Sugon(603019)2024-04-17 12:47Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.70 per 10 shares, totaling RMB 248,675,138.44 (tax included) based on 1,462,794,932 shares eligible for profit distribution[3] - In 2023, the total cash dividends amounted to RMB 383,647,436.99 (tax included), representing 20.90% of the net profit attributable to shareholders[4] - The company repurchased shares worth RMB 17,885,980.63 through centralized bidding, which is considered as cash dividends under relevant regulations[3] - 2023 annual cash dividend distribution totals 383,647,436.99 RMB, accounting for 20.90% of the net profit attributable to shareholders[118] - The proposed 2023 annual cash dividend is 1.70 RMB per share, totaling 248,675,138.44 RMB[118] - Cash dividend amount (including tax) is RMB 365,761,456.36, accounting for 19.92% of the net profit attributable to ordinary shareholders of the listed company[120] - Total dividend amount (including tax) is RMB 383,647,436.99, accounting for 20.90% of the net profit attributable to ordinary shareholders of the listed company[120] Share Repurchase and Capital Structure - The company repurchased shares worth RMB 17,885,980.63 through centralized bidding, which is considered as cash dividends under relevant regulations[3] - The company's total share capital is 1,463,578,974 shares, with 784,042 shares repurchased and held in a dedicated account[3] - The company plans to repurchase shares through centralized bidding, with a proposed repurchase amount between RMB 20 million and RMB 30 million, accounting for 0.05% of the total share capital[168] - As of the reporting period, the company has repurchased 467,441 shares[169] - The company unlocked 3,800,610 restricted shares on June 26, 2023, as part of the 2021 restricted stock incentive plan[149] - The company repurchased and canceled 435,000 restricted shares on July 27, 2023, reducing the total share capital[149] - The company unlocked 3,800,610 restricted shares on June 26, 2023, as part of the first unlocking period of the 2021 restricted stock incentive plan[151] - The company repurchased and canceled 435,000 restricted shares on July 27, 2023, due to employee departures under the 2021 restricted stock incentive plan[152] - The total number of restricted shares at the end of the year was 9,049,390, a decrease of 435,000 from the beginning of the year[151] - The company issued 75,000,000 A shares on October 24, 2014, at a price of 5.29 RMB per share[153] - The company issued 43,023,970 A shares on June 14, 2016, at a price of 32.54 RMB per share[153] - The company issued 148,678,071 A shares on October 14, 2020, at a price of 32.15 RMB per share[153] - The company issued 11,200,000 convertible bonds on August 6, 2018, at a price of 100 RMB per bond[153] - The total number of ordinary shareholders at the end of the reporting period was 222,295[154] - The top shareholder, Beijing Zhongke Suanyuan Asset Management Co., Ltd., held 239,388,281 shares, representing 16.36% of the total shares[155] - The second-largest shareholder, Beijing Sicoz Holdings Co., Ltd., held 55,586,600 shares, representing 3.80% of the total shares[155] - New shareholders added during the reporting period include Ge Guilian with 15,980,923 shares (1.09%), Shanghai Jueshuo Asset Management Center with 11,234,600 shares (0.77%), Ge Guilan with 9,798,264 shares (0.67%), and ICBC-Nuoan Growth Hybrid Securities Investment Fund with 9,070,681 shares (0.62%)[159] - ICBC-Huatai-PineBridge CSI 300 ETF added 58,900 shares (0.004%) during the reporting period[159] - Shareholders who exited during the reporting period include Industrial Investment Fund Co., Ltd., China State-owned Enterprise Structure Adjustment Fund Co., Ltd., Nie Hua with 1,617,491 shares (0.11%), Hong Kong Securities Clearing Company Ltd. with 7,049,175 shares (0.48%), and Qingdao City Investment City Finance Holding Group Co., Ltd.[159] - The first batch of restricted shares under the 2021 restricted stock incentive plan of Sugon was unlocked and became tradable on June 26, 2023, with 3,800,610 shares newly tradable[160] Financial Performance - Revenue for 2023 reached 14.35 billion RMB, a 10.34% increase compared to 2022[19] - Net profit attributable to shareholders in 2023 was 1.84 billion RMB, up 18.88% year-over-year[19] - Operating cash flow surged to 3.51 billion RMB in 2023, a 212.02% increase from the previous year[19] - Basic earnings per share (EPS) for 2023 stood at 1.26 RMB, marking an 18.87% growth compared to 2022[20] - Weighted average return on equity (ROE) for 2023 was 10.30%, slightly up by 0.09 percentage points from 2022[20] - Q4 2023 revenue was 6.59 billion RMB, the highest among all quarters[21] - Non-operating income, including government subsidies, contributed 539.05 million RMB in 2023, up from 415.65 million RMB in 2022[24] - Total assets at the end of 2023 were 31.62 billion RMB, a slight decrease of 0.61% compared to 2022[19] - Net profit attributable to shareholders in Q4 2023 was 1.09 billion RMB, significantly higher than other quarters[21] - The company's equity attributable to shareholders increased to 18.65 billion RMB by the end of 