HENGERDA(300946)2024-04-19 10:11Financial Performance - The company's operating revenue for 2023 reached ¥542,485,791.20, representing a 12.34% increase compared to ¥482,875,710.96 in 2022[16]. - The net profit attributable to shareholders decreased by 8.35% to ¥87,286,269.65 in 2023 from ¥95,239,378.98 in 2022[16]. - The net cash flow from operating activities surged by 256.18% to ¥69,873,123.22 in 2023, compared to ¥19,617,332.41 in 2022[16]. - The total assets of the company increased by 17.84% to ¥1,453,698,510.49 at the end of 2023, up from ¥1,233,649,748.86 at the end of 2022[16]. - The basic earnings per share decreased by 7.59% to ¥0.73 in 2023, down from ¥0.79 in 2022[16]. - The company reported a total of ¥4,034,118.97 in non-recurring gains and losses for 2023, a decrease from ¥7,757,318.53 in 2022[21]. - The company’s net profit after deducting non-recurring gains and losses for 2023 was ¥83,252,150.68, down 4.84% from ¥87,171,164.89 in 2022[16]. - The company’s weighted average return on equity decreased to 8.02% in 2023 from 9.30% in 2022[16]. - The company’s net assets attributable to shareholders increased by 5.63% to ¥1,120,076,160.55 at the end of 2023, compared to ¥1,060,391,270.90 at the end of 2022[17]. - The company achieved operating revenue of 542.49 million yuan, a year-on-year increase of 12.34%[65]. - Net profit attributable to shareholders decreased by 8.35% to 87.29 million yuan, while the adjusted net profit decreased by 4.84% to 83.25 million yuan; however, if considering temporary and phase factors, net profit would have increased by 15.21%[66]. Dividend Distribution - The company plans to distribute a cash dividend of 2.30 RMB per 10 shares to all shareholders, based on a total of 120,006,000 shares[3]. - The company continues to implement a cash dividend distribution plan, maintaining a record of continuous cash dividends since its listing[75]. - The company plans to further increase its dividend payout ratio to enhance shareholder returns while strengthening its core business[75]. - The company reported a cash dividend of 2.30 CNY per 10 shares, totaling 27,601,380 CNY for the year, which represents 100% of the total profit distribution[174]. - The total distributable profit for the year was 356,429,185.99 CNY, with cash dividends fully utilizing this amount[174]. Market and Industry Insights - The global metal cutting tools market grew from $33.1 billion in 2016 to $37 billion in 2020, with China's market size increasing from ¥32.15 billion in 2016 to ¥46.4 billion in 2022, and projected to reach ¥55.65 billion by 2026, reflecting a compound annual growth rate (CAGR) of 5.64% over ten years[26]. - The dependency on imported metal cutting tools in China decreased from 37.17% in 2016 to approximately 27% in 2022, indicating a strengthening of domestic production capabilities[26]. - The domestic market for rolling functional components is currently dominated by Taiwanese companies, with HIWIN and PMI holding nearly 50% market share, while Japanese firms like NSK and THK account for about 15%[30]. - The localization rate of high-end rolling functional components in high-end CNC machine tools is only 5%, highlighting a significant reliance on imports and the need for domestic development[30]. - The Chinese government has implemented several policies to support the development of domestic rolling functional components, emphasizing "precision, high-speed, and heavy-load" components as key targets[31]. - The overall market for metal cutting tools is expected to see increased concentration as companies with brand, capital, and technological advantages capture more market share[26]. - The trend towards integrated cutting solutions and product series development is becoming essential for companies to meet diverse customer needs and enhance product synergy[27]. - The company aims to enhance its market share and profitability by expanding the production and sales scale of its intelligent CNC equipment and core components, targeting a significant increase in domestic market penetration of rolling functional components[115]. Research and Development - The company has obtained 91 patent authorizations, showcasing its strong focus on innovation and technology development[53]. - The company is currently developing several key R&D projects, including high-strength thin cutting steel and new CNC circular saw machines, aimed at enhancing product performance and market competitiveness[88]. - The company invested 26.28 million yuan in R&D, accounting for 4.84% of operating