Financial Statements and Notes - The company's property, plant, and equipment details for the year are provided in Note 15 of the financial statements[2] - The company's reserves and consolidated equity changes are detailed in Note 33 and the consolidated statement of changes in equity[3] - The company's bank loan details as of December 31, 2023, are provided in Note 29 of the financial statements[15] - The company's retirement plan details are disclosed in the financial statement notes[164] Shareholder and Equity Information - Cui Wei beneficially owns 100% of the issued share capital of Jin Yong Industrial Co., Ltd., which holds approximately 28.06% of the company's total issued share capital[8] - The company's major shareholder, Jin Yong, holds 108,868,662 ordinary shares, representing approximately 28.06% of the company's issued share capital[10] Employee and Workforce Information - The company had 1,095 full-time employees as of December 31, 2023, compared to 936 in 2022[19] - The company has no significant disputes with employees or difficulties in hiring and retaining experienced or technical staff[20] Environmental and Certification Information - The company has passed the OHSAS 18000 environmental system audit and has effective monitoring of water, electricity, and raw material usage[21] - The company's main operating subsidiary, Jiangsu Hengxin Technology Co., Ltd., obtained ISO 14001:2004 environmental management system certification in 2007[21] Audit and Financial Reporting - The company's independent auditor, KPMG, has been reappointed and will be proposed for reappointment at the upcoming annual general meeting[25] - The company's audit committee communicates with auditors on audit planning, significant audit findings, and internal control deficiencies[40] - The company's key audit matters are determined based on professional judgment and are disclosed in the auditor's report unless prohibited by law or regulation[41] - The company's financial statements are prepared on a going concern basis, with the board of directors responsible for assessing the company's ability to continue as a going concern[59] - The company's financial statements are prepared in accordance with International Financial Reporting Standards, with management making judgments and estimates that could affect the reported amounts of assets, liabilities, income, and expenses[133] Revenue and Profit Information - Revenue for 2023 increased to RMB 2,255,903 thousand, up 10.6% from RMB 2,039,583 thousand in 2022[92] - Gross profit rose to RMB 434,698 thousand in 2023, a 15.8% increase from RMB 375,525 thousand in 2022[92] - Operating profit surged to RMB 156,517 thousand in 2023, a 76.2% jump from RMB 88,834 thousand in 2022[92] - Net profit attributable to equity shareholders grew to RMB 69,702 thousand in 2023, up 9.6% from RMB 63,602 thousand in 2022[92] - Revenue for the fiscal year 2023 was RMB 2,255,903 thousand, with a gross margin of 19.2%[179] - Revenue from regions outside China accounted for 5.1% of total revenue, amounting to RMB 115,094 thousand[179] - Profit before tax for the fiscal year 2023 was RMB 125,532 thousand[179] - Non-controlling interests for the fiscal year 2023 were RMB -34,473 thousand[179] - Profit attributable to equity shareholders of the company for the fiscal year 2023 was RMB 69,702 thousand[179] - Revenue for the fiscal year 2023 reached 125.5 million[198] - Pre-tax profit for the fiscal year 2023 was 613 million[198] - Net profit attributable to equity shareholders for the fiscal year 2023 was 25 million[198] - Gross profit margin for the fiscal year 2023 was 6.7%[198] - Net profit margin attributable to equity shareholders for the fiscal year 2023 was 5%[198] - Revenue growth from fiscal year 2019 to 2023 increased from 113.5 million to 125.5 million[198] - Pre-tax profit growth from fiscal year 2019 to 2023 increased from 50 million to 613 million[198] - Net profit attributable to equity shareholders growth from fiscal year 2019 to 2023 increased from 0 to 25 million[198] - Gross profit margin growth from fiscal year 2019 to 2023 increased from 3.4% to 6.7%[198] - Net profit margin attributable to equity shareholders growth from fiscal year 2019 to 2023 increased from 0% to 5%[198] Assets and Liabilities - Total assets minus current liabilities increased to RMB 3,598,940 thousand in 2023, up from RMB 1,909,841 thousand in 2022[70] - Net current assets rose to RMB 1,868,833 thousand in 2023, compared to RMB 1,444,763 thousand in 2022[70] - Trade and other payables increased to RMB 453,042 thousand in 2023 from RMB 387,960 thousand in 2022[70] - Bank loans under current liabilities decreased to RMB 176,543 thousand in 2023 from RMB 228,634 thousand in 2022[70] - Non-current liabilities surged to RMB 860,367 thousand in 2023, primarily due to new bank loans of RMB 836,366 thousand[70] - Non-current assets expanded significantly to RMB 1,730,107 thousand in 2023, compared to RMB 465,078 thousand in 2022[95] - Cash and cash equivalents increased to RMB 944,863 thousand in 2023, up 14.4% from RMB 825,594 thousand in 2022[95] - Total equity rose to RMB 2,738,573 thousand in 2023, a 45% increase from RMB 1,888,830 thousand in 2022[98] - The company's revenue for the past five fiscal years ranged from RMB 1.14 billion to RMB 2.26 billion, with gross profit ranging from RMB 260.76 million to RMB 434.70 million[195] - The company's total assets ranged from RMB 2.19 billion to RMB 4.25 billion over the past five fiscal years, with total liabilities ranging from RMB 510.74 million to RMB 1.51 billion[196] - The company's net profit attributable to equity shareholders ranged from RMB 60.43 million to RMB 113.47 million over the past five fiscal years[193] - The company's equity attributable to shareholders ranged from RMB 1.68 billion to RMB 1.93 billion over the past five fiscal years[196] Cash Flow and Investment Activities - Operating cash flow generated was RMB 334,402 thousand in 2023, a decrease from RMB 478,390 thousand in 2022[76] - Net cash generated from operating activities was RMB 321,138 thousand in 2023, down 30.4% from RMB 461,159 thousand in 2022[103] - The company's investment in debt and equity securities is detailed, with specific accounting policies for non-equity investments, including amortized cost and fair value through profit or loss[122] - The company holds derivative financial instruments to manage its foreign exchange risk exposure, with embedded derivatives separated from the host contract under certain conditions[124] - The company's investment