Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 8,716.54 million, representing a 20% increase from RMB 7,252.27 million in 2023[3] - The revenue from the electric AMI business was RMB 3,198.76 million, an increase of 21% compared to 2023[3] - The revenue from communication and fluid AMI business was RMB 2,614.80 million, up 24% from the previous year[3] - The ADO business generated revenue of RMB 2,902.99 million, reflecting a 17% increase year-over-year[3] - The net profit attributable to the company's owners increased by 35% to RMB 705.61 million, compared to RMB 521.23 million in 2023[3] - Basic earnings per share for the year were RMB 0.714, up from RMB 0.527 in 2023[3] - The total comprehensive income for the year was RMB 947.202 million, compared to RMB 813.663 million in the previous year[6] - The company reported a pre-tax profit of RMB 1,207.588 million, an increase from RMB 860.732 million in 2023[4] - Total revenue for the year ending December 31, 2024, reached RMB 8,716,541,000, with external sales contributing RMB 8,716,541,000[19] - The segment performance showed a profit of RMB 1,239,916,000 before tax, with specific contributions from the segments: RMB 379,567,000 from Smart Metering Solutions, RMB 603,383,000 from Communication and Fluid Solutions, and RMB 256,966,000 from Smart Power Distribution Solutions[19] Assets and Liabilities - Non-current assets decreased from RMB 3,952,832 thousand in 2023 to RMB 3,390,622 thousand in 2024, a reduction of approximately 14.2%[8] - Current assets decreased from RMB 11,774,066 thousand in 2023 to RMB 10,489,497 thousand in 2024, a decline of about 10.9%[8] - Total liabilities decreased from RMB 7,376,110 thousand in 2023 to RMB 6,227,711 thousand in 2024, a decrease of approximately 15.6%[9] - Non-current liabilities increased from RMB 875,787 thousand in 2023 to RMB 1,029,860 thousand in 2024, an increase of about 17.6%[9] - Total equity increased from RMB 6,776,621 thousand in 2023 to RMB 7,320,928 thousand in 2024, reflecting a growth of approximately 8.0%[9] - Cash and bank balances decreased from RMB 2,790,300 thousand in 2023 to RMB 2,644,896 thousand in 2024, a decline of about 5.2%[8] - Inventory decreased from RMB 1,264,093 thousand in 2023 to RMB 1,205,919 thousand in 2024, a reduction of approximately 4.6%[8] - Accounts receivable decreased from RMB 5,821,016 thousand in 2023 to RMB 4,550,227 thousand in 2024, a decline of about 21.8%[8] - The company reported a significant increase in reserves from RMB 5,156,730 thousand in 2023 to RMB 5,422,701 thousand in 2024, an increase of approximately 5.2%[9] Research and Development - The company incurred research and development expenses of RMB 730.404 million, compared to RMB 681.375 million in the previous year[4] - Research and development expenses totaled RMB 695,722 thousand, up from RMB 640,012 thousand in 2023, indicating a focus on innovation[23] - The group is committed to increasing R&D efforts in energy IoT and digital grid technologies, collaborating with national laboratories to promote the industrialization of research outcomes[60] - The group is focusing on the development of "Internet of Things + Chips + Artificial Intelligence" technologies to enhance innovation and market competitiveness[62] Market and Growth Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[21] - The group aims to leverage the growth in procurement demand from Inner Mongolia Electric Power Group and enhance its market share in provincial and local power companies[53] - The group is actively expanding its market in the telecommunications and petrochemical sectors, launching new products to meet energy efficiency and carbon reduction needs[51] - The group anticipates further opportunities from the digital transformation and smart upgrades promoted by the National Grid[53] - The group is focusing on the non-electricity market, particularly in the energy measurement and efficiency management services, to drive business expansion and product development[54] International Expansion - The group has established over ten overseas subsidiaries and sales representative offices, with factories in Saudi Arabia and Indonesia under construction, advancing the group's internationalization strategy[60] - The group has received multiple international product certifications, including FCC certification in the U.S. and CE-RED certification in the EU, enhancing its global market presence[60] - The group is actively participating in the "Belt and Road" initiative to seize development opportunities in emerging markets such as Latin America, the Middle East, and Africa[63] - The overseas revenue for the year reached RMB 2,396.80 million, a 50% increase compared to RMB 1,599.26 million in the previous year[75] - The group secured overseas orders amounting to approximately RMB 3,471 million, representing a 26% increase from RMB 2,758 million in the previous year[76] Corporate Governance and Compliance - The company has adhered to corporate governance codes and has not deviated from the principles outlined in the listing rules as of December 31, 2024[117] - The audit committee has reviewed the annual performance for the year ending December 31, 2024, ensuring compliance with financial reporting standards[121] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[124] - The chairman of Wasion Holdings Limited is Cao Zhaohui, indicating a stable leadership presence[125] Employee and Operational Efficiency - The group employed 5,280 staff as of December 31, 2024, an increase from 4,929 in 2023, indicating a growth in workforce[113] - The company has established stock option and share reward plans to retain and attract qualified employees, supporting its ongoing development[113] - The group achieved significant operational efficiency and quality improvements in Tanzania, solidifying long-term procurement relationships with local power companies[79]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 10.14 HKD, based on a current price of 5.79 HKD [1]. Core Insights - The company, Weisheng Holdings, is a leading domestic player in the metering and energy efficiency management sector, with significant growth in revenue and profit since 2022 [2]. - The company has diversified its operations through three main segments: Weisheng Group, Weisheng Information, and Weisheng Energy, which collectively drive its growth [2][4]. - The overseas business has seen a substantial increase, with revenue growing from less than 400 million RMB in 2020 to 1.599 billion RMB in 2023, reflecting a CAGR of 66% [2]. Summary by Sections 1. Leading Supplier in Smart Metering and Energy Management - Weisheng Holdings has established itself as a leader in high-end metering products in China, evolving its business model over the years to focus on smart metering solutions [12]. - The company's ownership structure is concentrated, with the founder holding 53.66% of the shares, allowing for strategic decision-making [15]. - The company has optimized its product structure, leading to rapid revenue growth, particularly in its ADO and overseas segments [18]. 2. Smart Meters: Leading Supplier in Metering - The smart meter segment continues to perform well, with a stable increase in revenue driven by both domestic and international market expansion [29]. - The company has maintained a strong position in bidding for major projects with State Grid and Southern Power Grid, indicating its competitive advantage [25][26]. - The overseas market for smart meters is expanding, with significant growth in revenue and orders, particularly in regions like Latin America and Africa [33][34]. 3. Weisheng Information: Energy IoT Unicorn - Weisheng Information is positioned as a comprehensive solution provider in the energy IoT sector, with a diverse product matrix covering various levels of the energy IoT industry [39]. - The company is focused on enhancing its profitability through continuous innovation and expansion in the energy management space [39]. 4. Financial Projections and Valuation - The company is expected to maintain high growth in its overseas business, with projected net profits of 755 million, 913 million, and 1.159 billion RMB for 2024-2026, respectively [5]. - The report anticipates a steady increase in gross margins as the share of overseas revenue grows, with a target PE of 10X for 2025 [5].

