ANHUI ZHONGDING(000887)2020-07-13 16:00Financial Performance - The company's operating revenue for 2018 was CNY 12,367,838,166.50, representing a decrease of 5.35% compared to the previous year[28]. - The net profit attributable to shareholders for 2018 was CNY 1,115,328,384.68, down 46.03% year-over-year[28]. - The net cash flow from operating activities for 2018 was CNY 974,670,144.74, an increase of 68.57% compared to the previous year[28]. - The total assets at the end of 2018 were CNY 16,101,603,104.25, reflecting a growth of 12.57% from the previous year[28]. - The basic earnings per share for 2018 was CNY 0.92, a decrease of 46.74% compared to the previous year[28]. - In 2019, the company achieved a revenue of 11.706 billion yuan, a year-on-year decrease of 5.35%, and a net profit attributable to shareholders of 602 million yuan[60]. - Total operating revenue for 2019 was ¥11,706,104,396.94, a decrease of 5.35% compared to ¥12,367,838,166.50 in 2018[66]. - The automotive sector contributed ¥10,736,883,911.11, accounting for 91.72% of total revenue, down 6.48% from the previous year[66]. - Non-automotive revenue increased by 9.23% to ¥969,220,485.83, representing 8.28% of total revenue[66]. - The gross profit margin for the automotive sector was 22.06%, a decline of 2.61% year-over-year[69]. - Domestic revenue was ¥3,871,026,622.14, down 4.78%, while international revenue was ¥7,835,077,774.80, down 5.63%[69]. - The company sold 561,052 units in 2019, a decrease of 1.77% from 571,182 units in 2018[70]. - The top ten OEM customers contributed a total sales of 6.533 billion yuan, accounting for 55.81% of the company's total revenue in 2019[64]. Profit Distribution - The company reported a profit distribution plan of 2 CNY per 10 shares, based on a total of 1,211,255,247 shares[6]. - The company adheres to a clear profit distribution policy, ensuring the protection of shareholders' rights, particularly for minority investors[138]. - The company proposed a cash dividend of 3 CNY per 10 shares for the 2017 fiscal year, totaling 370,332,028.50 CNY, which represents 32.85% of the net profit attributable to ordinary shareholders[139]. - For the 2018 fiscal year, the cash dividend was set at 2 CNY per 10 shares, amounting to 242,645,419.00 CNY, accounting for 21.76% of the net profit attributable to ordinary shareholders[140]. - In 2019, the cash dividend was again 2 CNY per 10 shares, totaling 242,251,049.40 CNY, which is 40.24% of the net profit attributable to ordinary shareholders[144]. - The total cash dividend for 2019, including other methods, was 242,251,049.40 CNY, representing 5.21% of the distributable profit of 4,646,426,101.73 CNY[144]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends paid out in 2017, 2018, and 2019[139]. - The company has ensured that minority shareholders have had sufficient opportunities to express their opinions and that their legal rights have been fully protected[139]. - The independent directors have fulfilled their responsibilities and played their due role in the decision-making process regarding dividends[139]. - The company has not made any adjustments or changes to its cash dividend policy during the reporting period[139]. Corporate Governance and Transparency - The company emphasizes the importance of accurate financial reporting, with key personnel affirming the report's authenticity and completeness[5]. - The company has a commitment to disclose information through designated media, including Securities Times and China Securities Journal[21]. - The company is focused on maintaining transparency and has set up a securities affairs department for report accessibility[21]. - The company has established a contact point for investor relations, with dedicated personnel for securities affairs[20]. - The company has conducted multiple institutional research activities, indicating a proactive approach to stakeholder engagement and transparency[135]. - The company has established an investor relations management system to facilitate communication with investors[200]. - The company has been under the continuous supervision of Minsheng Securities since June 20, 2018[25]. Research and Development - The company has established R&D centers in Europe and the United States to enhance its global synchronized R&D capabilities[51]. - R&D expenses for the year amounted to ¥570.63 million, representing 4.87% of total sales revenue, an increase of 3.70% compared to the previous year[84]. - The number of R&D personnel increased to 2,930, representing 14.74% of the total workforce, up from 14.61% in the previous year[85]. - The company is actively expanding into the new energy vehicle sector, achieving sales