RAYNEN(SH:603933)2024-03-26 16:00Financial Performance - The company's operating revenue for 2023 was CNY 1,849,149,510.72, a decrease of 13.42% compared to CNY 2,135,848,164.99 in 2022[22]. - The net profit attributable to shareholders for 2023 was CNY 59,195,781.80, representing a 10.30% increase from CNY 53,666,746.02 in 2022[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 49,315,447.16, up 27.67% from CNY 38,627,528.94 in 2022[22]. - The cash flow from operating activities for 2023 was CNY 145,746,437.16, a significant recovery from a negative cash flow of CNY -135,359,846.52 in 2022[22]. - The total assets at the end of 2023 were CNY 2,244,888,494.33, an increase of 6.50% from CNY 2,107,915,277.61 at the end of 2022[22]. - The basic earnings per share for 2023 was CNY 0.2841, a 7.41% increase from CNY 0.2645 in 2022[23]. - The weighted average return on equity for 2023 was 4.70%, slightly up from 4.57% in 2022[23]. - The company reported a net profit of CNY 5,751.36 million after excluding share-based payment expenses, a decrease of 34.40% compared to the previous year[23]. - The company achieved a net profit attributable to shareholders of RMB 59,195,781.80 for 2023, with a parent company net profit of RMB 40,899,827.43[151]. - The total distributable profit for 2023, after extracting 10% for statutory surplus reserves, is RMB 36,809,844.69, leading to a year-end distributable profit of RMB 230,679,801.08[151]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares, totaling RMB 21,022,957.50 (including tax), with a cash dividend payout ratio of 35.51% for the year[5]. - The company has a clear cash dividend policy that aligns with its articles of association and has been executed properly, ensuring transparency and protection of minority shareholders' rights[153]. - The company plans to maintain its dividend distribution strategy while ensuring compliance with relevant regulations and shareholder approvals[152]. Audit and Compliance - The company has received a standard unqualified audit report from Huaxing Accounting Firm[4]. - The company has ensured the authenticity, accuracy, and completeness of the annual report, with all board members present at the meeting[8]. - The internal control system is complete and effective, meeting the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange[158]. - The internal control audit report issued by Huaxing Accounting Firm provided a standard unqualified opinion, indicating no significant deficiencies in internal controls[159]. - The company has established a complete and independent internal control system, audited by Huaxing Accounting Firm[126]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[7]. - The company has confirmed that 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[7]. - The company faces risks from macroeconomic fluctuations that could impact its performance in the textile machinery and industrial automation sectors[110]. - Increased competition in the industrial automation market poses a risk, as both foreign and domestic brands expand their product offerings[111]. - The company is exposed to high supplier concentration risks in its IC distribution business, which could affect its operational performance if relationships with key suppliers change[112]. - Currency exchange rate fluctuations may impact the company's profits, particularly in its IC distribution business and foreign currency borrowings[113]. Research and Development - The company invested CNY 100.92 million in R&D for its manufacturing business, accounting for 12.69% of the manufacturing revenue[32]. - The company has invested over 12% of its manufacturing business revenue into R&D, holding 197 valid patent certificates, including 115 invention patents, which enhances its competitive edge[70]. - The company is committed to developing new products and technologies in industrial automation, enhancing its product structure, and providing customized solutions for various industries[108]. Market and Industry Trends - The industrial automation market in China has experienced a compound annual growth rate of over 15% from 2002 to 2022, but has seen a decline of 0.22% in the last three years[50]. - The company anticipates that the process automation product lines will experience an upward trend from 2023 to 2026, driven by the chemical, electric, and petrochemical project markets[50]. - The textile machinery industry in China achieved a comprehensive prosperity index of 55.9% in Q3 2023, a 1.1% decrease from Q2 but an 11.6% increase year-on-year, indicating a high level since 2022[43]. - The domestic sewing machinery industry saw a production decline, with an industrial output value of 8.958 billion yuan in the first half of 2023, down 12.32% year-on-year[45]. Corporate Governance - The company held 3 shareholder meetings in 2023, ensuring transparency and fairness in decision-making processes[120]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal requirements[122]. - The supervisory board held 7 meetings in 2023, effectively overseeing the company's operations and compliance[123]. - The company has established a remuneration decision-making process based on industry standards and actual conditions[134]. - The company has a robust governance structure with independent directors actively participating in decision-making processes[138]. Employee and Workforce Management - The company employed a total of 1,156 staff members, with 396 in the parent company and 760 in major subsidiaries[146]. - The workforce includes 501 technical personnel, 245 sales staff, and 163 production workers, reflecting a diverse skill set[146]. - The education level of employees shows that 564 hold a bachelor's degree or higher, representing approximately 48.8% of the total workforce[146]. - The company emphasizes the importance of training and development, focusing on leadership empowerment and quality management capabilities for its workforce[148]. Environmental Responsibility - The company has not faced any administrative penalties related to environmental issues during the reporting period, adhering strictly to environmental laws and regulations[163]. - The company has implemented ISO14001 environmental management system certification, ensuring compliance with environmental protection measures[165]. - The company actively promotes green practices, including a paperless office initiative and energy-saving measures, contributing to sustainable development[167]. Strategic Acquisitions - The company acquired 100% of QiDian Electric with a capital of RMB 150 million, with profit commitments of RMB 11 million, RMB 13 million, and RMB 16.9 million for the years 2021, 2022, and 2023 respectively[181]. - QiDian Electric achieved a net profit of RMB 12.41 million in 2023, fulfilling the profit commitment for the first two years but falling short in 2023[182]. - The cumulative net profit for QiDian Electric over the three years was RMB 42.55 million, exceeding the total commitment of RMB 40.9 million[182].