Share Award Plan - The company has adopted a Share Award Plan in May 2016 to recognize and reward certain employees for their contributions, aiming to retain them and attract suitable personnel to further drive the company's development[1] - The maximum number of shares that can be granted to selected participants under the Share Award Plan shall not exceed 1% of the company's issued share capital at any time[1]

Key Points - **Industry/Company Involved**: The call focuses on a major recommendation for an "elastic target" company, though the specific industry and company are not explicitly mentioned. - **Core Viewpoints and Arguments**: - The company is highlighted as an "elastic target," suggesting it has the potential for significant growth or resilience in various market conditions. - The call is a major recommendation, indicating a strong positive outlook on the company's prospects. - **Other Important Content**: - The opening of the call expresses gratitude to investors for their time, emphasizing the importance of their participation in the discussion. - **[1]**

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 7.6, representing a potential upside of 34% from the current price of HKD 5.67 [1][11]. Core Insights - The company is expected to achieve a revenue growth of approximately 20.5% for the full year 2024, driven by a strong order backlog of RMB 85.5 billion as of June 30, 2024, which reflects a year-on-year increase of 26% [4][8]. - The company performed well in tenders from the State Grid and Southern Power Grid, securing contracts worth RMB 3.06 billion and RMB 1.99 billion respectively, positioning it as a leading player in the domestic power grid market [5][9]. - The dividend payout ratio is projected to return to 60% in 2025, with a dynamic dividend yield of approximately 7.23% for 2024, making it an attractive investment [6][10]. Summary by Sections Financial Performance - For the first half of 2024, the company reported revenue of RMB 3.742 billion, a year-on-year increase of 16% [4][8]. - The company’s total assets are valued at RMB 14.338 billion, with a net asset value of RMB 6.852 billion [2]. Shareholder Information - The major shareholder is Xingbao Investment Holdings Limited, holding 53.59% of the shares [3]. Future Projections - Revenue projections for 2024 estimate a total of RMB 8.741 billion, with a year-on-year growth rate of 20.5% [11]. - The net profit attributable to shareholders is expected to reach RMB 679 million in 2024, reflecting a growth of 30.3% compared to the previous year [11].

Company Overview - Wasion Holdings is a leading provider of smart metering, smart power distribution, and energy efficiency management solutions in China, with over 20% market share in high-end metering products domestically[7]. - The company focuses on research, development, production, and sales of energy metering and efficiency management solutions, applicable across various sectors including electricity, water, gas, and heat supply[7]. - Wasion's subsidiary, Wasion Information Technology Co., Ltd., holds a 58.56% stake and became the first Hunan Province enterprise listed on the Sci-Tech Innovation Board in January 2020[8]. - The company aims to become a leading supplier of smart power distribution systems and solutions in China, addressing the significant demand for energy internet transformation[8]. - Wasion is committed to innovation and aims to establish itself as a major supplier in the international smart grid and metering sectors[8]. - The company emphasizes its mission to be an "energy metering and efficiency management expert," aligning with global trends towards carbon neutrality and energy consumption transformation[8]. Product and Market Development - Wasion's advanced smart metering products include a full range of smart electricity meters, water meters, gas meters, and ultrasonic heat meters[7]. - The company is actively involved in developing new energy storage solutions and integrated systems for various applications, including industrial automation and demand-side management[7]. - Future outlook includes a focus on expanding market presence and enhancing product offerings to meet evolving energy management needs[8]. - The company plans to launch a smart electric carbon fusion meter in the first half of 2024, leading the industry in research and development capabilities[41]. - The company aims to enhance its position as a major supplier of electric meters in target countries through continuous technological innovation and product optimization[42]. Financial Performance - Revenue for the six months ended June 30, 2024, increased by 16% to RMB 3,741.54 million compared to RMB 3,225.68 million in the same period of 2023[11]. - Gross profit rose by 13% to RMB 1,327.73 million, with a gross margin of 35.49%, down from 36.48% in the previous year[11]. - Operating profit increased by 43% to RMB 623.31 million, with an operating margin of 17%, up from 14% in the prior year[15][10]. - Net profit attributable to shareholders increased by 55% to RMB 331.03 million, with a net profit margin of 8.8%, compared to 6.6% in the same period last year[16][10]. - Other income rose to RMB 147.17 million, up from RMB 100.25 million in the previous year, primarily from interest income and government grants[12]. Asset and Liability Management - Total assets increased to RMB 14,338.12 million from RMB 13,391.90 million, with total equity attributable to shareholders rising to RMB 5,205.02 million from RMB 4,817.44 million[10]. - The debt ratio increased to 21% from 18% as of December 31, 2023, indicating a rise in total borrowings to RMB 2,970.55 million[17]. - The accounts receivable turnover period improved to 231 days from 260 days, while the accounts payable turnover period decreased to 296 days from 315 days[10]. - Employee costs for the first half of 2024 amounted to RMB 494.58 million, up from RMB 413.87 million in the same period last year[19]. Research and Development - The company continues to invest in research and development, with R&D expenses amounting to RMB 308,187 thousand, slightly up from RMB 304,627 thousand in the previous year[80]. - The company’s R&D efforts include the development of an AI edge computing gateway and a smart security management platform to enhance digital transformation in the power industry[47]. - The group has obtained 67 authorized patents during the reporting period, including 30 invention patents, and currently holds a total of 1,942 effective patents and 1,811 software copyrights[60]. International Expansion - The company has established new subsidiaries in Mexico and Indonesia and is planning factories in Saudi Arabia, Indonesia, and Mexico, with an investment of HKD 800 million for international market expansion[47]. - The group is actively exploring opportunities in the European market, with contracts exceeding RMB 200 million for large-scale meter projects in Austria and Germany[58]. - The group aims to expand its production scale in Mexico and Brazil, focusing on enhancing market share in the electric meter sector and increasing research outcomes in new energy and distribution equipment[59]. Shareholder and Governance - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024[67]. - The company’s major shareholder, controlled by Ji Wei, holds 534,388,888 shares, representing 53.66% of the issued share capital[68]. - The company maintained compliance with the corporate governance code as per the listing rules throughout the reporting