WLY(SZ:002434)2019-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2019 was ¥2,083,465,761.22, a decrease of 3.60% compared to ¥2,161,166,761.52 in the same period last year[24]. - The net profit attributable to shareholders was ¥231,963,308.71, down 16.87% from ¥279,042,086.43 year-on-year[24]. - The net profit after deducting non-recurring gains and losses was ¥130,700,163.50, a significant decline of 46.59% compared to ¥244,711,259.14 in the previous year[24]. - The net cash flow from operating activities increased by 195.38% to ¥775,472,868.80, compared to ¥262,537,556.50 in the same period last year[24]. - Total assets at the end of the reporting period were ¥10,280,970,806.91, reflecting a growth of 4.43% from ¥9,844,723,691.54 at the end of the previous year[24]. - The weighted average return on equity was 3.81%, down from 4.50% in the previous year[24]. - The company reported a basic earnings per share of ¥0.18, a decrease of 14.29% from ¥0.21 in the same period last year[24]. Business Operations - The company's main business during the reporting period was the automotive parts business, focusing on the research, production, and sales of automotive transmissions, interior components, and new energy vehicle drive systems[36]. - The commercial vehicle transmission market is leveraging the transition to the National VI emission standards, promoting the G series high-end light-duty transmission, which has gained significant recognition from major domestic automakers[42]. - The company has completed the transfer of 70% equity in its subsidiary Shandong Weihua Transmission Technology Co., Ltd., and has dissolved its wholly-owned subsidiaries Zhejiang Meiyidun Transmission Co., Ltd. and Sichuan Waliyang Transmission Co., Ltd.[48]. - The company has launched its self-developed light truck AMT automatic transmission, which has been matched with 6 customer models, with more models expected to be released soon, enhancing market competitiveness[44]. - The CVT product line, including CVT25, has been successfully mass-produced and is being supplied to multiple models from major automakers, significantly increasing production volume and market share[45]. - The company has increased its construction in progress by 161.7 million yuan, primarily for CVT and component capacity enhancement projects, with new production equipment and assembly lines awaiting installation[48]. - The company is expanding its market presence by entering the supply chain of major automakers, including BYD and FAW Group, which will further enhance its market share and profitability[45]. - The production bases for commercial vehicle transmissions are located in Jinhua, Zhejiang, and Pingyi, Shandong, while passenger vehicle transmissions are produced in Jinhua, Zhejiang, and Wuhu, Anhui[40]. - The company is focusing on developing new products such as medium and heavy-duty seven-speed and nine-speed transmissions, which are expected to further increase market share and stabilize profit levels[44]. - The company has established a comprehensive sales service system, with independent sales companies in each business unit to ensure seamless market development and customer service[41]. - The company has achieved an annual production capacity of 1 million commercial vehicle transmissions and 1.8 million passenger vehicle transmissions, meeting diverse customer needs across different vehicle types[49]. - The company is focusing on expanding its automatic transmission business, including CVT, AT, and AMT, to enhance production capacity and manufacturing capabilities[49]. - The company has successfully developed China's first light truck AMT automatic transmission, marking a significant breakthrough in the field[53]. - The company has established a comprehensive CVT R&D system, resulting in significant improvements in structure design, control, transmission efficiency, fuel consumption reduction, and reliability[53]. - The company has a production capacity of 2 million sets of interior components, primarily supplying BMW, Mercedes-Benz, and domestic brands[49]. - The company has built a nationwide sales and service network with over 300 service stations and central warehouses in more than 30 provinces[57]. Market and Competition - The company faced risks related to market competition, talent acquisition, and fluctuations in raw material prices[7]. - The company’s CVT products began mass production for Geely and Chery's National VI models starting in May 2019, contributing to a rapid increase in sales volume[67]. - The company’s manual transmission (6MT) products started bulk supply to Great Wall Motors in August 2019, with continuous growth in sales volume[65]. - The company’s G series high-end light micro automatic transmission products achieved a market share exceeding 90% in some mainstream light truck markets[70]. - New energy vehicle production and sales reached 614,000 and 617,000 units respectively, with year-on-year growth of 48.5% and 49.6%[66]. - The company is actively developing new products, including a new ECVT product that has completed vehicle verification and received positive feedback from customers[70]. - The company’s efforts in quality control led to a 23% reduction in failure rates for commercial vehicle transmissions, aligning with foreign brand quality levels[72]. - The company is focusing on expanding its market presence by developing products for mainstream domestic automotive brands, including BYD and Great Wall