SINEE(SH:688395)2024-04-24 12:38Financial Performance - The company achieved operating revenue of CNY 373.23 million in 2023, representing a year-on-year growth of 7.40%[23]. - The net profit attributable to shareholders of the listed company was CNY 51.12 million, an increase of 11.51% compared to the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses reached CNY 44.22 million, up 46.59% year-on-year[23]. - The company's cash flow from operating activities showed a significant decline, totaling CNY 35.75 million, down 66.89% from the previous year[23]. - The total assets of the company at the end of 2023 were CNY 838.89 million, reflecting a 6.26% increase from the end of 2022[23]. - The net assets attributable to shareholders increased to CNY 727.26 million, marking a 6.53% rise compared to the previous year[23]. - Basic earnings per share for 2023 were CNY 0.59, up from CNY 0.53 in 2022, indicating an increase of 11.32%[25]. - The company's R&D expenditure accounted for 8.89% of operating revenue, an increase of 1.44 percentage points from the previous year[25]. - The weighted average return on net assets rose to 7.30%, an increase of 0.45 percentage points compared to 2022[25]. Dividend Distribution - The company plans to distribute a cash dividend of 2 RMB per 10 shares, totaling 17,200,000 RMB, which represents 33.64% of the net profit attributable to shareholders for 2023[6]. - The company has a policy to distribute at least 30% of the average distributable profit over three years in cash dividends, unless special circumstances arise[176]. - The cash dividend distribution plan for 2023 has been approved by the board and is pending shareholder meeting approval[180]. - In 2022, the company distributed a cash dividend of 1.6 RMB per 10 shares, amounting to 13,760,000 RMB[179]. - The company emphasizes a cash dividend policy, prioritizing cash dividends over stock dividends when conditions are met[175]. Corporate Governance - The company has received a standard unqualified audit report from Lixin Accounting Firm[6]. - The company has not reported any violations of decision-making procedures regarding external guarantees[9]. - The company has not indicated any special arrangements for corporate governance[9]. - The company has revised 10 internal governance documents to enhance the responsibilities and management of independent directors, improving corporate governance structure[43]. - The company’s governance practices comply with relevant laws and regulations, with all proposals passed during the reporting period[142]. Risk Management - The company emphasizes the importance of risk factors in its operations, urging investors to be cautious[5]. - The company has outlined various risks it may face in its operations in the management discussion and analysis section[5]. - The company faces risks related to product quality control, raw material price fluctuations, and reliance on imported key components like IGBT and IC chips[87]. - The company has a high proportion of accounts receivable, which poses a risk of increased bad debt provisions if customers default[90]. - The company faces risks from increased competition in the low-voltage inverter and servo system markets, where it holds a relatively low market share[91]. Research and Development - The company has invested significantly in R&D, resulting in 53 authorized patents, including 28 invention patents, and 53 software copyrights, which support product performance and technological innovation[65]. - The company reported a total of 33,181,235.95 CNY in R&D expenses for the year, representing a 28.15% increase from the previous year's 25,891,957.78 CNY[69]. - R&D expenses accounted for 8.89% of total revenue, up from 7.45% in the previous year, indicating a 1.44% increase in the ratio[69]. - The company has implemented a project-based development approach, enhancing R&D efficiency and quality through a structured talent training and incentive system[81]. - The company has established multiple laboratories, including performance and EMC labs, to support technological advancements and has invested in a motion controller and energy storage product development platform[80]. Market Position and Strategy - The company specializes in industrial automation, focusing on motor drive and control systems, with applications in various industries including petrochemicals, textiles, and logistics[44]. - The company has established a strong customer base and industry position since its founding in 2003, focusing on customer needs and enhancing market share through quality products and services[59]. - The industrial automation market is expanding, with domestic brands increasing their market share, particularly in the servo system market, where domestic brands have significantly improved their share compared to previous years[58]. - The company aims to enhance its product lines and customization capabilities to meet diverse customer needs, further accelerating the domestic substitution process in the industrial automation market[56]. - The company has optimized its sales business model, transitioning to project management-based operations to enhance efficiency[39]. Employee and Management - The company reported a total of 447 employees, with 124 in the parent company and 323 in major subsidiaries[172]. - The employee composition includes 181 production personnel, 89 sales personnel, 122 technical personnel, 8 financial personnel, and 47 administrative personnel[172]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 327.22 million[159]. - The total remuneration for core technical personnel at the end of the reporting period was 305.87 million[159]. - The company has established a fair and effective income distribution and incentive system based on employee roles and capabilities, with income comprising basic salary, performance-based income, and benefits[173]. Future Outlook - The company provided guidance for 2024, expecting revenue to grow by 20% to approximately $1.8 billion[151]. - The company plans to increase investment in project markets, particularly in oil, metallurgy, and chemical sectors, to capitalize on the growing demand for domestic automation solutions[124]. - The company anticipates continued growth in the industrial automation sector, driven by domestic brand competition and the need for system solutions[124]. - In 2024, the company will focus on customer-centric development in industrial automation and new energy sectors, enhancing product offerings like inverters and servo systems[125]. - The company aims to expand its sales scale by optimizing sales project processes and focusing on key industries and quality customers in 2024[127].