YILIDA(SZ:002686)2019-04-25 16:00Financial Performance - The company achieved operating revenue of CNY 1,511,439,970.45 in 2018, representing a year-on-year increase of 10.61%[18]. - The net profit attributable to shareholders decreased by 81.69% to CNY 25,734,386.34 compared to 2017[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 83.66% to CNY 21,213,516.12[18]. - The total assets increased by 44.03% to CNY 3,722,091,706.61 at the end of 2018[18]. - The company reported a significant decline in cash flow from operating activities, with a net cash flow of CNY 14,626,418.40, down 51.54% from the previous year[18]. - The company’s net assets attributable to shareholders slightly decreased by 0.27% to CNY 1,502,714,190.75 at the end of 2018[18]. - The company reported a cash dividend of 0.20 RMB per 10 shares, totaling a distribution based on 435,568,564 shares[4]. - The cash dividend payout ratio for 2018 was 33.85% of the net profit attributable to ordinary shareholders[113]. Business Expansion and Acquisitions - The company expanded its main business to include the production, research, and sales of automotive parts and die-casting components, in addition to ventilators and electric vehicle chargers[16]. - The company acquired a 51% stake in Zhejiang Sanjin Technology Co., Ltd. for a cash investment of 197.75 million RMB, making it a subsidiary[16]. - The acquisition of Zhejiang Sanjin Technology Co., Ltd. has further diversified the company's product offerings into automotive lightweight components and related products[85]. - The company has established solid partnerships with major automotive manufacturers, becoming a first-tier supplier for companies like SAIC-GM Wuling and Weichai Power[36]. - The company has increased its investment in emerging industries, particularly in lightweight automotive components, which have entered the supply chain of major manufacturers like SAIC-GM-Wuling[46]. Research and Development - The company completed 10 new product development projects and 16 process improvements in fan technology during the year[36]. - The company has accumulated 208 patent technologies, including 31 invention patents, demonstrating its strong R&D capabilities[40]. - The company completed 10 new product R&D projects and improved 16 processes in wind turbine technology during the year[65]. - The company is focusing on the development of EC motors and precision air conditioning fans to meet the growing demand in industrial applications[86]. - The company has been recognized as a high-tech enterprise, with multiple products certified as energy-saving by national standards[36]. Market Position and Strategy - The company has become the largest developer and manufacturer of central air conditioning fans in China, with significant influence in the building ventilation fan market[35]. - The company is actively pursuing market expansion in the green building sector, driven by government policies promoting energy conservation and environmental protection[31]. - The company aims to strengthen its market position in the commercial fan business, benefiting from the rapid urbanization and infrastructure development in China[86]. - The company plans to enhance its international strategy and optimize its development model to mitigate risks from raw material price fluctuations and macroeconomic conditions[103]. - The company is leveraging its subsidiaries to enhance its presence in the international market, particularly in the HVAC sector and electric vehicle components[86]. Financial Management and Governance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[3]. - The company aims to improve its R&D capabilities and management skills to enhance core competitiveness and risk resistance[104]. - The company intends to improve financial management and cost control to support high-quality development and prepare for future growth[100]. - The company has established a commitment to avoid any competitive activities or investments that may conflict with its business operations[116]. - The company has emphasized the importance of adhering to market principles and fair pricing in any necessary related party transactions[116]. Employee and Management Structure - The total number of employees in the company is 2,734, with 555 in the parent company and 2,179 in major subsidiaries[194]. - The company has a total of 140 R&D personnel contributing to its innovation efforts[194]. - The average annual salary for independent directors is 80,000 RMB, while other personnel's salaries are linked to their responsibilities and performance[191]. - The total remuneration for directors and senior management during the reporting period amounts to 596.92 million RMB[193]. - The company has established a salary system that balances internal equity and market competitiveness, consisting of basic salary, additional salary, and performance salary[196]. Risks and Challenges - The company faced challenges due to rising raw material costs and underperformance of subsidiaries, leading to a notable decline in product profitability[29]. - The company is facing risks related to the market acceptance of new products, including energy-saving motors and automotive lightweight components[104]. - The company has established long-term strategic partnerships with central air conditioning clients to adjust sales prices in response to significant raw material price fluctuations[103]. Shareholder Commitments and Control - The actual controller and shareholders have fulfilled their commitments during the reporting period, with strict adherence to the commitments made in the acquisition report[114]. - The company has committed to achieving a net profit of no less than RMB 50 million, RMB 65 million, and RMB 80 million for the years 2016, 2017, and 2018 respectively, totaling a cumulative net profit of at least RMB 195 million[117]. - The company confirmed that the performance commitments made by its shareholders have been fulfilled on time[119]. - The company has set a profit commitment for the years 2019, 2020, and 2021, with net profits of no less than RMB 60 million, RMB 110 million, and RMB 190 million respectively, totaling a cumulative net profit of at least RMB 360 million[119]. Corporate Social Responsibility - The company actively participates in social responsibility initiatives and has been awarded honors for its contributions to local economic development[154].