Shanghai Ruking Technologies (301525)2024-04-23 12:34Financial Performance - Revenue for 2023 was RMB 1,544,551,385.54, a decrease of 4.28% compared to 2022[26] - Net profit attributable to shareholders in 2023 was RMB 216,378,428.17, an increase of 2.39% compared to 2022[26] - Operating cash flow in 2023 was RMB 80,795,267.70, a significant decrease of 66.99% compared to 2022[26] - Basic earnings per share in 2023 were RMB 2.75, a decrease of 8.03% compared to 2022[26] - Weighted average return on equity in 2023 was 14.01%, a decrease of 20.28 percentage points compared to 2022[26] - Total assets at the end of 2023 were RMB 3,951,469,491.15, an increase of 115.51% compared to the end of 2022[26] - Shareholders' equity at the end of 2023 was RMB 3,057,345,868.34, an increase of 323.34% compared to the end of 2022[26] - Revenue in Q4 2023 was RMB 341,507,724.96, the lowest among the four quarters[28] - Net profit attributable to shareholders in Q4 2023 was RMB 16,104,590.58, the lowest among the four quarters[28] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 43.41 million in 2023, compared to RMB 68.34 million in 2022 and RMB 83.93 million in 2021[29] - Net cash flow from operating activities was RMB -23.46 million in 2023, compared to RMB 19.90 million in 2022 and RMB 65.51 million in 2021[29] - Government subsidies received in 2023 amounted to RMB 5.96 million, down from RMB 8.18 million in 2022 and RMB 7.50 million in 2021[32] - Gains from financial assets and liabilities, including structured deposits, were RMB 6.67 million in 2023, compared to RMB 186,462.32 in 2021[32] - Total non-recurring gains and losses in 2023 were RMB 10.04 million, compared to RMB -4.40 million in 2022 and RMB 6.05 million in 2021[33] - Revenue for the reporting period was 1,544.55 million yuan, a decrease of 4.28% year-on-year, while net profit attributable to shareholders increased by 2.39% to 216.38 million yuan[73] - Revenue from the HVAC and refrigeration equipment sector decreased by 14.81% to 1,197.10 million yuan, while revenue from the new energy vehicle thermal management sector surged by 80.58% to 307.83 million yuan[73] - The gross profit margin for the new energy vehicle thermal management system increased by 4.72 percentage points to 25.50%[80] - Material costs for the Power Electronics sector decreased by 6.27% to 983,104,785 yuan in 2023, accounting for 85.00% of operating costs[82] - Labor costs increased by 5.55% to 91,834,307.8 yuan, representing 7.94% of operating costs[82] - Manufacturing expenses decreased by 12.37% to 81,656,055.4 yuan, making up 7.06% of operating costs[82] - Investment income was RMB 6,674,600.50, accounting for 2.63% of total profit, mainly from structured deposits[95] - The company's investment amount for the reporting period was 2,053,282,876.93, a 1,356.35% increase compared to the same period last year[101] - The company raised a total of 2,348,856,300 through its IPO, with a net amount of 2,148,169,500 after deducting issuance fees[106] - As of December 31, 2023, the cumulative amount invested in fundraising projects was 399,341,000, with 1,761,860,800 still unused[107] - The total amount of funds raised from the IPO is 2,348.86 million RMB, with a net amount of 2,148.17 million RMB after deducting issuance costs[110] - The company has invested 399.34 million RMB in committed projects, with 1,761.86 million RMB remaining unused as of December 31, 2023[111] - The new energy vehicle electronics and intelligent manufacturing industrial base project has an investment of 1,244.49 million RMB, with a progress rate of 23.76%[110] - The R&D testing center project has an investment of 158.09 million RMB and is expected to be completed by August 2026[110] - The company has invested a cumulative amount of 124.45 million yuan in the new industrial base project, accounting for 23.76% of the total committed investment of 523.78 million yuan[121] - The company completed a 96.10 million RMB replacement of self-raised funds with raised funds for pre-invested projects and issuance costs[111] - The company's restricted assets at the end of the reporting period totaled 191,906,204.28, mainly due to bank acceptance bill guarantees and pledged bills[100] - The company's financial assets at fair value through profit or loss amounted to 1,949,467,572.00, with no significant changes in the measurement attributes of major assets during the reporting period[99] - The company acquired the remaining minority equity of Shanghai Rujing Electric Control Technology Co., Ltd., making it a 100% wholly-owned subsidiary[98] - The company's production volume increased by 7.00% to 2.70 million units, while inventory increased by 4.81% to 391,200 units[81] - The top five customers accounted for 67.63% of total annual sales, with the largest customer contributing 24.29%[85] - The top five suppliers accounted for 23.80% of total annual purchases, with the largest supplier contributing 8.11%[85] - R&D expenses increased by 28.39% to 99,663,407.91 yuan in 2023[86] - The company established a subsidiary, Hong Kong Ruisheng International Group Co., Ltd., in October 2023 with a registered capital of HKD 10,000[84] - The RD4 series 36kW DC variable frequency drive control system is in the mass production stage, aiming to enhance market competitiveness[87] - The refrigerant-cooled multi-split variable frequency control system is in the mass production stage, targeting increased market share[87] - The new single-phase 5P variable frequency drive control system is in the mass production stage, aiming to improve product competitiveness[87] - The RD4A2 series dual interleaved frequency conversion drive control platform is in the R&D stage, aiming to improve production efficiency and enhance overseas market competitiveness[88] - The R32 single-phase