DONGNAN(SZ:301359)2025-04-17 09:05Financial Performance - The company's operating revenue for 2024 reached ¥317,666,990.89, representing a 22.27% increase compared to ¥259,811,507.79 in 2023[22]. - The net profit attributable to shareholders for 2024 was ¥45,849,228.98, up 17.38% from ¥39,061,733.34 in 2023[22]. - The net profit after deducting non-recurring gains and losses was ¥42,270,736.65, a 9.37% increase from ¥38,647,545.59 in 2023[22]. - Basic earnings per share for 2024 were ¥0.53, reflecting a 15.22% increase from ¥0.46 in 2023[22]. - Total assets at the end of 2024 amounted to ¥931,796,956.70, a 2.58% increase from ¥908,370,460.30 at the end of 2023[22]. - The net assets attributable to shareholders at the end of 2024 were ¥856,820,209.37, a slight increase of 0.36% from ¥853,719,368.39 in 2023[22]. - The company reported quarterly revenues of ¥60,321,185.50, ¥88,983,293.51, ¥74,545,396.83, and ¥93,817,115.05 for Q1, Q2, Q3, and Q4 respectively[24]. - The net profit attributable to shareholders for Q4 was ¥12,477,835.92, showing a strong performance in the last quarter[24]. - The company has maintained a weighted average return on equity of 5.38% for 2024, up from 4.63% in 2023[22]. - The gross profit margin for micro switches and components was 27.79%, slightly down by 1.93% from the previous year[55]. Cash Flow and Investments - The net cash flow from operating activities decreased by 25.34% to ¥33,248,381.55 from ¥44,534,765.19 in 2023[22]. - The company reported a significant increase in investment activity cash inflow, reaching ¥263,542,918.06 in 2024, compared to only ¥91,276.00 in 2023, marking a growth of 288,631.89%[67]. - Total cash and cash equivalents decreased by 1,593.12% to -¥218,392,633.14 in 2024 from an increase of ¥14,626,574.88 in 2023[68]. - The company reported a fair value change of 2,711,851 for trading financial assets during the period, with a total purchase amount of 460,000,000 and a total sale amount of 262,611,800[74]. - The company recorded an investment income of ¥332,942.20, contributing 0.65% to total profit, primarily from financial product investments[69]. Research and Development - The company is focused on enhancing the durability and safety of its micro switches, aiming to extend product lifespan and adapt to extreme working conditions[33]. - The company is investing in research and development to improve product features such as high temperature, high pressure, and moisture resistance[33]. - The company has maintained a strong focus on independent research and development, continuously innovating production technology for micro switches, which has led to a series of core production technologies being accumulated[37]. - R&D expenses rose by 8.58% to ¥16,550,191.69, indicating the company's commitment to innovation[62]. - The number of R&D personnel increased to 90 in 2024, a rise of 1.12% from 89 in 2023, while the proportion of R&D personnel to total staff decreased to 12.57%[66]. Market and Product Development - The micro switch market is expanding into various sectors, including home appliances, automotive, and electric tools, indicating a broad market potential[34]. - The company aims to expand into new business areas such as automotive, power tools, and smart low-voltage electrical appliances while maintaining its existing industry scale[47]. - The company is developing high-specification products to meet the growing demand for high-quality electrical appliances, targeting a surge in market share in the home appliance sector[63]. - The company is expanding its product line in the new energy vehicle sector, addressing customer needs for size, operation feel, and noise[63]. - The company has developed various product series, such as the KW series for high-temperature applications and the WS series for waterproof and explosion-proof needs, enhancing its competitive advantage[39]. Governance and Compliance - The financial report is guaranteed to be true, accurate, and complete by the company's management, including the CEO and accounting head[3]. - The company has established a comprehensive governance structure that meets the requirements of the China Securities Regulatory Commission and Shenzhen Stock Exchange[102]. - The company has a total of 9 board members, including 3 independent directors, ensuring compliance with relevant laws and regulations[99]. - The company has implemented a transparent performance evaluation and incentive mechanism for senior management to attract and retain talent[101]. - The company has a dedicated investor relations team to ensure timely and accurate information disclosure to all shareholders[100]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies, indicating potential operational risks[3]. - The company has established an effective internal control system to mitigate operational risks and achieve control objectives[141]. - The company has implemented ISO 14001 environmental management system certification, focusing on pollution control across various operational stages[149]. - The company actively engages in social responsibility, aiming for a balance between economic and social benefits[150]. - The company faces innovation risks due to rapid changes in product application areas and increasing customer demands for functionality[92]. Shareholder Engagement and Profit Distribution - The profit distribution plan approved by the board is to distribute a cash dividend of 5 RMB per 10 shares (including tax) based on a total of 85,840,000 shares, with no bonus shares issued[3]. - The profit distribution plan for 2024 includes a cash dividend of 5 yuan per 10 shares, totaling 42,920,000 yuan, and a capital increase of 4 shares for every 10 shares held[139]. - The total distributable profit for the period was 295,981,665.11 yuan, with the cash dividend accounting for 100% of the profit distribution[139]. - The company is focused on maintaining shareholder engagement through regular meetings and transparent communication[105]. - The company has a commitment to transparency and legal responsibility regarding the accuracy of its financial disclosures[176]. Employee Relations - The total number of employees at the end of the reporting period was 716, with 724 employees receiving salaries during the period[133]. - The company has established a scientific and reasonable salary system to enhance employee motivation and align employee income with company performance[135]. - A series of training programs were implemented to improve employees' professional skills, including onboarding training for new employees and continuous education for current staff[136]. - The company adheres to labor laws and regulations, ensuring employee rights through contracts and social insurance, enhancing employee welfare and career growth[152]. Environmental Responsibility - The company has not faced any administrative penalties related to environmental issues during the reporting period[149]. - The company has established measures for waste management, including the collection and treatment of various types of waste generated during operations[149]. - The company has no significant environmental issues as it does not fall under the category of key pollutant discharge units[148]. - The company has obtained IATF16949 and ISO14001 certifications, demonstrating its commitment to environmental protection and sustainable development[152].