DEVELOP(SH:688377)2025-04-25 11:00Financial Performance - The net profit attributable to the parent company's shareholders for the year 2024 is CNY 85,602,699.18, with an accumulated undistributed profit of CNY 579,082,778.83 at year-end[6]. - The company's operating revenue for 2024 was CNY 1,123,895,642.59, a decrease of 7.12% compared to CNY 1,210,066,911.38 in 2023[22]. - The net profit attributable to shareholders for 2024 was CNY 85,602,699.18, down 39.90% from CNY 142,432,629.62 in 2023[22]. - The net cash flow from operating activities decreased by 47.89% to CNY 103,924,442.40 in 2024 from CNY 199,422,928.38 in 2023[22]. - The basic earnings per share for 2024 was CNY 0.44, a decline of 40.54% from CNY 0.74 in 2023[23]. - The total assets increased by 9.50% to CNY 2,764,884,501.75 at the end of 2024, compared to CNY 2,524,982,807.85 at the end of 2023[22]. - The net profit from non-operating income for 2024 was CNY 2,952,891.39, compared to CNY 5,376,994.48 in 2023[28]. - Management expenses increased by 9.67% to CNY 52,955,247.64, mainly due to higher salaries and acquisition-related costs[100]. - The gross profit margin for the oil and gas sector was 19.51%, down 1.89 percentage points from the previous year[103]. Dividend Distribution - The proposed cash dividend for 2024 is CNY 1.4 per 10 shares (including tax), amounting to a total of CNY 27,153,661.08, which represents 31.72% of the net profit attributable to shareholders[6]. - The company plans to submit the profit distribution proposal to the 2024 annual general meeting for approval[6]. - The proposed cash dividend for 2023 is CNY 2.30 per 10 shares, totaling CNY 44,490,906.06, which represents 31.24% of the net profit[195]. - The cash dividend amount for both years is subject to approval at the respective annual general meetings[195][196]. Research and Development - The company's R&D expenditure as a percentage of operating revenue was 3.46% in 2024, slightly down from 3.57% in 2023[23]. - The company is focusing on enhancing its research and development efforts in materials and manufacturing processes to drive innovation and maintain competitive advantages in the industry[35]. - The company has established a national-level postdoctoral research workstation to strengthen its R&D capabilities[60]. - Research and development investment totaled approximately ¥38.92 million, a decrease of 9.83% compared to the previous year, with R&D expenses accounting for 3.46% of operating revenue[63]. - The company has achieved a total of 119 patents, including 4 international inventions and 54 domestic invention patents, as well as 10 software copyrights[57]. Market and Industry Outlook - The global oilfield service market is expected to grow by 3.1% year-on-year, despite a slowdown in energy demand due to geopolitical tensions and economic factors[34]. - The company is positioned to benefit from the increasing demand for high-end valves in the oil and gas sector as the development of unconventional oil and gas expands[51]. - The global marine oil and gas exploration and development investment is expected to reach approximately $209.6 billion in 2024, maintaining a compound annual growth rate of 11%[53]. - The future oil and gas extraction structure is shifting towards unconventional and deep-sea resources, with major international oil companies increasing investment in deep-water exploration[54]. - The Asia-Pacific region is becoming the largest oil and gas consumption market, driven by the growing demand from countries like China and India[144]. Governance and Compliance - The company emphasizes the importance of maintaining the rights of stakeholders, including customers, suppliers, employees, and the community, to promote sustainable and healthy development[165]. - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with relevant laws and regulations[163]. - The board of directors consists of 7 members, including 3 independent directors, and held 7 meetings during the reporting period, maintaining compliance with legal and procedural requirements[161]. - The company has implemented a talent development plan that combines external recruitment and internal training to enhance the quality and skills of its workforce[155]. - The company has established specialized committees, including an audit committee and a strategic committee, to oversee various aspects of governance[184]. Operational Efficiency - The company employs a "sales-driven production" model, allowing for flexibility in production planning based on customer orders and long-term supply agreements[42]. - The implementation of advanced ultrasonic phased array technology improved the quality inspection efficiency by 20%[66]. - The introduction of big data management in production processes has led to a 25% increase in operational efficiency[66]. - The company is implementing intelligent equipment integration for component production lines, which will significantly increase production efficiency[68]. - The company operates a flexible manufacturing system focused on small-batch, multi-variety production, which meets high-quality and delivery requirements[77]. Challenges and Risks - The company faces challenges from geopolitical uncertainties and the need for energy transition, but the overall market recovery and domestic energy production goals present favorable conditions for growth[54]. - The company’s main raw material, special steel, accounts for approximately 60% of the main business costs, making it vulnerable to price fluctuations[86]. - The company is at risk of losing its high-tech enterprise status, which currently allows it to benefit from a 15% corporate income tax rate[93]. - The oil and gas equipment manufacturing industry is sensitive to geopolitical factors, which could affect production orders and future performance[96]. Strategic Partnerships - The company has established long-term strategic partnerships with major oil and gas service companies such as TechnipFMC, SLB, and Baker Hughes, enhancing its market competitiveness in the Asia-Pacific region[33]. - The company has passed audits from leading oil companies like BP and Chevron, demonstrating its capability to provide high-performance equipment[49]. - The company has expanded its domestic market presence by collaborating with leading local oil and gas equipment manufacturers, enhancing its competitive edge[78]. Employee and Management Structure - The company has a total of 1,013 employees, with 848 in the parent company and 165 in major subsidiaries[187]. - The employee composition includes 612 production personnel, 49 sales personnel, 149 technical personnel, 13 financial personnel, and 190 administrative personnel[187]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 8.8446 million RMB[179]. - The company has established a compensation management system for directors, supervisors, and senior management, which includes performance evaluation and salary determination procedures[178].