frequency conversion drive control system is in the R&D stage, targeting performance and safety requirements for R32 refrigerant, with a focus on reducing carbon emissions[88] - The RD3045BU high-power frequency conversion drive control system is in the verification stage, aiming to meet the technical needs of high-power heat pump applications[88] - The HEOR2 series servo drive is in the mass production stage, focusing on high integration and compact design to reduce costs and improve competitiveness[88] - The 5.5KW general-purpose frequency converter is in the mass production stage, targeting low-cost applications and expanding the frequency converter market[88] - The subway door control system is in the mass production stage, with upgrades aimed at improving product quality and stability[88] - The multi-turn absolute magnetic encoder has been completed, aiming to replace optical encoders and improve servo system performance[88] - The integrated servo driver for collaborative and humanoid robots is in the R&D stage, focusing on low power consumption and high control precision[88] - R&D investment in 2023 was RMB 99,663,407.91, accounting for 6.45% of revenue, up from 4.81% in 2022[90] - Operating cash flow decreased by 66.99% YoY to RMB 80,795,267.70 due to increased cash payments for goods and services[91] - Investment cash inflow surged 12,666.60% YoY to RMB 1,956,557,648.53, driven by redemption of structured deposits[92] - Financing cash inflow increased 4,056.99% YoY to RMB 2,180,965,524.05 due to IPO proceeds[92] - Cash and cash equivalents increased by 1,947.27% YoY to RMB 1,983,536,480.81, primarily due to IPO proceeds[93] - Monetary funds accounted for 62.69% of total assets at the end of 2023, up 35.39 percentage points from the beginning of the year, mainly due to IPO proceeds[96] - Inventory decreased by 12.45 percentage points to 8.83% of total assets, reflecting improved inventory management[96] - Construction in progress increased by 2.27 percentage points to 3.19% of total assets, driven by ongoing investment in new energy vehicle electronics and smart manufacturing base[96] - Long-term loans were fully repaid during the reporting period, decreasing by 3.16 percentage points[96] - Other current assets increased to 39,799,180.4, a 1.01% increase, primarily due to the increase in input tax corresponding to the issuance fees of the company's IPO[98] - Accounts payable decreased to 381,943,707.21, a 9.67% decrease, due to strengthened supply chain management and reduced procurement costs[98] - Capital reserve increased to 2,358,194,852.38, a 59.68% increase, primarily due to the premium from the IPO issuance[98] - Undistributed profits increased to 582,865,783.57, a 14.75% increase, due to the increase in net profit for the reporting period[98] - Net profit attributable to shareholders of the listed company in 2023 was RMB 216,378,428.17[184] - The company plans to distribute a cash dividend of RMB 4.5 per 10 shares, totaling RMB 42,440,295.60[185] - The company's total distributable profit at the end of 2023 was RMB 582,865,783.57[184] - The company's total distributable profit for shareholders at the end of 2023 was RMB 199,136,441.62[184] - Cash dividend distribution: 4.5 RMB per 10 shares, with a total cash dividend of 42,440,295.60 RMB, accounting for 21.31% of the total profit distribution[181] Corporate Governance and Management - The company's financial statements are signed and sealed by the legal representative Lei Huaigang, the chief accounting officer Li Haochao, and the accounting department head Xu Danni[10] - The company's audit report is signed and sealed by the accounting firm and certified public accountants[11] - The company has disclosed all relevant documents on the China Securities Regulatory Commission's designated website during the reporting period[12] - The company's annual report is signed by Chairman Lei Huaigang[13] - The company's financial data and reports are available at the Board Secretary's Office[14] - The company has detailed future risk factors and countermeasures in the "Management Discussion and Analysis" section, specifically under "XI. Outlook for Future Development"[4] - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors and advises caution[4] - The company's subsidiaries include Shanghai Rujing Intelligent Technology Co., Ltd., Shanghai Rujing Intelligent Equipment Co., Ltd., and Shanghai Chengyue Electrical Technology Co., Ltd., among others[16] - The company's subsidiaries are involved in various sectors including HVAC/R, automation, and electrical technology[16] - The company's chairman, Dr. Lei Huaigang, has over 20 years of experience in the power electronics industry and has received numerous awards and honors[71] - The company held 8 board meetings and 6 supervisory board meetings during the reporting period[132][133] - The company has a governance structure that complies with regulatory requirements and ensures independent operations[129] - The company has established a comprehensive performance evaluation and incentive system, linking senior management compensation to operational performance[136] - The company has an independent financial department with a separate accounting system and financial management system, ensuring financial independence[142] - The company has a complete R&D, procurement, production, and sales management system, enabling independent market operations[145] - The company held its 2023 First Extraordinary General Meeting with 100% investor participation, approving the extension of the IPO application validity period[146] - The 2022 Annual General Meeting saw 100% investor participation, approving the 2022 financial report and 2023 financial budget[146] - The company maintains strict information disclosure practices, ensuring transparency and