SEC(SH:603988)2024-03-29 16:00Financial Performance - The company's operating revenue for 2023 was CNY 757,382,138.40, a decrease of 11.93% compared to CNY 859,944,778.55 in 2022[23]. - The net profit attributable to shareholders for 2023 was CNY 43,206,990.69, down 16.24% from CNY 51,586,783.86 in 2022[23]. - The net profit after deducting non-recurring gains and losses was CNY 24,580,325.82, a significant decrease of 51.06% compared to CNY 50,226,594.63 in 2022[23]. - The basic earnings per share for 2023 were CNY 0.18, down 18.18% from CNY 0.22 in 2022[24]. - The weighted average return on equity for 2023 was 6.67%, a decrease of 1.77 percentage points from 8.44% in 2022[24]. - The gross profit margin declined from 25.79% in 2022 to 22.75% in 2023, a decrease of 3.04 percentage points[45]. - The revenue from AC motors accounted for 44.01% of total revenue, a decrease of 4.4 percentage points year-on-year[45]. - The revenue from generators accounted for 36.98% of total revenue, down 2.20 percentage points year-on-year[45]. - The company reported a profit before tax of CNY 49,418,551.16 for 2023, down from CNY 58,929,925.11 in 2022, a decrease of 16.00%[194]. Cash Flow and Assets - The cash flow from operating activities for 2023 was CNY 36,741,850.75, a substantial increase of 190.3% from a negative cash flow of CNY -40,687,961.86 in 2022[23]. - The total assets at the end of 2023 were CNY 1,111,832,237.27, a decrease of 5.67% from CNY 1,178,696,735.40 at the end of 2022[23]. - The net cash flow from operating activities increased by 190.30%, reaching RMB 36,741,850.75, primarily due to higher cash receipts from sales[46]. - The company's cash and cash equivalents increased by ¥28,274,909.97, a rise of 322.44% year-on-year[59]. - Total assets decreased from RMB 1,178,696,735.40 in 2022 to RMB 1,111,832,237.27 in 2023, a decline of approximately 5.67%[187]. - Current assets decreased from RMB 1,007,693,123.61 in 2022 to RMB 952,627,211.90 in 2023, a reduction of about 5.46%[186]. - Inventory decreased significantly from RMB 347,492,729.44 in 2022 to RMB 264,904,074.68 in 2023, representing a decrease of approximately 23.73%[186]. - The company's retained earnings increased from RMB 152,522,051.70 in 2022 to RMB 176,351,271.79 in 2023, an increase of approximately 15.63%[188]. Research and Development - Research and development expenses decreased by 21.22% to RMB 27,123,843.56[46]. - The total R&D expenditure for the period amounted to ¥27,123,843.56, representing 3.58% of the operating revenue[56]. - The company is focusing on the R&D of new products, including double-fed wind turbines and various types of electric motors, to expand its product line[39]. - The company employed 125 R&D personnel, accounting for 13% of the total workforce[57]. - The company reported a decrease in research and development expenses to RMB 24,847,817.64 in 2023 from RMB 33,671,987.18 in 2022, a reduction of 26.2%[196]. Market and Strategic Focus - The company is focusing on diversifying market development and accelerating capital turnover, particularly in high-precision products and new industries[35]. - The company aims to enhance product quality and production efficiency through ISO quality management and improved evaluation mechanisms[35]. - The company aims to enhance competitiveness and profitability by focusing on niche markets and reducing reliance on labor[66]. - The company plans to expand its international business and gradually accelerate its globalization process, leveraging existing regional cooperation platforms[79]. - The company is positioned to benefit from the "Belt and Road" initiative, which is expected to enhance international trade and provide significant growth opportunities[73]. Governance and Compliance - The company has implemented measures to improve internal control and governance structures, ensuring compliance with relevant laws and regulations[36]. - The company has established an internal control mechanism that is deemed effective without significant defects[90]. - There are no significant deviations in the execution of the internal control system, ensuring compliance with relevant regulations[90]. - The company has implemented a decision-making system for related party transactions to regulate its operations[90]. - The company has committed to maintaining a complete and independent business system and related assets[134]. Shareholder and Management Information - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares, totaling CNY 14,112,000.00[5]. - The total pre-tax remuneration for senior management during the reporting period amounted to 340.45 million yuan[93]. - The company has established a remuneration policy that encourages employee performance and retention, aligning with industry standards[111]. - The company has a total of 19,451 ordinary shareholders as of the end of the reporting period, an increase from 18,549 at the end of the previous month[157]. - The company has maintained a consistent relationship with Tianjian Accounting Firm, which has been the auditor for 12 years, with an audit fee of 420,000 RMB for the current year[141]. Economic Environment - The overall economic environment in 2023 showed a GDP growth of 5.2% in China, with industrial production gradually recovering despite challenges[34]. - The industry faces challenges such as high raw material prices and frequent natural disasters, necessitating a shift towards intelligent manufacturing and specialized products[66]. - The demand for integrated electromechanical systems is expected to grow, driven by advancements in power electronics and automation needs[76].