Xiantong Stock(SH:603239)2025-04-18 00:05Financial Performance - The company's operating revenue for 2024 reached RMB 1,224,518,519.90, representing a 14.90% increase compared to RMB 1,065,755,563.97 in 2023[23]. - The net profit attributable to shareholders for 2024 was RMB 171,726,960.02, up 13.70% from RMB 151,036,619.47 in the previous year[23]. - The total assets of the company as of the end of 2024 were RMB 1,520,245,474.05, reflecting a 6.31% increase from RMB 1,430,035,612.52 in 2023[23]. - The net assets attributable to shareholders increased by 8.05% to RMB 1,159,124,211.03 at the end of 2024, compared to RMB 1,072,808,360.44 in 2023[23]. - Basic earnings per share for 2024 were RMB 0.63, a 12.50% increase from RMB 0.56 in 2023[24]. - The weighted average return on equity for 2024 was 15.49%, an increase of 0.86 percentage points from 14.63% in 2023[24]. - The gross profit margin for automotive sealing parts increased by 1.05 percentage points to 28.49%[47]. - The production of rubber sealing strips reached 10,851.25 million meters, a year-on-year increase of 14.81%[49]. - The sales volume of rubber sealing strips was 10,511.11 million meters, up 13.00% year-on-year[49]. Cash Flow and Expenses - The net cash flow from operating activities decreased significantly by 62.06%, totaling RMB 71,106,556.12 compared to RMB 187,431,789.90 in 2023[23]. - Total operating costs for automotive parts reached ¥851,772,550.51, an increase of 13.95% compared to the previous year[50]. - Rubber sealing strips accounted for 84.61% of total costs, with a cost of ¥720,714,258.05, reflecting a 17.12% increase year-on-year[50]. - Research and development expenses increased by 13.52% to CNY 49,693,385.96, indicating a focus on innovation[44]. - Sales expenses increased by 34.63% to ¥51,887,253.41 compared to the previous year[53]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 2.10 per 10 shares, totaling RMB 56,851,200.00, based on a total share capital of 270,720,000 shares[6]. - The company has maintained a high dividend payout ratio of 70% on average, demonstrating its commitment to returning value to shareholders[32]. - The cash dividend for the 2023 fiscal year represents 33.11% of the net profit attributable to ordinary shareholders, which was RMB 171,726,960.02[105]. - The cumulative cash dividend over the last three fiscal years amounts to RMB 230,112,000.00, with an average cash dividend ratio of 153.76%[108]. Research and Development - The company has actively participated in the formulation of two national standards, enhancing its research and development capabilities[32]. - The company holds 26 patents related to core technologies, including 9 invention patents, and has achieved domestic leadership in high-hardness rubber and low-density sponge production technology[38]. - The company has implemented measures to optimize management systems and control operating costs, enhancing profitability and operational quality[32]. - The company has developed and produced several new equipment, including a new grinding wheel docking machine and a rubber extrusion precision cutting machine, achieving two equipment invention patents, enhancing production quality and efficiency[35]. Market Position and Competition - The automotive sealing strip industry is experiencing intensified competition, with many companies facing losses, yet the company is positioned to benefit from domestic high-end customer engagements and increased market share[34]. - The company aims to establish an advanced production capacity of CNY 2.5 billion within the next two years, focusing on high-end customer needs[71]. - The company plans to enhance its market position by deepening cooperation with high-quality clients and increasing its market share in the automotive sector[72]. - The company recognizes the challenges posed by intensified market competition and aims to leverage innovation and differentiation strategies to seize opportunities[69]. Governance and Compliance - The company has established a governance structure with clear responsibilities among the shareholders, board of directors, and management, ensuring independent operation of the board and supervisory committee[75]. - The company has committed to enhancing information disclosure transparency, adhering to principles of fairness and accuracy, and improving communication with investors[76]. - The company’s supervisory board effectively monitors major transactions and financial conditions, safeguarding the rights of shareholders[76]. - The company has not experienced any significant differences in governance compared to regulatory requirements, maintaining compliance with the Corporate Governance Code[77]. Environmental Responsibility - The company invested 1.38 million RMB in environmental protection during the reporting period[113]. - The company reduced carbon emissions by 1,204.93 tons through the establishment of a photovoltaic power generation base[116]. - The company has established a comprehensive environmental protection mechanism and complies with national environmental laws and regulations[114]. - The company has implemented a third-party monitoring scheme for wastewater and air emissions, with all indicators meeting standards[115]. Audit and Financial Reporting - The audit opinion confirmed that the financial statements fairly reflect the financial position and operating results of Zhejiang Xiantong as of December 31, 2024[152]. - Key audit matters included revenue recognition due to its significance as a performance indicator, with a focus on internal controls and sales contracts[154]. - The financial statements were prepared in compliance with Chinese accounting standards, ensuring fair representation of transactions and events[159]. - The audit report was issued by Tianjian Accounting Firm, with the audit partner being Song Xin[161].