fair access to information for all shareholders[137] - The company has independent assets, including equipment, trademarks, software copyrights, and patents, with full control and no ownership disputes[140] - The company's management team is stable and has achieved positive results in market development, R&D investment, and compliance operations[135] - The company has a complete labor, personnel, and salary management system, independent from controlling shareholders[141] - The company's governance structure is in compliance with legal and regulatory requirements, with no significant differences from regulations[138] - The total number of shares held by directors, supervisors, and senior management at the end of the period is 31,092,724 shares[149] - Lei Huaigang, Chairman and General Manager, holds 16,287,850 shares with no changes during the period[148] - Liao Yuan, Director, holds 12,672,643 shares with no changes during the period[148] - Qiu Hailing, Director and Vice General Manager, holds 2,132,231 shares with no changes during the period[148] - The company's board of directors and supervisory board underwent a regular election, resulting in the departure of three members and the election of three new members[149] - Lei Huaigang has been serving as the Chairman and General Manager of the company since 2003[150] - Liao Yuan has been serving as a Director of the company since 2003 and has extensive experience in telecommunications and information technology[151] - Qiu Hailing has been serving as a Director and Vice General Manager of the company since 2021, with a background in software engineering and project management[152] - Total compensation for directors, supervisors, and senior management in 2023 amounted to 6.5144 million yuan[162] - Chairman and General Manager Lei Huaigang received a total pre-tax compensation of 1.9091 million yuan[164] - Independent directors Zhu Junsheng and Zhao Yan each received a compensation of 66,800 yuan[164] - Financial Director and Board Secretary Li Haochao received a total pre-tax compensation of 961,100 yuan[164] - The company's board of directors held its 10th meeting on March 20, 2023, reviewing various reports including the audit report and tax payment verification[165] - The company's board of directors held 17 meetings in 2023, with all directors attending as required, and no instances of consecutive absences[168] - The Audit Committee held 4 meetings in 2023, reviewing financial reports, internal controls, and tax-related matters, with all proposals unanimously approved[170][171] - The company's directors actively participated in strategic planning, internal control, and audit work, with all their suggestions being adopted by the company[169] - The board approved the 2022 financial report and 2023 financial budget, along with plans for daily related transactions and the reappointment of the 2023 audit firm[166] - The company established a special account for raised funds and extended the validity period for its initial public offering application on the Growth Enterprise Market[166] - The company's internal control system was evaluated and no significant defects were found in financial or non-financial reporting[190] - The company's internal audit department strengthened supervision over the implementation of internal control systems[189] - The company updated its board audit committee system and rules to comply with the latest regulatory requirements[188] - The company's internal control evaluation report was fully disclosed on April 24, 2024[192] - The company's internal control system is designed to ensure the accuracy and completeness of accounting information[189] - The company's internal control system covers 100% of the total assets and revenue in the consolidated financial statements[192] - No major defects in financial reporting and non-financial reporting were identified for the year 2023[193] - The company maintained effective financial reporting controls as of December 31, 2023, in accordance with the "Basic Standards for Enterprise Internal Control"[194] - The internal control audit report received a standard unqualified opinion[194] R&D and Innovation - The company has 63 invention patents as of the end of the reporting period[42] - The company's products cover a power range of 1HP-7HP (single-phase) and 5HP-28HP (three-phase) in the HVAC/R field[46] - The company's products are widely used in well-known brands such as Copeland, McQuay, Ariston, Haier, Mitsubishi Heavy Industries Haier, Carrier, and Bosch[43] - The company's products in the HVAC/R field feature low GWP coefficient design, high power density, and high efficiency[46] - The company's products in the new energy vehicle thermal management system include electric compressor frequency converters and PTC electric heating controllers[47] - The company's electric compressor frequency converters for new energy vehicles feature high reliability, precise speed control, and energy efficiency[47] - The company's PTC electric heating controllers for new energy vehicles offer high precision in power/temperature control and stable operation[47] - The company has established a strong market position in the HVAC/R field through long-term cooperation with international brands like Emerson, McQuay, Ariston, and Haier[45] - The company's products in the HVAC/R field are designed with advanced SiC-based power MOS, power diodes, and 7th-generation IGBTs for energy efficiency[46] - The company's HVAC/R products are applied in commercial and residential air conditioning, heat pump systems, and refrigeration systems[45] - The company's new energy vehicle thermal management products cover a wide range of specifications, including voltage ranges of 80-800V (high voltage) and 12-48V (low voltage), and operating temperatures from -