LZJT(SZ:300428)2019-04-22 16:00Corporate Governance and Compliance - The company has committed to avoiding any business competition with its controlling family and ensuring independent operations[140]. - The family controlling the company has pledged to respect the company's independent legal status and ensure compliance with relevant laws and regulations[140]. - The company has not reported any violations of commitments made by its controlling shareholders as of the end of the reporting period[140]. - The actual controller of Hebei Sitong New Materials Co., Ltd. is the Zang family, which ensures that the management personnel are independent and do not hold positions in other companies controlled by the family[152]. - The company guarantees the independence of its financial department and maintains a separate financial accounting system, ensuring compliance with legal and regulatory requirements[157]. - The family commits to not seeking any benefits beyond the agreements signed with Sitong New Materials, ensuring no economic losses occur due to violations of this commitment[152]. - Sitong New Materials has established a complete independent labor, personnel, and compensation management system, separate from other companies controlled by the family[156]. - The company has a commitment to maintain independent operations, ensuring that its assets, personnel, qualifications, and capabilities are independently managed[161]. - The family guarantees that all transactions with Sitong New Materials will be conducted in a public, fair, and just manner, minimizing related party transactions[161]. - The company has a long-term commitment to ensure that there are no violations of the independence commitments as of the end of the reporting period[165]. - The family will bear all legal responsibilities and compensate for any penalties incurred due to delays in property rights certification related to subsidiaries[164]. - The company has established a governance structure that allows the board of directors and general manager to exercise their powers independently according to laws and regulations[161]. - The family ensures that all information provided during transactions is true, accurate, and complete, taking legal responsibility for any misrepresentation[170]. Financial Performance - The company’s total revenue for 2018 was approximately ¥6.75 billion, representing a 7.85% increase compared to the previous year[32]. - Net profit attributable to shareholders for 2018 was approximately ¥390.18 million, a decrease of 3.65% from the previous year[32]. - The operating cash flow for 2018 was approximately ¥633.58 million, showing a significant increase of 132.57% year-over-year[32]. - The basic earnings per share for 2018 was ¥0.75, which is a decrease of 3.85% compared to the previous year[32]. - The total assets at the end of 2018 were approximately ¥6.59 billion, reflecting a 2.71% increase from the previous year[35]. - The net assets attributable to shareholders at the end of 2018 were approximately ¥2.90 billion, an increase of 17.43% compared to the previous year[35]. - The company reported a quarterly revenue of approximately ¥1.63 billion in Q1 2018, with a net profit of approximately ¥82.24 million[36]. - The company achieved a total revenue of ¥6,754,637,522.85 in 2018, representing a year-on-year growth of 7.85% compared to ¥6,262,823,276.54 in 2017[71]. - The net profit attributable to shareholders decreased by 3.65% to ¥390,180,292.53 from the previous year[71]. - The revenue from the foreign market reached ¥3,435,142,055.77, marking a significant increase of 20.87% compared to ¥2,842,020,714.20 in the previous year[77]. - The revenue from the bright wheels segment was ¥3,021,674,432.81, which accounted for 44.73% of total revenue, showing a growth of 3.68% year-on-year[75]. - The company reported a gross margin of 18.90% for the industrial sector, with a slight decrease of 0.06% compared to the previous year[78]. - The production volume of intermediate alloys increased by 14.58% to ¥921,870,634.7, while the sales volume reached ¥5,495,819,241.48, reflecting a growth of 7.90%[82]. Research and Development - The company emphasizes its strong R&D capabilities but acknowledges potential risks in developing new products and technologies due to rapid technological advancements[13]. - The company is focusing on research and development of new alloy materials to meet market demands[24]. - The company holds 7 invention patents, 23 utility model patents, and 33 non-patent technologies, ensuring a leading position in technology research and development[54]. - The company has successfully developed aerospace aluminum rare earth grain refinement intermediate alloys and can produce them in bulk[54]. - Research and development expenses amounted to 284,446,989.48 CNY, which is 4.21% of total revenue, up from 3.84% in 2017[96]. - The company obtained 96 new patents and established several national and industry standards during the year[95]. Market Strategy and Expansion - The company plans to expand its market presence and invest in new product development to enhance competitiveness[24]. - The company aims to explore new profit growth points through industry mergers and acquisitions, leveraging capital market opportunities[6]. - The company aims to improve operational efficiency through strategic mergers and acquisitions in the coming years[24]. - The company has established strong partnerships with major automotive manufacturers, enhancing its competitive edge in the international market[48]. - The company has established a strategic market layout with approximately 55% of total sales from the domestic market and 45% from international markets[61]. - The company has a well-defined cost management control system, utilizing an ERP information management system to enhance transparency in procurement, sales, and inventory management[66]. - The company has formed a cross-departmental project team to optimize product design and manufacturing processes, effectively controlling production and quality costs[66]. - The company has become one of the largest intermediate alloy producers in China, focusing on expanding its market share while maintaining its existing customer base[71]. - Lizhong Co., Ltd. will explore diversified business cooperation models to strengthen its strategic goals through industry integration[132]. Asset Management and Investments - The company completed a significant restructuring by acquiring 100% of Tianjin Qiguan's shares, enhancing its business scale and profitability in the aluminum alloy wheel manufacturing sector[46]. - A major asset restructuring was initiated in July 2018, resulting in the acquisition of 100% equity of Tianjin Qiguan and 4.52% equity of Lichong Co., with a fundraising target of up to ¥88,000,000[73]. - The company acquired a 100% stake in Tianjin Licheng Enterprise Management Co., Ltd. for 2,434,739,998.80 yuan, focusing on investment management[111]. - The company also acquired a 4.52% stake in Tianjin Licheng Group Co., Ltd. for 115,259,969.76 yuan, which specializes in the research, production, and sales of aluminum alloy wheels[111]. - The total investment amount for the reporting period was 2,595,272,963.84 yuan, a significant increase of 2,478.99% compared to the previous year[111]. Dividend Policy - The company plans to distribute cash dividends of 1.10 yuan per 10 shares (including tax) based on a total of 529,644,042 shares[14]. - The cash dividend amount for 2018 was RMB 63,620,617.83, accounting for 16.31% of the net profit attributable to shareholders[139]. - In 2017, the cash dividend amount was RMB 85,392,000.00, representing 21.09% of the net profit attributable to shareholders[139]. - The company has consistently maintained a cash dividend policy over the past three years, with varying amounts distributed each year[139]. - The cash dividend for the current year is based on a profit distribution plan that aligns with the company's articles of association[136]. Risk Management - The company reported that the price fluctuations of electrolytic aluminum, a key raw material, could impact working capital; however, the pricing strategy allows for some risk mitigation[9]. - The company faces risks related to the integration of newly acquired subsidiaries, which may affect control and competitive advantages[6]. - The company is exposed to foreign exchange risks due to significant fluctuations in the RMB to USD exchange rate, impacting foreign currency receivables[14]. - The company has implemented measures to reduce related party transactions, although changes in major related parties' operations could impact its business[10]. - The company aims to stabilize raw material supply channels and improve product quality to enhance market competitiveness[131].