SHAREATE(SH:688257)2024-04-25 13:22Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year 2023, representing a 15% year-over-year growth[14]. - The company's operating revenue for 2023 reached ¥1,549,332,511.65, representing a 30.89% increase compared to ¥1,183,730,975.04 in 2022[22]. - Net profit attributable to shareholders was ¥162,989,065.42, a 10.94% increase from ¥146,914,290.15 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥137,819,856.51, reflecting a 25.59% increase from ¥109,741,104.46 in 2022[22]. - The gross margin for the year improved to 35%, up from 30% in the previous year, reflecting better cost management and pricing strategies[14]. - The comprehensive gross profit margin increased to 32.52%, up 2.62 percentage points from 2022[110]. - The main business revenue from hard alloy tools reached 626.98 million RMB, with a gross margin of 38.88%[112]. - The company's overseas revenue accounted for a significant portion of total revenue, with 737.16 million RMB from international markets, growing by 18.70%[112]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 4 per 10 shares (including tax), totaling approximately RMB 50,804,813.20, which accounts for 31.17% of the net profit attributable to shareholders for 2023[5]. - The total cash dividend amount (including tax) is 111,904,962.71, which accounts for 68.66% of the net profit attributable to ordinary shareholders in the consolidated financial statements[200]. - The cash dividend amount (including tax) is 50,804,813.20, representing 31.17% of the net profit attributable to ordinary shareholders[200]. - The amount used for share repurchase counted as cash dividend is 61,100,149.51[200]. Research and Development - The company invested 50 million RMB in R&D for advanced drilling technologies, aiming to improve efficiency and reduce environmental impact[14]. - R&D expenses increased to 72.98 million RMB, a growth of 28.27% compared to the previous year, resulting in the acquisition of 6 invention patents and 57 utility model patents[37]. - The total R&D investment for the year reached approximately ¥72.98 million, representing a 28.27% increase from the previous year, with R&D expenses accounting for 4.71% of operating revenue[66]. - The company has established a comprehensive R&D system to meet specific customer needs and keep pace with market trends, focusing on high-end hard alloys and tools[46]. - The company has established a comprehensive R&D system and maintains strong partnerships with universities and research institutions, enhancing its technological capabilities[82]. Market Expansion and Strategy - The company is focused on expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[14]. - The company provided a positive outlook for 2024, projecting a revenue growth of 10% to 12% based on anticipated market expansion and new product launches[14]. - A strategic acquisition of a local competitor is in progress, which is expected to enhance production capacity by 30% and reduce operational costs[14]. - The company is actively expanding its global business and enhancing integration management of acquired enterprises to drive revenue growth[108]. - The company plans to expand its market presence by introducing new products and technologies aimed at meeting high-end market demands[74]. Risk Management - The company has outlined various risks in its operations, which are detailed in the "Management Discussion and Analysis" section[4]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[7]. - The company faces risks related to the potential loss of core technical personnel, which could adversely affect new product development and technological competitiveness[89]. - Raw material costs account for over 70% of hard alloy production costs, making the company vulnerable to price fluctuations in materials like tungsten carbide and cobalt[93]. - The company reported a goodwill amount of 103.33 million yuan, which is subject to impairment testing, posing a risk to operating profits if market conditions worsen[98]. Corporate Governance - The company has confirmed that all board members can guarantee the authenticity, accuracy, and completeness of the annual report[8]. - The company has established a talent development and incentive system to enhance employee capabilities and support its international branding efforts[149]. - The company is undergoing internal adjustments and has seen changes in its board and management personnel[172]. - The company has established several specialized committees under the board, including the audit committee and the strategic decision-making committee, to enhance governance[177]. - The company is in the process of revising its articles of association and governance systems as part of its strategic adjustments[174]. Employee and Management Changes - The total number of employees in the parent company and major subsidiaries is 1,540, with 451 in the parent company and 1,089 in subsidiaries[185]. - The employee composition includes 874 production staff, 142 sales personnel, 191 technical staff, 36 financial staff, and 297 administrative staff[185]. - The average number of R&D personnel increased significantly from 127 to 181, reflecting the company's commitment to expanding its research capabilities[80]. - The company has been actively adjusting its board composition, with changes in independent directors and non-independent directors occurring in 2023[163][164]. - The company reported a total remuneration of RMB 749.37 million for all directors, supervisors, and senior management personnel at the end of the reporting period[169]. Acquisitions and Subsidiaries - The company has acquired Australian AMS, enhancing its comprehensive service capabilities in the mining sector and expanding its international market presence[85]. - The company established a new subsidiary, New Sharp Competition Technology, with an investment of ¥30,000,000.00, holding a 50.99% stake[136]. - The company acquired an additional 21% stake in Australian AMS for ¥52,537,801.85, increasing its ownership to 91%[136]. - The company is planning to increase its investment in subsidiaries and control stakes in other companies[173]. Product Development and Innovation - New product development efforts have led to the introduction of three innovative hard alloy tools, expected to contribute an additional 100 million RMB in sales[14]. - The company is focusing on the development of intelligent and automated drilling solutions, enhancing operational efficiency and safety[75]. - The company has made significant technological breakthroughs in high-end metal ceramic materials, positioning itself as a leader in this field[77]. - The company is developing high-value-added carbonized conical drill rods, with a production capacity being optimized[72]. Financial Management - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated any decision-making procedures regarding external guarantees[8]. - The company is committed to developing core technologies in the hard alloy sector, which is recognized as a strategic emerging industry[41]. - The company is considering a comprehensive credit limit application for the year 2023[153].