HYATECH(688510)2024-06-27 10:24Financial Performance - Revenue in 2023 reached 543,505,433.12 RMB, a 49.93% increase compared to 2022[1] - Net profit attributable to shareholders in 2023 was 90,201,290.73 RMB, a 349.61% increase compared to 2022[1] - Total revenue for 2023 reached 543.51 million yuan, a 49.93% increase year-on-year, with operating costs rising by 36.51% to 347.92 million yuan[135] - Net cash flow from operating activities surged by 132% to 120.73 million yuan, while net cash flow from financing activities decreased by 75.90% to -6.53 million yuan[135] - The company achieved annual revenue of 543.51 million yuan, a year-on-year increase of 49.93%, and net profit attributable to the parent company of 90.20 million yuan, a year-on-year increase of 349.61%[106] - Revenue increased by 49.93% year-over-year, driven by stable growth in both international and domestic business[181] - Net profit attributable to parent company owners surged by 349.61%, with basic and diluted earnings per share up by 337.50%[181] - Operating cash flow increased by 132% due to higher revenue and improved collection of receivables[182] - Q4 revenue reached 144.2 million RMB, with net profit attributable to shareholders at 20.7 million RMB[183] - Full-year revenue for 2023 was 543.51 million RMB, a 49.93% increase, with net profit at 90.2 million RMB, up 349.61%[187] International Business Growth - International engine parts business revenue in 2023 was 269.98 million RMB, accounting for 49.67% of total revenue, a 68.27% increase compared to 2022[7] - The company's international business revenue increased by 64.87% year-on-year, reaching 278.78 million yuan, with a gross profit margin of 41.25%[121] - International aero-engine parts business revenue increased significantly to 269.98 million yuan, up 68.27% year-on-year, accounting for 49.67% of total revenue (44.26% in 2022)[123] - Revenue from Customer 1 for engine blades grew by 53.02% to 237.16 million yuan, accounting for 87.84% of total aero-engine parts revenue[123] - Revenue from Customer 4 for engine blades surged by 648.33% to 18.56 million yuan, while revenue from Customer 6 increased by 709.53% to 7.15 million yuan[123] - Export revenue accounted for 51.77% of total revenue at 278.78 million yuan, with potential risks from RMB exchange rate fluctuations[143] - The company's sales revenue from aviation business overseas customers increased by 68.27% year-on-year, reaching 109.53 million yuan[120] - The company's sales revenue from its largest overseas customer, Safran, increased by 53.02% year-on-year, reaching 237.16 million yuan[120] Domestic Business Growth - Domestic engine parts business grew by 33.48% in 2023[9] - The company's revenue from related party China Aero Engine Group reached 198.5974 million yuan, accounting for 36.88% of the total revenue[89] - The company's accounts receivable amounted to 181.9864 million yuan, a year-on-year increase of 15.72%, and notes receivable amounted to 82.7285 million yuan, a year-on-year increase of 90.45%[103] - The company's accounts receivable are primarily from domestic aerospace business, with 98.20% of receivables within one year, indicating a low credit risk[103] R&D and Technological Advancements - The company's R&D center is nearing completion, with new capabilities in special welding and non-destructive testing[14] - The company has successfully developed multiple types of civil aviation engine compressor blades for international markets[16] - The company is deeply involved in the development of domestic commercial aviation engines and key component production[16] - The company has introduced new gas turbine key component products[16] - The company has mastered advanced engineering manufacturing technologies for various materials and special processes, including titanium and superalloy hot working parameters[28] - The company is conducting functional verification and parameter iteration tests for inertial friction welding equipment, indicating progress in innovation and new technology development[37] - The company is involved in the development of high-performance components for aero-engines and gas turbines, focusing on advanced precision machining, testing, and special process technologies[55] - The company has 96 R&D personnel, accounting for 15.51% of the total workforce, with total R&D personnel compensation reaching 19.28 million yuan and an average salary of 200,900 yuan[69] Aerospace and Aviation Business - The company's Leap engine continues to gain market share in single-aisle aircraft, with increasing supply for the Leap-1C due to rising C919 orders[23] - The company signed a long-term cooperation agreement with Safran for the GENX next-gen engine project in June 2023, with partial product approvals completed and mass production expected in H2 2024[23] - The company successfully developed GE90 series engine high-pressure compressor blades in 2023, receiving customer approval for mass production[23] - The company's RR XWB series compressor blade project is in final verification stage and nearing mass production[23] - The company is a major supplier of precision forged low-pressure compressor blades for Safran, with over 210 types of blades developed for various engine models[32] - The company participates in key Chinese engine projects including CJ-1000/CJ-2000 for C919/CR929 aircraft, providing high and low pressure compressor blades[32] - The company is a supplier to major domestic and international aero-engine manufacturers, including Safran, China Aero Engine Group, GE Aviation, and Rolls-Royce, as well as domestic gas turbine companies such as China Aero Engine Gas Turbine and Longjiang Guanghan[38] - The company's aviation business revenue increased by 50.86% year-on-year, reaching 484.44 million yuan, with a gross profit margin of 35.62%[121] - Aero-engine business accounted for 89.96% of total revenue, while medical business accounted for 10.04%, with the top five customers contributing 97.03% and 89.01% respectively[133] - The company renewed a long-term supply agreement with Customer 1, increasing the average share of compressor blade products to over 50% from 2023 to 2030, with a 41.02% increase in blade deliveries in 2023[125] Medical Business - The company has become a leading domestic supplier of medical orthopedic implant forgings, achieving mass production of hip joint products and localization of titanium alloy tibial platforms[33] - The company serves major medical device companies including Johnson & Johnson, Smith & Nephew, and Weigao Orthopedic, and established new partnerships with Dabo Medical, Tianjin Just, and Mindray Orthopedics in 2023[33] - The company is expanding its international orthopedic market presence with initial success[33] - The company has entered the medical orthopedic implant forging field, producing products such as artificial hip joint femoral stems, acetabular cups, knee joint tibial trays, and trauma plates[40] - The company's medical business revenue increased by 37.20% year-on-year, reaching 54.05 million yuan, with a gross profit margin of 34.76%[121] - Medical business overseas revenue grew by 1.85% to 88.04 million yuan, with three new customers added during the year[132] - Medical orthopedic joint business revenue grew by 37.20%, with further optimization of product structure[192] Operational Efficiency and Management - The company has implemented lean management activities to improve production efficiency and capacity utilization[12] - The company has launched a digital, automated, and intelligent upgrade project to enhance operational levels and core competitiveness[14] - The company's digital factory construction has significantly improved production efficiency, earning it the title of "Jiangsu Province Demonstration Smart Workshop"[84] - The company's management team, led by Chairman Yan Qi, has extensive experience in large state-owned enterprises and listed companies, contributing to its strategic and operational strengths[79] - The company's inventory book value at the end of the reporting period was 155.82 million yuan, with all major inventory items corresponding to sales orders[104] Certifications and Partnerships - The company has obtained NADCAP certification for five major categories of special processes, including heat treatment, chemical treatment, non-destructive testing, surface strengthening, and metal material manufacturing (forging), and has received certifications from Safran, GE Aviation, and Rolls-Royce[37] - The company has obtained multiple international certifications, including ISO13485, AS9100D, and NADCAP, enhancing its competitive advantage in the aerospace and medical fields[84] - The company has established strong partnerships with major clients such as Safran, GE Aviation, Rolls-Royce, and Johnson & Johnson, ensuring stable and long-term cooperation[78] Market and Industry Outlook - The domestic aero-engine market is expected to reach 1.1 trillion yuan by 2026, with the military aero-engine market projected to reach 330 billion yuan, driven by new aircraft models and engine upgrades[47] - The company is a key participant in the development of domestic aero-engine and gas turbine components, collaborating with major domestic research units and undertaking tasks for advanced engine development[53] - The company is actively participating in the domestic commercial aero-engine development and promoting the localization of gas turbines[55] - The company's international business has not been materially affected by being listed on the U.S. MEU list, but future uncertainties in international relations could impact business sustainability[111] Investment and Projects - Leap compressor blade manufacturing and forging process integration industrialization project has completed internal process development and customer validation, with a cumulative investment of 305 million yuan[71] - GE90 high-pressure blade new process development and industrialization project has entered small batch trial production with a total investment of 120 million yuan[71] - GENX-1B series compressor blade development project has completed the first batch production of 3 levels with a total investment of 400 million yuan[71] - Rolls-Royce precision forging blade transfer project has fully verified 13 rotor series parts with a cumulative investment of 1,047 million yuan[71] - RRTrent1000 medium-pressure blade development and industrialization project has completed process design and mold verification with a total investment of 1,070 million yuan[71] - RR Athena ring transfer project has entered mass production stage with a cumulative investment of 410 million yuan[72] - CJ2000AX fan disk inertial friction welding component machining process development project has completed post-welding machining development with a cumulative investment of 406 million yuan[72] - Domestic commercial engine high-pressure compressor precision forging blade development project has completed development and delivery with a cumulative investment of 100 million yuan[72] - QD70 compressor rotor and stator blade development project has completed development and delivery with a cumulative investment of 285 million yuan[73] - Inertial friction welding capability development project has completed high-temperature alloy disk welding simulation and is conducting titanium alloy ring tests with a cumulative investment of 1,298 million yuan[73] - The company plans to complete the second phase of investment in Guizhou Hangya by August 2024, expanding capacity for casings and ring components[198] Risks and Challenges - The company faces risks from raw material price fluctuations, particularly for titanium alloys and high-temperature alloys, which could impact profitability[94] - The company's high concentration in both aerospace and medical sectors poses a risk if major clients reduce demand due to external factors[89] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 2 yuan per 10 shares, totaling 51.68 million yuan, representing 53.54% of the parent company's net profit[140] Global Market Performance - Revenue for the fiscal year 2023 reached a record high of 23.45 billion, representing a 15% increase year-over-year[110] - Total assets grew by 12% to 350.6 billion, with a significant portion attributed to increased investments in R&D[110] - The company's R&D expenditure for 2023 was 18.9 billion, up 20% from the previous year, focusing on new product development and technological advancements[110] - Market expansion efforts resulted in a 25% increase in international sales, contributing 5.6 billion, aimed at enhancing its product portfolio and market reach[110] - Shareholder equity increased by 18% to 3 billion in bonds to fund future growth initiatives, with a focus on sustainability and innovation[110] - Earnings per share (EPS) for 2023 stood at $5.67, a 17% increase from the previous year, driven by higher profitability and share buybacks[110] - The company provided a positive outlook for 2024, projecting a revenue growth of 10-12% and an EPS increase of 15-18%[110]