period[73]. Market Trends and Economic Indicators - The GDP of the domestic market for the first half of 2024 is RMB 61.7 trillion, reflecting a year-on-year growth of 5.0%[32]. - The total electricity consumption in China reached 4.66 trillion kWh, a year-on-year increase of 8.1%[33]. - The retail sales of new energy vehicles reached 4.11 million units in the first half of 2024, representing a growth of 33.1% year-on-year[32]. Cash Flow and Financial Position - Operating cash flow for the six months ended June 30, 2024, was RMB (85,431,000), a significant decrease from RMB 206,084,000 in the previous year, indicating a decline in operational efficiency[86]. - The company incurred a net cash outflow from investing activities of RMB (364,252,000) for the six months ended June 30, 2024, compared to RMB (304,032,000) in the same period last year, representing an increase in investment expenditures[86]. - Financing activities generated a cash inflow of RMB 1,682,109,000, while cash outflows included RMB 1,262,525,000 for bank loan repayments and RMB 253,332,000 for dividends paid[86]. Share-Based Payments and Incentives - The share award plan is set to remain effective for 10 years from its adoption date on May 3, 2016, with a maximum share limit of 10% of the total issued shares[24]. - The company has launched a restricted share incentive plan for mid-level and above management, which was approved on April 3, 2024, and will be effective for five years, with a total number of shares not exceeding 10% of the issued shares[137]. - The company reported a share-based payment expense of RMB 8,935,000 for the six months ended June 30, 2024, compared to RMB 0 for the same period in 2023[139].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,741.54 million, an increase of 16% compared to RMB 3,225.68 million in the same period of 2023[3]. - The net profit attributable to the company's owners increased by 55% to RMB 331.03 million, compared to RMB 213.82 million in the same period of 2023[3]. - Basic earnings per share for the period were RMB 33.5 cents, compared to RMB 21.7 cents in the same period of 2023[3]. - Gross profit for the six months was RMB 1,327.73 million, compared to RMB 1,176.73 million in the same period of 2023[5]. - Total comprehensive income for the period was RMB 428.996 million, compared to RMB 334.192 million in the same period of 2023[6]. - The adjusted profit before tax for the group was RMB 560,615,000 for the six months ended June 30, 2024, compared to RMB 371,972,000 for the same period in 2023, indicating a significant increase of about 50.7%[13][14]. - The gross profit margin for the six months ended June 30, 2024, was impacted by an increase in cost of sales, which rose to RMB 2,362,706 thousand from RMB 1,962,497 thousand in the previous year, indicating a cost increase of approximately 20.3%[21]. - Operating profit before financing costs and taxes increased by 43% to RMB 623.31 million, compared to RMB 434.39 million in the same period of 2023[65]. - Profit attributable to equity holders increased by 55% to RMB 331.03 million, up from RMB 213.82 million in the same period of 2023[65]. Revenue Breakdown - AMI business revenue rose to RMB 1,451.12 million, up 28% from the same period last year[3]. - The revenue from the Electric Smart Metering Solutions segment was RMB 1,451,123,000, up from RMB 1,133,613,000 in the previous year, reflecting a growth of approximately 28%[13][14]. - The Communication and Fluid Smart Metering Solutions segment generated revenue of RMB 1,151,120,000, compared to RMB 979,546,000 in the prior year, marking an increase of around 17.5%[13][14]. - The Smart Distribution System and Solutions segment reported revenue of RMB 1,139,294,000, which is a slight decrease from RMB 1,112,523,000 in the previous year, showing a marginal growth of about 2.4%[13][14]. - The electric AMI business generated revenue of RMB 1,451.12 million, a 28% increase from RMB 1,133.61 million in the first half of 2023, accounting for 39% of total group revenue[36]. - The communication and fluid AMI business recorded a revenue of RMB 1,151.12 million, an 18% increase year-on-year, accounting for 31% of the group's total revenue[41]. - ADO business recorded revenue of RMB 1,139.29 million, a 2% increase year-on-year, accounting for 30% of the group's total revenue[46]. Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 3,715.63 million, compared to RMB 3,390.62 million as of December 31, 2023[7]. - Current assets totaled RMB 6,166.81 million, compared to RMB 6,227.71 million as of December 31, 2023[8]. - The company's total equity as of June 30, 2024, was RMB 6,851.87 million, compared to RMB 6,776.62 million as of December 31, 2023[8]. - Accounts receivable increased to 5,242,873,000 RMB as of June 30, 2024, from 4,644,367,000 RMB as of December 31, 2023, representing an increase of approximately 12.9%[25]. - Accounts payable increased to 2,848,150,000 RMB as of June 30, 2024, from 2,354,548,000 RMB as of December 31, 2023, marking a growth of 20.9%[29]. - As of June 30, 2024, total bank borrowings amounted to RMB 2,970.55 million, with a debt ratio increasing from 18% to 21%[66]. - The group has no significant contingent liabilities as of June 30, 2024[69]. Market and Growth Strategies - The company continues to focus on expanding its product offerings in smart metering solutions and enhancing operational efficiency across its segments[12]. - The company is committed to ongoing research and development in new technologies to support market expansion and improve service delivery[12]. - The group aims to enhance its market share in the overseas market by becoming a major supplier of electric meters in target countries, focusing on energy measurement and efficiency management solutions[40]. - The group plans to continue investing in R&D and market expansion strategies to enhance its competitive position in the smart metering and energy management sectors[20]. - The group is focusing on developing energy measurement and efficiency management solutions based on microgrid scenarios, targeting high-energy-consuming industries and communication operators[40]. - The group anticipates continued stable growth in the power grid market, driven by centralized procurement demands from national and local power companies[40]. Research and Development - Research and development expenses for the period were RMB 296,723 thousand, up from RMB 274,769 thousand in the previous year, reflecting a growth of about 7.9%[21]. - The group is committed to enhancing its R&D capabilities, with a focus on digital grid transformation and smart city development[56]. - The group achieved international leading level in power carbon emission measurement technology through collaboration on a key national R&D project[57]. - The group launched multiple high-end metering products, including E-level high-accuracy dynamic metering energy meters in cooperation with the State Grid[57]. Governance and Compliance - The audit committee is responsible for independent assessments of the group's financial reporting processes, internal controls, and risk management systems[72]. - The interim results for the six months ending June 30, 2024, have been reviewed by the auditors, Ernst & Young[72]. - The board of directors consists of both executive and independent non-executive directors, ensuring a balanced governance structure[73]. - The chairman of the board is Ji Wei, who is responsible for overseeing the company's strategic direction[73].