activities in 2023 included payments for property, plant, and equipment (RMB 23.78 million), intangible assets (RMB 28.16 million), and financial assets at fair value (RMB 12 million)[192] - The company's net cash used in investing activities in 2023 was RMB 438.89 million, compared to RMB 38.06 million in 2022[192] - The company's net cash from financing activities in 2023 was RMB 236.31 million, compared to a net cash outflow of RMB 118.22 million in 2022[192] - The company's cash and cash equivalents increased by RMB 118.55 million in 2023, reaching RMB 944.86 million at the end of the year[192] Depreciation and Amortization - Depreciation of property, plant, and equipment amounted to RMB 54,566 thousand in 2023, up from RMB 21,514 thousand in 2022[76] - Amortization of intangible assets increased to RMB 32,091 thousand in 2023 from RMB 13,565 thousand in 2022[76] - The company's property, plant, and equipment are depreciated using the straight-line method over estimated useful lives ranging from 3 to 30 years, depending on the asset type[161] - The company's intangible assets (excluding goodwill) are amortized using the straight-line method over their estimated useful lives, with the amortization period and method reviewed annually[152] Business Segments and Acquisitions - The company's strategic regional sales system in China serves long-term stable high-quality customers, including major telecom operators such as China Unicom, China Mobile, and China Telecom, and major telecom equipment manufacturers[44] - The company has been a leader in the Chinese market for radio frequency coaxial cables used in mobile communications, based on sales volume[45] - The company's products are exported to Europe and Asia, with sales to local telecom operators in India starting in 2010 through its wholly-owned subsidiary[44] - The company's digital technology and security segment focuses on chip R&D, design, sales, and supply chain services, as well as semiconductor intellectual property licensing and digital security products and services[47] - The company completed the acquisition of Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd., establishing a new Digital Technology and Digital Security business segment focused on chip R&D, design, sales, and supply chain services[158] - The company acquired Zhejiang Zhongguang New Energy Technology Co., Ltd., forming a new Energy and Services business segment, which operates two CSP tower molten salt energy storage power stations with capacities of 10 MW and 50 MW in Qinghai Province[158] - Jiangsu Hengxin Technology Co., Ltd., a wholly-owned subsidiary, has an annual production capacity of approximately 168,000 kilometers of mobile communication RF coaxial cables, 7,860,000 accessories, and 120,000 antennas[159] - The company is one of the leading manufacturers of integrated antenna and feeder products in China's mobile communication sector[160] - The company acquired a 51% stake in Zhejiang Zhongguang New Energy Technology Co., Ltd. for a total consideration of RMB 729 million, resulting in a goodwill of RMB 46 million[186] - The acquisition of Zhejiang Zhongguang included identifiable net assets with a fair value of RMB 188 million, primarily consisting of intangible assets[186] Goodwill and Intangible Assets - The company's goodwill generated from business acquisitions is measured at cost less accumulated impairment losses and is subject to annual impairment testing[120] - Goodwill and other intangible assets amounted to RMB 155 million and RMB 46 million, respectively, generated from business combinations with Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd. in July 2022, and with Zhejiang Zhongguang in July 2023[166] - No goodwill impairment loss was recognized for the year ended December 31, 2023[166] - The company's intangible assets, including patents and intellectual property resources, are measured at cost less accumulated amortization and any accumulated impairment losses, with specific useful lives ranging from 1.5 to 25.4 years[127][128] Trade Receivables and Credit Losses - The company's trade receivables from customers outside provincial grid companies amounted to RMB 554 million as of December 31, 2023, with a provision for expected credit losses of RMB 40 million[56] - The company's management uses significant judgment to estimate expected credit loss rates for trade receivables, considering factors such as aging and customer repayment history[56] - The company's audit procedures for assessing expected credit loss provisions include evaluating management's internal controls, testing historical credit loss data, and recalculating expected credit loss provisions[56] Investments and Financial Instruments - The company's investments in subsidiaries are accounted for at cost less impairment losses, unless classified as held for sale[138] - The company's investments in associates are accounted for using the equity method, with losses recognized up to the extent of the company's investment[140] - The company's financial instruments, including derivatives, are initially measured at fair value, with subsequent changes in fair value recognized in profit or loss[146] - The company's consolidated financial statements include the interests of the group and its associates, with specific accounting policies for subsidiaries and non-controlling interests[110][116] - The company's transactions with equity-accounted investees result in unrealized gains and losses being offset against the investment, limited to the company's interest in the investee[118] Management and Accounting Policies - The company's management reviews estimates and assumptions regularly, with revisions affecting the current and future periods recognized accordingly[112] - The company's functional and presentation currency policies are consistently applied across all periods presented in the financial statements, except for changes in accounting policies[113] - The company's property, plant, and equipment are subject to depreciation, with useful lives and residual values reviewed and adjusted at each reporting date[126] Share Transactions and Equity-Linked Agreements - The company did not purchase, sell, or redeem any of its shares during the fiscal year ended December 31, 2023[183] - The company did not enter into any equity-linked agreements during the fiscal year 2023[182] Non-Controlling Interests and Subsidiaries - The company acquired a subsidiary, resulting in an increase of RMB 657,370 thousand in non-controlling interests[74]
亨鑫科技(01085) - 2023 - 年度财报