Ningbo KBE Electrical Technology (300863)2024-04-18 12:38Subsidiary Performance - The subsidiary Shanghai Kabeyi New Energy Technology Co., Ltd. achieved a total revenue of 589,682,345.91 yuan and a net profit of 8,415,060.23 yuan[6] - The subsidiary Benxi Kabeyi Electrical Technology Co., Ltd. achieved a total revenue of 1,407,346,870.04 yuan and a net profit of 47,425,096.74 yuan[10] - The subsidiary Ningbo Kabeyi New Material Technology Co., Ltd. achieved a total revenue of 161,728,002.98 yuan and a net profit of 27,470,230.83 yuan[10] - The subsidiary Kabeyi Electrical (Hong Kong) Co., Ltd. achieved a total revenue of 143,784,249.25 yuan and a net profit of 6,572,606.43 yuan[10] - The subsidiary Chengdu Kabeyi Automotive Electrical Co., Ltd. achieved a total revenue of 325,010,095.76 yuan and a net profit of 5,335,279.02 yuan[10] Financial Performance - Revenue for 2023 reached 3.45 billion yuan, a 17.08% increase compared to 2022[103] - Net profit attributable to shareholders in 2023 was 165.94 million yuan, up 18.49% year-on-year[103] - Operating cash flow surged by 384.53% to 51.21 million yuan in 2023[103] - Total assets grew by 18.07% to 2.82 billion yuan at the end of 2023[103] - Shareholders' equity increased by 53.65% to 1.21 billion yuan by the end of 2023[103] - Basic earnings per share rose by 12.43% to 1.90 yuan in 2023[103] - Weighted average ROE decreased by 3.77 percentage points to 15.60% in 2023[103] - Revenue for the reporting period reached 3,451.93 million yuan, a year-on-year increase of 17.08%[146] - Net profit attributable to shareholders of the listed company was 165.94 million yuan, a year-on-year increase of 18.49%[146] - Total assets at the end of the reporting period were 2,816.36 million yuan, a year-on-year increase of 18.07%[146] - Total revenue for 2023 reached 3,451,930,657.35 yuan, a year-on-year increase of 17.08%[180] - Revenue from the automotive parts industry accounted for 95.74% of total revenue, reaching 3,304,971,680.76 yuan, a 16.32% increase compared to 2022[180] - Domestic sales accounted for 91.08% of total revenue, reaching 3,143,942,666.62 yuan, a 19.45% increase year-on-year[180] - Sales of ordinary cables increased by 18.30% to 2,963,218,129.98 yuan, accounting for 85.84% of total revenue[180] - Sales of new energy cables grew slightly by 0.71% to 332,382,790.67 yuan, accounting for 9.63% of total revenue[180] Production and Sales - The company's production volume for automotive cables in the reporting period was 6,131,654.08 kilometers, a 17.25% increase compared to the same period last year[38] - Sales volume for automotive cables in the reporting period was 6,258,214.15 kilometers, a 20.24% increase compared to the same period last year[38] - Production volume for new energy vehicle cables in the reporting period was 226,189.22 kilometers, a 6.91% decrease compared to the same period last year[38] - Sales volume for new energy vehicle cables in the reporting period was 217,940.08 kilometers, a 6.23% decrease compared to the same period last year[38] - The company's new energy vehicle cable production capacity is 513,474.67 kilometers, with a production volume of 226,189.22 kilometers and sales volume of 217,940.08 kilometers, generating sales revenue of 332,382,790.67 yuan[92] - Inventory volume decreased by 33.12% to 255,590.22 kilometers due to improved inventory management and increased sales[183] Strategic Focus and R&D - The company plans to focus on the automotive cable industry, with a particular emphasis on new energy vehicles and smart connected vehicles[12] - The company will increase R&D investment in 2024, focusing on developing new products such as data cables, aluminum cables, and new energy high-voltage cables[15] - The company will expand its market share by targeting new customers in the new energy vehicle and smart connected vehicle sectors, and will enhance production capacity at domestic bases while advancing the construction of a production base in Mexico[16] - The company increased R&D investment to enhance competitiveness in the automotive cable market, focusing on new energy and smart connected vehicle cables[177] - The company is developing 14 R&D projects, including cost reduction for charging cables and low-cost fast-charging solutions, with some projects already completed[196] Market and Customer Relations - The company's sales model is direct sales, primarily supplying to tier-1 suppliers of automotive harness manufacturers[31] - The company has become a qualified supplier for multiple major automakers including Volkswagen, General Motors, Ford, BMW, Daimler-Benz, Honda, Toyota, Nissan, Fiat-Chrysler, Volvo, Land Rover, SAIC Group, GAC Group, and Geely Holding[31] - The company has entered the supply chain of major automotive manufacturers including Tesla, BYD, and Geely in the new energy vehicle sector[92] - Top 5 customers accounted for 64.41% of total annual sales, with a combined sales amount of RMB 2,223,486,159.27[186] Financial Structure and Risk Management - The company will optimize its financial structure, improve asset scale, and reduce financial risks by leveraging capital market financing and bank credit resources[19] - The company's asset-liability ratio, interest coverage ratio, loan repayment rate, and interest payment rate are detailed in the bond-related section of the report[84] - The company's credit rating by China Chengxin Credit Rating Group is A+ with a stable outlook[84] - The company faces risks related to product technological innovation, particularly in meeting the increasing performance requirements for automotive cables in the context of new energy and smart connected vehicles[51] - The company's main raw material, copper, accounts for approximately 85% of the main business cost, and its price fluctuations directly impact product pricing and cost, affecting the company's product gross margin level[58] - The company's top five customers account for a high proportion of sales, leading to low bargaining power with customers and potential negative impacts on performance if major customers are lost[61] - The company faces a risk of declining gross margins due to fluctuations in copper prices, which directly impact product prices and costs, while processing fees remain relatively fixed[128] - The company's inventory balance is expected to increase with business expansion, posing