NWM(SH:603700)2025-04-09 10:00Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year 2023, representing a year-over-year growth of 15%[21]. - The company's operating revenue for 2024 was CNY 1,500,514,439.82, a decrease of 16.13% compared to CNY 1,789,198,828.01 in 2023[28]. - Net profit attributable to shareholders for 2024 was CNY 52,417,452.39, down 60.07% from CNY 131,262,704.86 in 2023[28]. - Basic earnings per share for 2024 decreased by 60.61% to CNY 0.26 from CNY 0.66 in 2023[29]. - The net cash flow from operating activities for 2024 was CNY 83,025,996.56, a decline of 55.10% compared to CNY 184,902,430.72 in 2023[28]. - The company's total assets at the end of 2024 were CNY 2,278,462,651.43, a slight increase of 0.12% from CNY 2,275,658,935.60 at the end of 2023[28]. - The weighted average return on equity for 2024 was 3.28%, down 5.07 percentage points from 8.35% in 2023[30]. - The company reported a significant decrease in net profit after deducting non-recurring gains and losses, which was CNY 39,414,378.66 in 2024, down 67.14% from CNY 119,947,267.25 in 2023[28]. Dividends and Share Repurchases - The company plans to distribute a cash dividend of 2 RMB per 10 shares, totaling approximately 39,978,736.80 RMB, which represents 76.27% of the net profit attributable to shareholders for 2024[8]. - The total amount spent on share repurchases during the reporting period was 25,523,380.94 RMB, leading to a combined total of 65,502,117.74 RMB for dividends and repurchases, accounting for 124.96% of the net profit attributable to shareholders[8]. Governance and Compliance - The company has confirmed that there are no significant risks that could materially affect its operations during the reporting period[11]. - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial statements[7]. - There are no non-operational fund occupations by controlling shareholders or related parties reported[10]. - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[6]. - The company has not faced any violations in decision-making procedures regarding external guarantees[10]. Market and Industry Trends - The company faced challenges due to industry demand contraction, intensified market competition, and supply chain pressures, particularly with key raw material prices remaining high[39]. - The company implemented a differentiated competition strategy, focusing on both existing and new markets, particularly in the smart water sector, to drive growth[40]. - The company’s overseas business revenue reached 281 million yuan, with significant growth in the European market, which saw a year-on-year increase of over 25%[49]. - The company delivered a record order of 20,000 large-caliber water meters to Spain, marking a historical high for single export orders[50]. - The company is focusing on technological innovation and differentiated services to enhance brand influence and lead industry development[80]. Research and Development - The company is investing RMB 50 million in R&D for new technologies aimed at enhancing product efficiency and sustainability[21]. - The company applied for 121 patents and obtained a total of 125 patents during the reporting period, along with 18 software copyrights[127]. - The company’s R&D expenses increased by 5.58% to ¥73,611,612.10, reflecting a commitment to innovation[131]. - The number of R&D personnel was 208, representing 18.29% of the total workforce[147]. Customer Engagement and Satisfaction - User data indicates an increase in active users by 20% compared to the previous year, reaching a total of 5 million users[21]. - The company’s customer satisfaction metrics have shown a steady increase over the past three years, particularly among core direct sales customers[46]. - The company is implementing a new customer relationship management (CRM) system to improve customer engagement and retention rates[21]. Operational Efficiency and Cost Management - The company aims to reduce operational costs by 15% through the adoption of advanced manufacturing execution systems (MES)[21]. - The company continues to invest heavily in client service quality, which has impacted cash flow and overall profitability[30]. - The production cost of smart water meters decreased by 21.67% compared to the previous year, while direct labor costs decreased by 30.56% due to automation initiatives[140][141]. Strategic Initiatives and Future Outlook - The company has outlined its future development strategies and potential risks in the management discussion section of the report[11]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a budget of RMB 100 million allocated for this purpose[21]. - The company aims to transform into a digital service provider in the water industry, focusing on building a digital ecosystem that covers the entire water industry chain[179]. - The company is committed to developing a comprehensive service system that covers the entire lifecycle of water supply networks, enhancing operational efficiency and customer satisfaction[104]. Challenges and Economic Environment - In 2024, China's GDP growth rate is projected to be 5%, with manufacturing orders recovering slowly and internal demand releasing at a slow pace, posing a temporary constraint on economic development[71]. - The real estate sector continues to face pressure, with a 10.6% year-on-year decline in national real estate development investment, leading to downward pressure on sales and investment in the short term[73]. - The ongoing challenges in the global trade environment, including geopolitical risks and economic sanctions, may impact the company's overseas market expansion efforts[77].