Sanchuan Wisdom(300066)2024-04-18 11:21Intangible Assets and Goodwill - The company's intangible assets include land use rights, patents, non-patent technologies, software, and others, with a total book value of 94,634,916.88 yuan at the end of the period[9] - The company's goodwill includes investments in Wenling Yongling Water Meter Co., Ltd., Hangzhou Sanchuan Guode IoT Technology Co., Ltd., and Ganzhou Tianhe Permanent Magnet Materials Co., Ltd., totaling 210,544,201.81 yuan[11] Deferred Tax Assets and Liabilities - The company's deferred tax assets increased to 209,066,751.62 yuan at the end of the period, up from 170,886,267.99 yuan at the beginning of the period[15] - The company's deferred tax liabilities increased to 107,131,037.25 yuan at the end of the period, up from 31,273,560.58 yuan at the beginning of the period[16] - The company's deferred tax liabilities decreased from RMB 10,707,602.96 to RMB 5,024,221.31, indicating a reduction in future tax obligations[76] Prepaid Expenses and Short-term Borrowings - The company's prepaid engineering equipment payments amounted to 22,096,446.65 yuan at the end of the period[17] - Short-term borrowings increased significantly, with guaranteed loans rising from 30 million yuan to 191 million yuan, and total short-term borrowings reaching 199.18 million yuan[19] - The subsidiary Tianhe Yongmeng obtained a mortgage loan of 8 million yuan from China Merchants Bank Ganzhou Branch, secured by real estate and land use rights[20] - Short-term borrowings increased by 4.86% to 199,182,305.56 RMB, reflecting new borrowings during the reporting period[119] Accounts Payable and Receivable - Accounts payable decreased from 199.21 million yuan to 183.97 million yuan, with material payments accounting for the majority at 165.71 million yuan[22] - The company's accounts receivable decreased from RMB 82,971,041.29 to RMB 47,407,696.26, reflecting a significant reduction in outstanding payments[69] - Accounts receivable increased by 0.66% to 661,369,850.32 RMB, with no significant changes reported[119] - The company's accounts receivable from the top five customers accounted for 27.19% of total receivables as of December 31, 2023, up from 25.11% in the previous year[146] Patents and Intellectual Property - The company holds 453 valid patents in smart water and smart metering, including 48 invention patents and 433 software copyrights[25] - Sanchuan Wisdom added 75 new patents in 2023, including 16 invention patents, 56 utility model patents, and 3 design patents, bringing the total number of valid patents to 469[59] - The company has developed a new electromagnetic water meter with a waterproof structure, patent number ZL202222130240.6[16] - The company has introduced a new built-in transducer and ultrasonic water meter, patent number ZL202222130319.9[17] - A simplified ultrasonic industrial water meter has been developed, patent number ZL202223014593.6[18] - Sanchuan Wisdom has created a stainless steel valve-controlled ultrasonic meter housing, patent number ZL202223226581.X[19] - A new camera remote water meter counter has been developed, patent number ZL202223090315.9[20] - The company has designed a large-diameter ultrasonic water meter bracket straight pipe, patent number ZL202222790379.3[21] - A new water meter with fire protection function has been introduced, patent number ZL202222788695.7[22] - Sanchuan Wisdom has developed a Z-type reflective structure ultrasonic water meter, patent number ZL202221943894.4[23] - A new electromechanical conversion accuracy verification tool has been created, patent number ZL202222533843.0[24] - The company has introduced a high-strength ultrasonic meter housing for easy material fixation, patent number ZL202221944068.1[25] - The company has obtained multiple utility model patents for water meters, including a convenient assembly water meter (ZL202321049938.3) and a single-pipe vertical water meter (ZL202321225541.5)[63] - A new utility model patent for a water meter valve control device that extends the life of the transmission system (ZL202320377708.3) has been granted[63] - The company has developed a water meter with IP68 protection level for underground wells (ZL202321677228.5)[63] - A new utility model patent for an instantaneous flow verification device