Market Position and Business Performance - Wasion Holdings' advanced smart metering business holds over 20% market share in China's high-end metering products market[7] - Revenue for the year reached approximately RMB 7.252 billion, a 24% increase year-over-year[20] - Net profit attributable to shareholders was RMB 521.23 million, up 61% compared to the previous year[20] - Basic earnings per share were RMB 0.527, a 60% increase year-over-year[20] - The company's AMI business revenue grew by 29%, while ADO business revenue increased by 31%[20] - Overseas revenue grew by 30% year-over-year, despite economic cycles affecting the industry[20] - Revenue increased by 24% to RMB 7,252.27 million in 2023 compared to RMB 5,855.84 million in 2022[30] - Gross profit rose by 34% to RMB 2,580.75 million in 2023, with a gross margin of 36% (2022: 33%)[30] - Net profit attributable to equity holders increased by 61% to RMB 521.23 million in 2023 from RMB 323.80 million in 2022[35] - Total assets grew to RMB 13,880.12 million in 2023, up from RMB 13,026.06 million in 2022[28] - Total liabilities decreased to RMB 7,103.50 million in 2023 from RMB 6,897.58 million in 2022[28] - Operating profit before financing costs and taxes increased by 43% to RMB 992.26 million in 2023[34] - The debt ratio (total borrowings divided by total assets) decreased from 20% in 2022 to 18% in 2023[37] - Cash and cash equivalents stood at RMB 2,644.90 million at the end of 2023, up from RMB 2,027.93 million in 2022[37] - The company employed 4,929 staff in 2023, an increase from 4,521 in 2022[38] - The inventory turnover period decreased to 89 days in 2023 from 96 days in 2022[25] - The company's total GDP in 2023 was RMB 126,058.2 billion, with a year-on-year growth of 5.2%[50] - New energy vehicle sales in China increased by 37.9% year-on-year in 2023, with public charging piles growing by 43%[50] - Clean energy generation reached 2.7 trillion kWh in 2023, a year-on-year increase of 3.1%[50] - Renewable energy installed capacity exceeded 1.4 billion kW, accounting for over 50% of total capacity[50] - China's total electricity consumption reached 9,224.1 billion kWh, a year-on-year increase of 6.7%[51] - The green electricity trading volume in the Southern Power Grid region reached 8.12 billion kWh, a year-on-year increase of 120%[51] - State Grid's 110 kV and above power grid infrastructure projects completed 44,900 kilometers and 279 million kVA, achieving 105.2% of the annual plan[51] - State Grid's smart meter bidding amount was approximately RMB 23.29 billion, a year-on-year decrease of 9.2%[51] - The group's total revenue was RMB 7,252.27 million, a year-on-year increase of 24%, with a gross profit of RMB 2,580.75 million, up 34% year-on-year[53] - The group's overall gross margin was 36%, an increase of 3 percentage points compared to the previous year[53] - The group's net profit attributable to owners was RMB 521.23 million, a year-on-year increase of 61%[53] - The group's electric AMI business revenue was RMB 2,650.36 million, a year-on-year increase of 29%, accounting for 37% of the group's total revenue[55] - The group's electric AMI business gross margin was 43%, an increase of 4 percentage points compared to the previous year[55] - The group's domestic order amount for electric AMI business was approximately RMB 1,672 million, a year-on-year decrease of 9%[56] - The company's AMI business achieved a total bid amount of approximately RMB 795 million in the unified centralized procurement of two grid companies, maintaining a leading position in the industry[57] - The company's large-scale complete plant business increased by 38% year-on-year due to rising market demand in the new energy power generation sector[57] - The company's communication and fluid AMI business recorded revenue of RMB 2,116.98 million, a year-on-year increase of 11%, accounting for 29% of the group's total revenue[61] - The gross profit margin of the communication and fluid AMI business was 41%, up from 38% in the previous year[61] - The company's grid customers accounted for 57% of the revenue, while non-grid customers (including overseas customers) accounted for 43%[61] - The total contract value of the communication and fluid AMI business reached RMB 3,483 million, a year-on-year increase of 38%, providing strong support for future performance[62] - The company's ADO business achieved revenue of RMB 2,484.93 million in 2023, a 31% YoY increase, accounting for 34% of total revenue[66] - ADO business orders reached RMB 3,539 million in 2023, a 12% YoY growth, with grid market orders exceeding RMB 1,544 million (9% YoY increase) and non-grid market orders exceeding RMB 1,995 million (15% YoY increase)[67] - Overseas market orders for ADO business surged 521% YoY, driven by successful demonstration projects in key markets[67] - Key industry customer orders for ADO business grew 9% YoY, with breakthroughs in major clients like China Mobile and China Unicom[67] - The company's grid and non-grid customer revenue split was 31% and 69% respectively in 2023[66] - ADO business gross margin improved to 24% in 2023 from 22% in 2022[66] - The company ranked top in grid company tenders and aims to further improve power system informatization levels[63] - The company's AIoT smart fire protection platform has entered market application and completed smart park management platform system acceptance[63] - The company provided complete AMI system solutions to Southeast Asian countries like Laos and Myanmar, with plans to expand further in the region[63] - China's water conservancy construction investment reached RMB 1,199.6 billion in 2023, potentially benefiting the company's water meter business[64] - The company secured a bid of RMB 208 million for 6 packages in the Southern Power Grid distribution network tender, ranking first in the smart switch category[68] - Overseas revenue reached RMB 1,599.26 million, a 30% year-on-year increase, with overseas orders totaling RMB 2,758 million, up 38% year-on-year[72] - The company completed RMB 180 million in meter deliveries in Tanzania and maintained its position as a key supplier in Egypt and Côte d'Ivoire[73] - The global smart grid market is projected to grow from USD 53.2 billion in 2022 to USD 149.2 billion by 2028, with a CAGR of 18.58%[71] - The global smart meter market is expected to increase from USD 22.8 billion in 2022 to USD 37.9 billion by 2028, with a CAGR of 8.84%[71] - The State Grid plans to increase its investment in the power grid to over RMB 500 billion in 2024, maintaining a high-growth