DBG(300735)2024-04-22 13:01Financial Performance - Revenue for 2023 reached 5,402,448,971.14 yuan, a 29.25% increase compared to 2022[23] - Net profit attributable to shareholders in 2023 was 396,738,611.16 yuan, up 31.71% year-over-year[23] - Operating cash flow decreased by 22.96% to 926,373,087.58 yuan in 2023[23] - Basic earnings per share increased by 33.33% to 0.52 yuan in 2023[23] - Total assets grew by 29.40% to 7,535,093,925.24 yuan at the end of 2023[23] - Shareholders' equity increased by 5.83% to 4,847,262,821.61 yuan at the end of 2023[23] - The company's weighted average return on equity increased by 1.73 percentage points to 8.44% in 2023[23] - The company's net profit after deducting non-recurring gains and losses increased by 42.96% to 373,487,161.89 yuan in 2023[23] - Revenue for Q1 was 688.9 million yuan, Q2 was 1.09 billion yuan, Q3 was 1.68 billion yuan, and Q4 was 1.95 billion yuan[27] - Net profit attributable to shareholders in Q1 was 37.03 million yuan, Q2 was 88.41 million yuan, Q3 was 112.11 million yuan, and Q4 was 159.19 million yuan[27] - Net cash flow from operating activities in Q1 was -61.20 million yuan, Q2 was 195.37 million yuan, Q3 was 510.49 million yuan, and Q4 was 281.71 million yuan[27] - In 2023, the company's net cash flow from operating activities was RMB 926.37 million, a decrease of 22.96% year-on-year, primarily due to increased inventory purchases[70] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 2.5 yuan per 10 shares for 2023[3] Accounting and Financial Reporting - The company implemented the "Accounting Standards Interpretation No. 16" starting from January 1, 2023, with retrospective adjustments[26] - The company uses the weighted average method for inventory valuation[160] - The company employs a perpetual inventory system for inventory management[164] - Low-value consumables are amortized using the one-time write-off method or the installment amortization method, while packaging materials are amortized using the one-time write-off method[167] - The company's long-term investment costs are determined based on the fair value of equity securities issued or the actual purchase price paid in cash[181][182] - The company assesses credit risk for financial instruments based on factors such as credit ratings, collateral types, and industry and geographic location of debtors[185] - The company uses a combination of individual and portfolio assessments to determine expected credit losses for significant receivables and lease receivables[185] Business Expansion and Market Position - The company is ranked 18th in the global EMS industry and has entered the supply chains of major brands such as Huawei, Xiaomi, and Samsung[50] - The company has expanded into the automotive electronics sector, supplying components for brands like BMW, Audi, and Volkswagen[50] - In 2022, the company entered the new energy sector, providing manufacturing services for new energy electronic products[50] - The company plans to expand its business in automotive electronics, new energy, and other emerging fields in 2024, while continuing to focus on consumer electronics and leveraging the production capacity of the Phase III intelligent manufacturing base[87] - The company's overseas expansion includes successful operations in India and new manufacturing bases in Vietnam and Bangladesh, aiming to meet global market demands[67] Procurement and Supply Chain Management - The company operates under a "production-based procurement" model, with both domestic and international procurement channels[51] - The company's overseas procurement of raw materials, including electronic components and PCBs, is conducted through its subsidiary Guanghong Group, with a detailed six-step process from procurement planning to payment settlement[52] - The company has established a high entry threshold for new suppliers, requiring comprehensive investigations and evaluations based on quality, price, delivery, and service, with annual on-site audits for key suppliers[53] - The company's procurement model is "production-based purchasing," with a centralized procurement department handling both main and auxiliary materials, and a focus on domestic sourcing for convenience and quality[64] Manufacturing and Technology - The company provides EMS services for consumer electronics, automotive electronics, network communications, IoT, and new energy products[51] - The company's EMS business model provides customized electronic manufacturing services, covering raw material procurement, NPI, assembly, and logistics[62][63] - The company's new smart manufacturing base in Shenzhen is expected to be operational by 2025, enhancing production capacity and upgrading information and automation levels[54] - The company is advancing equipment upgrades and precision manufacturing improvements, focusing on automation and the integration of MES systems with information management systems to enhance intelligent manufacturing capabilities[88] - The company has invested nearly 400 million yuan in technological innovation over the past five years, with an annual growth rate of nearly 20%[118] - Over 2 billion yuan has been invested in equipment updates and technological upgrades in the past five years[118] - The company focuses on "Industry 4.0" and "smart