Create Century(SZ:300083)2025-04-22 13:25Corporate Governance - The company’s legal representative is Cai Wanfeng, and the registered address is in Dongguan, Guangdong Province[14]. - The company has established a comprehensive performance evaluation and incentive mechanism, completing the third vesting period of the 2020 restricted stock incentive plan[179]. - The company has implemented an investor relations management system, ensuring effective communication with investors and safeguarding the rights of all shareholders, especially minority shareholders[180]. - The company has established a Group Securities Center to manage investor relations and ensure accurate information disclosure, complying with relevant laws and regulations[182]. - The company has not identified any significant discrepancies between its governance practices and the regulations set forth by the China Securities Regulatory Commission[185]. - The company maintains independence from its controlling shareholders in terms of business, personnel, assets, and finance, ensuring autonomous operational capabilities[186]. - The company has conducted multiple shareholder meetings, with participation rates of 17.93%, 20.38%, and 18.20% in various meetings held in 2024[188]. - The company emphasizes transparent communication with investors, ensuring they have equal access to information[182]. - The company has established a dedicated team for investor relations to facilitate effective communication and feedback from investors[181]. - The company actively respects and protects the rights of stakeholders, fostering good relationships to balance interests among shareholders, employees, and society[184]. - The board of directors' composition and number met legal and regulatory requirements, ensuring open, fair, and independent election processes[176]. - The supervisory board's composition and number also complied with legal and regulatory standards, effectively supervising the board's decisions and management compliance[177][178]. - The company reported a total shareholding of 229,103,167 shares at the end of the period, with an increase of 600,000 shares compared to the beginning of the period[190]. - The company experienced the resignation of independent directors, with Mr. Yan Guoxiang leaving on January 8, 2024, and Mr. Ma Yongsheng resigning on January 12, 2024, both due to personal reasons[191]. - The company appointed Mr. Zhou Tai as an independent director on January 8, 2024, following the resignation of Mr. Yan Guoxiang[192]. - The company has a total of 11 board members, including 3 independent directors, ensuring a diverse governance structure[193]. - The current chairman, Mr. Xia Jun, has been in his position since May 18, 2018, and has extensive experience in management and operations[194]. - The company has a total of 6 independent directors, enhancing its governance and oversight capabilities[195]. - The company’s financial director, Mr. Yu Yonghua, has been in his role since March 23, 2023, contributing to the financial management of the company[196]. - Liu Xun appointed as non-employee supervisor since March 2023, previously held senior manager position at National Integrated Circuit Industry Investment Fund[198]. - Wu Yongbing served as CFO from August 2019 to March 2023, now holds the position of investment director and deputy general manager[200]. - Yu Yonghua has been the financial director since March 2023, previously held various financial leadership roles at Midea Group[200]. Financial Performance - The company reported a plan not to distribute cash dividends, issue bonus shares, or increase capital from reserves[6]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[5]. - The company has not identified any significant risk factors that could adversely affect its production, financial status, or profitability[5]. - The company’s financial indicators and performance metrics are detailed in the annual report[14]. - The company's operating revenue for 2024 reached ¥4,605,307,394.86, representing a 30.49% increase compared to ¥3,529,211,432.24 in 2023[5]. - Net profit attributable to shareholders increased by 22.00% to ¥237,287,414.49 in 2024 from ¥194,492,986.23 in 2023[5]. - The net profit after deducting non-recurring gains and losses surged by 212.32% to ¥202,373,250.82 in 2024, compared to ¥64,795,846.97 in 2023[5]. - The total assets of the company grew by 25.71% to ¥10,608,575,393.74 at the end of 2024, up from ¥8,439,209,894.85 at the end of 2023[5]. - The basic earnings per share increased by 16.67% to ¥0.14 in 2024, compared to ¥0.12 in 2023[5]. - The cash flow from operating activities showed a significant decline of 86.75%, dropping to ¥28,470,738.42 in 2024 from ¥214,819,672.96 in 2023[5]. - The weighted average return on equity for 2024 was 4.73%, an increase from 4.10% in 2023[5]. - The company achieved a total revenue of 460,530.74 million yuan in 2024, representing a year-on-year growth of 30.49%[87]. - The net profit attributable to shareholders reached 23,728.74 million yuan, with a year-on-year increase of 22.00%[87]. - Revenue from the 3C sector saw a significant increase, with sales of 3C drilling and milling centers reaching 1.926 billion yuan, up 197.43% year-on-year[87]. - Overseas revenue grew to 207 million yuan, marking a 42.61% increase compared to the previous year[87]. - The company has launched multiple customized products in response to market demands, contributing to rapid revenue growth in new product lines[88]. - The gross profit margin for high-end intelligent equipment was 22.72%, slightly down by 0.13% from the previous year[99]. Market Position and Strategy - The company operates in the "General Intelligent Manufacturing Equipment" industry, focusing on the R&D, production, and sales of CNC machine tools, which are critical for modern industrial development[26]. - The domestic market for high-end CNC machine tools has a low localization rate of only 6%, indicating significant potential for domestic production and import substitution[27]. - The company is positioned to benefit from the increasing demand for high-speed, high-precision, and complex processing characteristics in high-end CNC machine tools as the manufacturing industry upgrades[27]. - The production of metal cutting machine tools in China is projected to increase from 450,000 units in 2020 to 695,000 units by 2024, indicating a clear upward trend in the