Environmental and Social Responsibility - The report covers the environmental and social policies and key performance indicators of three major subsidiaries in China, including Titan Power Electronics, Titan Technology, and Zhuhai Yilian, for the period from January 1, 2023, to December 31, 2023[1]. - The company is committed to sustainable development strategies covering environmental protection, social responsibility, product responsibility, and employment relations[8]. - The company will continue to review its environmental and social performance and consider including more business areas in future reports[1]. - The company aims to enhance the comparability of its sustainability performance indicators across annual reports[3]. - The company encourages electronic communication with shareholders to reduce environmental impact and improve information dissemination[21]. Corporate Governance - The board of directors confirmed the responsibility for presenting a true and fair view of the group's financial position and performance, with no significant uncertainties affecting the company's ability to continue as a going concern[9]. - The audit committee reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters, with non-audit service fees amounting to HKD 230,000 for the interim financial report review[13]. - The company ensures independent opinions are obtained for board decisions, with all independent non-executive directors confirmed as independent[29]. - The board will regularly review the diversity criteria for director candidates to enhance governance standards[27]. - The company has adhered to all applicable provisions of the Corporate Governance Code as of December 31, 2023, with no significant deviations reported[188]. Financial Performance - The company recorded a revenue of approximately RMB 374,277,000 for the year, representing an increase of about 8.53% compared to the previous year[52]. - The company reported a loss attributable to owners of approximately RMB 43,979,000 for the year due to decreased gross margin from marketing strategy adjustments, increased administrative and sales expenses, and higher provisions for trade receivables[52]. - The gross profit for 2023 was RMB 107,802,000, a decrease from RMB 110,319,000 in 2022, indicating a decline of about 2.29%[86]. - The company recorded a net loss attributable to shareholders of RMB (43,979,000) in 2023, worsening from a loss of RMB (18,227,000) in 2022[86]. - The total assets increased to RMB 1,078,847,000 in 2023, up from RMB 906,964,000 in 2022, reflecting a growth of approximately 18.91%[86]. Operational Efficiency - The inventory turnover period increased to 253 days in 2023 from 240 days in 2022[61]. - The trade receivables turnover period improved to 261 days in 2023 from 269 days in 2022[61]. - The current ratio increased to 2.16 in 2023 from 1.96 in 2022, indicating improved liquidity[61]. - The capital debt ratio decreased to 14.51% in 2023 from 18.14% in 2022, reflecting a reduction in financial leverage[61]. - The company aims to optimize its supply chain structure to achieve high-quality development[99]. Employee and Workforce Management - As of December 31, 2023, the board consists of 7 male directors and 1 female director, achieving over 10% female representation[27]. - The company's workforce gender ratio is currently 329 males for every 113 females, an improvement from last year's ratio of 287 males for every 109 females[28]. - The total employee compensation for the year ended December 31, 2023, was approximately RMB 61,230,000, an increase from RMB 59,101,000 in 2022[175]. - The company employed 442 staff as of December 31, 2023, an increase from 396 employees in the previous year[175]. - All employees in China are entitled to participate in the basic pension insurance plan, with contributions shared between the group and employees as per local laws[197]. Strategic Development - The company plans to restart investment operations in Tangshan, focusing on building new energy battery swap stations and charging stations[75]. - The company aims to enhance its product technology and expand its business areas in response to national development needs[75]. - The company plans to leverage the unique competitive advantage of combining state-owned and listed company resources to enhance strategic, financial, operational, and management capabilities[81]. - The company has introduced a 38% state-owned capital equity through a targeted placement to enhance strategic, financial, operational, and management capabilities[125]. - The company aims to strengthen its core technology in power electronics and develop new monitoring product systems, including a liquid-cooled ultra-fast charging series with a power output of up to 720 kW and an average efficiency of 96%[123]. Market and Revenue Growth - The revenue from electric vehicle charging services was approximately RMB 26,517,000, reflecting a year-on-year increase of 17.74%[72]. - The company’s electric power DC products generated revenue of approximately RMB 141,021,000, which is a year-on-year increase of about 13.90%[70]. - The sales volume of new energy vehicles in 2023 was 9.495 million units, with a charging infrastructure increase of 3.386 million units, up 30.6% year-on-year[69]. - The electric vehicle market is expected to exceed 40 million units by 2025, indicating a strong growth outlook for the charging infrastructure sector[73]. - The growth in revenue was primarily driven by the recovery of domestic economic order post-COVID-19, with significant increases in electric power DC products by approximately 13.90%, electric vehicle charging equipment by approximately 4.18%, and electric vehicle charging services by approximately 17.74%[126].
泰坦能源技术(02188) - 2023 - 年度财报