cycle[69] - Global new PV installations are expected to reach 420-455 GW in 2024, with China contributing 205-215 GW, an 8-13% year-on-year increase[69] - The global energy storage system investment is forecasted to grow sixfold to USD 8.2 billion in 2024 compared to 2016 levels[69] - The company aims to expand its overseas business by leveraging the "Belt and Road" policy, targeting key markets and establishing differentiated competitive strategies[70] - The company plans to focus on new energy markets, deepening cooperation with central state-owned enterprises and exploring opportunities in microgrid applications and energy storage integration[70] - The company's Brazilian subsidiary achieved a breakthrough in new energy products, delivering orders worth RMB 140 million[74] - The company completed the delivery of electricity meter orders exceeding RMB 800 million in the North American market[74] - The company secured electricity meter contracts worth over RMB 30 million in Ecuador and Chile[74] - The company delivered electricity meter orders exceeding RMB 45 million in Austria through cooperation with Siemens[74] Technological Innovation and R&D Achievements - Wasion Group won four scientific and technological progress awards from the China Instrument and Control Society in January 2023[10] - Wasion Group's "Wireless Rapid Meter Reading Method for Metering Instruments" won the third prize for invention patents in Hunan Province in April 2023[12] - Wasion Information's subsidiary, Zhuhai Zhonghui Microelectronics, received the first prize for scientific and technological progress from State Grid Hunan Electric Power Company in April 2023[12] - Wasion Group participated in the "Fuxi" domestic power-specific chip project, which won the special prize for scientific and technological progress from China Southern Power Grid in February 2023[11] - Wasion Information and its subsidiary, Hunan Weiming Energy Technology, achieved CMMI-ML5 certification, the highest level of international software maturity model, in January 2023[10] - Wasion Energy was included in the list of national enterprise technology centers recognized by the National Development and Reform Commission in January 2023[10] - The company's R&D efforts in smart metering and energy management have been recognized with multiple awards, including the China Instrument and Meter Society Science and Technology Progress Award[16] - The company's new single and three-phase smart meters have obtained RoHS and MID certifications for the European market[16] - The company's smart green microgrid project in the Miluo Circular Economy Industrial Park was selected as a 2023 industrial green microgrid typical application scenario[17] - The company successfully developed a dedicated electric carbon metering meter and maintained good cooperative relationships with provincial branches of State Grid and Southern Grid[57] - The company's communication and fluid AMI business focuses on digital grid and smart city, providing comprehensive solutions for energy digitalization and supporting various energy management scenarios[60] - The company's next-generation ultrasonic water meter is leading the industry with high rangeability, low start-up flow, and low pressure loss[78] - The company developed a new generation of environmentally friendly gas ring main units and small intelligent box transformers, enhancing the reliability and efficiency of the power distribution system[80] - The company's digitalized transformer area solution effectively addresses new energy integration and management issues, supporting multiple application scenarios such as energy storage and flexible DC interaction[80] - The company's energy storage business covers a wide range of products, including battery packs, battery cabins, BMS, PCS, and EMS, with applications in both domestic and international projects[80] - The company launched standardized smart charging and swapping products, reducing costs and improving efficiency, while advancing core component R&D[81] - The company developed over 80 automated test scripts for smart meters, increasing testing efficiency by 22%[82] - The company's WTZ30 dual-mode communication chip was recognized as a key R&D project in Hunan Province for 2023[78] - The company's Wi-SUN communication series products achieved batch delivery overseas, meeting Wi-SUN FAN international standards and Brazil's Anatel certification[78] - The company obtained 230 authorized patents, including 58 invention patents, and 94 software copyrights during the year[76] - The company's cumulative intellectual property assets include 1,941 patents, 1,707 software copyrights, and 3,648 intellectual property rights[76] - The company's "Data-Driven CVT Online Monitoring and State Evaluation Intelligent Device" project has 20 intellectual property rights, including 13 invention patents, with 7 authorized invention patents, and has been applied in multiple regions such as Ningxia, Jilin, Henan, and Gansu[175] - The new wide-range high-accuracy multi-function electric energy meter developed by the company has improved active accuracy by 50%, achieving a breakthrough in high-end electric energy metering technology[176] - The company's "New Generation Power Information Collection System Key Technology and Application" project won the first prize for scientific and technological progress from the State Grid Corporation of China, unifying power information collection technology standards in China[177] - The company's "Smart Charging Key Technology and Application for New Energy Logistics Vehicles" project won the second prize for outstanding scientific research achievements in universities, enhancing the intelligence and localization level of China's new energy vehicle charging technology system[181] - Wasion Group added 43 invention patents, 88 utility model patents, 62 design patents, and 80 software copyrights in 2023, with cumulative totals of 201, 732, 761, and 1,437 respectively[189] - Wasion Group was listed as a National Intellectual Property Advantage Enterprise for 2023-2026, recognizing its achievements in intellectual property management and innovation[190] - Wasion Energy was recognized as a National Enterprise Technology Center in 2023, highlighting its leading technological innovation capabilities in the industry[198] - The company has established a multifunctional testing center that integrates various reliability tests, including accuracy, electrical performance, electromagnetic compatibility, high voltage, and environmental temperature reliability[200] - The