manufacturing" to drive manufacturing upgrades, aiming for comprehensive cost reduction and efficiency improvement[114] - The company has established an engineering technology center to oversee R&D and production technology upgrades, with specialized engineering development and analysis laboratories[118] - The company emphasizes the importance of R&D innovation, continuously improving automation and manufacturing processes[118] - The company has formed core technologies in areas such as dispensing technology, manufacturing execution systems, and automated welding systems[118] Corporate Governance and Compliance - The company adheres to strict governance standards, ensuring compliance with laws and regulations, and continuously improves internal management and control systems to promote healthy development[95] - The company's directors and senior management have no recent penalties from securities regulatory agencies in the past three years[133] - The company's directors and supervisors receive allowances according to the company's "Directors, Supervisors, and Senior Management Compensation System," with actual payment details provided in the report[134] - The company's Audit Committee held 3 meetings in 2023, focusing on the annual report and summary for 2022[138] - The company reported no significant defects in financial or non-financial reporting internal controls[173] - The company adheres to strict internal control systems in compliance with national laws and regulations, ensuring effective risk management and operational stability[169] - The company has established a comprehensive internal control system in accordance with modern enterprise standards and relevant laws and regulations, ensuring effective financial reporting controls and the authenticity and fairness of financial statements[190] - The company's internal control evaluation report as of the benchmark date shows no significant deficiencies in financial reporting internal controls[190] - The company's internal control certification report for 2023 received a standard unqualified opinion, indicating no major defects in non-financial reporting[195] - The company's internal control certification report was fully disclosed on April 23, 2024, on the website of the China Information Disclosure Platform[195] Environmental and Social Responsibility - The company and its subsidiaries are not classified as key pollutant discharge units by environmental protection authorities and have not received any environmental penalties[198] - The company actively participated in social responsibility initiatives in 2023, including funding for rural education projects and donations to community services[200] - The company is committed to sustainable development, focusing on high-end electronic manufacturing and aligning with China's Manufacturing 2025 strategy[199] Capital and Investment Activities - The total amount of funds raised in 2020 through a non-public share issuance was 2.183 billion yuan, with a net amount of 2.151 billion yuan. As of the report, 156.785 million yuan has been cumulatively used, and 9.812 million yuan remains unused, primarily invested in financial products[79] - In 2023, the company completed the construction of the "Guanghong Technology Phase III Intelligent Production Construction Project" and used the remaining funds of approximately 584.025 million yuan to permanently supplement working capital[84] - The company has used 6.891 million yuan of self-raised funds to pre-invest in projects before the actual arrival of raised funds, which was later replaced by raised funds[84] - As of December 31, 2023, the company used 97.7785 million yuan of idle raised funds to purchase low-risk financial products, retaining 348,000 yuan in the raised funds account for project operations[84] Shareholder Engagement and Meetings - The company actively engages with institutional investors through research, strategy meetings, and reverse roadshows, while maintaining close communication with retail investors via various platforms[120] - The company held its 2022 annual general meeting with a 53.72% investor participation rate on May 17, 2023[124] - The company held its first extraordinary general meeting of 2023 with a 53.44% investor participation rate on December 4, 2023[124] Asset Management and Disposal - The company has classified certain non-current assets or disposal groups as held for sale, meeting specific criteria for immediate sale and high likelihood of sale within one year[140] - The company has defined termination of operations as components that represent independent major businesses or regions, with related impairment losses and disposal gains/losses reported separately in the income statement[142] - The company repurchased and canceled 282,000 restricted shares at a price of 6.18 yuan per share due to the resignation of 4 incentive recipients[146] Acquisitions and Strategic Moves - In April 2023, the company acquired Quick Board Electronics Technology (Shanghai) Co., Ltd., expanding its business in communication equipment and industrial control fields, and enhancing its comprehensive competitiveness[55] - The company plans to expand its electronic manufacturing services through capital operations and vertical integration to meet customer needs in supply chain management[116]