WLY(SZ:002434)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 5,099,834,596.40, representing a 16.68% increase compared to CNY 4,370,751,411.67 in 2018[24]. - The net profit attributable to shareholders for 2019 was CNY 400,330,892.65, up 13.86% from CNY 351,609,358.33 in 2018[24]. - The net cash flow from operating activities increased by 42.52% to CNY 784,753,025.86 from CNY 550,626,221.33 in the previous year[24]. - The basic earnings per share for 2019 was CNY 0.30, a 15.38% increase from CNY 0.26 in 2018[24]. - Total assets at the end of 2019 reached CNY 10,901,727,096.08, reflecting a 10.74% increase from CNY 9,844,723,691.54 at the end of 2018[24]. - The net assets attributable to shareholders increased by 2.72% to CNY 6,164,728,073.92 from CNY 6,001,616,592.21 in 2018[24]. - The company reported a decrease of 26.46% in net profit after deducting non-recurring gains and losses, amounting to CNY 182,618,674.70 compared to CNY 248,312,532.99 in 2018[24]. - The weighted average return on net assets for 2019 was 6.62%, an increase from 5.77% in 2018[24]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 1 per 10 shares, totaling CNY 131,260,000 based on the total share capital[7]. - The company proposed a cash dividend of RMB 1 per share, totaling RMB 131,260,000, which represents 32.79% of the net profit attributable to ordinary shareholders[180]. - The cash dividend payout ratio for 2018 was 56.00%, with a total cash dividend of RMB 196,890,000[182]. - The company distributed a cash dividend of RMB 1 per 10 shares, totaling RMB 131,260,000, which represents 100% of the distributable profit[185]. - The total cash dividend, including other methods, amounted to RMB 171,570,150.76, based on a distributable profit of RMB 1,771,929,584.28[185]. - The company has a minimum cash dividend ratio of 20% for profit distribution during its growth phase with significant capital expenditure plans[185]. Market and Product Development - The company is focusing on the development of automatic transmissions and electronic clutch products to enhance market competitiveness and create new profit growth points[44]. - The automotive parts business primarily involves the R&D, production, and sales of automotive transmissions and new energy vehicle drive systems[39]. - The company aims to leverage the transition to the National VI emission standards to drive product upgrades and meet market demand[44]. - The company has a strategic focus on expanding its product structure by developing medium and heavy-duty vehicle transmissions and pickup truck transmissions[44]. - The company is actively expanding its automatic transmission product line, including CVT, AT, and AMT, to align with industry trends and increase manufacturing capabilities[66]. - The company is focusing on the development of new energy vehicle transmission systems, including ECVT and hybrid power transmissions, to adapt to market trends[83]. - The company is developing a new generation of 8AT automatic transmission capable of matching 400N.m of power, currently in the prototype testing phase[117]. - The company is focusing on the development of high-torque CVT products (over 300Nm) to enhance market competitiveness, currently in the product development stage[115]. - The company has established a strategic partnership with Bosch to promote innovation in new energy vehicle transmission systems[117]. Sales and Market Share - The company's total revenue for Q4 reached ¥1,809,321,017.75, marking a significant increase compared to previous quarters[29]. - Total sales of automotive transmissions reached 1.306 million units in 2019, representing a year-on-year growth of 7.1%[85]. - Sales of passenger vehicle transmissions increased by 12.7% to 622,000 units, with CVT sales surging by 176.7% to 238,000 units[85]. - The company has successfully entered the supply chain of BYD, FAW Bestune, and Proton, expanding its customer base significantly[90]. - The market share of the G series high-end light-duty transmissions exceeded 90% in some mainstream light truck markets, indicating a significant competitive advantage[90]. - The company aims to achieve sales of 3 million passenger car transmissions by 2023, including 2 million automatic transmissions[152]. - The automatic transmission installation rate for domestic self-owned brand vehicles has exceeded 60% and is rapidly increasing[148]. Research and Development - Research and development expenses increased by 5.10% to ¥270,741,708.81 in 2019 compared to ¥257,591,786.92 in 2018[113]. - The company's R&D investment amounted to ¥329,335,413.79 in 2019, representing a 3.51% increase from ¥318,178,407.30 in 2018[119]. - The number of R&D personnel decreased by 6.95% to 629 in 2019, while the proportion of R&D personnel increased to 16.31% from 13.32%[119]. - 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[68]. - Significant investment in R&D is being made, particularly in CVT and AMT product lines, to improve product quality and increase market share[167]. Strategic Partnerships and Collaborations - A strategic cooperation agreement was signed with Bosch to enhance the technology and product development of ECVT and hybrid transmissions[84]. - The company has established partnerships with several universities and research institutions to enhance its technological capabilities and innovation[67]. Risk Management and Challenges - The company faces risks related to market competition, talent acquisition, and fluctuations in the supply and prices of key raw materials[7]. - The company anticipates challenges in the automotive industry due to economic pressures and aims to strengthen core customer relationships while expanding market opportunities[157]. - The company is actively monitoring macroeconomic trends and industry policies to adapt to the evolving market environment and challenges[165]. Asset Management and Financial Health - The company has transferred 100% equity of several subsidiaries, including Shandong Wei He Transmission Technology Co., Ltd. and Liaoning Jin Xing Automotive Interior Co., Ltd., indicating a strategic shift in asset management[63]. - The company has seen a reduction in construction projects in progress by 242.04 million RMB, as new production equipment and assembly lines have been transferred to fixed assets[63]. - The company completed the deregistration of two wholly-owned subsidiaries, which will no longer be included in the consolidated financial statements[107]. - The company has achieved self-manufacturing capabilities for key components in commercial vehicle transmissions and is working to enhance this for passenger vehicle transmissions[172]. Corporate Governance and Compliance - The company has committed to avoiding any direct or indirect competition with Wanliyang or its subsidiaries in the gearbox business[192]. - The company will ensure that its subsidiaries do not engage in any business activities that may compete with Wanliyang's gearbox operations[192]. - The company has pledged to minimize and reduce related party transactions with Wanliyang, adhering to fair and reasonable market principles[195]. - The controlling shareholder, Wanliyang Group, has promised to limit related party transactions with other enterprises it controls[195]. - The company has committed to ensuring that any related party transactions are conducted at fair market prices to protect the interests of Wanliyang and its shareholders[195].