for electromagnetic and ultrasonic water meters and flow meters (ZL202320116007.4) has been obtained[63] - The company has secured a utility model patent for a battery compartment with easy disassembly and a disassembly tool (ZL202321143712.X)[63] - A new utility model patent for a stainless steel check water meter with block sealing (ZL202321491581.4) has been granted[63] - The company has obtained a utility model patent for a vertical valve-controlled water meter housing (ZL202321636366.9)[63] - A new utility model patent for a stainless steel vertical water meter housing with high material utilization (ZL202321793695.4) has been secured[63] Smart Water and Metering - The company's smart water management platform serves over 100 large water companies, including China Water Group and Shenzhen Water[25] - National policies such as the "National Water Network Construction Outline" and the "14th Five-Year Plan for Ecological Environment Supervision" provide significant market opportunities for smart water development[26][28] - The company's NB-IoT magnetic-free remote water meter features 1L metering, NB-IoT communication, and data storage for up to 18 months[41] - The electromagnetic water meter offers advantages such as zero wear, low pressure loss, and high sensitivity, suitable for pipeline monitoring and DMA partition metering[42] - The multi-sensing ultrasonic water meter integrates sensors for water quality, temperature, and pressure, with data storage for up to 120 months[44] - The company's non-negative pressure water supply equipment saves over 30% in electricity compared to traditional water tank systems[45] - Sanchuan Wisdom's smart water meters achieved a market share of approximately 10% in 2023, with its cloud-based smart water platform covering over 50 million users and serving more than 300 water companies[56] - Sanchuan Wisdom's smart water meter shipments and sales reached record highs in 2023, stabilizing the company's performance[57] - Sanchuan Wisdom's smart water platform integrates various water meter types and manufacturers, eliminating data silos and enabling functions like production scheduling, customer service, and leak detection[56] - Sanchuan Wisdom's stainless steel water meters prevent secondary water pollution and are more energy-efficient and environmentally friendly compared to traditional casting methods[56] - Sanchuan Wisdom's smart water meters are driven by policies such as "one household, one meter" and "three supplies and one industry," as well as demand for smart city and water-saving city construction[57] - The company developed and launched DN40-200 large-diameter ultrasonic water meters and initiated customized development of ultrasonic products for international markets[108] Rare Earth Recycling - The rare earth recycling industry is expected to grow rapidly, driven by demand from new energy and "dual carbon" strategies, with over 30 companies in the sector[33] - The rare earth recycling industry is concentrated in Jiangxi, with fewer than 5 companies having an annual capacity exceeding 3,000 tons[34] - The company acquired 67% equity of Tianhe Permanent Magnet for 214 million yuan, which has an existing REO production capacity of 1,000 tons/year[35] - Tianhe Permanent Magnet's technical renovation project, with an investment of 280 million yuan, will increase REO production capacity to 3,000 tons/year after completion[35] - The company completed the renovation of the original production line, adding praseodymium oxide and neodymium oxide product lines, achieving an REO production capacity of 1,500-2,000 tons/year[35] - Tianhe Rare Earth has completed the technical transformation of its original production line, meeting requirements for environmental protection, safety, energy efficiency, and intelligent production, further expanding production capacity[53] - Tianhe Rare Earth's total recovery rate of rare earth elements reaches 96%, higher than the industry average of 94%, and it is one of the few companies with molten salt slag processing capabilities[56] - Tianhe Rare Earth employs advanced acid and alkali-acid combined processes for efficient rare earth resource recovery, with a focus on producing praseodymium-neodymium oxide as its main product[56] - The company acquired 8% equity of