Wave Cyber (Shanghai) (SH:688718)2025-04-28 10:40Financial Performance - The company achieved a net profit attributable to shareholders of 38.5881 million yuan for the year 2024[5]. - The cumulative undistributed profits at the end of the year amounted to 317.3480 million yuan[5]. - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year[5]. - The company's operating revenue for 2024 was CNY 375.24 million, a decrease of 2.34% compared to CNY 384.21 million in 2023[22]. - The net profit attributable to shareholders for 2024 was CNY 38.59 million, down 16.00% from CNY 45.94 million in 2023, primarily due to delays in order delivery caused by the relocation of the Shanghai production base and one-time severance payments to employees[24]. - The net cash flow from operating activities increased by 17.71% to CNY 26.66 million in 2024, compared to CNY 22.65 million in 2023, attributed to an increase in customer payments via wire transfer[24]. - The total assets at the end of 2024 were CNY 911.46 million, reflecting a 4.38% increase from CNY 873.20 million at the end of 2023[22]. - The net assets attributable to shareholders increased by 1.13% to CNY 772.11 million at the end of 2024, compared to CNY 763.49 million at the end of 2023[22]. - The basic earnings per share for 2024 were CNY 0.22, a decrease of 15.38% from CNY 0.26 in 2023[23]. Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm[4]. - The board of directors has fully attended the board meeting, ensuring governance compliance[4]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[11]. - The company has not faced any issues with a majority of directors being unable to guarantee the accuracy of the annual report[11]. - The company’s governance structure complies with relevant laws and regulations, ensuring effective operation and decision-making processes[108]. - The company has not faced any penalties from securities regulatory agencies in the past three years[122]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 7.77% in 2024, up from 7.13% in 2023[23]. - The company maintained a stable R&D investment of CNY 29.14 million in 2024, representing a 6.37% increase compared to the previous year[35]. - The company has established a complete R&D system focused on developing new membrane materials and composite equipment, guided by market demand and application goals[39]. - The company has developed new technologies in membrane production, including precision coating and drying techniques, enhancing product performance stability[45]. - The company has achieved significant technological breakthroughs in high-performance roll-type separation membranes and composite pressure tanks[103]. - The company has applied for 15 new intellectual property projects during the reporting period, including 4 invention patents and 11 utility model patents[47]. - A total of 244 intellectual property projects have been applied for cumulatively, with 189 projects authorized as of the end of the reporting period[47]. Market Strategy and Expansion - The company is focusing on high-value product development, including acid and alkali-resistant membranes and seawater desalination membranes, to enhance its market position[35]. - The company is actively expanding its market channels, particularly in high-value sectors such as special separation and zero-emission systems[35]. - The company aims to become an international leader in membrane separation technology components, addressing reliance on foreign brands and promoting cost reduction in downstream applications[103]. - Future plans include upgrading product technology, optimizing product structure, and expanding market presence to enhance competitiveness[104]. - The company plans to expand its market presence and is focusing on new product development to drive future growth[115]. - Market expansion plans include entering two new international markets by Q3 2024, projected to increase market share by 5%[116]. Risks and Challenges - The company has detailed various risks it may face in the report, which investors should review[3]. - The company faces risks related to potential technological upgrades and iterations, which are critical for maintaining competitive advantages in the membrane separation technology industry[61]. - The company is exposed to financial risks, including the potential inability to recover accounts receivable and the risk of inventory depreciation due to market price fluctuations[65]. - The company operates in a competitive industry where domestic brands are adopting low-price strategies, potentially leading to reduced profit margins[66]. - The company relies heavily on imported raw materials, making it vulnerable to price fluctuations and exchange rate changes[66]. Environmental and Social Responsibility - The company has established a comprehensive environmental protection management system to ensure compliance with environmental regulations[154]. - The company does not belong to the list of key pollutant discharge units published by the environmental protection department[150]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[151]. - The company actively pursues social responsibility while ensuring legal compliance and environmental protection[148]. - The company donated 37,000 RMB for the renovation of a basketball court and the construction of a new tennis court at Shantou No. 12 Middle School, promoting educational resource balance and community engagement[161]. Financial Management - The company has invested a total of 20,000,000 RMB during the reporting period, compared to 0 RMB in the same period last year, indicating a significant increase[97]. - The company has confirmed that all raised funds have been utilized as planned, with no remaining balance[198]. - The total amount of raised funds is CNY 25,411.58 million, with a net amount of CNY 20,280.35 million[198]. - Cumulative investment of raised funds as of the reporting period is CNY 20,423.06 million, representing an investment progress of 100.70%[198]. - The company has not made any changes to the use of raised funds, with no new investment amounts reported for the current year[198]. Shareholder and Director Information - The company has established a cash dividend policy in place, which was not adjusted during the reporting period, ensuring the protection of minority shareholders' rights[137]. - The company plans to implement a shareholder dividend return plan for the next three years (2024-2026)[127]. - Total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to RMB 4.8244 million[120]. - Total remuneration for core technical personnel at the end of the reporting period amounted to RMB 2.8140 million[120]. - The company held six board meetings during the year, with three conducted in person and three combining in-person and communication methods[124]. Audit and Internal Control - The internal control audit for the fiscal year 2024 received a standard unqualified opinion from the auditing firm[146]. - The company has established a robust internal control management system to protect the rights of suppliers, customers, and consumers, ensuring compliance with contracts and timely payments[166]. - The company has intensified its investment in information security management, classifying confidential information and enforcing strict confidentiality protocols among employees[159].