industry[30]. - The domestic market share for standard and intelligent CNC systems is targeted to reach 80% and 30% respectively by 2025, with high-end CNC machine tools and basic manufacturing equipment expected to enter the ranks of world powers[37]. - The company’s core business focuses on high-end intelligent equipment, providing high-precision, high-efficiency, and high-reliability solutions to assist clients in their smart manufacturing transformation[39]. - The company aims to enhance its core component self-sufficiency, with ongoing breakthroughs in technology supported by national policies[37]. - The new equipment update policy is expected to drive a 25% increase in industrial equipment investment by 2027 compared to 2023[29]. - Emerging industries such as new energy vehicles and artificial intelligence are driving demand for high-precision CNC machine tools, indicating a robust growth trajectory[36]. - The company is actively expanding its market presence in the new energy vehicle sector, with its products gaining widespread recognition and increasing market share year by year[72]. - The company is focusing on high-end CNC machine tools, with substantial progress in the sales of five-axis linkage machining centers and other advanced products[3]. - The company is committed to becoming a leader in the high-precision CNC machine tool industry, focusing on technology innovation and service upgrades[145]. - The company plans to expand its product line to include horizontal machining centers, lathes, and five-axis machines, targeting new energy and emerging economic sectors[152]. - The company aims to actively pursue industrial investments and acquisitions to enhance resource integration and reduce reliance on imports in high-end CNC systems and precision components[155]. - The company plans to expand its overseas market presence, particularly in Southeast Asia, Europe, and Latin America, by establishing marketing centers and production bases[156]. - The company is committed to building smart factories, utilizing automation and digital tools to improve production efficiency, with a focus on the Huzhou production base as a model for other facilities[157]. - The company is positioned in the high-end CNC machine market and will continue to enhance its product offerings to compete against international brands and increase market share[160]. Research and Development - The company emphasizes a user-demand-driven R&D system, balancing applied and forward-looking research to enhance product performance and cost-effectiveness[63]. - The company completed the R&D of 12 new machine models in the turning and milling center, with 3 models currently under development[113]. - The number of R&D personnel decreased by 2.63% to 370, with a notable increase in the proportion of personnel under 30 years old[114]. - The company plans to focus on increasing R&D investment in new products and core components, particularly in high-end CNC machine tools to meet the precision processing needs of industries like 5G communications and aerospace[154]. - The company has obtained a total of 40 patents related to spindles, 23 patents for rotary tables, and 42 patents for tool magazines, enhancing its technological independence[90]. - The company holds 793 valid patents related to its main business, including 108 invention patents, 567 utility model patents, and 118 design patents[76]. Operational Efficiency - The company has implemented refined management practices, leading to cost reduction and improved operational efficiency[3]. - The company employs a rolling management model that combines long-term planning with short-term scheduling to control sales and production delivery effectively[66]. - The company has a comprehensive procurement strategy, ensuring stable supply of core components through various methods, including strategic procurement and customized sourcing[67]. - The company is enhancing its accounts receivable management to mitigate risks associated with delayed payments or defaults from clients as its business scales[164]. - The company reported a significant increase in cash and cash equivalents by 134.00%, totaling ¥77,009,382.01[118]. - The net cash flow from operating activities is ¥28,470,738.42, a decrease of 86.75% compared to the previous year[117]. - The net cash flow from financing activities increased by 164.06% to ¥231,354,129.41, mainly due to increased cash from loans[118]. - The company has implemented a commitment to confidentiality during investor visits and has documented these interactions for compliance purposes[181]. Risks and Challenges - The company faces risks from macroeconomic fluctuations and industry demand, particularly in the 3C sector, and plans to diversify into high-growth areas like renewable energy equipment and AI[159]. - The company is exposed to raw material price volatility and reliance on imported core components, and will implement strategies to mitigate these risks through long-term supplier relationships and cost control measures[161]. - The company is currently involved in a legal dispute with Beijing Jingdiao Technology Group, with a potential compensation claim of 38.18 million yuan, and is actively defending its interests[163]. - The company has a goodwill of 1.654 billion yuan from its acquisition of Shenzhen Chuangshi, and is monitoring for any impairment risks due to economic conditions[165]. Investment and Future Plans - The company plans to issue shares to specific investors, raising up to CNY 55,000,000 to enhance liquidity and repay bank loans, thereby consolidating control[149]. - The company aims to grant 14.5 million restricted stock options to key personnel, linking performance targets to revenue and net profit from high-end intelligent equipment[150]. - The company plans to continue increasing its investment in the high-end CNC machine tool sector and related technologies in 2024[91]. - The total investment amount for the reporting period was ¥1,421,684,963.12, a decrease of 6.46% compared to ¥1,519,914,236.74 in the previous year[136]. - The company has invested CNY 39,941,603.44 in the Shenzhen High-end CNC Machine Tool Industrial Base Project, with a cumulative investment of CNY 41,447,027.69, achieving a progress rate of 6.91%[145]. - The company established two new subsidiaries in Vietnam and Shenzhen, and acquired a 51% stake in Guangdong Huasei Intelligent Software Co., Ltd.[106].