Fenglong(SZ:002931)2025-04-28 15:05Financial Performance - The company's operating revenue for 2024 reached ¥478,689,721.97, representing a 10.47% increase compared to ¥433,330,404.19 in 2023 [22]. - The net profit attributable to shareholders for 2024 was ¥4,592,919.05, a significant turnaround from a loss of ¥7,040,170.40 in 2023, marking a 165.24% improvement [22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥2,958,012.68, up 127.24% from a loss of ¥10,858,972.26 in the previous year [22]. - The basic earnings per share for 2024 was ¥0.02, compared to a loss of ¥0.04 in 2023, reflecting a 150.00% increase [22]. - The diluted earnings per share improved to ¥0.03 from a loss of ¥0.02 in 2023, indicating a 250.00% increase [22]. - The total assets at the end of 2024 were ¥1,133,110,879.70, a slight increase of 1.03% from ¥1,121,536,368.43 in 2023 [22]. - The net assets attributable to shareholders decreased by 0.44% to ¥764,799,563.49 from ¥768,197,687.04 in 2023 [22]. - The cash flow from operating activities net amount was ¥36,479,576.92, down 49.71% from ¥72,540,958.07 in 2023 [22]. - The weighted average return on equity for 2024 was 0.60%, recovering from -0.98% in 2023 [22]. - The company achieved operating revenue of CNY 478.69 million, a year-on-year increase of 10.47%, and net profit attributable to shareholders of CNY 4.59 million, marking a turnaround from loss to profit [69]. Dividend Distribution - The company plans to distribute a cash dividend of 0.5 CNY per 10 shares to all shareholders, based on a total share capital of 218,505,856 shares [5]. - The 2024 profit distribution plan includes a cash dividend of 0.5 CNY per 10 shares, totaling 10,925,292.80 CNY, based on a total share capital of 218,505,856 shares [159]. - The company plans to distribute a cash dividend of 1.00 CNY per 10 shares, totaling 20,478,699.30 CNY, based on a total share capital of 204,786,993 shares as of August 29, 2024 [157]. - The cash dividend distribution plan was approved by the board and shareholders, ensuring compliance with company regulations [158]. - The company reported a total distributable profit of 124,917,208.68 CNY, with cash dividends accounting for 100% of the total profit distribution [159]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report [5]. - The management discussion section outlines potential risks the company may face in future operations [5]. - International trade risks are significant, with a high proportion of revenue from exports, making the company vulnerable to changes in trade policies and tariffs [112]. - Currency fluctuation risks are present, as the company primarily settles transactions in USD, which can impact pricing competitiveness and overall profitability [113]. - The company faces risks from fluctuations in raw material prices, particularly aluminum and steel, which significantly impact production costs and profit levels [115]. - Labor costs are expected to rise due to demographic changes and increased living standards, potentially affecting product competitiveness [115]. - The company has a high customer concentration, with the top five customers accounting for a significant portion of revenue, which poses risks if these customers face economic challenges [116]. - The gross profit margin has shown volatility due to factors like currency exchange rates and raw material prices, with potential declines if costs increase or prices decrease [116]. - The company is at risk of falling behind in the electric garden machinery market if it does not keep pace with technological advancements and market trends [117]. Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring clear responsibilities among shareholders, the board, and management [121]. - The board consists of 7 members, including 3 independent directors, meeting regulatory requirements for governance [122]. - The company has implemented a performance evaluation system for departments and adheres to legal procedures for the appointment of directors and supervisors [122]. - Information disclosure is managed according to regulations, ensuring timely and accurate communication with shareholders and stakeholders [123]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making processes [122]. - The company maintains complete independence from its controlling shareholders in terms of assets, personnel, finance, and operations, ensuring a fully autonomous business structure [125]. - The company has established an independent financial department with a standardized accounting system, allowing for autonomous financial decision-making [126]. - The company operates its own independent production and management facilities, with no shared operations with controlling shareholders or related enterprises [125]. - The company has a clear organizational structure with a shareholders' meeting as the highest authority, ensuring independent management and decision-making [126]. Research and Development - The company emphasizes R&D innovation, with a dedicated team focused on