LEO(002131)2024-04-28 08:07Financial Performance and Profit Distribution - The company's net profit attributable to shareholders increased by 1,911,074,358.85 yuan compared to the previous year, driven by gains from financial assets and government subsidies[18] - The company plans to distribute a cash dividend of 0.30 yuan per 10 shares for the 2023 fiscal year, based on the total number of shares registered with China Securities Depository and Clearing Corporation[31] - Revenue for 2023 reached RMB 20.47 billion, a 1% increase compared to 2022[41] - Net profit attributable to shareholders in 2023 was RMB 1.97 billion, a 545.71% increase from 2022[41] - Basic earnings per share for 2023 were RMB 0.29, a 514.29% increase from 2022[41] - Total assets at the end of 2023 were RMB 24.64 billion, a 26.73% increase from 2022[41] - Net cash flow from operating activities in 2023 was negative RMB 583.88 million, a 1,051.85% decrease from 2022[41] - The company's total non-recurring profit and loss for the year amounted to 1,911,074,358.85 yuan, reflecting significant gains from financial asset transactions and government subsidies[18] - Parent company achieved a net profit of -2,175,560.80 yuan in 2023, with distributable profits of 705,498,542.91 yuan at the end of the year[131] - Consolidated distributable profits for shareholders amounted to 5,166,583,106.77 yuan as of December 31, 2023[131] - The company plans to distribute a cash dividend of 0.30 yuan per 10 shares, excluding 45,779,220 shares not participating in the distribution[131] Financial Assets and Investments - The company's financial assets and liabilities generated a fair value change profit of 2,522,589,058.61 yuan, mainly due to the fair value change income from holding Li Auto stocks and investment income from disposing of Li Auto stocks[18] - The company's financial performance in 2023 was influenced by the fair value changes and disposal gains from its investment in Li Auto, contributing significantly to its overall profit[18] - The company's financial strategy in 2023 included significant investments in financial assets, leading to substantial gains and a strong overall financial performance[18] - The company's subsidiary, Leo Hong Kong, holds shares in Li Auto, resulting in significant fair value changes in 2023[92] Government Subsidies and Non-Operating Income - The company's non-operating income includes government subsidies of 19,723,385.04 yuan, which are closely related to normal business operations and comply with national policies[18] Accounting and Financial Reporting - The company's financial report for 2023 was prepared in accordance with the new accounting policy issued by the Ministry of Finance, effective from January 1, 2023[4] - The company's financial indicators for 2023 showed no significant differences compared to the quarterly and semi-annual reports previously disclosed[11] - The company's financial report for 2023 was audited and confirmed to be true, accurate, and complete by the company's responsible persons and accounting team[22] Business Operations and Market Trends - The company completed acquisitions of Shanghai Manku, Shanghai Argon, and Amber Communications, entering the digital marketing sector[39] - The company's pump products are widely used in agriculture, construction, power, petroleum, and chemical industries[47] - The company's mechanical manufacturing business covers civil and commercial pumps, industrial pumps, and garden machinery, with leading product manufacturing capabilities[51] - The company's garden machinery business benefits from high growth in Asia and South America, with Europe being the dominant market[50] - The global pump market is growing, with the Asia-Pacific region being the largest and fastest-growing market due to infrastructure development in emerging economies like China and India[73] - The domestic pump industry is focusing on import substitution, with domestic companies improving R&D and production capabilities to compete in the mid-to-high-end market[83] - The domestic internet advertising market is recovering in 2023, driven by trends in cloud computing, big data, and AI, making it a core component of digital transformation[86] - The company's digital marketing business adopts a "brand, effect, sales" integrated full-chain marketing model, gaining recognition from multiple parties[105] - The company's products are primarily exported, with stable partnerships established with global pump and garden machinery manufacturers, distributors, and foreign chain supermarkets[97] - The company's garden machinery business is shifting towards new energy, intelligence, and multifunctionality, driven by global environmental concerns[76] - The domestic garden machinery market is growing due to urbanization, agricultural modernization, and rising household disposable income, with domestic brands gradually increasing their market share[85] Innovation and Product Development - The company launched a smart water supply management platform and a smart pump station management platform in 2023, enabling real-time monitoring and automated maintenance processes[102] - The company launched its new "Smart Water" product line, featuring integrated internet-based water pressure, purification, and drainage technologies[150] Corporate Governance and Leadership - Yang Hao, male, Chinese nationality, born in August 1985, holds a Bachelor's and Master's degree in Finance from Central University of Finance and Economics, and an MBA from Peking University Guanghua School of Management. He currently serves as the company's Vice President and CFO[118] - Deng Lingli, female, Chinese nationality, born in February 1977, holds a Bachelor's degree in Philosophy and a Master's degree in Journalism from Nanjing Political College, and a Ph.D. in Financial Management from Arizona State University's W.P. Carey School of Business. She has been serving as the company's Vice President since April 2024[118] - Wang Xiangrong serves as the Executive Director of Wenling Lixin Enterprise Management Consulting Co., Ltd. since October 1, 2016, and as a Director of Leo Group Pump Technology Co., Ltd. since March 1, 2023[119] - Wang Zhuangli serves as a Director of Zhejiang Leo Holding Group