company's testing center has been accredited by the China National Accreditation Service for Conformity Assessment (CNAS) since 2012, enhancing the company's quality credibility and brand influence[200] ESG and Sustainability Initiatives - Wasion Energy was recognized as a "National Green Factory" by the Ministry of Industry and Information Technology in March 2023[11] - Wasion Energy was listed as a national demonstration enterprise for power demand-side management in the industrial sector by the Ministry of Industry and Information Technology in March 2023[11] - The company's ESG report adheres to GRI standards and Hong Kong Stock Exchange ESG reporting guidelines, with data verified by internal auditors[89] - The company is committed to integrating ESG elements into its operations, aligning with China's new development concepts of innovation, coordination, green development, openness, and sharing[94] - The company has implemented various cultural activities, such as "Corporate Culture Grand Tour" and "Corporate Culture Symposium," to promote its core values and enhance employee engagement[98] - The company emphasizes the integration of party building with corporate governance, aiming to drive high-quality development through party leadership and social responsibility initiatives[100] - The company is strategically positioning itself to leverage new technological and industrial revolutions, focusing on green economy and new energy systems to support industrial transformation[101] - The company has redefined its international strategy, focusing on modern new energy systems and accelerating its transformation from local exploration to comprehensive expansion[102] - The company is committed to green development, aiming to become a leading energy measurement and efficiency management company in China, with a focus on building green and low-carbon technology parks and supply chain management systems[103] - The company has established a comprehensive ESG management system, integrating ESG concepts into its development strategy and daily operations, with a board-driven and stakeholder-involved ESG management mechanism[104] - The company has implemented a green and low-carbon development path, integrating low energy consumption, low pollution, high efficiency, and high responsibility concepts throughout its entire product lifecycle[105] - The company has obtained multiple ISO certifications, including ISO9001, ISO14001, ISO45001, ISO50001, ISO10012, ISO27001, and ISO20000-1, demonstrating its commitment to quality, environmental, occupational health and safety, energy, and information security management[106][107][108] - The company has been recognized with the 2023 "Hunan Famous Brand" award and the "Top Ten Industrial and Commercial Energy Storage Brands" award, highlighting its leadership in energy measurement and storage solutions[110] - The company aims to continue its innovation-driven development, increasing R&D investment and maintaining strict quality control to provide high-quality products globally, with a focus on becoming a world-class energy measurement expert[111] - The company emphasizes stakeholder engagement, integrating stakeholder concerns into its ESG management strategy and creating long-term value for all stakeholders[114] - The company has set a target for greenhouse gas emissions to be less than 3.6 tons in 2023, with an average emission of 2.7 tons per 100 million yuan of annual income[122] - The target for domestic sewage discharge is less than 78 tons in 2023, with an average discharge of 57.2 tons per 100 million yuan of annual income[122] - The company aims to reduce domestic and kitchen waste to less than 0.5 tons in 2023, with an average of 0.2 tons per 100 million yuan of annual income[122] - Welding slag is fully recycled, with an average of 0.002 tons per 100 million yuan of annual income[122] - The company has established a target reduction of 2% to 5% in resource consumption based on historical averages[122] - The company monitors and manages energy consumption to reduce production equipment energy use[120] - The company has implemented measures to treat and discharge wastewater up to the Class IV standard of the "Surface Water Environmental Quality Standard" (GB3838-2002)[120] - The company uses new processes and materials to reduce emissions and improve the welding environment[120] - The company promotes low-carbon logistics and green packaging, reducing the use of paper packaging materials[120] - The company has set up a separate storage area for hazardous solid waste and ensures regular recycling by qualified suppliers[120] - Total electricity consumption in 2023 was 28,070,880 kWh, with a target of less than 4,966 kWh per million yuan of annual revenue[124] - Total water consumption in 2023 was 575,874 tons, with a target of less than 125 tons per million yuan of annual revenue[124] - Total natural gas consumption in 2023 was 460,466 cubic meters, with a target of less than 102

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 7.88, indicating a potential upside of 46% from the current price of HKD 5.40 [2][10]. Core Insights - The company achieved a revenue of RMB 7.252 billion in 2023, a year-on-year increase of 24%, with a net profit of RMB 521 million, reflecting a significant growth of 61% compared to the previous year [5][8]. - The company plans to increase capital expenditures to approximately RMB 670 million in 2024, focusing on expanding its AMI business in Mexico and Hungary [5][8]. - The backlog of orders stood at RMB 7.9 billion at the end of 2023, a 30% increase from the end of 2022, with 80% expected to be delivered within a year [6][9]. - The company anticipates continued high growth in overseas markets, particularly in Mexico, with expected revenue growth of over 30% in 2024 [6][9]. - The company's net profit margin improved to 10.5% in 2023, and return on equity (ROE) increased to 14.7%, indicating enhanced profitability [10]. Financial Summary - In 2023, the company reported earnings per share (EPS) of 52.7 cents and a dividend of HKD 0.28, with a payout ratio of approximately 49% [5][8]. - Revenue projections for the next few years are as follows: RMB 9.561 billion in 2024, RMB 12.214 billion in 2025, and RMB 15.325 billion in 2026, with corresponding net profit estimates of RMB 699 million, RMB 949 million, and RMB 1.225 billion respectively [7][13]. - The company’s price-to-earnings (PE) ratio at the current price is 14.9, with projections of 9.3 for 2024 and 6.9 for 2025, indicating a favorable valuation [10][13].

