Daybright(300670)2024-04-14 07:40Depreciation and Asset Management - The company's depreciation methods for various assets include straight-line depreciation with a residual value rate of 5% and annual depreciation rates ranging from 4.75% to 31.67% depending on the asset type[1] - The company's fixed assets are recognized when construction or installation is substantially complete, and the assets are ready for use or capable of producing qualified products[131] New Energy Business Expansion - The company's new energy business, including photovoltaic and offshore wind power installation, is conducted through subsidiaries such as Daye New Energy, Daye Energy Storage Technology, Jinhua 01, and Jinhua 02[2] - The company plans to expand its overseas energy storage business by establishing overseas branches and enhancing its product diversity in commercial and large-scale energy storage applications[3] - The company has established multiple new energy subsidiaries across various regions, including Jiangsu, Tianjin, Shanxi, and Hubei, indicating significant market expansion efforts[38] - The company's subsidiaries are engaged in photovoltaic power generation, photovoltaic construction, marine engineering construction, and cable protection tube production and sales[147] Financial Management and Cost Control - In 2024, the company will implement refined cash flow management, cost reduction measures, and external financing strategies to optimize operations and support industrial and technological upgrades[4] - The company's total entrusted financial management amount using its own funds was 181.7 million yuan, with no overdue or impaired amounts[80] - The company's capital structure includes a reduction in capital stock by RMB 1,886,802.27 and an increase in retained earnings by RMB 170,151,948.3[140] Corporate Governance and Compliance - The company held 4 shareholder meetings during the reporting period, ensuring compliance with legal and regulatory requirements and protecting shareholder rights[8] - The company's Supervisory Board consists of 3 members, including one employee representative, ensuring compliance with legal requirements and oversight of financial and operational matters[9] - The company maintains strict information disclosure practices and engages with investors through multiple channels to enhance transparency[10] - The company ensures compliance with legal and regulatory requirements for corporate governance, with no significant differences from the standards set by laws and the China Securities Regulatory Commission[32] - The company's internal control system was effective as of December 31, 2023, with a standard unqualified opinion issued by the auditor[68] Executive Compensation and Shareholding - Chairman and General Manager Chen Jie received a pre-tax remuneration of 557,400 yuan[18] - Former Director and General Manager Zeng Zhi received a pre-tax remuneration of 449,000 yuan[18] - Director, Deputy General Manager, and Board Secretary Ren Changgen received a pre-tax remuneration of 446,900 yuan[18] - Director Tian Chengyong received a pre-tax remuneration of 323,300 yuan[18] - Independent Director Ge Jun received a pre-tax remuneration of 8,500 yuan[18] - Independent Director Lin Mingyao received a pre-tax remuneration of 72,000 yuan[18] - Supervisor Zhang Wensheng received a pre-tax remuneration of 241,300 yuan[18] - Supervisor Hu Qing received a pre-tax remuneration of 156,300 yuan[18] - Employee Representative Supervisor Zhu Deqiang received a pre-tax remuneration of 119,200 yuan[18] - Deputy General Manager Li Jin received a pre-tax remuneration of 712,000 yuan[18] - Chen Jie holds 115,300 shares as of the end of the reporting period, with no changes in shareholding during the period[34] - Ren Changgen holds 850,000 shares as of the end of the reporting period, with no changes in shareholding during the period[34] - Zeng Zhi reduced his shareholding by 189,844 shares, leaving him with 569,531 shares at the end of the reporting period[34] - Chen Jie holds 86,487,750 restricted shares, with no increase or release during the period, and the restriction is due to the rules for directors, supervisors, and senior management, allowing no more than 25% of the total shares to be released annually[83] - Zeng Zhi holds 569,531 restricted shares, with no increase or release during the period, and the restriction is due to the rules for directors, supervisors, and senior management, allowing no more than 25% of the total shares to be released annually[83] - Chen Jie holds 28,829,250 unrestricted shares, making him the largest shareholder with unrestricted shares[84] - Nanjing Mingzhao Investment Management Co., Ltd., controlled by Chen Jie, holds 23,079,995 unrestricted shares[84] - Zhang Haifeng holds 7,700,000 unrestricted shares, ranking third among the top 10 shareholders with unrestricted shares[84] - Lin Kongzhou holds 4,898,100 unrestricted shares, ranking fourth among the top 10 shareholders with unrestricted shares[84] - Wang Guotai holds 4,893,500 unrestricted shares, ranking fifth among the top 10 shareholders with unrestricted shares[84] - The largest shareholder, Chen Jie, holds 36.39% of the shares, totaling 115,317,000 shares, with 19,500,000 shares pledged[99] - Nanjing Mingzhao Investment Management Co., Ltd. holds 