revenue, marking a 65.73% increase year-on-year[73]. - The company's R&D investment amounted to ¥26,278,617.64 in 2023, representing 4.84% of operating revenue, an increase from 3.28% in 2022[90]. - The total number of R&D personnel increased by 26.42% to 67 in 2023, with a notable rise in the number of employees under 30 years old, which increased by 120%[90]. - The company is focusing on diversifying its product offerings and enhancing its overall strength and technical capabilities through ongoing R&D projects[88]. - The company will continue to invest in R&D for high-precision rolling functional components, aiming for domestic substitution and improved product performance through material research and production process enhancements[119]. Environmental Compliance - The company received its new pollution discharge permit for the Xindu plant on July 13, 2023, valid from July 29, 2023, to July 28, 2028[188]. - The company reported a concentration of non-methane total hydrocarbons at 5.17 mg/m³, complying with the national air pollution discharge standards[189]. - The company’s wastewater discharge showed ammonia nitrogen levels at 3.79 mg/L, adhering to the urban sewage discharge quality standards[191]. - The company’s lead and its compounds emissions were recorded at 0.07 mg/m³, which is within the permissible limits according to the air pollution discharge standards[189]. - The company’s total nitrogen in wastewater was measured at 46.3 mg/L, meeting the required discharge standards[191]. - The company’s five-day biochemical oxygen demand in wastewater was reported at 91.6 mg/L, compliant with the sewage discharge standards[191]. - The company’s particulate matter emissions were recorded at 84 mg/m³, which is compliant with the air pollution discharge standards[191]. - The company’s total phosphorus in wastewater was measured at 0.24 mg/L, adhering to the sewage discharge standards[191]. - The company’s sulfur dioxide emissions were recorded at 0.05 mg/m³, compliant with the air pollution discharge standards[191]. - The company achieved stable compliance with environmental standards through various pollution control measures, including waste gas and wastewater treatment[194]. - The company has invested in environmental protection and pollution liability insurance, complying with environmental tax regulations[198]. Corporate Governance - The company has maintained a governance structure that complies with the Company Law and relevant regulations, ensuring transparency and protection of shareholder rights[138]. - The company has established a complete and independent R&D, procurement, production, and sales system, ensuring operational independence from the controlling shareholder[142]. - The company has a financial department that operates independently, with dedicated financial personnel and a separate accounting system[146]. - The company has conducted on-site inspections and online communications with investors to discuss business operations and development strategies[129]. - The company’s board of directors actively participated in decision-making, ensuring timely and efficient governance throughout the reporting period[164]. - The company held a total of six board meetings in the reporting period, with all resolutions passed without opposition[162]. - The company has maintained a consistent governance structure with no reported penalties from regulatory authorities in the past three years[157]. Employee and Management Information - The total number of employees at the end of the reporting period was 800, with 638 in production, 67 in technology, and 37 in sales[168]. - The company has established a comprehensive salary management system that aligns with market levels and emphasizes fairness and efficiency in employee compensation[169]. - The total pre-tax remuneration for directors, supervisors, and senior management in 2023 amounted to CNY 3.5633 million[160]. - The chairman and general manager, Lin Zhenghua, received a pre-tax remuneration of CNY 573,000[160]. - The vice general manager and board secretary, Fang Junfeng, received a pre-tax remuneration of CNY 530,100[161]. - The independent directors, Fu Yuanlue, Chen Gong, and Chen Han, each received a pre-tax remuneration of CNY 120,000[161]. - The company has a diverse board of directors with significant academic and professional backgrounds in finance and management[153]. - The management team has nearly 30 years of industry experience, enhancing the company's ability to make timely and effective business decisions[60].