2023, up 9.59% from 2022[19] - Total operating revenue reached 14.353 billion yuan, with a growth rate of 10.34%[29] - Net profit attributable to shareholders of the listed company was 1.836 billion yuan, with a growth rate of 18.88%[29] - Revenue for 2023 reached RMB 14,352,658,228.13, a 10.34% increase compared to 2022[174] - Net profit for 2023 was 1.88 billion RMB, up 16.1% from 1.62 billion RMB in 2022[188] - R&D expenses in 2023 amounted to 1.32 billion RMB, a 19.1% increase from 1.11 billion RMB in 2022[187] - Total liabilities decreased to 8.28 billion RMB in 2023 from 8.50 billion RMB in 2022[186] - Total equity increased to 15.90 billion RMB in 2023 from 14.74 billion RMB in 2022[186] - Operating profit for 2023 was 2.18 billion RMB, a 14.2% increase from 1.90 billion RMB in 2022[187] - Other income in 2023 was 555.09 million RMB, a 30.0% increase from 427.07 million RMB in 2022[187] - Investment income in 2023 was 360.64 million RMB, a 45.4% increase from 248.05 million RMB in 2022[187] - Total comprehensive income for 2023 was 1.89 billion RMB, a 16.9% increase from 1.62 billion RMB in 2022[188] - Short-term borrowings decreased to 150.10 million RMB in 2023 from 242.74 million RMB in 2022[186] - Basic earnings per share increased to 1.26 yuan per share in 2023, up from 1.06 yuan per share in 2022[189] - Revenue for 2023 reached 10,998,161,078.16 yuan, a 11.6% increase compared to 9,854,793,324.54 yuan in 2022[190] - Net profit for 2023 was 1,391,342,153.37 yuan, a 48.7% increase from 935,780,560.00 yuan in 2022[190] - R&D expenses increased to 385,079,819.84 yuan in 2023, up 6.8% from 360,580,844.66 yuan in 2022[190] - Operating cash flow for 2023 was 3,509,828,147.53 yuan, a significant increase from 1,124,877,783.58 yuan in 2022[192] - Cash received from sales of goods and services in 2023 was 14,835,361,258.58 yuan, a 14.1% increase from 13,003,491,539.32 yuan in 2022[192] - Cash paid for employee compensation and benefits increased to 1,604,928,065.45 yuan in 2023, up 27.0% from 1,263,312,312.09 yuan in 2022[192] - Investment in fixed assets, intangible assets, and other long-term assets decreased to 2,166,980,788.20 yuan in 2023, down 19.3% from 2,685,144,693.47 yuan in 2022[192] - Net cash flow from operating activities increased significantly to 2,750,748,005.47 RMB in 2023, compared to 843,931,187.86 RMB in 2022[195] - Net cash flow from investing activities was -2,066,390,747.53 RMB in 2023, an improvement from -2,697,706,934.44 RMB in 2022[195] - Net cash flow from financing activities was -121,421,330.99 RMB in 2023, a decrease from 770,443,450.92 RMB in 2022[195] - Cash and cash equivalents at the end of the period were 1,411,286,469.40 RMB, up from 844,722,929.13 RMB at the beginning of the period[196] - Cash received from sales of goods and services was 10,705,442,742.01 RMB in 2023, compared to 10,324,537,946.15 RMB in 2022[195] - Cash paid for goods and services was 7,595,980,807.07 RMB in 2023, down from 9,329,668,240.01 RMB in 2022[195] - Cash received from investments was 328,311,204.29 RMB in 2023, up from 164,041,018.70 RMB in 2022[195] - Cash paid for investments was 2,394,701,951.82 RMB in 2023, down from 2,861,747,953.14 RMB in 2022[195] - Cash received from financing activities was 1,370,000,000.00 RMB in 2023, compared to 2,617,350,500.00 RMB in 2022[195] - Cash paid for financing activities was 1,491,421,330.99 RMB in 2023, down from 1,846,907,049.08 RMB in 2022[195] R&D and Innovation - R&D investment reached 2.444 billion yuan, focusing on high-end computing and intelligent integrated machines[30] - The company's ParaStor distributed all-flash storage system improved I/O performance several times, meeting the needs of intelligent computing[31] - The company's liquid cooling system reduced energy consumption and significantly improved the stability of intelligent computing systems[31] - The company's smart industrial platform supports industrial digital transformation, providing full lifecycle support and services[32] - The company's storage products achieved breakthroughs in AI large model storage and liquid cooling storage, with the liquid cooling storage system reducing PUE to below 1.2[42] - The company's distributed storage system ParaStor has been deployed at a scale of hundreds of petabytes, providing high-performance data services for AI and scientific computing[42] - The company's R&D investment from 2021 to the end of the reporting period totaled RMB 6.45 billion, with 1,246 patents granted, including 833 invention patents[49] - The company's liquid cooling technology has been widely adopted in advanced data centers, significantly reducing overall energy consumption[46] - The company's cloud computing platform, Cloudview, and StackCube-K hyper-converged system received the first batch of trusted cloud certifications[45] - The company's subsidiary, Sugon Intelligent Computing, was one of the first four vendors to pass the "Trusted Computing Service - Intelligent Computing Platform" evaluation by the China Academy of Information and Communications Technology[47] - R&D expenses increased by 19.07% to 1,316.26 million yuan, with total R&D