WEDGE(SZ:000534)2024-03-29 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.2 CNY per 10 shares (including tax) to all shareholders, with no bonus shares issued[5]. - The total cash dividend, including other methods, amounts to 333,727,925.06 RMB, representing 100% of the total profit distribution[145]. - The cash dividend distribution accounts for 32.48% of the net profit attributable to the parent company for the year 2023[147]. - The company has established a three-year dividend plan (2021-2023) to enhance the dividend mechanism and protect minority shareholders' rights[143]. - The company has ensured that minority shareholders have sufficient opportunities to express their opinions regarding the profit distribution plan[144]. - The company plans to distribute cash dividends amounting to at least 10% of the annual distributable profits, provided the earnings per share exceed 0.05 CNY[174]. - The company has committed to a cumulative cash distribution of profits not less than 30% of the average annual distributable profits over the next three years[174]. Shareholder Structure - As of December 31, 2023, Wanze Group holds 198,608,136 shares of the company, representing a 38.82% stake, making it the controlling shareholder[19]. - The company has not reported any changes in its controlling shareholder since the last major transfer of shares in November 2005[19]. - The company reported a complete independence in operations from its controlling shareholders, with no direct or indirect interference in business operations[110]. Financial Performance - The company's operating revenue for 2023 was ¥981,439,362.70, representing a 23.63% increase compared to ¥793,843,031.64 in 2022[21]. - Net profit attributable to shareholders for 2023 was ¥176,554,971.16, a significant increase of 73.54% from ¥101,719,117.75 in 2022[21]. - The net profit after deducting non-recurring gains and losses was ¥104,087,060.80, up 28.99% from ¥80,672,086.22 in the previous year[21]. - The company's cash flow from operating activities decreased by 51.39% to ¥94,738,878.02 from ¥194,886,261.83 in 2022[21]. - Basic earnings per share increased by 75.80% to ¥0.3574 in 2023, compared to ¥0.2033 in 2022[21]. - Total assets at the end of 2023 reached ¥3,120,279,712.38, marking a 28.15% increase from ¥2,434,804,891.48 at the end of 2022[21]. Business Focus and Operations - The company has undergone a change in its main business focus, shifting from power generation to the research, manufacturing, and sales of high-temperature alloys and related technical services[19]. - The company is the only private enterprise in China capable of full-process research and development of high-temperature alloy materials, with applications in various industries[31]. - The company has established a core technology system for ultra-high purity nickel-based superalloy smelting, primarily producing superalloy materials for high-temperature components[38]. - The company has developed advanced technologies for the production of high-temperature superalloy powders and precision cast blades, with products already in mass production for various aerospace and gas turbine applications[39]. - The company is focusing on the industrialization of high-temperature alloy components, aiming to meet the growing demand in aerospace and energy sectors[68]. Research and Development - The company has applied for 12 invention patents in 2023, with 11 already granted, focusing on probiotic research and development[42]. - Research and development expenses increased by 38.75% to ¥105.97 million, attributed to enhanced investment in R&D initiatives[66]. - The company has a high-level R&D team in the field of high-temperature alloys, with over 40% of its personnel holding master's or doctoral degrees[38]. - The company aims to develop approximately 10 new probiotic strains annually through its probiotic strain library project, enhancing product development capabilities[67]. - The establishment of a database for functional probiotic strains has been completed, enhancing the company's research and development capabilities[67]. Market and Product Development - The market demand for probiotic products is rapidly growing due to increasing public health awareness and an aging population in China[30]. - The company launched new probiotic products, including "Three-Probiotic Powder" and "Today Probiotic™" dietary supplements, expanding its product line[33]. - The company has built a comprehensive marketing system covering prescription drugs, OTC products, and health foods, collaborating with over 3,000 hospitals and 100,000 pharmacies nationwide[35]. - The company’s "Jin Shuangqi®" and "Ding Junsheng®" products were retained in the National Medical Insurance Directory (2023 version), enhancing their market access[43]. Governance and Management - The company’s board of directors and management team are fully independent, with all senior management receiving compensation directly from the company[112]. - The company has maintained a stable management team, with most members having served for several years, ensuring continuity in leadership[117][118]. - The company has a structured remuneration decision-making process involving a compensation committee that proposes plans for board approval[124]. - The company’s independent directors provided objective opinions on major matters discussed in board meetings, ensuring effective governance[132]. Financial Management and Audit - The company has established a robust financial management system, maintaining independent accounting and banking operations[112]. - The internal control evaluation report indicated that the company maintained effective financial reporting internal controls in all material aspects as of December 31, 2023[160]. - The company has established a comprehensive internal control system to ensure compliance with legal regulations and enhance operational efficiency[156]. - The company has appointed Shenzhen Dahua International Accounting Firm as its auditor for the 2023 fiscal year, with an audit fee of 1.2 million yuan[180]. Future Outlook - The pharmaceutical industry is expected to gradually improve in 2024, driven by technological innovation and domestic substitution, with a focus on high-quality and healthy development[94]. - The high-temperature alloy industry is anticipated to experience rapid growth due to national support and increasing demand in aerospace, power, and other key sectors[95]. - The company aims to advance its micro-ecological probiotic products and high-temperature alloy business simultaneously in 2024, leveraging opportunities from the new technological revolution[96]. Compliance and Risk Management - The company has committed to ensuring the independence of its personnel, assets, finances, institutions, and business operations[170]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[164]. - The company actively maintains a governance structure that protects the interests of shareholders, particularly minority shareholders[166].