MYSE(601615)2024-05-22 11:43Financial Performance - Net profit attributable to parent company shareholders in 2023 was RMB 372.45 million, with a cash dividend payout ratio of 176.25%[2] - Revenue for 2023 decreased by 9.39% to RMB 27.86 billion compared to RMB 30.75 billion in 2022[12] - Net profit attributable to shareholders dropped significantly by 89.19% to RMB 372.45 million in 2023 from RMB 3.44 billion in 2022[12] - Basic earnings per share (EPS) decreased by 89.81% to RMB 0.16 in 2023 from RMB 1.57 in 2022[13] - Weighted average return on equity (ROE) fell by 13.20 percentage points to 1.33% in 2023 from 14.53% in 2022[13] - Operating cash flow was negative RMB 2.59 billion in 2023, compared to negative RMB 795.90 million in 2022[12] - Revenue for the reporting period was 278.59 billion yuan, a year-on-year decrease of 9.39%[41][43] - Net profit attributable to shareholders was 3.72 billion yuan, a year-on-year decrease of 89.19%[41] - Operating costs increased by 0.56% year-on-year to 247.39 billion yuan[43] - R&D expenses decreased by 30.67% year-on-year to 585 million yuan[42] - Net cash flow from operating activities was -2.59 billion yuan, compared to -795.9 million yuan in the same period last year[42] Dividend and Share Repurchase - The company plans to distribute a cash dividend of RMB 3.041 per share (tax included), totaling RMB 656.43 million[2] - Total share repurchases in 2023 amounted to 89.81 million shares, with an additional 23.18 million shares repurchased in 2024[2] - The company's total share capital is 2.27 billion shares, with a cumulative distributable profit of RMB 5.49 billion[2] - The company has repurchased 89,813,484 shares through centralized bidding from May 4, 2023, to February 2, 2024, and an additional 23,176,000 shares as of April 22, 2024, which are not eligible for the 2023 profit distribution[129] Wind Power Technology and Operations - The company's MySE series wind turbines are designed for low wind speed, mountainous, and offshore environments, emphasizing efficiency and reliability[7] - The company's total installed capacity for wind power generation is measured in MW and GW, with 1 GW equal to 1,000 MW[7] - The company's EPC (Engineering Procurement Construction) projects focus on wind power generation and related infrastructure[7] - The company's wind power generation technology is designed to minimize environmental impact, aligning with clean energy goals[7] - Revenue from wind turbine sales reached 23.517 billion yuan, a year-on-year increase of 3.11%[21] - Wind turbine sales volume was 9.69GW, up 32.66% year-on-year[21] - Gross margin for wind turbine and related parts sales was 6.35%, down 11.42 percentage points year-on-year[21] - Power station operating income was 1.499 billion yuan, up 12.24% year-on-year[22] - Gross margin for power station operations was 63.00%, up 3.12 percentage points year-on-year[22] - Operating power station capacity reached 2.56GW, up 70.47% year-on-year[22] - Power generation from operating power stations was 4.016 billion kWh, up 40.46% year-on-year[22] Market and Industry Trends - China's new wind power grid-connected capacity in 2023 was 75.9GW, up 102% year-on-year[25] - China's cumulative wind power grid-connected capacity reached 441.34GW by the end of 2023, up 20.7% year-on-year[25] - China's new photovoltaic grid-connected capacity in 2023 was 216.88GW, up 148.12% year-on-year[26] - National electricity market transaction volume reached 5.7 trillion kWh in 2023, a year-on-year increase of 7.9%, accounting for 61.4% of total electricity consumption[27] - Global wind power installed capacity added 116.6GW in 2023, with 105.8GW onshore and 10.8GW offshore[28] Corporate Governance and Leadership - The company's key shareholders include China Ming Yang Wind Power Group Limited and other strategic investors[7] - The company's governance structure is in compliance with Chinese laws and regulations, with a focus on board diversity and scientific decision-making[84] - The company's board of directors includes specialized committees such as strategy, audit, nomination, and compensation, ensuring comprehensive governance[84] - Chairman and CEO Zhang Chuanwei increased his shareholding by 833,400 shares through secondary market purchases, bringing his total holdings to 833,400 shares[89] - Director Wang Jinfa's shareholding increased by 3,730,120 shares due to non-trading transfers, reaching a total of 4,654,620 shares[89] - Director Fan Yuanfeng increased his shareholding by 4,000 shares through secondary market purchases, totaling 334,000 shares[89] - Supervisory Board Chairman Wang Limin reduced his shareholding by 91,000 shares through secondary market sales and share cancellations, leaving him with 75,000 shares[89] - The total pre-tax compensation for Chairman and CEO Zhang Chuanwei was RMB 3.8552 million[89] - Director Ge Changxin received a total pre-tax compensation of RMB 867,800[89] - CTO and COO Zhang Qiying received a total pre-tax compensation of RMB 2.5154 million[89] - Director Zhang Rui received a total pre-tax compensation of RMB 1.0033 million[89] - Independent directors Zhu Tao, Liu Ying, Shi Shaobin, and Wang Rongchang each received a total pre-tax compensation of RMB 25,300[89] - Supervisory Board Chairman Wang Limin received a total pre-tax compensation of RMB 678,000[89] - Total shares held by executives and directors increased from 10,513,600 to 17,148,261, a growth of 6,634,661 shares[90] - The company