potential inventory devaluation risks[102] Corporate Governance and Remuneration - The company's board consists of 7 directors, including 3 independent directors, ensuring compliance with legal and regulatory requirements[138] - The company maintains independence in business, personnel, assets, and finance, with no reliance on controlling shareholders or related parties[142] - The company has a complete business system, including production facilities, land, equipment, and intellectual property rights, ensuring independent operations[142] - The company's governance structure complies with regulatory requirements, with no significant differences from legal and regulatory standards[141] - The company's Chairman and General Manager, Lin Guangyao, received a pre-tax remuneration of 1.1611 million yuan in 2023[165] - The company's Vice President, Lin Qiang, received a pre-tax remuneration of 1.0293 million yuan in 2023[165] - The company's Vice President and Board Secretary, Qin Ci, received a pre-tax remuneration of 587,500 yuan in 2023[165] - The company's total pre-tax remuneration for directors, supervisors, and senior management in 2023 was 4.8613 million yuan[165] - The company's independent directors each received a remuneration of 50,000 yuan in 2023[165] - The company's Board of Directors held four meetings in 2023, with resolutions published on the official website[160] - The company's directors, supervisors, and senior management received full payment of their remuneration during the reporting period[159] - The company's remuneration for directors, supervisors, and senior management is determined based on their management positions, actual performance, and company operating results[159] - The company's independent directors' remuneration standards are referenced to the overall level of listed companies in the same industry in the region[159] - The company's remuneration for directors, supervisors, and senior management is determined and distributed according to the company's "Board of Directors Remuneration and Assessment Committee Rules"[164] Fundraising and Capital Management - The unused raised funds amount to 33,112,869.66 yuan, including interest income from the raised funds account[2] - The company issued convertible bonds (code: 123238) with a total issuance amount of RMB 529 million, and the initial conversion price was set at RMB 49.01 per share[78] - The company adjusted the conversion price of the convertible bonds to RMB 41.43 per share, effective from March 28, 2024, due to a trigger of the downward revision condition[82] - The company pre-invested RMB 139.9862 million in self-raised funds for the fundraising projects and RMB 3.7024 million for issuance expenses, totaling RMB 143.6885 million[73] Operational Efficiency and Management - The company has established five major automotive cable production bases in Ninghai, Benxi, Chengdu, Shanghai, and Huizhou[28] - The company's production management efficiency and cost control measures have established a strong foundation for long-term development[96] - The company optimized internal management processes and implemented the Amoeba business model to improve operational efficiency[176] - The company strengthened talent development, particularly for middle and senior management, to improve organizational structure and team quality[180] - The company has implemented ERP and OA systems for comprehensive management of production and operations[96] Industry Trends and Market Position - The company's core automotive components are transitioning to deeper localization, breaking the dominance of international manufacturers[109] - The automotive cable industry is entering a stable growth phase, driven by rising consumer income and urbanization[110] - The company's brand influence has steadily increased among upstream and downstream customers and financial institutions since its listing on the Shenzhen Stock Exchange in August 2020, enhancing its financing capabilities and strategic competitiveness[125] Investor Relations and Shareholder Engagement - The company's 2022 annual general meeting had a 67.42% investor participation rate, while the 2023 temporary meetings ranged from 62.34% to 67.00% participation[89] - In 2023, the company conducted multiple investor relations activities, including on-site research and online exchanges, discussing topics such as the impact of copper price fluctuations, sales to BYD, and the progress of the convertible bond issuance project[129][133] Cost Structure and Expenses - Raw materials accounted for 93.11% of the operating costs in the automotive parts industry, with a year-on-year increase of 14.36%[190] - Direct labor costs in the automotive parts industry increased by 41.42% year-on-year, accounting for 1.92% of operating costs[190] - Manufacturing expenses in the automotive parts industry increased by 65.00% year-on-year, accounting for 4.97% of operating costs[190] - Sales expenses increased by 106.70% year-on-year to RMB 25,061,024.24 due to expanded sales scale[194] - R&D expenses increased by 28.44% year-on-year to RMB 90,284,911.14, accounting for 2.62% of total revenue[194][196] - The number of R&D personnel increased by 13.33% to 85, with R&D personnel accounting for 8.32% of total employees[196] Cash Flow and Financial Health - Net cash flow from operating activities increased to RMB 51,206,840.59, while net profit was RMB 165,944,626.58, with the difference mainly due to increased accounts receivable[198] Intellectual Property and Innovation - The company holds 37 utility model patents and 7 invention patents as of the reporting period[93] Project Development and Expansion - The "New Energy Vehicle Cable Production Line Project" in Benxi Kabei entered the production phase, and the "Hubei Kabei Production Base Project" entered trial production[148] - The company's "Ninghai Automotive Cable Expansion Project" and the "Automotive Cable Insulation Material Expansion Project" by Kabei New Materials are in the construction phase[148] Accounting and Compliance - No significant differences were found between financial reports prepared under international and Chinese accounting standards[106] Stock Incentive and Talent Retention - The company successfully implemented a stock incentive plan to attract and retain talent, completing the grant of the second category of restricted stock[147]