnings per share (EPS) was adjusted from 1.07 RMB to 0.765 RMB due to the increase in share capital[189]. - The total number of limited sale condition shares increased to 81.06 million shares after the issuance of new shares[190]. - The top shareholder, Shanghai Mingjia Investment Co., Ltd., holds 67,385,220 shares, which will become tradable on January 22, 2021, after a 36-month lock-up period[198].