HIGHLY(SH:900910)2019-04-11 16:00Financial Performance - The net profit attributable to shareholders for 2018 was CNY 310,886,863.82, with the parent company achieving a net profit of CNY 189,444,234.11[5] - The company's operating revenue for 2018 reached approximately ¥11.71 billion, representing a 12.08% increase compared to ¥10.45 billion in 2017[22] - Net profit attributable to shareholders was approximately ¥310.89 million, a 10.55% increase from ¥281.23 million in 2017[22] - The basic earnings per share for 2018 was ¥0.36, up 12.50% from ¥0.32 in 2017[23] - The weighted average return on equity increased to 7.29%, up 0.42 percentage points from 6.87% in 2017[23] - The net cash flow from operating activities for 2018 was approximately ¥1.31 billion, a significant increase of 65.25% from ¥789.95 million in 2017[22] - Total assets at the end of 2018 were approximately ¥14.34 billion, reflecting a 5.10% increase from ¥13.64 billion at the end of 2017[22] - The net assets attributable to shareholders increased to approximately ¥4.36 billion, a 4.41% increase from ¥4.18 billion in 2017[22] - The company reported a total operating revenue for 2018 of approximately ¥11,708,311,339.47, an increase of 12.06% compared to ¥10,446,775,442.05 in the previous year[195] - Net profit for 2018 was ¥419,346,603.38, representing a 23.73% increase from ¥338,771,313.72 in the prior year[196] Dividend Distribution - A cash dividend of CNY 1.50 per 10 shares is proposed, totaling CNY 129,946,598.25, with the remaining undistributed profit carried forward to the next year[6] - The total distributable profit at the end of the year was CNY 334,463,909.30 after allocating CNY 18,944,423.41 to the statutory surplus reserve[5] - The remaining undistributed profit at the end of the year was CNY 204,517,311.05[6] - The company distributed a cash dividend of CNY 1.20 per share in 2018, totaling CNY 103.957 million[92] Risks and Challenges - The company faces various risks including industry environment risk, production cost price risk, technology risk, and goodwill impairment risk[9] - The company emphasizes that forward-looking statements are subject to risks and uncertainties that may lead to significant differences from actual results[7] Audit and Compliance - The audit report for 2018 was issued by PwC Zhong Tian, confirming the financial report's authenticity and completeness[5] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8] - The company has no significant litigation or arbitration matters during the reporting period[107] - The company has not engaged in any cash asset management or entrusted loan activities during the reporting period[115] Research and Development - The company's R&D expenses amounted to CNY 454,032,072, reflecting a year-on-year increase of 16.65%[45] - The total R&D investment amounted to 459,900,469.36 CNY, representing 3.93% of total operating income, with 805 R&D personnel making up 15.08% of the total workforce[58] - Research and development expenses for 2018 were ¥454,032,071.51, an increase from ¥389,229,848.87 in 2017, reflecting a commitment to innovation[195] Market and Sales Performance - The sales volume of rotor compressors reached 23.04 million units in 2018, capturing a market share of 12.41% in China's compressor industry[35] - The sales of automotive electric scroll compressors amounted to 100,600 units in 2018, representing a 7.92% share of the national new energy vehicle market[36] - The company’s electric motor sales reached 28.56 million units in 2018, maintaining its leading position in the compressor motor manufacturing sector[36] - The company maintained a market share of 30.4% in the non-self-supplied market for air conditioning compressors, continuing to lead the industry[41] Environmental and Social Responsibility - The company was awarded the title of "Outstanding Enterprise" at the Fourth Shanghai Listed Companies Corporate Social Responsibility Summit in December 2018[117] - The company donated a total of RMB 400,000 in cash and materials to the Shanghai Red Cross in August 2018[121] - The company was listed as a key pollutant discharge unit in Shanghai and monitored its emissions according to environmental standards[126] Corporate Governance - The company has established a comprehensive internal control system, enhancing risk prevention capabilities and promoting sustainable development[177] - The board of directors and supervisory board operate in accordance with established rules, ensuring effective governance and protection of stakeholder rights[176] - The company has maintained independence from its controlling shareholder in terms of operations, personnel, assets, and finance, ensuring autonomous business capabilities[184] Future Outlook and Strategy - The company plans to continue its market expansion and product development strategies in the upcoming year[9] - Future strategies include enhancing technological leadership and quality in the compressor sector while expanding into new applications[84] - The company aims to improve its market share in the electric motor sector by adjusting product structures and enhancing collaboration with Hangzhou Fusheng[84] - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of $100 million allocated for potential deals[165]