Motors[70]. Research and Development - Research and development expenses increased by 12.46% to ¥119,549,434.71 from ¥106,306,664.43 in the previous year[78]. - The company plans to increase investment in technology research and development, particularly in CVT and AMT products, to enhance product quality and market share[108]. - The company aims to accelerate the development of new energy vehicle components, including EV reducers and hybrid power transmission systems[108]. Corporate Governance and Shareholder Matters - The company plans not to distribute cash dividends or issue bonus shares[8]. - The company held two temporary shareholder meetings and one annual shareholder meeting in 2019, with investor participation rates of 48.11%, 48.42%, and 48.37% respectively[116]. - The company has committed to avoiding any business competition with Chery Transmission and will not engage in any competing activities or hold interests in competing entities[123]. - The company has established a commitment to avoid illegal occupation of funds and assets from both itself and Chery Transmission[123]. - The company will adhere to market principles in any unavoidable related transactions, ensuring fairness and transparency[123]. - The company has not distributed cash dividends or bonus shares in the reporting period[116]. - The company’s actual controller and related parties have fulfilled their commitments during the reporting period[117]. - The company reported a commitment to reduce related party transactions with its controlling shareholder, Wanliyang Group, to protect the interests of other shareholders[126]. - The controlling shareholders, Huang Heqing and Wu Yuehua, pledged not to engage in any competitive business activities that could harm the company[132]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[137]. - The half-year financial report for 2019 was not audited, indicating a lack of external verification for the financial data presented[133]. - There were no penalties or rectification measures imposed on the company during the reporting period[138]. - The company confirmed that it has a good credit status and has not failed to fulfill any court judgments or significant debts[139]. - The company has committed to a 36-month lock-up period for newly issued shares from its fundraising activities, preventing any transfer of these shares during this time[129]. - The company has not reported any media controversies during the reporting period[137]. - The company has established a dedicated asset management plan for the subscription of new shares, ensuring compliance with relevant regulations[130]. - The company has made commitments to avoid any actions that could lead to the misappropriation of its assets or funds[126]. Environmental and Social Responsibility - The company is committed to green development and adheres to environmental protection laws and regulations[171]. - The company has conducted environmental monitoring, with all results within the specified limits[173]. - The main pollutants discharged by Wuhu Wanliyang Transmission Co., Ltd. were oil sludge and waste oil, with a total discharge of 86.12 tons against a permitted total of 274 tons[167]. - The company has implemented measures to reduce hazardous waste generation and improve pollution prevention levels[168]. Share Repurchase and Capital Structure - The company plans to repurchase shares totaling between 20 million and 80 million, with a maximum price of CNY 12 per share, totaling up to CNY 800 million[175]. - The company approved a share repurchase plan to buy back between 30 million and 60 million shares, representing approximately 2.22% to 4.44% of the total share capital[190]. - A total of 37.4 million shares were repurchased, accounting for 2.77% of the total share capital, with a total expenditure of approximately RMB 280 million[191]. - Out of the repurchased shares, 10 million shares will be canceled, reducing the registered capital, while 27.4 million shares will be used for employee stock ownership plans or equity incentives[191]. - The maximum repurchase price was set at RMB 12 per share, with the total repurchase amount not exceeding RMB 720 million[190]. - The company’s total share capital decreased from 1,350 million shares to 1,340 million shares after the cancellation of shares[191]. - The company completed the repurchase of 10 million shares, which were canceled, reducing the total share capital from 1,350 million shares to 1,340 million shares[194]. - A total of 27.4 million shares are allocated for employee stock ownership plans or equity incentives, with 3.5 million shares having been reduced[198]. - The largest shareholder, Wanliyang Group Co., Ltd., holds 28.66% of the shares, amounting to 384,075,744 shares, with 274,710,744 shares pledged[194]. - Hong Kong Libang Industrial Co., Ltd. holds 14.64% of the shares, totaling 196,165,000 shares[194]. - Chery Automobile Co., Ltd. owns 12.34% of the shares, equivalent to 165,289,256 shares[194]. - The company has no new securities issuance or listing activities reported during the period[194]. - The total number of ordinary shareholders at the end of the reporting period is 23,951[194]. - The actual controller, Huang Heqing, holds 51% of Wanliyang Group Co., Ltd. and 83.19% of Jinhua Zhongcheng Investment Co., Ltd., indicating a relationship between these shareholders[197]. - The company has not disclosed any other necessary information as required by securities regulatory authorities[194].