of 1.048 billion yuan in 2019 from related products[65]. - The company is focusing on developing energy-saving and new energy products, enhancing its R&D capabilities and core technologies[134]. Strategic Initiatives and Market Position - The company ranked 92nd in the "Top 100 Global Automotive Parts Suppliers" and 13th in the "Top 50 Global Non-Tire Rubber Products Suppliers," maintaining the leading position in the domestic industry for ten consecutive years[42]. - The company has made breakthroughs in the aluminum control arm assembly project, receiving approval from Mercedes-Benz for its application[43]. - The company is enhancing internal cost control and operational efficiency through the implementation of SAP information systems and automation technologies[44]. - The company is implementing a strategy to expand manufacturing to low-cost countries, aiming to reduce production costs amid international trade tensions[44]. - The company has integrated international technology resources through overseas acquisitions, further optimizing its new product development processes[51]. - The company is focusing on the internationalization of its management structure to optimize technology integration and market expansion[44]. - The company has established a strong management framework for its overseas acquisitions, ensuring effective cost control and strategic planning[49]. - The company is actively expanding into high-end sealing products, which are currently heavily reliant on imports, aiming to enhance international competitiveness and meet domestic market demands[130]. - The company plans to transition from parts to components and diversify its industry focus beyond automotive to include energy-saving and new energy vehicles[131]. - The company aims to enhance brand influence and integrate global resources to strengthen its position in multinational automotive supply chains[134]. Investments and Financial Management - The total amount of committed investment for acquiring 100% equity of WEGU Holding is CNY 62,777.77 million, with an adjusted total investment of CNY 60,927.41 million, achieving 100% investment progress[104]. - The investment in the automotive e-commerce service platform by Zhongding Co., Ltd. is CNY 58,600 million, with the project being subject to changes[104]. - The automation and capacity enhancement project for rubber products has a committed investment of CNY 25,000 million, with CNY 15,086.89 million invested to date, achieving 100% investment progress[104]. - The project for the automation and capacity enhancement of shock-absorbing rubber products has a committed investment of CNY 15,300 million, with CNY 15,300 million invested, achieving 105.07% investment progress[104]. - The company plans to use up to CNY 60,000 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months[109]. - As of December 31, 2019, the company has unutilized raised funds totaling CNY 138,089.41 million, with CNY 118,089.41 million in special accounts[112]. - The company has permanently supplemented working capital with surplus raised funds and interest totaling CNY 21,169.40 million[109]. Compliance and Legal Matters - The company has not reported any changes in accounting policies that would affect the financial statements significantly[160]. - The company continues to comply with the new accounting standards set forth by the Ministry of Finance, ensuring accurate financial reporting[156]. - The domestic accounting firm, Rongcheng Accounting Firm, has been engaged for 20 consecutive years, with an audit fee of 2.5 million CNY[169]. - No major litigation or arbitration matters occurred during the reporting period[175]. - The company did not implement any employee incentive plans or stock ownership plans during the reporting period[178]. - There were no significant related party transactions during the reporting period[181]. - The company has not experienced any bankruptcy restructuring during the reporting period[174]. - The company has not made any asset or equity acquisitions or sales during the reporting period[182]. - The company has not engaged in any leasing, contracting, or custodial arrangements during the reporting period[186]. - The company has maintained a clean integrity status with no significant debts or court judgments outstanding during the reporting period[177]. - The company reported no violations regarding external guarantees during the reporting period[193]. - There were no entrusted financial management activities during the reporting period[194]. - The company did not engage in any entrusted loan activities during the reporting period[195]. - There were no significant contracts during the reporting period[196].