elected new board members and executives in 2023, with terms extending to September 25, 2026[91] - The company appointed Pan Yongle as the new Board Secretary, effective from December 14, 2023, to September 25, 2026[92] - The company's total executive and director compensation amounted to 2,793.21 million units[90] - The company's board and executive team underwent significant changes in 2023, with new appointments and resignations[91] - The company's new executive team includes roles such as Chief Risk Officer and Vice Presidents for various business lines[92] - The company's total shares held by executives and directors saw a significant increase due to non-trading transfers[90] - The company's new board includes both re-elected and newly appointed members, with a focus on diverse expertise[91] - The company's executive team includes a mix of long-serving and newly appointed members, indicating a blend of experience and fresh perspectives[92] - The company's total shares held by executives and directors increased by 63.1% from the previous period[90] Environmental and Social Responsibility - The company's wind power generation technology is designed to minimize environmental impact, aligning with clean energy goals[7] - The company invested RMB 110 million in environmental protection during the reporting period[140] - The company's main solid waste includes domestic waste, general industrial solid waste, and hazardous waste, which are classified and managed accordingly[146] - The company has established a wastewater treatment facility system to monitor and ensure the effectiveness of wastewater treatment[146] - The company uses advanced exhaust gas treatment equipment to purify and control emissions, ensuring compliance with regulations and standards[146] - Noise pollution is mitigated through soundproofing measures and equipment maintenance, with a focus on reducing impact on surrounding residents[146] - The company has passed ISO14001 environmental management system certification and established environmental management procedures and emergency plans[147][148] - The company's production of wind turbine blades does not involve the use of coal, petroleum coke, oil, or gas as fuel[144] - The company's wind turbine production does not involve boilers, industrial furnaces, surface treatment, or water treatment processes[144] - The company's wastewater treatment includes domestic wastewater and cadmium-containing wastewater, which is treated and reused[142] - The company's noise control measures ensure that factory boundary noise complies with national standards, typically below 70dB[142] - The company's hazardous waste, such as waste lubricating oil from wind turbines, is stored and disposed of by qualified third-party companies[142] - The company reduced carbon emissions by 3,014.5 tons through the use of renewable and clean energy[151] - The company invested 8,566.93 million yuan in external donations and public welfare projects, benefiting 583 people[155] - The company allocated 3,800 million yuan to poverty alleviation and rural revitalization projects, benefiting 583 people[156] - The company implemented environmental monitoring actions, including hydrodynamics, marine ecology, and water quality monitoring[149] - The company conducted annual environmental training for all employees to enhance environmental awareness[149] - The company used non-reflective materials on wind turbine blades to reduce bird collision risks and established bird observation stations[150] - The company avoided construction during fish spawning seasons and set up danger and warning zones to protect marine life[150] - The company actively participated in biodiversity conservation, including fish stock enhancement programs[150] - The company disclosed climate-related risks and opportunities in its 2023 Social Responsibility Report, following TCFD recommendations[152] - The company promoted rural energy transformation through initiatives like the "Thousand Villages Wind Action" and "Hundred Counties, Thousand Towns, Ten Thousand Villages" projects[157] Risk Management and Commitments - The company's main business is wind turbine manufacturing and new energy power station construction and operation, which is subject to cyclical risks from global economic development[80] - The company is actively developing new businesses in photovoltaic, energy storage, and hydrogen energy, but there is a risk of short-term underperformance due to the time gap between capital investment and business development[81] - The company is expanding its overseas market, but faces risks of slower-than-expected progress due to differences in business environments and the need for experienced teams and technical support[82] - The actual controllers Zhang Chuanwei, Wu Ling, and Zhang Rui have committed to a 24-month lock-up period after the lock-up expires, starting from February 1, 2018[159] - The controlling shareholder Nengtou Group and other shareholders have committed to a 24-month lock-up period after the lock-up expires, starting from February 1, 2018[159] - The actual controllers and other key personnel have committed to a 6-month lock-up period after leaving their positions, starting from February 1, 2018[159] - The company and its controlling shareholders have committed to long-term resolutions regarding related-party transactions, starting from October 15, 2018[160] - The company has committed to using the funds raised from the 2020 private placement