USISH(601231)2024-04-01 16:00Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 2.70 CNY per 10 shares (including tax), with no stock bonus or capital increase, pending approval at the 2023 annual shareholders' meeting[7]. - The company has a total share capital that will be adjusted based on the number of shares in the repurchase account before the dividend distribution date[7]. - The company emphasizes the importance of maintaining a consistent, reasonable, and stable cash dividend policy to ensure shareholder returns[162]. - The company plans to distribute a cash dividend of 4.30 yuan per 10 shares (including tax) based on a total share capital of 2,207,290,610 shares, with 2,183,573,065 shares participating in the distribution after accounting for repurchased shares[199]. - The cash dividend distribution for the fiscal year 2022 was completed on May 30, 2023[199]. - The company has established a clear cash dividend policy in accordance with regulatory guidelines to ensure a stable and positive return to investors[199]. - There were no adjustments made to the cash dividend policy during the reporting period[200]. Financial Performance - The company's operating revenue for 2023 was approximately ¥60.79 billion, a decrease of 11.27% compared to ¥68.52 billion in 2022[24]. - Net profit attributable to shareholders for 2023 was approximately ¥1.95 billion, down 36.34% from ¥3.06 billion in 2022[26]. - The company's gross profit margin for 2023 was 9.63%, down 0.86 percentage points year-on-year, while operating profit margin was 3.58%, down 1.47 percentage points year-on-year[37]. - Operating profit for 2023 was 2.18 billion RMB, down 37.08% from 3.46 billion RMB in 2022, with net profit attributable to shareholders at 1.95 billion RMB, a decrease of 36.34%[80]. - The company's net profit for 2023 was impacted by a decrease in revenue of 11.3% and a decline in gross margin by 0.9 percentage points, resulting in a net profit margin of 3.2%, down from 4.5% in 2022[129]. - The company reported a significant increase in non-recurring gains, with a total of approximately ¥168.77 million in 2023, compared to ¥49.77 million in 2022[30]. - The company has not reported any significant changes in its financial indicators for the reporting period, maintaining stability in its operations[11]. Market and Business Strategy - The company is focused on expanding its market presence and has completed the acquisition of 100% equity in Hirschmann Car Communication Holding S.a.r.l., enhancing its capabilities in automotive communication[13]. - The company is actively pursuing new product development and technological advancements to enhance its competitive edge in the market[11]. - The company has outlined its future outlook, focusing on sustainable growth and strategic investments in key areas[11]. - The company plans to continue expanding its market presence and developing new products to address changing consumer demands[26]. - The company completed the acquisition of Tyco Electronics' automotive wireless business in October 2023, marking a significant milestone in its growth strategy[39]. - The company aims to transition from a manufacturing service provider to a comprehensive solution provider, emphasizing design and service capabilities[54]. - The company is investing in new products and business areas related to intelligent cockpits and ADAS in the automotive sector[64]. - The company is expanding its smart manufacturing capabilities, increasing the number of robotic arms by 2.5 times at its Shanghai Zhangjiang factory[41]. Risk Management and Governance - The company emphasizes the importance of risk management and has outlined potential risks in its future development discussions[9]. - The company has established a risk management committee to identify and assess internal and external risks that may impact sustainable business operations[154]. - The company is actively addressing cybersecurity risks by upgrading security systems and enhancing employee awareness of potential threats[155]. - The company maintains a strong governance structure, consistently receiving high ratings for information disclosure and corporate governance since 2013[71]. - The board of directors and supervisory board operate independently, with established mechanisms to prevent conflicts of interest and protect shareholder rights[160]. - The company adheres to strict governance practices, ensuring transparency and compliance with legal requirements in its operations[159]. Research and Development - The company has invested in R&D with expenditures of RMB 1.641 billion, RMB 2.034 billion, and RMB 1.807 billion from 2021 to 2023, and has a patent portfolio of 801 approved patents and 264 pending applications[75]. - The company is focusing on R&D in areas such as wireless communication modules and 5G technology, with plans to invest in B5G technology development[145]. - The company is a leader in SiP miniaturization technology, focusing on the integration of chips and passive components into a single module, enhancing efficiency and reducing size for applications in mobile communications, AIoT, and wearable devices[66]. - The company has developed an industry-first CPU SiP module in collaboration with ASUS, improving performance by 25% and reducing motherboard core area by 38%[75]. Acquisitions and Investments - The company has committed a total of RMB 1.5 billion to the Suzhou YaoTu Equity Investment Partnership, with RMB 300 million already contributed[114]. - The company completed the transfer of a 49% stake in Zhongke Hongtai Electronics Co., Ltd. for RMB 110.88 million, optimizing its business structure[119]. - The company has proposed to establish a joint venture to acquire the automotive wireless business from Tyco Electronics[182]. - The company has established a joint venture to acquire Tyco Electronics' automotive wireless business, with a 75.1% stake held by its wholly-owned subsidiary[87]. Employee and Management Structure - The company has a total of 23,009 employees, with 2,011 in the parent company and 20,998 in major subsidiaries[195]. - The employee composition includes 14,562 production personnel, 712 sales personnel, 4,387 technical personnel, 209 financial personnel, and 3,139 administrative personnel[195]. - The total compensation for the company's senior management in 2023 was 511,300 to 874,000, with a total of 362,700 in stock options granted[167]. - The company has implemented a stock option incentive plan to attract and retain talent, aligning the interests of shareholders and management[192]. Sustainability and Corporate Social Responsibility - The company emphasizes sustainable development, aligning its strategies with the UN Sustainable Development Goals (SDGs) and enhancing employee engagement in sustainability initiatives[77]. - The company is committed to a sustainable development strategy, integrating environmental, social, and governance (ESG) considerations into its operations[146]. - The company has a focus on sustainability, as evidenced by its involvement in the ASE Environmental Sustainability Foundation, which aims to promote environmental initiatives[175]. Future Outlook - Overall, the company remains optimistic about future growth, driven by strategic investments and market expansion efforts[170]. - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[170]. - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on innovative technology in the upcoming months[170].