ZMD(SH:688636)2024-03-28 16:00Financial Performance - The company's operating revenue for 2023 reached ¥663,000,263.14, representing a year-on-year increase of 22.58% compared to ¥540,866,425.49 in 2022[20]. - The net profit attributable to shareholders for 2023 was ¥96,255,954.07, up 27.73% from ¥75,357,268.40 in 2022[20]. - The basic earnings per share for 2023 was ¥1.2815, reflecting a 27.13% increase from ¥1.0080 in 2022[21]. - The total assets at the end of 2023 amounted to ¥1,533,626,960.36, a 1.73% increase from ¥1,507,487,640.71 at the end of 2022[20]. - The net cash flow from operating activities for 2023 was ¥5,888,438.34, a significant recovery from a negative cash flow of -¥106,254,221.19 in 2022[20]. - The company reported a net profit of ¥34,614,303.12 in Q4 2023, contributing to a total annual net profit of ¥96,255,954.07[25]. - The net profit attributable to the parent company was 96.26 million RMB, up 27.73% year-on-year; however, the net profit excluding non-recurring gains and losses decreased by 13.13% to 61.77 million RMB[35]. - The gross margin for embedded products decreased by 8.25 percentage points to 43.70%[128]. - The company achieved operating revenue of ¥663,000,263.14, an increase of 22.58% compared to the previous year[122]. - Net profit attributable to shareholders reached ¥96,255,954.07, reflecting a growth of 27.73% year-on-year[122]. Dividend and Capital Increase - The company plans to distribute a cash dividend of 2.10 CNY per 10 shares (including tax) and to increase capital by 4.9 shares for every 10 shares held[5]. - The company’s board of directors has approved the profit distribution plan for the 2023 fiscal year[5]. - The proposed cash dividend is CNY 2.10 per 10 shares (including tax), totaling CNY 15,800,924.37, which accounts for 18.24% of the distributable profit[195]. - The company plans to increase its total share capital by 4.9 shares for every 10 shares held, resulting in a total share capital of 112,111,321 shares post-issue[195]. Research and Development - The company secured 190 new R&D projects during the reporting period[35]. - The company reported a total R&D expenditure of ¥123,278,944.97 in the current year, representing an increase of 8.02% compared to ¥114,126,542.87 in the previous year[94]. - The total R&D expenditure accounted for 18.20% of the operating revenue, a decrease of 2.51 percentage points from 21.10% in the previous year[94]. - The company has established a dedicated R&D center to focus on new technologies and maintain its competitive edge in the embedded computing module sector[49]. - The company is focused on developing embedded computing solutions for defense technology, emphasizing low power consumption, miniaturization, and high reliability in its products[102]. - The company is currently developing high-performance, low-power, domestically produced image processing computers for various applications, including infrared and laser guidance systems[101]. - The company has implemented a management mechanism to enhance R&D capabilities, ensuring alignment with market needs and improving product quality[103]. - The company has successfully produced and delivered products utilizing new technologies, enhancing production efficiency and reliability[94]. Market and Industry Trends - The demand for embedded computers in defense equipment is expected to rise as the value of electronic products in various defense systems continues to increase, with avionics systems accounting for 30-40% of advanced combat aircraft development costs[55]. - The shift towards informationization in China's defense sector is crucial, as modern warfare increasingly relies on information superiority, necessitating upgrades in defense equipment[53]. - The overall growth in the defense sector is expected to create a robust market for embedded computing solutions, driven by both modernization and new technology integration[60]. - The embedded computer market is experiencing rapid growth due to the increasing demand for intelligent equipment across various industries, including defense[76]. - The embedded systems market in China is expected to benefit from the integration of information technology and traditional industries, as well as government support and policies[80]. Risks and Challenges - The company has not reported any significant risks that could materially affect its operations during the reporting period[4]. - The company has outlined potential risks associated with forward-looking statements in the report[6]. - The company faces risks related to the procurement of core raw materials, which are critical for maintaining product stability and reliability[108]. - The company faces risks from intensified market competition, particularly from large state-owned enterprises in the same sector[118]. - The company has not experienced major quality disputes, but product quality risks remain a concern due to high customer expectations[110]. Governance and Management - The company’s board of directors held a total of 13 meetings during the reporting period, with all resolutions passed unanimously[179]. - The term for the current board members and senior management extends until November 2025, ensuring stability in leadership[172]. - The company has a structured remuneration policy for directors and senior management, aligning with market standards for independent directors[176]. - The company has maintained a consistent governance structure with no rejected proposals in board meetings throughout the reporting period[179]. - The company has implemented a competitive compensation system, including fixed salaries, performance bonuses, and stock incentives for management and key technical staff[191]. Strategic Initiatives - The company aims to deepen cooperation in the fields of UAVs, commercial satellites, and aerospace launch support, focusing on technology innovation and product development[155]. - The company is actively expanding its product categories and developing new technologies to improve market share and core competitiveness[155]. - The company is focusing on developing new platforms and technologies based on embedded computer modules, enhancing product performance and maintaining its advantage in the military embedded computer sector[157]. - The company plans to deepen its involvement in airborne, missile, vehicle-mounted, and ship-mounted equipment projects to increase market share and customer collaboration[158].