Dare Auto(SZ:300473)2020-07-30 16:00Financial Performance - The company's operating revenue for 2017 was ¥2,540,913,519.56, representing a 308.06% increase compared to ¥622,677,373.62 in 2016[24]. - The net profit attributable to shareholders for 2017 was ¥131,340,419.95, a 19.72% increase from ¥109,708,417.45 in 2016[24]. - The net profit after deducting non-recurring gains and losses was ¥126,640,094.50, up 23.65% from ¥102,421,693.31 in 2016[24]. - The company's total assets increased by 117.33% to ¥4,269,335,026.43 at the end of 2017, compared to ¥1,964,453,830.24 at the end of 2016[24]. - Total revenue for 2017 reached ¥2,540,913,519.56, a significant increase of 308.06% compared to ¥622,677,373.62 in 2016[62]. - The company's main product, soundproofing and noise reduction products, generated ¥1,725,346,067.15, accounting for 67.90% of total revenue[63]. - The hydraulic steering pump contributed ¥564,279,537.09, representing 22.21% of total revenue, with a slight increase of 3.05% from the previous year[63]. - Overseas revenue surged to ¥1,798,658,378.07, a staggering increase of 28,318.54% compared to ¥6,329,173.44 in 2016[63]. - The gross profit margin for the industrial sector was 30.47%, reflecting a decrease of 8.03% year-on-year[65]. Acquisition and Integration - In 2017, the company completed the acquisition of CCI, resulting in a significant increase in sales revenue, but the financing costs and stock incentive plan implementation affected net profit[8]. - The company completed a major asset restructuring by acquiring CCI, enhancing product offerings and international collaboration[34]. - The company successfully acquired CCI, enhancing its horizontal expansion capabilities and transitioning towards a global automotive parts enterprise[37]. - The acquisition of CCI has resulted in significant goodwill on the consolidated balance sheet, which requires impairment testing; if CCI fails to meet expected earnings, it may negatively impact future performance[112]. - The company reported a total investment of RMB 1,434.8 million in the acquisition of CCI, holding a 100% stake[89]. Market and Industry Trends - The automotive parts industry is highly correlated with the overall economic conditions, and the company faces risks from potential declines in the growth rate of the domestic automotive industry[6]. - The company anticipates a decrease in performance growth due to the global economic slowdown and reduced consumer enthusiasm for new car purchases[7]. - The company is under pressure to upgrade its main product, hydraulic steering pumps, due to the rapid development of electric vehicles and new energy vehicles[8]. - The production volume of new energy vehicles in China reached approximately 794,000 units in 2017, with a year-on-year growth of 53.8%, highlighting the strong momentum in the new energy vehicle sector[55]. - The domestic automotive market saw production and sales of 29.01 million and 28.88 million vehicles respectively, maintaining its position as the world's largest market[105]. Research and Development - The company aims to strengthen its position in the automotive parts industry by focusing on trends such as "electrification, lightweighting, integration, and new energy" through new technologies and products[34]. - The company is actively developing new products related to energy-saving and emission reduction for new energy vehicles, as well as products for intelligent driving, including 360-degree imaging and data transmission technologies[51]. - The company has established a national-level laboratory certified by ISO/IEC17025, capable of conducting reliability tests for pumps, electric pumps, and motors[45]. - The company reported an R&D investment amounting to ¥45,125,955.04, representing 1.78% of operating revenue, a significant decrease from 5.36% in 2016[76]. - The number of R&D personnel increased to 462 in 2017, accounting for 10.40% of the total workforce, down from 16.85% in 2016[76]. Quality Management - The company has developed a quality prevention and control system during the product and process design stages, utilizing tools like QFD and FMEA to identify quality risks[46]. - The company has established a procurement quality prevention and control system to ensure the reliability of new suppliers and continuously improve quality management[47]. - The company employs advanced manufacturing technologies and error-proofing techniques to ensure stable product quality and improve process capability[48]. - The company has implemented a product quality identification and traceability system using barcode management to prevent misuse and ensure traceability[49]. - The company has built a standardized quality improvement system to continuously apply effective improvement measures across all design and manufacturing processes[50]. Strategic Goals and Future Plans - The company plans to accelerate its internationalization through customer expansion, product exports, and overseas acquisitions[34]. - The company is focusing on international market expansion, enhancing local manufacturing and sales, and ensuring stable growth in overseas revenue through effective business integration and operational efficiency[52]. - The company plans to increase production capacity by 500,000 units for electric hydraulic steering pumps and 1 million units for automatic transmission oil pumps to meet growing customer demand, which has been approved by the board and shareholders[56][57]. - The company aims to enhance operational efficiency and improve management indicators to adapt to market changes and risks[107]. - The company plans to increase R&D investment to accelerate the development of new products and capture market share in emerging segments[110]. Corporate Governance and Shareholder Relations - The company has a clear and transparent cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring the protection of minority shareholders' rights[118]. - The company has committed to not transferring or entrusting shares held prior to the public offering for a period of six months, ensuring stability in shareholding[121]. - The company has committed to achieving net profits of no less than ¥10,300 million, ¥11,900 million, and ¥13,400 million for the years 2017, 2018, and 2019 respectively[126]. - The actual net profit for 2017 was ¥13,310 million, exceeding the forecasted ¥10,300 million[125]. - The company has made commitments to ensure compliance with relevant laws and regulations during the share repurchase and increase processes[124]. Employee and Community Engagement - The company provided employment for 240 individuals through local job fairs, contributing to poverty alleviation efforts in the region[156]. - The company maintains a commitment to corporate social responsibility, ensuring compliance with labor laws and providing social insurance for all employees[154]. - The company actively engages in community support and social welfare activities, integrating these efforts into its corporate culture[155]. - The company’s management emphasizes employee development through training and career advancement opportunities[154]. Financial Management and Expenses - The company incurred sales expenses of ¥90,419,856.16, up 148.27% due to increased freight and wage costs from the CCI merger[75]. - Management expenses rose to ¥450,266,954.87, a 410.11% increase attributed to higher wages, rent, and stock incentive costs from the CCI merger[75]. - Financial expenses increased by 682.90% to ¥59,896,293.57, primarily due to higher financing costs and foreign exchange losses[75]. - The company reported a significant decrease in net cash flow from operating activities, which was ¥41,785,861.54, down 78.92% from ¥198,221,086.75 in 2016[24].