Recognition and Awards - Hong Xi Technology was awarded the "Excellent Supplier" trophy by HP in February 2023[4]. - The company was recognized as an A-level taxpayer for the year 2022 by the Chongqing Longshou District Tax Bureau in July 2023[5]. - The company was recognized as a "high-tech enterprise" valid from November 12, 2021, to November 11, 2024[42]. Financial Performance - The company's operating revenue for 2023 was CNY 448,518,049.95, representing a 5.02% increase compared to CNY 427,083,873.65 in 2022[28]. - The net profit attributable to shareholders for 2023 was CNY 38,279,258.27, which is a 16.31% increase from CNY 32,910,059.52 in 2022[28]. - The gross profit margin improved to 19.93% in 2023, up from 14.93% in 2022[28]. - Total assets increased by 20.55% to CNY 556,771,873.51 at the end of 2023, compared to CNY 461,846,355.52 at the end of 2022[30]. - The total liabilities rose significantly by 67.39% to CNY 162,905,475.11 in 2023, up from CNY 97,319,610.30 in 2022[30]. - The net assets attributable to shareholders increased by 8.05% to CNY 393,866,398.40 in 2023, compared to CNY 364,526,745.22 in 2022[30]. - The company reported a basic earnings per share of CNY 0.52 for 2023, reflecting a 13.04% increase from CNY 0.46 in 2022[28]. - The cash flow from operating activities decreased by 36.87% to CNY 25,636,127.23 in 2023, down from CNY 40,607,078.21 in 2022[30]. Share Capital and Ownership - The total share capital of the company is 74,007,152 shares[22]. - The company has a total of 0 preferred shares outstanding[22]. - The controlling shareholder, Changshu Hongbo, holds 52.5272% of the company's shares as of December 31, 2023[134]. - The total number of ordinary shares increased to 74,007,152, with the proportion of unrestricted shares rising to 100%[129]. - The total number of shares held by the top ten shareholders is 59,332,893, representing 80.1720% of the total shares[132]. - The company has 7,710 shareholders holding ordinary shares, indicating a broad base of ownership[129]. Research and Development - The company holds 56 patents as of December 31, 2023, including 1 invention patent and 55 utility model patents[39]. - The company reported a research and development expenditure of ¥20,489,243.43, accounting for 4.57% of operating revenue, compared to 4.71% in the previous period[82]. - R&D expenditures for the top five projects amounted to ¥8,345,507.46, with the highest expenditure on FPC multi-port component development at ¥1,753,106.09[184]. - The company has a total of 96 R&D personnel, representing 5.06% of the total workforce, an increase from 3.87% in the previous period[84]. Market and Operations - The company operates in the manufacturing sector, specifically in electronic components and high-precision electronic wire assemblies[22]. - The company has established long-term stable partnerships with major clients such as Compal, Inventec, and Quanta, ensuring a solid customer base[39]. - The company’s micro-speaker sales experienced rapid growth due to the expansion of customer base and product optimization[44]. - The global PC market is expected to show moderate growth in 2024, with a recovery trend anticipated following a period of decline[46]. - The market for high-precision electronic wire components and miniature speakers is expected to grow steadily due to rapid product iterations in smartphones and computers, as well as emerging fields like security, drones, and VR/AR[188]. Investments and Subsidiaries - The company established a wholly-owned subsidiary in Vietnam to better serve customers in the region[45]. - The company made a significant equity investment of ¥25.77 million in a Vietnamese subsidiary focused on high-precision electronic components, with a 100% ownership stake[70]. - The company has invested ¥263,000,000.00 in financial assets, with a reportable investment income of ¥642,578.94 for the period[74]. - The company has a total of ¥263,000,000.00 in wealth management products, with no overdue amounts reported[75]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights and interests[192]. - The company has implemented measures for environmental protection, ensuring compliance with waste management and emission standards[95]. - The company will strengthen its internal controls and compliance with relevant laws and regulations to ensure proper governance and risk management[100]. Employee and Management - The company reported a total of 2,375 employees at the end of the reporting period, with a net increase of 479 employees[166]. - The number of production personnel decreased by 2,910, resulting in a total of 2,109 production staff[166]. - The company has a total of 9 board members and 3 supervisors, with 5 senior management personnel[159]. - The annual pre-tax remuneration for the chairman and general manager, Tan Zhen, is 663,300 yuan[159]. - The company is committed to a performance-linked internal salary system to enhance employee motivation and creativity[169]. Risks and Challenges - The company faces significant risks due to intense market competition in the electronic components manufacturing industry, which may lead to performance decline if production management and technological advancements are not continuously improved[103]. - The company’s major clients account for a high concentration of sales, which poses a risk if their financial health deteriorates, impacting product sales and accounts receivable[103]. - The company has reported a substantial balance of goods shipped amounting to 37.3264 million yuan as of December 31, 2023, indicating potential risks if customer demand changes[103]. Dividend Policy - The company distributed a cash dividend of 1.20 RMB per 10 shares to all shareholders, approved on May 8, 2023, and announced on May 22, 2023[146]. - The company has a policy to allocate 10% of the annual after-tax profit to the statutory reserve fund, which must exceed 50% of the registered capital to cease further allocations[149]. - The company prioritizes cash dividends, stating that the cash distribution should not exceed the cumulative distributable profit and must not harm the company's sustainable operation[150]. - The company plans to distribute a cash dividend of 3.00 per 10 shares (including tax) for the reporting period[157].
泓禧科技(871857) - 2023 Q4 - 年度财报