WXQC(SZ:000559)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was CNY 11,362,076,796.40, representing a 1.86% increase compared to CNY 11,154,241,411.27 in 2017[11]. - The net profit attributable to shareholders of the listed company decreased by 18.03% to CNY 722,596,037.47 from CNY 881,512,801.38 in the previous year[11]. - The net profit after deducting non-recurring gains and losses was CNY 617,076,634.71, down 23.23% from CNY 803,813,274.16 in 2017[11]. - Basic earnings per share decreased by 18.13% to CNY 0.262 from CNY 0.320 in 2017[11]. - The total comprehensive income for the period was CNY 696,699,190.08, an increase from CNY 598,965,271.68 in the previous year, reflecting a growth of approximately 16.4%[183]. - The company reported a total comprehensive income of 722,596,037.47 CNY for the year[189]. Cash Flow - The net cash flow from operating activities significantly dropped by 90.13% to CNY 122,259,355.79 from CNY 1,190,781,024.21 in the previous year[11]. - The company reported a significant decline in cash flow from operations, with a net cash flow of CNY 6,702,530.53 in Q4 2018, indicating potential liquidity challenges[15]. - Cash inflows from operating activities totaled CNY 12,008,831,083.63, compared to CNY 10,291,303,179.76 in the previous year, representing an increase of about 16.7%[184]. - The net cash flow from operating activities was CNY 122,259,355.79, a significant decrease from CNY 1,238,453,424.21 in the previous year[184]. - The ending balance of cash and cash equivalents was CNY 1,087,567,794.92, down from CNY 1,454,229,447.00 in the previous year, reflecting a decrease of approximately 25.3%[185]. Revenue Segments - The automotive parts segment generated CNY 8,547,755,337.90, accounting for 75.23% of total revenue, showing a decline of 3.21% year-on-year[26]. - The company reported a significant increase in material trade revenue, which reached CNY 1,949,283,079.48, up 24.49% year-on-year[26]. - The total revenue for the mechanical manufacturing segment was approximately ¥8.55 billion, a decrease of 3.21% year-over-year, with a gross margin of 22.95%[27]. - The material trading segment reported revenue of approximately ¥1.95 billion, an increase of 24.49% year-over-year, with a gross margin of 2.24%[27]. - The company’s domestic sales accounted for 80.15% of total revenue, while international sales increased by 15.43% to CNY 1,390,493,121.44[26]. Investments and Acquisitions - The company has made strategic acquisitions, including a CNY 1.221 billion bid for a 33% stake in Wanxiang Qianchao Drive Shaft Co., Ltd.[20]. - The company completed an investment of ¥13,333,000.00 in Zhejiang Lanzhuo Industrial Internet Technology Co., Ltd., which is expected to enhance its industrial internet capabilities[45]. - The company is investing 100 million RMB in research and development for new technologies aimed at improving product performance and sustainability[139]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, totaling CNY 550,631,818.00 based on the share base of 2,753,159,454 shares[2]. - The total cash dividend amount for 2018 is 550,631,890.80 CNY, which represents 76.20% of the net profit attributable to ordinary shareholders[60]. - The cash dividend for 2017 was also 550,631,890.80 CNY, accounting for 62.46% of the net profit attributable to ordinary shareholders[60]. - The company has consistently maintained a cash dividend policy over the past three years, with the same cash dividend amount proposed for both 2017 and 2018[60]. Research and Development - In 2018, the company's R&D investment amounted to ¥513,013,756.90, representing a 5.34% increase compared to ¥487,014,816.03 in 2017[39]. - The number of R&D personnel decreased by 11.32% from 1,095 in 2017 to 971 in 2018, with the proportion of R&D personnel to total employees dropping from 11.29% to 10.23%[39]. - The company is focusing on the development of electronic, intelligent, lightweight, and modular products in line with the automotive industry's trends[52]. Environmental Compliance - The company is classified as a key pollutant discharge unit, with total COD emissions of 1.8 tons per year, below the approved limit of 3 tons per year[105]. - Wanxiang Qianchao Co., Ltd. has a wastewater treatment station with a designed capacity of 352 tons per day, currently processing 250 tons per day[107]. - The company has committed to ongoing environmental monitoring, including quarterly and annual assessments of wastewater and emissions[112]. Shareholder Structure - The total number of shares for Wanxiang Qianchao Co., Ltd. is 2,753,159,454, with 2,753,149,374 being unrestricted shares, representing 100% of the total[117]. - The largest shareholder, Wanxiang Group Company, holds 56.51% of the shares, totaling 1,555,769,387 shares[120]. - The company reported a total of 119,817 common shareholders at the end of the reporting period, an increase from 116,367[120]. Internal Controls and Governance - The internal control evaluation report indicated that 100% of the assets and operating income were included in the evaluation scope, with no significant internal control deficiencies found[159]. - The audit committee communicated effectively with the external auditors regarding the audit plan and risk assessment, ensuring timely completion of the audit[156]. - The company emphasizes the importance of maintaining a robust internal control system to prevent significant financial reporting errors[159]. Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[195]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating an expected growth of 25%[141]. - The company is initiating the construction of the YN New Industrial Park and will consider cooperation or acquisition in the commercial vehicle and bearing business[53].