Revenue Growth - Revenue for the year reached RMB 7,252.27 million, a 23.8% increase compared to RMB 5,855.84 million in 2022[2] - Electric AMI business revenue grew by 29% to RMB 2,650.36 million[2] - Communication and fluid AMI business revenue increased by 11% to RMB 2,116.98 million[2] - ADO business revenue rose by 31% to RMB 2,484.93 million[2] - Revenue from the Communication and Fluid Intelligent Metering Solutions segment increased to RMB 2,670,557 thousand in 2023, up from RMB 1,993,578 thousand in 2022[14][15] - The Electric Intelligent Metering Solutions segment's revenue grew to RMB 2,214,770 thousand in 2023, compared to RMB 2,086,189 thousand in 2022[14][15] - Revenue from the Intelligent Power Distribution Systems and Solutions segment rose to RMB 2,484,937 thousand in 2023, up from RMB 1,894,971 thousand in 2022[14][15] - Total revenue for the company reached RMB 7,252,272 thousand in 2023, a significant increase from RMB 5,855,844 thousand in 2022[14][15] - Revenue from China increased to RMB 5,653,017 thousand in 2023, up from RMB 4,621,154 thousand in 2022[15] - Revenue from the Americas grew to RMB 1,024,268 thousand in 2023, compared to RMB 671,957 thousand in 2022[15] - Revenue increased by 24% to RMB 7,252.27 million in 2023 (2022: RMB 5,855.84 million)[72] Profitability and Earnings - Net profit attributable to owners of the company surged by 61% to RMB 521.23 million[2] - Basic earnings per share increased to RMB 52.7 cents from RMB 32.9 cents in 2022[2] - The board proposed a final dividend of RMB 0.258 per share[2] - The company's pre-tax profit for 2023 was RMB 860,732 thousand, compared to RMB 582,434 thousand in 2022[14][15] - Pre-tax profit for 2023 was RMB 681,375 thousand, compared to RMB 577,443 thousand in 2022, reflecting a growth of 18%[21] - Basic earnings per share for 2023 were RMB 521,233 thousand, a significant increase from RMB 323,797 thousand in 2022[27] - The group's net profit attributable to owners was RMB 5,212.3 million, a 61% year-on-year increase[38] - Net profit attributable to equity holders increased by 61% to RMB 521.23 million in 2023 (2022: RMB 323.80 million)[73] Gross Profit and Margin - Gross profit margin improved to RMB 2,580.75 million from RMB 1,929.22 million in 2022[4] - The group's total revenue for the year reached RMB 72,522.7 million, a 24% year-on-year increase, with a gross profit of RMB 25,807.5 million, up 34% year-on-year, and a gross margin of 36%, up 3 percentage points[38] - Gross profit increased by 34% to RMB 2,580.75 million in 2023 (2022: RMB 1,929.22 million), with a gross margin of 36% (2022: 33%)[72] Research and Development - Research and development expenses increased to RMB 681.38 million from RMB 577.44 million in 2022[4] - R&D expenses increased to RMB 640,012 thousand in 2023, up 16% from RMB 551,601 thousand in 2022[21] - The company's WTZ30 dual-mode communication chip, designed for smart meters and power IoT, was recognized in the 2023 Hunan Provincial Key R&D Program[67] - The company's WFMB250-M4 photovoltaic grid-connected smart circuit breaker enables intelligent management of distributed photovoltaic systems, supporting the construction of new power systems[67] - The company's "NB-IoT Smart Water Meter Software V1.0" was selected for the 2023 Hunan Provincial First Edition Software Product List and received funding support[67] Financial Position and Assets - Total assets increased to RMB 10,489.50 million from RMB 9,796.28 million in 2022[7] - Accounts receivable increased to RMB 4,644,367 thousand in 2023, up 9% from RMB 4,258,163 thousand in 2022[28] - Accounts receivable aged 0-90 days increased to RMB 1,892,469 thousand in 2023, up 5% from RMB 1,805,130 thousand in 2022[30] - Contract assets increased to RMB 404,953 thousand in 2023, up from RMB 408,494 thousand in 2022, with a provision for impairment losses of RMB 3,541 thousand[31] - Accounts payable and notes payable totaled RMB 3,938,543 thousand in 2023, compared to RMB 3,641,627 thousand in 2022, with 57.6% of payables due within 90 days[32][33] - Cash and cash equivalents increased to RMB 2,644.90 million in 2023 (2022: RMB 2,027.93 million)[73] - Total liabilities decreased by 2% to 18% in 2023 (2022: 20%)[74] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.258 per share[2] - The company proposed a final dividend of 28 HK cents per share for 2023, up from 23 HK cents per share in 2022[25] Government Grants and Tax - The company received RMB 68,504 thousand in VAT refunds in 2023, up from RMB 59,755 thousand in 2022[20] - Government grants increased to RMB 52,120 thousand in 2023, compared to RMB 30,989 thousand in 2022[20] - The company's effective tax rate in China remained at 25%, with certain subsidiaries benefiting from a reduced rate of 15% due to high-tech enterprise status[23] - The company's total tax expense for 2023 was RMB 100,139 thousand, a 40% increase from RMB 71,274 thousand in 2022[24] Market and Industry Trends - China's GDP grew by 5.2% in 2023, reaching RMB 126,058.2 billion, with new energy vehicle sales increasing by 37.9% and public charging piles growing by 43%[34] - China's total electricity consumption reached 9,224.1 billion kWh in 2023, a 6.7% year-on-year increase, with green electricity transactions in the Southern Grid region surging 120% to 8.12 billion kWh[35] - National Grid's smart meter bidding amounted to RMB 23.29 billion in 2023, a 9.2% decrease, but 2024 is expected to see a significant increase in bidding volume and total amount[35] - National Grid released the "Green Procurement Guide" in June 2023, promoting environmental protection, resource conservation, and low-carbon practices[36] - The world's first megawatt-level floating wave energy power generation device, "Nan Kun," developed by Southern Power Grid, was put into trial operation in June, with leading global indicators in installed capacity, power generation, and extreme sea condition resistance[37] - Southern Power Grid released the first domestic power IoT operating system, "Power Harmony," and developed the power industry's first independently controllable large power model, "Da Watt," accelerating the construction of a new power system[37] - State Grid has become the world's largest grid in terms of transmission capacity and renewable energy integration, with over 3.5 million renewable energy stations connected and a utilization rate exceeding 97%[37] - Southern Power Grid's renewable energy installed capacity in five southern provinces exceeded 120 million kilowatts, with non-fossil energy accounting for over 60% of total installed capacity[37] - The global smart grid market is projected to grow from USD 53.2 billion in 2022 to USD 149.2 billion by 2028, with a CAGR of 18.58%[59] - The global smart meter market is expected to grow from USD 22.8 billion in 2022 to USD 37.9 billion by 2028, with a CAGR of 8.84%[59] - The global energy storage market is expected to grow significantly, with investments projected to increase sixfold to USD 8.2 billion by 2024 compared to 2016[56] Business Segments and Operations - The group's electric AMI business recorded revenue of RMB 26,503.6 million, a 29% year-on-year increase, accounting for 37% of total revenue, with a gross margin of 43%[39] - The group secured domestic orders worth RMB 1,672 million for the electric AMI business, a 9% year-on-year decrease, with orders from grid customers down 15% to RMB 1,206 million[40] - The group's large-scale complete plant business grew by 38% year-on-year, driven by rising market demand on the renewable energy generation side[41] - The group successfully developed a dedicated carbon measurement meter and maintained good cooperation with provincial branches of State Grid and Southern Power Grid[42] - The company expects stable demand for electricity meters from State Grid and Southern Grid this year, with increased