ECEC(002199)2024-04-17 08:35Financial Performance - Revenue for 2023 was RMB 173.24 million, a decrease of 4.19% compared to 2022[20] - Net profit attributable to shareholders in 2023 was a loss of RMB 66.60 million, an improvement of 3.64% compared to 2022[20] - Operating cash flow for 2023 was negative RMB 4.63 million, an 85.77% improvement from 2022[20] - Total assets at the end of 2023 were RMB 517.23 million, a decrease of 6.29% compared to 2022[20] - Shareholders' equity at the end of 2023 was RMB 301.70 million, a decrease of 17.65% compared to 2022[20] - Basic earnings per share for 2023 was a loss of RMB 0.27, an improvement of 3.57% compared to 2022[20] - Weighted average return on equity for 2023 was negative 19.94%, a decrease of 2.70 percentage points compared to 2022[20] - The company's net profit after deducting non-recurring gains and losses for 2023 was a loss of RMB 72.75 million, an improvement of 2.07% compared to 2022[20] - The company's net profit for the past three years after deducting non-recurring gains and losses has been negative, indicating potential issues with sustainable operations[20] - Total revenue for 2023 was RMB 173,242,490.54, a decrease from RMB 180,825,940.27 in 2022[38] - Revenue excluding leasing and scrap sales was RMB 172,622,637.52 in 2023, down from RMB 179,811,237.56 in 2022[38] - Net profit attributable to shareholders was negative across all quarters, with Q4 showing the largest loss of RMB -22,893,609.17[40] - Revenue for the reporting period was RMB 173.24 million, a decrease of 4.19% year-on-year[84] - Net profit attributable to shareholders of the listed company was RMB -66.60 million, an increase of 3.64% year-on-year[84] - Total assets at the end of the reporting period were RMB 517.23 million, a decrease of 6.29% year-on-year[84] - Shareholders' equity attributable to the listed company was RMB 301.70 million, a decrease of 17.65% year-on-year[84] - Total operating revenue for 2023 was RMB 173.24 million, a decrease of 4.19% compared to RMB 180.83 million in 2022[101] - Domestic sales accounted for 89.40% of total revenue, increasing by 2.29% year-over-year, while international sales decreased by 37.58%[101] - Sales of resonators, the company's main product, accounted for 97.98% of total revenue, with a slight decrease of 1.73% compared to the previous year[101] - The company's top 5 customers contributed 44.30% of total sales, with the largest customer accounting for 14.74% of total revenue[105] - The company's top 5 suppliers accounted for 64.72% of total procurement, with the largest supplier contributing 47.48%[105] - The company's inventory increased significantly by 118.57% to 2.94 million units, while production and sales volumes increased by 26.09% and 23.20% respectively[103] - The company recognized an asset impairment provision of RMB 31.33 million in 2023, and non-recurring gains and losses impacted net profit by RMB 6.15 million[100] - Industrial sector revenue decreased by 4.19% year-on-year to 173,242,490.54 yuan, with a gross margin of 6.01%[116] - The top five customers accounted for 44.30% of total annual sales, totaling 76,732,167.60 yuan[121] - Sales expenses increased by 38.33% year-on-year to 3,037,351.83 yuan, mainly due to increased office travel and business entertainment expenses[122] - Management expenses rose by 19.32% to 28,874,075.60 yuan, while R&D expenses decreased by 19.56% to 12,477,468.70 yuan[123] - Net cash flow from operating activities improved by 85.77% to -4,626,300 yuan, primarily due to reduced cash payments for material procurement[124] - Net cash flow from financing activities surged by 12,154.26% to 40,876,600 yuan, driven by increased bank loans[124] - Total assets increased by 3.32% to 56,680,661.01 yuan, with fixed assets growing by 6.51% to 272,998,646.06 yuan[127] - Short-term loans increased by 3.74% to 40,044,000.00 yuan, and long-term loans rose by 4.25% to 54,780,000.00 yuan[127] - Inventory decreased by 2.71% to 65,064,742.81 yuan, while accounts receivable remained stable at 52,984,592.53 yuan[127] - Net cash flow from operating activities improved significantly by 85.77% to -4,626,262.37 yuan in 2023 compared to -32,513,191.93 yuan in 2022[139] - Net cash flow from financing activities surged by 12,154.26% to 40,876,614.05 yuan in 2023 from -339,105.02 yuan in 2022[139] Industry and Market Trends - The company operates in the quartz crystal resonator and oscillator industry, which is part of the broader electronic components sector[45] - Global smartphone shipments in 2023 decreased by 3.2% to 1.17 billion units, but showed signs of recovery with an 8.5% increase in Q4[47] - Global PC shipments in 2023 totaled 247 million units, a 13% decline from 2022, but Q4 saw a 3% increase to 65.3 million units[47] - China's 5G infrastructure reached 3.377 million base stations by the end of 2023, with 5G applications integrated into 71 major economic sectors[48] - China's new energy vehicle production and sales in 2023 reached 9.587 million and 9.495 million units respectively, representing year-on-year growth of 35.8% and 37.9%[49] - The company's quartz crystal components are increasingly required to meet higher standards of precision, stability, and low power consumption[51] - The company's quartz crystal components are widely used in communication, information, automotive electronics, mobile internet, industrial control, home appliances, smart security, and aerospace and military fields[70] - The company's products are widely used in 5G communication, automotive electronics, and the transition from "Internet of Things" to "Intelligent Internet of Things"[62][63][64] - The company's quartz crystal components are moving towards miniaturization and chip-based development, with SMD-type products becoming the market mainstream[66] - The company's revenue primarily comes from quartz crystal components such as resonators and oscillators, making it vulnerable to market risks like reduced downstream demand, intensified competition, and price declines[159] - The company will focus on emerging applications like automotive