investment reaching 2,444.38 million yuan, accounting for 17.03% of total revenue[62] - The company has 3,547 R&D personnel, accounting for 65.24% of the total workforce[62] Corporate Governance and Management - The company's board of directors and management guarantee the authenticity, accuracy, and completeness of the annual report[1] - The company has established a robust corporate governance structure, with independent and effective operations of its shareholders' meetings, board of directors, and supervisory board[87] - The company maintains a strong relationship with stakeholders, ensuring the protection of their rights and interests, and actively fulfills its social responsibilities[89] - The company has a comprehensive information disclosure system, ensuring timely and accurate disclosure of information to investors and the public[89] - The company held its 2022 Annual General Meeting on May 25, 2023, and the resolutions were disclosed on May 26, 2023[91] - The company held its first interim shareholders' meeting of 2023 on September 28, 2023, and the resolutions were disclosed on September 29, 2023[91] - Li Guojie, the Chairman, received a pre-tax remuneration of 240,000 RMB in 2023[93] - Li Jun, the Director and President, holds 42,136,093 shares and received a pre-tax remuneration of 4.9777 million RMB in 2023[93] - Li Bin, the Director and Senior Vice President, received a pre-tax remuneration of 1.1394 million RMB in 2023[93] - Weng Qinan, the CFO, holds 938,080 shares and received a pre-tax remuneration of 2.7876 million RMB in 2023[93] - Ren Jingyang, the Senior Vice President, holds 1,276,300 shares and received a pre-tax remuneration of 3.6901 million RMB in 2023[93] - The total number of shares held by directors, supervisors, and senior executives at the end of 2023 was 44,350,473[94] - The total pre-tax remuneration for directors, supervisors, and senior executives in 2023 was 15.04 million RMB[94] - Li Guojie has been serving as the Manager and Executive Director of Beijing Cisco Intelligence Holdings Co., Ltd. since June 1, 1993[95] - Total actual remuneration for all directors, supervisors, and senior management at the end of the reporting period was 15.04 million yuan[98] - The company's board of directors approved the 2022 annual report, profit distribution plan, and the special report on the use of raised funds during the 2022 fiscal year[100] - The company's board of directors approved the provision for asset impairment for the 2022 fiscal year[100] - The company's board of directors approved the 2023 annual remuneration for directors, supervisors, and senior management, deeming it fair and reasonable[98] - The company's board of directors approved the appointment of new directors, supervisors, and senior management, including Li Bin and Guan Hongming[99] - The company's board of directors approved the election of new independent directors, including Yin Xucheng[99] - The company's board of directors approved the election of new supervisors, including Zhang Peiheng and Zou Dating[99] - The company's board of directors approved the departure of directors, supervisors, and senior management due to the expiration of their terms, including Guan Hongming and Liu Feng[99] - The company's board of directors approved the departure of supervisors, including Yin Yuli and Fang Xinwo, due to the expiration of their terms[99] - The company's board of directors approved the remuneration decision-making process, with senior management remuneration approved by the board and director/supervisor remuneration approved by the shareholders' meeting[97] - The company held a total of 9 board meetings in 2023, with 1 being in-person, 3 via telecommunication, and 5 combining both in-person and telecommunication methods[104] - The company's strategic committee held 5 meetings in 2023, focusing on financial reports, internal audits, and major event inspections[107] - The nomination committee held 2 meetings in 2023, addressing the nomination of independent and non-independent directors and the appointment of senior management[108] - The company's board of directors approved the 2023 Q1, Q3, and semi-annual reports, as well as the semi-annual profit distribution plan[102] - The company proposed a share repurchase plan using the centralized bidding method in December 2023[102] - The company's board of directors approved the 2023 annual financial budget and the 2022 financial final accounts[102] - The company's board of directors approved the 2023 daily related party transactions and the list of related parties for each quarter[107] - The company's board of directors approved the 2023 internal control evaluation report and the internal audit work report for each quarter[107] - The company's board of directors approved the 2023 organizational structure setting and the revision of the investor relations management system[102] - The company's board of directors approved the 2023 remuneration plan for directors, supervisors, and senior management[102] Market and Industry Trends - AI development is driving demand for computing power, with IDC predicting rapid growth in AI application penetration across