within 36 months of the funds being received[160] - The controlling shareholder Nengtou Group has committed to a lock-up period starting from February 14, 2022, as part of the 2021 commitments[160] - The actual controllers Zhang Chuanwei, Wu Ling, and Zhang Rui, along with major shareholders, have committed to a lock-up period for their shares until 2024.02.07, 2024.02.18, and 2024.02.19[162] - The company plans to repurchase shares within the next 3 to 6 months following the board's approval on 2023.08.13[162] - Shareholders are restricted from selling more than 25% of their total shares annually during their tenure as directors, supervisors, or senior managers, and are prohibited from transferring shares for six months after leaving their positions[163] - The company has committed to avoiding competitive business activities with its subsidiaries and will prioritize acquiring any competitive assets or equity from related parties[164] - The company has completed the acquisition of 100% equity of Guangdong Mingyang Longyuan Power Electronics Co., Ltd., which was consolidated into the company's financial statements on 2024.01.16[165] - The company has pledged to minimize related-party transactions and ensure that any unavoidable transactions are conducted fairly and transparently[165] - The company has committed to not engaging in any activities that would harm its interests, including unauthorized investments or excessive spending[165] - The company has established a compensation system linked to the execution of measures to fill returns, ensuring alignment with shareholder interests[165] - The company has committed to linking the exercise conditions of future equity incentive plans with the execution of measures to fill returns[166] - If the company fails to pay social insurance and housing provident funds for employees, the responsible party will unconditionally bear all the company's payable amounts and economic losses[166] - In case of failure to fulfill public commitments, the responsible party must propose new commitments and accept constraints such as public apologies, suspension of profit distribution, and reduction or suspension of salaries[167] - Violations of share lock-up commitments or shareholding intentions will result in the responsible party forfeiting all gains to the company and bearing unlimited joint liability for losses[169] - The company has committed to promptly obtaining property ownership certificates for certain properties, and the responsible party will bear all penalties or legal liabilities if delays cause economic losses[170] - The responsible party has pledged not to interfere with the company's management activities or encroach on the company's interests[171] Audit and Compliance - The company's internal control audit was conducted by Grant Thornton LLP (Special General Partnership) with a fee of 80[180] - The company's financial audit was conducted by Grant Thornton LLP (Special General Partnership) with a fee of 330[180] - The company's financial audit has been conducted by Grant Thornton LLP for 8 years[180] - The company's sponsor, CITIC Securities Co., Ltd., received a fee of 500[180] - The company's financial audit was performed by certified public accountants Zheng Jianbiao and Tong Xitao, each with 3 years of cumulative audit service experience[180] - Audit fees decreased by more than 20% compared to the previous year[181] - No significant litigation or arbitration matters occurred during the year[183] - A company director mistakenly executed a short-term trade, resulting in a profit of 10,000 shares being returned to the company[184] - A company supervisor's family members conducted short-term trading, resulting in a combined profit of 76,224 yuan being returned to the company[185][186] - The company and its controlling shareholders maintained good credit status with no significant unpaid debts or court judgments[187] - The company's 2023 daily related-party transaction quota was approved by the board and shareholders[188] - The company provided a guarantee of 304.5267 million yuan for Taonan Baiqiang New Energy Co., Ltd., with the guarantee period starting from September 9, 2021, and lasting for three years[193] - The total guarantee amount for subsidiaries during the reporting period was 248,800.00, with a total guarantee balance of 1,000,800.01 at the end of the reporting period[194] - The total guarantee amount (including guarantees for subsidiaries) was 1,031,252.68, accounting for 37.61% of the company's net assets[194] - The company's entrusted wealth management products totaled 15,000, with no overdue or unrecovered amounts[195] - The company's entrusted wealth management products with Huaxia Bank and China Minsheng Bank had annualized yields ranging from 0.75% to 3.52%[196] - The total amount of funds raised through initial public offerings, convertible bonds, and private placements was 1,081,363.73, with a cumulative investment of 923,288.26 as of the end of the reporting period[199] - The cumulative investment progress of the raised funds was 94.33% for the initial public offering, 95.93% for the convertible bonds, and 77.27% for the private placements[199] - The Yangjiang High-tech Zone Mingyang Wind Turbine Equipment Manufacturing Project achieved a cumulative investment of 41,528.05, with an investment progress of 86.00%[200] - The Yangjiang High-tech Zone Mingyang Wind Turbine Equipment Manufacturing Project achieved a total benefit of 255,426.51[200]