electronics, 5G communication, and IoT to drive demand for electronic components and leverage domestic substitution opportunities[163] Production and Innovation - The company has 88 patents, including 13 invention patents and 75 utility model patents, with 5 new invention patents and 1 new utility model patent added by subsidiaries during the reporting period[77] - The company's production capacity and sales scale rank among the top in the domestic industry, and it has been rated as one of China's top 100 electronic component companies for ten consecutive years[72] - The company's subsidiaries have been recognized as national-level "little giant" enterprises specializing in specific fields[72] - The company's production model is order-driven, with independent production and testing capabilities for multiple specifications and categories of electronic components[75] - The company has an annual production capacity of 2 billion electronic components with over 80 automated production lines[78] - The company's 5G+ smart factory has gradually started production, enhancing automation, digitalization, and intelligent production management[78] - New products MF3215/OSC2520/DXO7050-3225 were developed and mass-produced during the reporting period[82] - The company's subsidiary, Dongjing Jinhua, was recognized as the "Zhejiang Dongjing Electronic Components Enterprise Research Institute" by the Zhejiang Provincial Department of Science and Technology[82] - The company has successfully mass-produced several new products including the Miniature High Stability Gold-Tin Solder XS 1612 Quartz Crystal Resonator, Smart Cockpit GLASS 2016 Crystal Resonator, Two-Point Low Impedance Automotive GLASS 3225 Crystal Resonator, and Smart Home Narrow Temperature Range High Precision 2520 Crystal Resonator, aiming to expand product variety and enhance profitability[137] - R&D personnel increased by 1.49% to 68 in 2023, with the proportion of R&D personnel rising to 13.23% from 12.69% in 2022[137] - R&D investment decreased by 19.56% to 12,477,468.70 yuan in 2023, accounting for 7.20% of the operating income, down from 8.58% in 2022[137] Corporate Governance and Independence - The company has a complete and independent business structure, with no reliance on shareholders holding more than 5% of shares[174] - The company maintains independent assets, including production systems, facilities, and land use rights, separate from major shareholders[174] - The company has an independent personnel and salary management system, with senior management appointed by the board and not holding positions in shareholder units[174] - The company has established a complete corporate governance structure, including shareholders' meetings, board of directors, and supervisory boards, operating independently from major shareholders[175] - The company has an independent financial department, accounting system, and bank accounts, ensuring financial independence[175] - The company is independent in business, personnel, assets, organization, and finance from shareholders holding more than 5% of shares and other related parties[195] Strategic Plans and Risk Management - The company plans to focus on advantageous industries, expand the market, and optimize product structure in 2024, targeting high-margin products in emerging application fields such as automotive electronics, 5G communication, IoT, and wearable devices[158] - The company aims to strengthen business team building, improve process management, performance evaluation, training plans, and incentive mechanisms in the marketing department to drive continuous business development[158] - The company will strengthen financial management, monitor foreign exchange market dynamics, and use hedging strategies to mitigate currency risks[162] - The company will carefully evaluate new business opportunities by considering macro policies, market demand, technological and business model advancements, and alignment with existing resources[164] - The company will continue to explore new business and cooperation models beyond the quartz crystal components business, but faces risks in market, technology, management, and cooperation that may delay the development of new businesses[184] Non-Recurring Items and Subsidies - The company's non-current asset disposal gains and losses in 2023 amounted to -177,729.64 yuan, compared to -225,522.87 yuan in 2022 and 1,408,392.73 yuan in 2021[58] - Government subsidies recognized in current profits for 2023 were 6,590,281.87 yuan, up from 5,266,950.42 yuan in 2022 and 5,659,980.64 yuan in 2021[58] - The total non-recurring gains and losses for 2023 were 6,150,640.35 yuan, compared to 5,177,167.85 yuan in 2022 and 7,125,827.31 yuan in 2021[59] Corporate Social Responsibility and Other - The company donated 50,000 yuan to support rural revitalization in Yangbu Town, Wucheng District, Jinhua City[180] - The company's overseas business is mainly settled in US dollars, and the fluctuation of the US dollar to RMB exchange rate has a significant impact on the company's operating performance[181] - The company implemented the "Accounting Standards Interpretation No. 16" issued by the Ministry of Finance on November 30, 2022, which came into effect on January 1, 2023[185] - The company appointed Ernst & Young (Special General Partnership) as the internal control audit firm for 2023, with an audit fee of 100,000 yuan[189] - The company did not undergo bankruptcy reorganization during the reporting period[190] - The company did not have any asset or equity acquisition or disposal related party transactions during the reporting period[193] - The company did not have any entrusted loans during the reporting period[198] - The company established a new subsidiary, Zhuhai Dongjing, which is 100% owned by Dongjing Jinhua and included in the consolidated financial statements[120] - The company established Zhuhai Dongjing in December 2023, with its subsidiary Dongjing Jinhua holding 100% of the shares, thereby including Zhuhai Dongjing in the consolidated financial statements from the date of establishment[148]