demand for high-end products due to policies supporting new energy and domestic substitution[43] - The demand for IoT electricity meters is expected to rise further in 2024, driven by the construction of new power systems and increased localization requirements for key metering equipment[43] - The company's communication and fluid AMI business recorded revenue of RMB 2,116.98 million in 2023, an 11% increase year-over-year, with a gross margin of 41%[46] - The communication and fluid AMI business had a total contract value of RMB 3,483 million as of December 31, 2023, a 38% increase year-over-year[46] - The company's grid and non-grid customers accounted for 57% and 43% of revenue, respectively, in 2023[46] - The group's ADO business achieved revenue of RMB 2,484.93 million, a 31% YoY increase, accounting for 34% of total group revenue[52] - ADO business orders reached RMB 3,539 million, a 12% YoY increase, with grid market orders exceeding RMB 1,544 million, up 9% YoY[53] - Non-grid market orders exceeded RMB 1,995 million, a 15% YoY increase, driven by a 521% YoY growth in overseas market orders[53] - The group's gross margin for ADO business improved to 24%, up from 22% in the previous year[52] - Revenue from grid customers accounted for 31% of ADO business, while non-grid customers (including overseas) contributed 69%[52] - The group's AIoT smart fire protection platform has successfully entered market applications and continues to expand in the financial industry[48] - The group provided complete AMI system solutions to Southeast Asian countries like Laos and Myanmar, with plans to expand further in the region[48] - The group is focusing on energy IoT, chip design, and AI technologies to provide comprehensive solutions for various power scenarios[50] - The group is actively participating in overseas energy IoT construction, targeting regions like Latin America, the Middle East, and Africa[50] - The company secured a bid amount of RMB 208 million in the Southern Power Grid distribution network centralized procurement tender, ranking first in the smart switch category[54] - The company's overseas market presence has been enhanced with key demonstration projects in the Americas, and its energy storage products have obtained certifications from UL and CE[55] - The State Grid plans to increase its grid investment to over RMB 500 billion in 2024, maintaining a high-growth cycle in grid investment[56] - The company aims to expand its business in the grid market, focusing on integrated switchgear, high and low voltage switchgear, and substation products, while exploring new opportunities in the power system[57] - The company plans to deepen cooperation with central state-owned enterprises in the new energy sector and develop microgrid applications in industrial parks and areas with power shortages[57] - The company will continue to follow the "Belt and Road" policy, targeting key international markets to achieve significant growth in overseas business[58] - The company has successfully expanded its data center industry clients, including Alibaba and ByteDance, and is actively exploring overseas markets through joint ventures with domestic clients[54] - Overseas revenue reached RMB 1,599.26 million, a 30% increase year-over-year[60] - Overseas order amount reached RMB 2,758 million, a 38% increase year-over-year[60] - Completed RMB 180 million in smart meter deliveries in Tanzania[61] - Brazil subsidiary achieved RMB 140 million in new energy product deliveries[61] - North America market completed over RMB 800 million in meter order deliveries[61] - Europe market completed over RMB 45 million in meter order deliveries with Siemens in Austria[62] Innovation and Technology - The company's project "Key Technologies for Reliable Operation and Collaborative Optimization of Complex Power Grids" won the Gold Medal at the 48th Geneva International Exhibition of Inventions[66] - The company's project "Key Technologies for Terminal Security Protection in Power Systems Based on Domestic Power-Specific Chips" won the First Prize in China's Power Technology Innovation[66] - The company's WTZ30 dual-mode communication chip, designed for smart meters and power IoT, was recognized in the 2023 Hunan Provincial Key R&D Program[67] - The company's WFMB250-M4 photovoltaic grid-connected smart circuit breaker enables intelligent management of distributed photovoltaic systems, supporting the construction of new power systems[67] - The company's "NB-IoT Smart Water Meter Software V1.0" was selected for the 2023 Hunan Provincial First Edition Software Product List and received funding support[67] - The company's full suite of AMI solutions (HES, MDMS, CIS, and Billing) was successfully implemented in Laos, enhancing local power management capabilities[67] - The company developed a new generation of environmentally friendly gas-insulated ring main units and compact smart transformers, improving distribution network reliability and efficiency[69] - The company's digitalized transformer station solution, centered on "smart gateway + smart metering" circuit breakers, addresses challenges in large-scale distributed renewable energy integration[69] - The company's energy storage business offers a range of products, including battery packs, battery cabins, BMS, PCS, and EMS, applied in multiple domestic and international projects[69] - The company's self-developed EMS management system supports local, cloud, and mobile platforms, expanding into the commercial and industrial energy storage market[69] - The company completed the development of the Suite1 security suite based on DLMS/COSEM, successfully applied in smart meters in Brazil and the EU[71] - The company developed over 80 automated test scripts, improving testing efficiency by 22%[71] Financial Instruments and Risk Management - The company entered into a forward foreign exchange contract with a face value of USD 52.50 million to mitigate currency risk[75] - Capital commitments for the acquisition of property, plant, and equipment amounted to RMB 113.45 million, an increase from RMB 63.37 million in 2022[77] - Capital commitments for investment in financial instruments were RMB 64.00 million, a decrease from RMB 74.40 million in 2022[77] - The group had no significant contingent liabilities as of December 31, 2023[77] IPO and Capital Allocation - The net proceeds from the IPO of Wasion Information Technology on the STAR Market were RMB 610.83 million, with specific allocations detailed for various IoT projects[78] - The IoT perception layer monitoring equipment expansion and technical transformation project utilized RMB 60.29 million[79] - The IoT perception layer fluid sensing equipment expansion and technical transformation project utilized RMB 62.94 million[79] - The IoT network layer product expansion and technical transformation project utilized RMB 204.87 million[79] - The IoT comprehensive R&D center project utilized RMB 146.95 million[79] - The remaining net proceeds of RMB 79.90 million were used to permanently supplement working capital[79] Human Resources - The company had 4,929 employees as of December 31, 2023, an increase from 4,521 in 2022[80] Audit and Financial Reporting - The Audit Committee has reviewed the company's full-year performance for the year ended December 31, 2023[86] - The company's preliminary financial statements for the year ended December 31, 2023 have been agreed upon by the auditor[86] - The auditor's work on the preliminary financial statements does not constitute an audit, review, or assurance service under Hong Kong standards[86] - The company's annual report for the year ended December 31, 2023 will be published on the Hong Kong Stock Exchange and the company's website[87] - The company's board of directors includes executive directors and independent non-executive directors as of the announcement date[88]