FULIN. PM(300432)2024-04-26 17:44Employee Management and Training - The total number of employees at the end of the reporting period was 4,557, with 2,437 in the parent company and 2,120 in major subsidiaries[35]. - The company achieved a training completion rate of 98% in 2023, focusing on employee skill enhancement and development[36]. - The workforce includes 3,953 production personnel, 36 sales personnel, and 454 technical personnel, reflecting a diverse skill set[35]. - The company has a structured training plan that aligns with strategic goals, ensuring targeted development for each professional and managerial position[36]. - The company has implemented a performance and compensation assessment system for its directors and senior management based on annual operational performance targets[25]. - The company has implemented an incentive plan for employees, which includes the release of restricted stock based on individual performance assessments[159]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[5]. - The company has revised its corporate governance policies to enhance compliance and operational effectiveness during the reporting period[4]. - The company completed the re-election of directors, supervisors, and senior management during the reporting period[50]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period was disclosed, reflecting the performance-based salary adjustments[50]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, and finance, ensuring autonomous operational capabilities[7]. - The company has established a comprehensive internal control system in accordance with relevant laws and regulations, but it needs to continuously improve this system to adapt to the expanding business scale and changing market environment[81]. Financial Performance and Profit Distribution - The company achieved a positive distributable profit for the year after covering losses and allocating reserves[38]. - The profit distribution policy mandates that cash dividends must account for at least 40% of the distributable profit during the mature development stage[38]. - The company plans to adjust its profit distribution policy as needed, subject to legal and regulatory compliance[40]. - The company maintains a cash dividend policy, distributing at least 10% of the annual distributable profit in cash, subject to profitability and funding needs[61]. - The company did not propose a cash dividend for 2023 due to negative distributable profits, indicating a focus on future growth and investor returns[91]. - The company plans to not distribute cash dividends, issue bonus shares, or convert reserves into share capital[183]. Environmental Compliance and Sustainability - The company has obtained environmental impact assessment reports and permits for its lithium battery cathode material production base, ensuring compliance with environmental regulations[83]. - The company’s environmental permits for various facilities are valid until 2028, indicating ongoing compliance with environmental standards[84]. - The company has established a contingency plan for environmental emergencies, which has been filed with the Mianyang Ecological Environment Bureau[88]. - The company has implemented a wastewater treatment process that meets the Grade 3 discharge standards as per GB8978-1996, ensuring compliance with environmental regulations[120]. - The company has established a comprehensive waste management system, ensuring proper disposal of solid waste and hazardous materials[122]. - The company has not faced any significant administrative penalties for violations of environmental protection laws and regulations[122]. Risk Management and Internal Control - The company has established a risk warning mechanism to prevent operational risks and ensure sustainable development[106]. - The company’s internal audit department regularly conducts financial checks to improve the quality of accounting information[106]. - The company has established an internal control mechanism, with no significant deficiencies reported during the reporting period[171]. - The company has developed a comprehensive risk management system to monitor business compliance and prevent corruption[147]. - The company emphasizes the importance of internal control education for management to enhance awareness and compliance with regulations[78]. Operational Performance and Market Strategy - The company's overall operating performance declined significantly due to a sharp drop in lithium carbonate prices, leading to a decrease in the selling price of lithium iron phosphate cathode materials[179]. - The gross profit margin of products decreased due to high-cost raw material inventory and unstable operating rates of lithium iron phosphate, alongside a slowdown in market demand and a decline in shipment volumes[179]. - The company is focusing on diversifying its customer base and reducing supply chain costs while controlling production capacity and pace in response to market demand fluctuations[195]. - Continuous upgrades and iterations of technology and products are being pursued to meet the needs of high-end automotive OEM customers, ensuring product quality and delivery[196]. - The company maintains a strong competitive position due to its technological advantages, cost control, and good relationships with leading battery manufacturers and end customers[195]. Community Engagement and Corporate Social Responsibility - The company has engaged in community support initiatives, including donations to cultural events and assistance programs for underprivileged children[127]. - The company has maintained a focus on sustainable development and corporate social responsibility, emphasizing safety, product quality, and environmental protection[124].