FREEWON(SH:688678)2024-04-21 07:36Financial Performance - The company's operating revenue for 2023 was CNY 991.63 million, representing a 6.99% increase compared to CNY 926.84 million in 2022[24]. - The net profit attributable to shareholders of the listed company decreased by 45.36% to CNY 88.49 million from CNY 161.95 million in 2022[24]. - The net cash flow from operating activities was CNY 164.62 million, down 27.73% from CNY 227.78 million in 2022[24]. - Basic earnings per share decreased by 45.74% to CNY 0.51 from CNY 0.94 in 2022[24]. - The gross profit margin declined from 32.23% to 28.32% due to lower operating rates and increased fixed cost allocation[25]. - The company reported a significant increase in financial expenses, amounting to CNY 11.33 million due to the issuance of convertible bonds[25]. - The net profit after deducting non-recurring gains and losses was CNY 73.40 million, a decrease of 43.17% from CNY 129.16 million in 2022[24]. - The weighted average return on net assets decreased by 5.45 percentage points to 5.92% from 11.37% in 2022[24]. Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 51,648,213.30, which represents 58.36% of the net profit attributable to shareholders for 2023[7]. - The total share capital after the proposed capital reserve transfer will increase to 243,024,995 shares, with a transfer of 68,864,284 shares based on the current total of 174,160,711 shares[7]. - As of December 31, 2023, the total share capital of the company is 174,160,711 shares, with 2,000,000 shares in the repurchase special securities account, resulting in 171,350,000 shares participating in the dividend distribution[155][158]. - The company will also increase its share capital by 4 shares for every 10 shares held, resulting in an additional 68,864,284 shares, bringing the total share capital to 243,024,995 shares after the capital reserve conversion[155][158]. Research and Development - The company's R&D expenditure as a percentage of operating revenue increased to 9.94% from 8.63% in 2022, indicating a focus on innovation[24]. - R&D expenses amounted to CNY 98.56 million, a 23.20% increase year-on-year, with 56 new R&D personnel added, representing an 18.92% growth; the company applied for 272 intellectual property rights, including 56 invention patents[46]. - The total R&D investment for the year reached ¥98,556,775.73, representing a 23.20% increase compared to the previous year, and accounting for 9.94% of total revenue, up by 1.31 percentage points[75]. - The company has applied for a total of 271 intellectual property rights during the reporting period, including 56 invention patents and 215 utility model patents, with 115 rights granted[74]. - The company is currently working on 8 R&D projects, with total expected investment of ¥10,000,000 and cumulative investment of ¥6,000,000[76]. Market and Industry Trends - The precision metal components industry is experiencing rapid growth due to increasing demand for high precision and stability in consumer electronics and automotive sectors[58]. - In 2023, China's automobile production and sales reached 30.16 million and 30.09 million units, respectively, marking a year-on-year growth of 11.6% and 12%[64]. - The global consumer electronics market revenue in 2022 was $1,056.69 billion, slightly down from 2021, with an expected growth to $1,135.72 billion by 2026[60]. - The global smartphone shipment in 2023 was approximately 1.17 billion units, down about 3.2% year-on-year, indicating a slowdown in the consumer electronics sector[71]. Corporate Governance - The company has confirmed that all board members can guarantee the authenticity and completeness of the annual report[11]. - The company held 1 annual and 3 temporary shareholder meetings during the reporting period, ensuring all shareholders, especially minority shareholders, could exercise their voting rights[125]. - The board of directors convened 13 meetings during the reporting period, maintaining compliance with legal requirements and ensuring effective governance[126]. - The supervisory board held 11 meetings, with all members fulfilling their duties and providing independent opinions on significant matters[127]. - The company adheres to strict information disclosure practices, ensuring all shareholders receive fair and accurate information[128]. Environmental and Social Responsibility - The company invested RMB 631.56 million in environmental protection during the reporting period[172]. - The company and its subsidiaries were not classified as key pollutant discharge units by environmental protection authorities[173]. - The company has established mechanisms for environmental protection and is committed to sustainable development[170]. - The company implemented carbon reduction measures that resulted in a reduction of 1,783.08 tons of carbon dioxide equivalent emissions, primarily through a photovoltaic rooftop project that generated approximately 2,534,580.36 kWh of electricity[181]. - The company donated 50,000 yuan to the 99 Charity Day in Jiangsu to support charitable activities[184]. Talent Management - The company emphasizes talent acquisition and management, establishing a talent-leading strategy and a compensation incentive system to align employee aspirations with corporate development[48]. - The company employs a total of 2,285 staff, with 1,657 in production, 77 in sales, 352 in technology, 14 in finance, and 185 in administration[149]. - The company has established a fair and reasonable compensation and benefits distribution system to motivate employees, adjusting salaries based on performance and operational needs[150]. - The company plans to continue recruiting outstanding technical and management personnel in 2024 to enhance its R&D and management teams[151]. Financial Management - The company experienced a significant increase in financing activities, with net cash flow from financing activities reaching RMB 893.41 million, compared to RMB 40.28 million in the previous year, an increase of 2,118.15%[95]. - The company reported a significant increase in accounts receivable, with a rise of 251.81% due to increased customer invoices[112]. - The company’s short-term borrowings increased by 58.75% as a result of additional bank loans taken during the reporting period[112]. - The company’s long-term borrowings rose by 148.90% due to new bank loans acquired[112]. Production and Operations - The company plans to expand its production capacity and enhance automation to meet customer demand and improve processing precision[43]. - The company added 69 automation devices in the production workshop, saving 133 labor positions, and introduced 6 automated appearance inspection devices, enhancing quality control and laying a solid foundation for intelligent upgrades[45]. - The company is focusing on optimizing manufacturing processes to enhance product performance and meet market demands[76]. - The company aims to enhance the processing efficiency of metal parts, achieving a cutting precision of ±0.01mm and a bending precision within ±0.02mm[78].