Co., Ltd. since June 1, 2011, and as a Director of Wenling Liheng Guarantee Co., Ltd. since April 1, 2016[119] - Wang Zhuangli serves as the Chairman of Taizhou Rongli Material Distribution Co., Ltd. since November 1, 2020, and as a Director of Leo Group Zhejiang Pump Co., Ltd. since December 1, 2015[119] - Zhang Xubo serves as a Director of Zhejiang Danong Industrial Co., Ltd. since July 1, 2014, and as a Director of Shanghai Manku Advertising Co., Ltd. since April 1, 2014[119] - Zhang Xubo serves as a Director of Jiangsu Wansheng Weiye Network Technology Co., Ltd. since November 1, 2015, and as a Director of Beijing Weichuang Times Advertising Co., Ltd. since November 1, 2015[119] - Chen Linfu serves as a Supervisor of Leo Group Zhejiang Pump Co., Ltd. since December 1, 2015, and as a Director of Wenling Leo Electronic Technology Co., Ltd. since June 1, 2018[119] - Dai Haiping serves as an Independent Director of Xinlei Compressor Co., Ltd. since October 1, 2023[119] - Lin Renyong serves as a Supervisor of Leo Group Hunan Pump Co., Ltd. since July 1, 2023, and as a Manager and Executive Director of Wenling Huiying Industrial Co., Ltd. since September 1, 2018[119] - The company's Chairman Wang Xiangrong and Vice Chairman Wang Zhuangli received a warning letter from the Zhejiang Securities Regulatory Bureau due to short-term trading activities involving their mother, with a total transaction amount of 1,237,160 RMB for purchases and 1,113,660 RMB for sales[121] - The total pre-tax compensation for the company's directors and senior management in 2023 was 1,095.82 million RMB[122] Employee and Human Resource Management - The company's total number of employees at the end of the reporting period was 6,041, with 2,194 production workers, 736 sales personnel, and 764 technical staff[127] - The company's employees are covered by various social insurance programs, including basic pension, medical, unemployment, maternity, and work-related injury insurance[128] - The company has established a comprehensive human resource management system, including reasonable salary structures and incentive plans to motivate employees[175] Stock Options and Incentive Plans - The company completed the registration of 12,855,900 stock options for 151 incentive recipients on November 16, 2022[134] - 512 incentive recipients were eligible to exercise 16,584,526 stock options, representing 0.25% of the company's total shares[136] - The exercise price for the first batch of stock options was set at 1.55 yuan per share[136] - The company completed the initial grant of stock options under the 2022 Stock Option Incentive Plan, awarding 131.4457 million shares to 624 incentive recipients[161] - The company completed the reserved grant of stock options under the 2022 Stock Option Incentive Plan, awarding 20.023 million shares to 137 incentive recipients[162] - The first exercise period for the reserved grant of stock options began on December 25, 2023, with 1,328,544 options exercisable by 121 recipients, representing 0.02% of the company's total shares[164] Internal Control and Compliance - The company's internal control system was deemed effective as of December 31, 2023, with a standard unqualified opinion in the internal control audit report[143] - The company's internal control system covers 100% of its consolidated financial statement assets and revenue[167] - The company emphasizes compliance training and legal education to prevent irregularities in stock trading behavior[184] - The company did not engage in any daily operational-related related-party transactions during the reporting period[185] - The company's governance self-inspection and rectification actions are ongoing as part of the listed company governance special action[190] - The company's internal control system identified no significant or important defects in financial or non-financial reporting[188] Environmental and Social Responsibility - The company's subsidiary, Leo Group Zhejiang Pump Co., Ltd., reported COD emissions of 1.185 tons, below the permitted limit of 6.53 tons[172] - The same subsidiary reported ammonia nitrogen emissions of 0.008 tons, below the permitted limit of 0.68 tons[172] - The company strictly adheres to environmental protection requirements, holds pollution discharge permits, and regularly reports monthly, semi-annual, and annual emissions data[193] - No major environmental responsibility accidents occurred throughout the year, with all emissions from production enterprises being effectively and compliantly treated[196] - The company actively responds to national policies and participates in public welfare actions during natural disasters, enhancing employees' social responsibility and mission[197] - The company's environmental and social responsibility efforts include reducing carbon emissions and adhering to industry standards for pollutant treatment[191][192] - The company's mechanical manufacturing business focuses on green energy and low-carbon efficiency as a key sustainability strategy, integrating "dual-carbon" transformation into daily operations and establishing a comprehensive "carbon management" system[196] Customer and Sales Information - The top 5 customers accounted for 26.07% of total annual sales, with a combined sales amount of 5,336,703,874.58 yuan[147] - Customer 1 contributed 8.76% of total annual sales with 1,792,309,815.07 yuan, the highest among the top 5 customers[147] Audit and Fees - The company hired Tianjian Accounting Firm (Special General Partnership) for internal control audit in 2023, with audit fees totaling 1.55 million RMB, including internal control audit fees[181] Future Plans and Strategies - The company plans to focus on innovation and high-quality development in 2024, leveraging its dual-platform model of mechanical manufacturing and digital marketing[94] - The company has disclosed its future three-year shareholder return plan for 2024-2026, which is currently being implemented[178] - The company's profit distribution and cash dividend policy remain unchanged, in line with the company's articles of association and the 2024-2026 shareholder return plan[129] - The company has a long-term commitment to avoid competition and limit stock transfers by key executives[178]