SEC(SH:603988)2019-04-12 16:00Financial Performance - In 2018, the company's operating revenue reached ¥428,538,145.45, representing a 39.34% increase compared to ¥307,558,151.93 in 2017[21] - The net profit attributable to shareholders was ¥48,229,069.83, up 45.79% from ¥33,082,306.53 in the previous year[21] - The net profit after deducting non-recurring gains and losses was ¥42,473,482.61, reflecting a 59.11% increase from ¥26,693,724.78 in 2017[21] - The company's total assets increased by 5.66% to ¥959,745,390.07 at the end of 2018, compared to ¥908,328,901.36 at the end of 2017[21] - The basic earnings per share decreased by 25.00% to ¥0.21 from ¥0.28 in 2017[22] - The weighted average return on net assets increased to 7.21%, up from 5.05% in the previous year, indicating improved profitability[22] - The company reported a net cash flow from operating activities of ¥54,726,915.40, which is a 7.47% increase from ¥50,924,775.61 in 2017[21] - The company achieved operating revenue of 428.54 million yuan, an increase of 39.34% compared to the previous year, driven by a recovery in the machinery industry and increased demand in sectors such as wind power and steel[43] - The net profit attributable to shareholders reached 48.23 million yuan, up 45.79% year-on-year, exceeding the annual target of 42 million yuan by 114.83%[43] Research and Development - The company has completed the R&D of new products including a medium-speed permanent magnet synchronous generator for wind power and a high-efficiency high-voltage explosion-proof motor, filling gaps in special working conditions[35] - The company holds a total of 99 valid patents, including 53 invention patents and 46 utility model patents[35] - The company has maintained a strong focus on R&D for high-efficiency energy-saving motors, ensuring its products meet high standards of energy efficiency[36] - Research and development expenses increased by 27.46% to 14.14 million yuan, indicating a commitment to innovation and product development[45] - R&D expenses totaled CNY 14,139,068.81, representing 3.30% of total operating revenue, with 118 R&D personnel making up 23.51% of the total workforce[55] Market and Industry Trends - The electric motor manufacturing industry is experiencing a recovery in market demand, with the company ranking tenth in economic efficiency among its peers according to industry statistics[34] - The domestic electric motor market is shifting towards high-efficiency, energy-saving, and environmentally friendly products, driven by national policies[74] - The electric motor industry is entering a new adjustment period, with growth areas identified in power station facility renovations and new energy development[73] - The market for high-capacity electric motors is expanding, driven by the increasing scale of modern industrial production[75] International Expansion - The company has expanded its overseas business, with products sold to over 30 countries, including the USA, Germany, and India, establishing a strong brand presence[38] - The company plans to enhance its international presence by leveraging the "Belt and Road" initiative to boost exports and improve international operational capabilities[72] - The company is implementing a localization strategy in overseas markets to reduce operational risks and build long-term relationships with local customers[80] Shareholder and Capital Management - The company plans to distribute a cash dividend of ¥3.85 per 10 shares, totaling ¥90,552,000.00, based on the total share capital of 235,200,000 shares as of December 31, 2018[5] - The company has increased its total share capital from 120,000,000 shares to 168,000,000 shares after a capital reserve transfer of 48,000,000 shares in 2017[84] - The company transferred 11,760,000 shares (5% of total share capital) to Zhuhai Fangyuan on November 8, 2018[94] - A total of 50,498,000 shares (21.47% of total share capital) were transferred to Ningbo JunTuo by major shareholders on December 4, 2018[95] - The top shareholder, Wang Jianyu, holds 70,560,000 shares, representing 30.00% of the total shares, with 17,640,000 shares pledged[138] Risk Management - The company faces domestic market risks due to the slow recovery of traditional market demand and increasing competition in the equipment manufacturing industry[79] - The company is exposed to exchange rate risks due to its import and export trade primarily settled in USD and EUR, which may increase with the growth of export business[81] - The company has acknowledged the need for timely adjustments to its development strategy in response to macroeconomic trends and market changes[79] Corporate Governance - The company has received a standard unqualified opinion on its internal control audit for 2018[173] - The company maintained independence from its controlling shareholders in business, personnel, assets, institutions, and finance[168] - The company’s remuneration for directors and supervisors is determined based on resolutions from the shareholders' meeting, while senior management remuneration is based on performance evaluations[154] Employee Management - The company has a total of 502 employees, with 292 in production, 40 in sales, 104 in technology, 8 in finance, and 58 in administration[156] - The company has established a compensation management system that combines incentives and constraints to enhance employee motivation and retention[158] - The training plan for 2018 includes six categories: basic training for new employees, continuing education for business skills, process rules training, new document learning, safety education, and management capability enhancement[159]