optimizing product design and reducing costs [66]. - Research and development expenses totaled CNY 26.40 million for the year, reflecting the company's commitment to innovation and technology upgrades [69]. - The company is developing a new type of motor for drones, aiming to enhance energy density and expand application areas [82]. - The company is also working on a gearbox pressure protection overflow valve to ensure the stability of the gearbox system during operation [83]. - The number of R&D personnel decreased by 20.31% from 128 in 2023 to 102 in 2024, with the proportion of R&D personnel dropping from 17.37% to 14.87% [84]. - R&D investment amounted to ¥26,395,313.02 in 2024, a decrease of 6.03% compared to ¥28,089,500.96 in 2023, with the proportion of R&D investment to operating revenue falling from 6.48% to 5.51% [85]. Market Trends and Opportunities - The global demand for garden machinery products was reported at $25.08 billion in 2020, with expectations to reach $30.9 billion by 2030, indicating a robust market growth [35]. - The company has seen a shift in the garden machinery industry towards mechanization, with significant growth opportunities in developing countries due to rising living standards and urbanization [36]. - The company is positioned to benefit from the ongoing transition of production capacity from developed countries to regions with cost advantages, enhancing its competitive edge in the market [37]. - The company aims to enhance its market share in the automotive parts sector by expanding production capacity and optimizing product structure, particularly in the new energy vehicle segment [50]. - The company plans to further develop its technology and product offerings to meet diverse customer needs in the garden machinery and automotive parts sectors [50]. Employee and Management Structure - The total number of employees at the end of the reporting period is 686, with 222 in the parent company and 464 in major subsidiaries [152]. - The professional composition includes 347 production personnel, 25 sales personnel, 102 technical personnel, 13 financial personnel, and 199 administrative personnel [152][153]. - The total number of employees receiving compensation is 703, with no retired employees requiring financial support [152]. - The company has established a competitive salary policy linked to performance, aiming to align employee interests with long-term company goals [154]. - The company has implemented a diverse training program to enhance employee skills and improve overall business capabilities [155]. Internal Control and Compliance - There were no significant internal control deficiencies identified in the financial reporting process during the reporting period [164]. - The internal control evaluation report will be fully disclosed on April 29, 2025, covering 100% of the company's assets [166]. - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the internal control audit report [168]. - There were no significant defects identified in financial or non-financial reporting during the audit [169]. - The company did not receive any administrative penalties related to environmental issues during the reporting period [171]. - The company actively complies with environmental laws and regulations, ensuring no penalties were incurred [171]. Strategic Partnerships and Collaborations - The company has established long-term partnerships with international brands such as Caterpillar and Bosch Rexroth, being recognized as an "excellent supplier" for several consecutive years [51]. - The company has established long-term stable cooperation with well-known clients such as STIHL, Caterpillar, and Honda, enhancing its market position [67]. - The company has a strong brand reputation, recognized with multiple honors such as "Zhejiang Famous Brand Product" and "Zhejiang Export Brand" [68]. Financial Management and Investments - The company has a remaining balance of ¥8,894.45 million in raised funds, with ¥4,894.45 million of that amount still unutilized [101]. - Cumulative used raised funds reached ¥16,235.77 million, with a total of ¥1,740.46 million utilized in the current reporting period [101]. - The company reported a total of 23.8 million in committed investment projects, with a completion rate of 59.6% [103]. - The company has not experienced any significant changes in the feasibility of its investment projects during the reporting period [105]. - The company has not engaged in any major asset or equity sales during the reporting period [106]. Legal and Regulatory Compliance - The company has not reported any major related party transactions during the reporting period [196]. - The company has maintained a good integrity status, with no significant debts or court judgments unmet during the reporting period [195]. - The company has not faced any penalties or rectification issues during the reporting period [194]. - The company has engaged Tianjian Accounting Firm for internal control auditing, with an audit fee of CNY 590,000 [190].