Jisheng Technology for 62.4 million yuan to enhance the rare earth resource recycling business, but due to global economic recovery weakness and declining rare earth product prices, Jisheng Technology incurred losses, triggering a share repurchase clause[104] - Revenue from rare earth oxide comprehensive recycling reached 1.17 billion yuan, accounting for 51.03% of total revenue, a 265.06% increase year-over-year[109] - Sales volume of rare earth resource recycling products was 502.42 tons, a 58.99% increase compared to 316.01 tons in 2022[110] - The company's subsidiary, Ganzhou Tianhe Rare Earth Materials Co., Ltd., generated revenue of 817.7521 million yuan and a net profit of 22.9423 million yuan in the current period[178] - The company's subsidiary, Ganzhou Chuan Yu International Trade Co., Ltd., achieved revenue of 380.0174 million yuan and a net profit of 16.1492 million yuan in the current period[178] - The company faces risks related to fluctuations in rare earth product prices due to macroeconomic factors and market competition[167] - The company is exposed to risks from changes in tax incentives, as tax refunds and rewards are a major source of profit in the rare earth recycling industry[168] Financial Performance and Revenue - Main business revenue increased to 2,262,318,518.04 yuan, up 72.3% compared to the previous period's 1,312,877,061.64 yuan[85] - Total revenue reached 2,284,724,239.89 yuan, a 71.6% increase from the previous period's 1,331,679,724.58 yuan[85] - Domestic revenue accounted for 2,152,438,691.16 yuan, while international revenue was 132,285,548.73 yuan[86] - Direct sales revenue was 2,110,515,012.93 yuan, representing 92.4% of total revenue[86] - Revenue from smart water meters was 770.08 million yuan, a 33.43% increase compared to 577.14 million yuan in 2022[109] - Revenue from the East China region was 1.27 billion yuan, a 55.51% share of total revenue, with an 80.31% year-over-year increase[109] - Direct sales accounted for 92.38% of total revenue, reaching 2.11 billion yuan, an 81.06% increase compared to 2022[109] - Total operating revenue in 2023 was 2.28 billion yuan, a 71.57% increase compared to 1.33 billion yuan in 2022[109] - The company's net profit was 260,519,312.46, up from 233,687,016.22 in the previous period[137] - The company's total comprehensive income for the year 2023 amounted to 280,889,831.46 yuan[185] - The company's undistributed profit increased by 221,599,850.45 yuan in 2023, reaching 798,171,918.84 yuan[185] - The company's capital reserve increased by 11,363,736.90 yuan in 2023, totaling 176,174,967.78 yuan[185] - The company's special reserve increased by 2,827,520.57 yuan in 2023, reaching 4,988,599.24 yuan[185] - The company's surplus reserve increased by 28,088,983.15 yuan in 2023, totaling 166,067,418.48 yuan[185] - The company's total owner's equity increased by 263,880,091.07 yuan in 2023, reaching 2,185,436,166.34 yuan[185] - The company's profit distribution to owners (or shareholders) amounted to -31,200,997.86 yuan in 2023[185] - The company's equity balance at the beginning of the year was 1,040,033,262.00 yuan[185] R&D and Innovation - R&D expenses totaled 113,421,041.62 yuan, a 14.1% increase from the previous period's 99,437,656.01 yuan[91] - R&D expenses increased by 20.72% to 65,312,571.75 RMB, driven by increased investment in R&D personnel and materials[115] - Sanchuan Wisdom's R&D team consists of nearly 300 professionals, focusing on hardware development, intelligent control, software development, and network communication technologies[59] - The company's software development efforts are focused on enhancing water resource management, smart metering, and customer service systems, with multiple new versions and updates released during the reporting period[65] - The company developed and registered multiple new software systems, including the Water Resource Monitoring Data TCP Transmission Service Software V1.0 and the NB-IOT Module Barcode Management System 1.0, with full rights secured until 2073[65] - The company has developed a new software for IoT NB water meter reading system (2023SR0103603)[63] - A new software for Bluetooth RTU communication (2023SR0422319) has been developed by the company[63] Investments and Acquisitions - The company acquired 