XINGYE TECH.(002674)2024-04-22 11:51Dividend and Profit Distribution - The company plans to distribute a cash dividend of 6 CNY per 10 shares to all shareholders, based on a total of 291,862,944 shares[3]. - The company plans to distribute a cash dividend of CNY 6.00 per 10 shares, totaling CNY 175,117,766.40, which represents 100% of the profit distribution[192][194]. - The total distributable profit available for shareholders was CNY 551,228,903.78 after accounting for previous distributions[194]. - The company has not proposed any stock bonus distribution for the reporting period[192]. Financial Performance - The company's operating revenue for 2023 reached ¥2,699,515,768, representing a 35.81% increase compared to ¥1,987,712,444 in 2022[18]. - The net profit attributable to shareholders of the listed company for 2023 was ¥186,309,609, a 23.74% increase from ¥150,567,194 in 2022[18]. - The net cash flow from operating activities improved significantly to ¥25,215,994, a 122.69% increase from a negative cash flow of ¥111,127,012 in 2022[19]. - Basic earnings per share for 2023 were ¥0.6383, up 23.73% from ¥0.5159 in 2022[19]. - The total assets of the company as of December 31, 2023, were ¥4,112,131,121, an 8.58% increase from ¥3,787,049,972 in 2022[19]. - The net assets attributable to shareholders of the listed company increased to ¥2,401,088,281, a 2.15% rise from ¥2,350,440,600 in 2022[19]. - The company reported a net profit of CNY 113,445,816.50 for the fiscal year 2023[194]. Operational Stability and Governance - The company has not reported any changes in its main business since its listing, indicating stability in operations[16]. - The company has no changes in its controlling shareholders, ensuring continuity in governance[16]. - The company has confirmed the accuracy and completeness of its financial reports, with key personnel signing off on the annual report[2]. - The company maintains independent financial operations, with a dedicated finance department and independent financial decision-making processes[155]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with governance standards[147]. - The company has established a complete and independent procurement, production, sales, and R&D system, ensuring no competition with the controlling shareholder[151]. Environmental and Production Strategies - The company is focused on environmental protection strategies in its production processes to minimize risks to humans and the environment[9]. - The company has a comprehensive approach to clean production, aiming to maximize social and economic benefits while reducing potential hazards[10]. - The company emphasizes environmental protection by implementing advanced wastewater treatment solutions and has obtained pollution discharge permits for its subsidiaries[45]. - The company is developing chromium-free, low-formaldehyde ecological leather products, aiming to enhance product quality and customer satisfaction[92]. - The ecological health product development focuses on chromium-free tanning and low volatile organic compounds, ensuring consumer health and safety[92]. Research and Development - The company has established a dual R&D system with a technical center at headquarters and product development teams in business units, focusing on cutting-edge development and basic research in leather technology[42]. - In 2023, the company undertook 29 R&D projects and has accumulated 101 valid patents, including 86 invention patents, demonstrating its commitment to innovation[46]. - The total R&D investment for 2023 was approximately 71.99 million yuan, representing a 30.74% increase from 55.06 million yuan in 2022[94]. - The number of R&D personnel increased to 283, up 8.43% from 261 in 2022, with the proportion of R&D staff in the company rising to 8.63%[94]. Market Position and Sales - The company focuses on high-end leather products for shoes and bags, serving well-known domestic and international brands, which helps maintain its competitive edge[37]. - The company’s subsidiary, Hongxing Automotive Leather, has established partnerships with major automotive brands, including Li Auto and NIO, enhancing its market position in the automotive leather sector[39]. - Revenue from automotive interior leather surged by 94.21% to CNY 599,180,295.30, driven by the growth in the new energy vehicle market[59]. - Sales of leather for shoes and bags accounted for 69.13% of total revenue, with a year-on-year growth of 19.59%[59]. - The company successfully entered the supply chains of brands such as VF Group and COLEHAAN, enhancing its presence in overseas markets[54]. Challenges and Risks - The company faces risks related to environmental policies, which may lead to increased operational costs due to stricter pollution control measures and the need for additional environmental facilities[131]. - Fluctuations in the price of raw materials, particularly cowhide, significantly impact the company's financial performance, with potential adverse effects on profitability[133]. - The company is exposed to exchange rate risks due to substantial imports of raw materials, primarily settled in foreign currencies like USD, which could affect revenue as the business scales[135]. - Ongoing US-China trade tensions pose risks, including potential tariffs on leather products exported to the US, which could affect sales and increase procurement costs for raw materials[138]. Employee and Management Structure - The total number of employees at the end of the reporting period was 3,281, with 2,250 in production, 91 in sales, 514 in technology, 45 in finance, and 381 in administration[185][186]. - The company emphasizes employee training and development to enhance workforce capabilities and support business growth[188]. - The company has a strong focus on technological innovation and has participated in multiple patent designs and inventions[164]. - The company’s management team includes professionals with advanced degrees from prestigious institutions, contributing to its strategic direction[165]. Future Outlook - The company plans to deepen market penetration and expand into new sectors such as electronic product covering leather and furniture leather, while maintaining its position in the footwear and bag leather markets[128]. - In 2024, the company anticipates a recovery in downstream customer orders as the domestic macroeconomic environment improves and overseas brands resume production orders[129]. - The company will leverage its overseas production capacity in Indonesia to enhance service for international clients while stabilizing its domestic market presence[129]. - The company has provided a performance guidance for 2024, expecting a revenue growth of 10% to 12%[172].