Tianrun Industry(SZ:002283)2025-03-28 08:50Financial Performance - The company's operating revenue for 2024 was ¥3,616,529,903.55, a decrease of 9.73% compared to ¥4,006,398,588.06 in 2023[6]. - The net profit attributable to shareholders for 2024 was ¥332,502,020.94, down 14.92% from ¥390,809,177.66 in 2023[6]. - The net cash flow from operating activities decreased by 42.14% to ¥530,367,868.94 in 2024 from ¥916,678,634.55 in 2023[6]. - Basic earnings per share for 2024 were ¥0.29, a decline of 17.14% compared to ¥0.35 in 2023[6]. - Total assets at the end of 2024 were ¥8,142,488,973.85, a decrease of 2.69% from ¥8,367,172,324.57 at the end of 2023[6]. - The total profit for 2024 was CNY 35,771.26 million, down by CNY 6,158.21 million or 14.69% year-on-year, with net profit attributable to shareholders at CNY 33,250.20 million, a decline of 14.92%[58]. - The gross profit margin for the automotive parts manufacturing sector was 22.48%, reflecting a decrease of 3.37% compared to the previous year[64]. Market Expansion and Strategy - The company is focusing on market expansion, targeting a 20% increase in market share in the automotive parts sector by the end of 2025[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[130]. - The company is actively exploring emerging markets and innovative products to adapt to the rapid technological changes in the automotive industry[106]. - The company aims to strengthen its position in the heavy-duty truck market while expanding into new energy and international markets by 2025[107]. Research and Development - The company is investing in new product development, with a budget allocation of 50 million RMB for R&D in 2025[15]. - The company has established a strong R&D capability with multiple national and provincial research centers, enhancing its innovation and product development[51]. - Key R&D projects include the development of high-performance crankshafts for marine engines, aimed at enhancing market competitiveness[76]. - The company is currently developing technologies to improve the fatigue strength of large crankshafts, which is expected to increase sales revenue[77]. - The company's R&D personnel increased to 486 in 2024, a growth of 1.04% compared to 481 in 2023, with the proportion of R&D personnel rising to 14.20% from 13.40%[78]. Corporate Governance - The company has maintained its commitment to corporate governance, with all board members present for the report's approval[4]. - The company operates independently from its controlling shareholders in terms of business, personnel, assets, organization, and finance, ensuring complete operational autonomy[120]. - The company has established a complete and independent financial accounting system, with no shared bank accounts with controlling shareholders, ensuring compliance with tax regulations[121]. - The company has independent directors and a supervisory board, ensuring governance and oversight without conflicts of interest[124]. Environmental Responsibility - The company has established a dedicated department for environmental protection, enhancing the management of environmental issues[173]. - The company has passed the ISO14001 environmental management system certification, demonstrating compliance with national environmental protection laws and regulations[174]. - The company has implemented a rainwater and sewage diversion system, ensuring that all sewage is treated at the sewage treatment station, which processes 500m³ of sewage daily[175]. - The company has increased investment in water pollution control and is actively repairing aging sewage pipelines[175]. Employee Engagement and Welfare - The company conducts various employee engagement activities to enhance team cohesion and improve employee satisfaction[184]. - A total of 407.98 million yuan was spent on employee welfare, including the procurement of 190,000 jin of apples and 420,000 jin of rice as holiday benefits[187]. - The company provided 635,000 yuan in assistance for major illness relief and educational support for 22 individuals[185]. - The company has developed a comprehensive skill training system, integrating various levels of skill assessment and training to enhance employee capabilities and performance[152]. Risk Management - The company has identified risks in its operational strategy, which are detailed in the management discussion section of the report[5]. - Rising raw material prices, particularly for steel and rubber, pose a significant risk to profitability and market competitiveness[106]. - The company is implementing strategies to mitigate risks from raw material price fluctuations, including flexible procurement and long-term supply contracts[108]. Shareholder Engagement - The annual shareholders' meeting had a participation rate of 39.72% on April 16, 2024, indicating strong investor engagement[122]. - The company plans to use idle funds for wealth management, reflecting a strategy for optimizing financial resources[139]. - The board approved the 2023 annual report and financial statements, including the profit distribution plan and internal control self-assessment report[139]. Product Development and Sales - The company developed 79 new products and acquired 5 new clients in the crankshaft and connecting rod sectors, including BYD and China Shipbuilding Power[59]. - The company is diversifying its business into air suspension and commercial vehicle electric steering systems, expanding its market presence[51]. - The sales volume for aftermarket services increased by 3.90% year-on-year, reflecting growth in the aftermarket segment[47]. Financial Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 7.9261 million yuan[138]. - The company has a structured salary scheme that is approved by the board of directors, supervisory board, and shareholders' meeting[136]. - The company has implemented a new salary structure for production staff, introducing skill-based pay to enhance employee skill levels[150].