67% equity of Tianhe Permanent Magnet for 214 million yuan, which has an existing REO production capacity of 1,000 tons/year[35] - The company acquired 8% equity of Jisheng Technology for 62.4 million yuan to enhance the rare earth resource recycling business, but due to global economic recovery weakness and declining rare earth product prices, Jisheng Technology incurred losses, triggering a share repurchase clause[104] - Long-term equity investments increased by 1.44% to 579,274,249.06 RMB, mainly due to increased investment in Jisheng Technology and investment income[119] - The company holds a 100% direct stake in Shanghai Sanchuan Financial Information Service Co., Ltd. with a registered capital of 20,000,000 RMB[148] - The company holds a 60% stake in Shandong Sanchuan Water Meter Co., Ltd. with a registered capital of 18,000,000 RMB[148] - The company holds a 51% stake in Wenling Yongling Water Meter Co., Ltd. with a registered capital of 30,000,000 RMB[148] - The company holds a 51% stake in Hangzhou Sanchuan Guode IoT Technology Co., Ltd. with a registered capital of 10,000,000 RMB[148] - The company holds a 57.76% stake in Yingtan Jingchuan Water Supply Co., Ltd. with a registered capital of 8,656,000 RMB[148] - The company holds a 100% stake in Sanchuan Smart Water Research Institute (Hangzhou) Co., Ltd. with a registered capital of 10,000,000 RMB[149] - The company holds a 100% stake in Jiangxi Sanchuan Technology Co., Ltd. with a registered capital of 100,000,000 RMB[149] - The company holds a 67% stake in Ganzhou Tianhe Permanent Magnet Materials Co., Ltd. with a registered capital of 91,000,000 RMB[149] - The company holds a 55% stake in Ganzhou Chuanyu International Trade Co., Ltd. with a registered capital of 100,000,000 RMB[149] - In 2022, the company invested 214 million yuan to acquire 67% equity of Ganzhou Tianhe Rare Earth Materials Co., Ltd., resulting in a goodwill of 167.3093 million yuan[165] Market and Sales Strategy - Domestic market coverage reached approximately 40%, with products exported to over 60 countries[101] - The company has established marketing and customer service offices in 11 central cities to enhance market penetration and customer service[102] - The company transitioned to a "lean production model" to achieve zero inventory and quick response to orders[51] - Tianhe Permanent Magnet established a standardized procurement process, with raw materials including molten salt slag and NdFeB waste[52] - Future procurement will adopt a dual-track model combining factory direct purchase and supplier delivery, with plans to establish acquisition points in regions with abundant supply[52] - The company has implemented measures to manage accounts receivable, including a customer credit rating system and a salesperson responsibility system[166] - The company is actively addressing market changes by dynamically managing procurement and inventory, and optimizing industrial development plans to mitigate the impact of price fluctuations[167] - Top 5 customers accounted for 34.34% of total annual sales, with a combined sales amount of 784,597,857.41 RMB[114] Tax and Financial Liabilities - Tax expenses increased to 15,296,424.80 yuan, up 48.1% from the previous period's 10,323,848.41 yuan[88] - The company's tax liabilities increased significantly, with total tax liabilities rising from RMB 24,655,896.63 to RMB 58,909,405.39, driven by higher VAT and corporate income tax obligations[74] - The company provided a guarantee for a RMB 34 million loan to Ganzhou Tianhe Permanent Magnet Material Co., Ltd., with the loan balance at the end of the reporting period being RMB 31.8 million[74] - The company's long-term borrowings remained stable at RMB 8,500,000.00, with no significant changes reported during the period[77] Cash Flow and Financial Activities - Net cash flow from operating activities was 124,423,221.85, a substantial rise from the previous period's 10,795,925.31[137] - Investment activities resulted in a net cash outflow of 199,622,000 RMB, a significant decrease of 421.74% year-over-year[118] - Fixed asset investment increased by 61 million RMB, contributing to the significant cash outflow in investment activities[118] - The company's total cash received from other operating activities was 537,069,982.34,