Hongfa(SH:600885)2024-03-29 16:00Financial Performance - The company achieved a total operating revenue of ¥12,929,777,899.97 and a net profit of ¥1,918,411,815.88 for the year 2023, with a net profit attributable to the parent company of ¥1,392,966,726.17[2] - The net profit after deducting non-operating income attributable to the parent company was ¥1,330,024,086.15, while the parent company alone reported a net profit of ¥504,089,018.25[2] - The company's operating revenue for 2023 reached CNY 12,929,777,899.97, an increase of 11.02% compared to CNY 11,645,925,592.41 in 2022[21] - Net profit attributable to shareholders for 2023 was CNY 1,392,966,726.17, reflecting an increase of 11.42% from CNY 1,250,231,940.38 in the previous year[21] - The net cash flow from operating activities for 2023 was CNY 2,660,744,870.89, a significant increase of 64.13% compared to CNY 1,621,132,127.87 in 2022[21] - The company's total assets as of the end of 2023 amounted to CNY 17,723,687,718.05, representing a growth of 9.15% from CNY 16,237,597,556.67 in 2022[21] - Basic earnings per share for 2023 were CNY 1.34, up 11.67% from CNY 1.20 in 2022[22] - The weighted average return on equity for 2023 was 17.44%, a decrease of 0.42 percentage points from 17.86% in 2022[22] Dividend Distribution - The proposed cash dividend distribution is ¥0.439 per share (including tax), totaling ¥457,734,645.91 (including tax) based on a total share capital of 1,042,675,731 shares, resulting in a cash dividend payout ratio of 32.86%[2] - The company plans to maintain the per-share distribution ratio unchanged in case of changes in total share capital due to convertible bond conversions or other corporate actions[2] Corporate Governance - The company emphasizes the importance of ensuring the authenticity, accuracy, and completeness of the annual report, with all board members present at the meeting[2] - The company has established a comprehensive corporate governance structure, including various committees to ensure compliance and protect investor interests[86] - The board of directors consists of nine members, including three independent directors, ensuring a balanced decision-making process[88] - The company has implemented a robust internal control system to safeguard the interests of investors and ensure compliance with legal regulations[86] Audit and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[2] - The company has maintained a standard unqualified opinion in its internal control audit report[123] - The audit committee approved the 2022 financial audit report and the internal control audit report, which will be submitted for board review[109] Research and Development - The company’s R&D expenses amounted to ¥673,325,781.90, which is an increase of 9.04% compared to the previous year[59] - The company launched 166 new relay products, marking a 19% increase in new product development[31] - The company applied for 497 patents in the relay sector, a 48% increase, with 197 of these being invention patents[31] - The company has a high-level technical R&D team and has been recognized as a national technology innovation demonstration enterprise[57] Market Position and Strategy - The global market share for power relays increased to 31.6%, while the automotive relay market share rose to over 40%[32] - The company ranked first in the global electromagnetic relay market share according to the 2023 report by Zhiduoxing Consulting[55] - The company aims to implement the "75+" strategy, focusing on seven key product areas, including relays for new energy, power, automotive, industrial control, and more[47] Environmental Responsibility - The company invested RMB 8.76 million in environmental protection during the reporting period[124] - All pollution control facilities of the company and its subsidiaries are operating normally, ensuring compliance with environmental standards[127] - The company has developed emergency response plans for environmental incidents in accordance with relevant laws and regulations[132] - The company has reduced carbon emissions by 4,529.14 tons through various measures, including the installation of 6.48 MW of solar photovoltaic power generation[138] Employee Management - The company employed a total of 15,297 staff, with 105 in the parent company and 15,192 in major subsidiaries[111] - The workforce includes 7,455 production personnel, 592 sales personnel, and 3,462 technical personnel[112] - The company has established a comprehensive training system to support employee development and ensure alignment with corporate needs[114] Related Party Transactions - The company has engaged in related party transactions, purchasing products from Xiamen Bige Technology Co., Ltd. for RMB 4.161 million in 2023, with an estimated future purchase of RMB 7 million[171] - The company has reported a total of RMB 12 million in other transactions with related parties, indicating ongoing business relationships[171] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% and aiming to reach 1.875 billion[98] - New product launches are expected to contribute an additional 200 million in revenue, with a focus on innovative technology in the automotive sector[99] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by the end of 2024[98] Financial Management - The total amount of guarantees provided by the company, excluding subsidiaries, is 990.14 million RMB, which accounts for 8.95% of the company's net assets[178] - The company has entrusted 149.2 million RMB in bank wealth management products, with an outstanding balance of 92 million RMB and no overdue amounts[179] - The company approved a cash management plan allowing the use of up to 1.8 billion RMB of idle funds for low-risk financial products, valid for 12 months from November 30, 2022[180]