Sichuan Jiuzhou Electronic (000801)2024-03-28 16:00Financial Performance - In 2023, the direct material cost for smart terminal products was CNY 1,518,033,728.81, accounting for 80.96% of operating costs, representing a 14.13% increase from CNY 1,330,120,986.03 in 2022[1]. - Sales expenses increased by 12.45% to CNY 89,019,800.69 in 2023, compared to CNY 79,164,282.45 in 2022[3]. - R&D expenses rose by 9.43% to CNY 356,097,331.55 in 2023, up from CNY 325,414,111.55 in 2022[3]. - The company's operating revenue for 2023 was CNY 3,831,743,013.76, a decrease of 1.36% compared to CNY 3,884,597,912.00 in 2022[43]. - The net profit attributable to shareholders of the listed company was CNY 200,371,262.56, an increase of 1.23% from CNY 197,937,067.49 in the previous year[43]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 116,057,260.34, a decrease of 20.29% compared to CNY 135,982,760.10 in 2022[43]. - The net cash flow from operating activities was CNY 217,511,581.66, down 4.26% from CNY 227,199,008.89 in the previous year[43]. - Basic earnings per share for 2023 were CNY 0.1959, an increase of 1.24% from CNY 0.1935 in 2022[43]. - The company reported quarterly revenues of CNY 923,704,974.11 in Q1, CNY 993,217,415.66 in Q2, CNY 911,500,668.63 in Q3, and CNY 1,003,319,955.36 in Q4[48]. - The net profit attributable to shareholders in Q4 was CNY 59,228,498.55, showing a positive trend compared to previous quarters[48]. Investment and Dividends - The investment income for 2023 was CNY 29,240,878.99, accounting for 11.99% of total profit[8]. - The company plans to distribute a cash dividend of CNY 1 per 10 shares to all shareholders, based on a total of 1,022,806,646 shares[22]. - The fair value changes in profit and loss for 2023 amounted to CNY 1,008,476.34, representing 0.41% of total profit[8]. - The company reported an asset impairment of CNY -82,040,568.60, primarily due to inventory write-downs and bad debt provisions[8]. Research and Development - The company completed the development and delivery of the JZ5STR17 transceiver module, which addresses key technical challenges in high-frequency signal processing[4]. - The MONI_UNIT monitoring unit project has completed two batches of development and delivery, with ongoing improvements for the third batch[4]. - The US29652801 antenna interface unit project has also completed two batches of development and delivery, enhancing customer satisfaction and market expansion[4]. - The company has a robust R&D strategy that includes customized projects, joint development with research institutions, and pre-research based on national policy directions[72]. - The company has developed over 100 air traffic management products with independent intellectual property rights, including secondary radar and airborne collision avoidance systems[71]. - The company has established a strong technical research and development capability in smart terminal and air traffic management sectors, leading to significant product innovations[76]. Market Position and Strategy - The company is positioned as a leading player in the smart terminal sector, with a significant market share in set-top boxes[61]. - The company is actively expanding its market presence in the communication sector, promoting WiFi6 routers and smart terminals, and strengthening partnerships with telecom operators[68]. - The company aims to enhance its core technologies in traditional businesses while exploring new markets in areas such as shipborne phased array systems and drone payloads[73]. - The company is committed to military-civilian integration, with most of its air traffic management products adhering to international civil aviation standards[71]. - The company plans to enhance its customized design and manufacturing capabilities for set-top boxes, aiming to increase market share and generate economic benefits[96]. Financial Management and Governance - The company has established a risk control mechanism for derivative investments, emphasizing the use of simple and liquid financial derivatives to mitigate market risks[119]. - The company emphasizes the importance of internal control and compliance in its derivative trading activities to protect shareholder interests[119]. - The remuneration for directors and senior management is determined based on a comprehensive assessment of the company's annual operating plan and individual performance, with specific monthly and annual allowances set for different roles[164]. - The company has a structured compensation system for directors, supervisors, and senior management, with specific monthly allowances for the chairman and directors[164]. - The company held its first board meeting on April 18, 2023, where it approved the 2022 annual financial report and profit distribution plan[167]. Challenges and Risks - The company acknowledges potential policy risks affecting its smart terminal and air traffic management businesses due to uncertain policy changes[130]. - Market competition risks are significant in the smart terminal sector, with a saturated market and high barriers in the telecommunications field[130]. - The air traffic management business faces challenges from traditional and foreign competitors, prompting the company to strengthen customer engagement and market exploration[131]. Subsidiaries and Acquisitions - The company reported an increase in subsidiaries and businesses due to mergers under common control, with their operating results and cash flows included in the consolidated financial statements from the date of control[148]. - For subsidiaries acquired under non-common control, the financial statements are adjusted based on the fair value of identifiable net assets at the acquisition date, with revenues, expenses, and profits included from the acquisition date to the end of the reporting period[148]. - The company’s subsidiary, Sichuan Jiuzhou Electronic Technology Co., Ltd., reported total assets of 2,321,142,313.36 CNY and a net profit of 37,697,872.21 CNY[122]. - The company’s subsidiary, Chengdu Jiuzhou Difei Technology Co., Ltd., reported total assets of 614,244,522.00 CNY and a net profit of 55,067,850.95 CNY[126]. Future Outlook - In 2024, the company aims for high-quality development through a dual strategy in the smart terminal business, emphasizing market expansion and technological innovation[129]. - The company plans to strengthen market development and cost control in the air traffic management business, aiming to improve operational efficiency[129]. - The microwave RF business will focus on technology innovation and quality improvement, with a commitment to digital transformation and risk management[129]. - The company will continue to invest in technology and talent to drive innovation and maintain its market position amid increasing competition in the military electronics sector[131].