Tonhe TECH.(SZ:300491)2019-03-21 16:00Financial Performance - The company's operating revenue for 2018 was ¥161,987,384.70, a decrease of 25.31% compared to ¥216,878,674.13 in 2017[25]. - The net profit attributable to shareholders was -¥14,165,214.25, representing a decline of 232.17% from a profit of ¥10,717,545.22 in the previous year[25]. - The net cash flow from operating activities was -¥34,509,914.47, a decrease of 321.84% compared to ¥15,556,481.72 in 2017[25]. - The total assets at the end of 2018 were ¥516,015,075.93, down 14.32% from ¥602,287,369.98 at the end of 2017[25]. - The net assets attributable to shareholders decreased by 4.04% to ¥413,756,037.81 from ¥431,175,984.89 in 2017[25]. - The basic earnings per share for 2018 was -¥0.10, a decline of 242.86% from ¥0.07 in 2017[25]. - The company reported a total revenue of 103,347,594.78, down from 140,007,489.66, indicating a significant overall decline[80]. - The company’s weighted average return on equity was -3.41% in 2018, down from 2.62% in 2017[25]. Accounts Receivable and Inventory Management - The accounts receivable at the end of the reporting period amounted to 113.31 million RMB, accounting for 21.95% of total assets, indicating a significant balance[8]. - The company recognizes the potential risks associated with rapid growth in accounts receivable and inventory, which could impact liquidity if not managed effectively[8][12]. - The company plans to maintain a strict accounts receivable management system to minimize bad debt risks and improve cash flow[8]. - The company reported a significant increase in asset impairment losses due to high recoverability risks associated with accounts receivable from Fujian Yufu[66]. - The company’s accounts receivable at the end of the reporting period amounted to 113.31 million yuan, accounting for 21.95% of total assets, indicating a potential risk if major clients' financial situations change[109]. - The company’s inventory at the end of the reporting period was 40.31 million RMB, a decrease of 4.94% compared to the beginning of the period, reflecting stable inventory management[12]. - The company reported a decrease in inventory from 42.40 million yuan at the beginning of the period to 40.31 million yuan at the end, reflecting a 4.94% reduction[111]. Research and Development - The company is committed to increasing R&D investment to enhance its technological advantages and product competitiveness in the rapidly evolving power electronics industry[9]. - The company aims to align its R&D efforts with market demands to ensure successful product development and maintain its competitive edge[10]. - The company’s R&D expenses for 2018 amounted to 21.16 million yuan, accounting for 13.06% of total revenue, reflecting a commitment to innovation[56]. - The company has accumulated 59 patents and 32 software copyrights, showcasing its strong focus on technological innovation[56]. - The company has entered the mass production stage for two key R&D projects: bidirectional power conversion technology and a new generation of water-cooled vehicle-mounted DC-DC power supply[86]. - The company plans to enhance its product offerings in electric vehicle onboard power supplies by developing integrated products such as two-in-one and three-in-one systems[51]. - The company aims to strengthen its market position in the electric power operation power supply sector by continuously upgrading technology and expanding product lines[58]. Market Position and Strategy - The company reported a risk of declining gross margins due to increased competition in the electric vehicle and charging station sectors, necessitating ongoing innovation and cost management[11]. - The company has established a strong market position in the electric vehicle charging and onboard power supply sectors, contributing to sustained performance growth and new profit points[47]. - The company benefits from favorable national policies aimed at accelerating the construction of electric vehicle charging infrastructure, with a target of meeting the charging needs of over 5 million electric vehicles by 2020[45]. - The company focuses on the research, production, and sales of high-frequency switch power supplies and related electronic products, including charging power systems for charging stations and electric vehicle onboard power supplies[35]. - The company has completed the acquisition of 100% equity in Hohai Power, enhancing its capabilities in military power supply and expanding its market reach[68]. - The company plans to integrate the operations of its wholly-owned subsidiary, Hohwei Power, to enhance market share and profitability in the military sector while maintaining its competitive advantages[106]. Operational Efficiency and Cost Management - The company has optimized its operational management and improved information exchange efficiency across departments to boost productivity[67]. - The company aims to reduce operational costs by 15% through efficiency improvements and automation in production processes[136]. - The company has implemented a "dual-brand, dual-supplier" strategy to effectively reduce product costs[61]. - The company’s gross profit margin is under pressure due to increased competition in the electric vehicle and charging station sectors, necessitating ongoing cost reduction efforts[111]. - The raw material costs for the electric power sector accounted for 87.02% of total operating costs, up from 81.39% in the previous year[80]. Future Outlook and Growth Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[136]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[138]. - The company aims to launch three new products in the upcoming quarter, which are anticipated to contribute an additional 200 million RMB in revenue[147]. - The company plans to implement a share repurchase program, which will be initiated if the stock price exceeds the net asset value per share for 20 consecutive trading days[140]. - The company is committed to becoming a leader in the power electronics industry through continuous innovation and market expansion[103]. Shareholder and Dividend Policies - The company has not proposed any cash dividends or stock bonuses for the reporting period, indicating a focus on reinvestment[13]. - The company did not distribute cash dividends for the year 2018, maintaining a total distributable profit of ¥92,700,227.41[119]. - The total cash dividend amount for 2018 was recorded as ¥0.00, indicating no distribution[121]. - The company’s cash dividend policy reflects a strategic focus on future funding arrangements and development plans[120]. - The company has committed to performance targets for 霍威电源, with net profit targets of ¥17 million for 2018, ¥25 million for 2019, and ¥33 million for 2020[123]. Compliance and Governance - The company has implemented changes in accounting policies in accordance with the revised financial reporting formats issued by the Ministry of Finance, effective from December 25, 2017[156]. - The company has engaged DaXin Accounting Firm for auditing services, with a fee of ¥400,000, marking a continuous service period of 9 years[165]. - The company has not faced any penalties or corrective actions during the reporting period[169]. - The company is required to maintain the shares acquired through repurchase for at least 6 months before any potential sale[143].