7.28% of the shares, totaling 23,079,995 shares, with 23,000,000 shares pledged[99] Employee Management and Benefits - The company's total number of employees receiving salaries is 439, with 156 production personnel, 59 sales personnel, 132 technical personnel, 15 financial personnel, and 69 administrative personnel[23] - The company has 17 employees with postgraduate degrees, 154 with bachelor's degrees, 119 with associate degrees, and 141 with education below associate degree level[23] - The company actively engages in various training activities, including professional, management, and specialized training, to enhance employee skills and operational efficiency[24] - The company has established a comprehensive salary adjustment mechanism, considering factors such as business performance, local wage levels, employee performance, and inflation[45] - The company provides various benefits including free meals, shuttle services, and housing subsidies for core talents[45] - The company's short-term employee benefits include wages, bonuses, allowances, and subsidies, which are recognized as liabilities during the accounting period when employees provide services[113] - The company's post-employment benefits, such as basic pension insurance and unemployment insurance, are recognized as expenses when incurred[114] - The company's termination benefits are recognized when the company can no longer unilaterally withdraw the offer or when costs related to restructuring are recognized[115] - The company's other long-term employee benefits are treated as defined contribution plans or defined benefit plans, depending on the nature of the benefits[116] Financial Performance and Reporting - Total assets increased to 1,358,155,260.80 RMB in 2023 from 1,126,250,415.52 RMB in 2022, reflecting a growth of approximately 20.6%[90] - Operating revenue for 2023 was 442,813,319.29 RMB, a significant increase from 267,302,846.89 RMB in 2022, representing a growth of approximately 65.7%[91] - Operating costs rose to 571,042,895.28 RMB in 2023 compared to 406,347,025.43 RMB in 2022, an increase of approximately 40.5%[91] - R&D expenses increased to 31,229,275.80 RMB in 2023 from 23,500,315.03 RMB in 2022, showing a growth of approximately 32.9%[91] - Short-term borrowings surged to 215,214,361.11 RMB in 2023 from 110,033,979.61 RMB in 2022, an increase of approximately 95.6%[90] - Accounts payable increased to 121,761,744.74 RMB in 2023 from 81,230,046.58 RMB in 2022, reflecting a growth of approximately 49.9%[90] - Long-term borrowings stood at 80,144,568.17 RMB in 2023, compared to no long-term borrowings in 2022[90] - Deferred tax liabilities decreased to 6,612,432.50 RMB in 2023 from 8,777,850.09 RMB in 2022, a reduction of approximately 24.7%[90] - Other income increased to 2,469,268.63 RMB in 2023 from 1,837,295.18 RMB in 2022, showing a growth of approximately 34.4%[91] - Investment income rose to 5,594,598.58 RMB in 2023 from 453,617.03 RMB in 2022, a significant increase of approximately 1,133.6%[91] - The company's total equity at the end of the reporting period was RMB 891,587,204.25, with undistributed profits of RMB 214,681,538.37[106] - The company's capital reserve remained unchanged at RMB 331,522,347.93 during the reporting period[106] - The company's surplus reserve stood at RMB 28,462,838.95, showing no change from the previous period[106] - The company's total liabilities and equity amounted to RMB 1,126,250,415.52 at the end of the reporting period[106] - The company's revenue is derived from smart power distribution network products, distributed photovoltaic power generation, construction of distributed photovoltaic power stations, and offshore wind power services[103] Legal and Regulatory Matters - The company is involved in a contract dispute with Jiangsu Zinc Jing Aluminum Fu Enterprise Management Co., Ltd., with an involved amount of RMB 335.929 million[55] - A ship sales contract dispute involves RMB 1,041.27 million, with the trial concluded and awaiting judgment[55] - The company has a contract dispute with Jiangsu Zinc Jing Aluminum Fu Enterprise Management Co., Ltd. and Da Ye Smart, involving RMB 1,052.521 million, with the trial concluded and awaiting judgment[55] - The company has other minor lawsuits not meeting the disclosure threshold, with a total amount of RMB 938,110 and RMB 1,647,320 respectively[55] - The company completed a major asset acquisition and related transaction, with the assets delivered and no substantial legal obstacles remaining[58] - The company faced regulatory actions due to past violations including improper financial assistance and inaccurate information disclosure, but has since completed rectifications[73] Shareholder and Investor Relations - The company maintains communication with investors through various channels, including the Shenzhen Stock Exchange's interactive platform, email, phone, and earnings briefings, to ensure timely and accurate information disclosure[30] - The company actively protects the rights of shareholders and creditors by holding legal shareholder meetings and expanding participation through online voting[51] - The company's controlling shareholders and related parties have committed to ensuring that the target company's accounts receivable collection ratio reaches over 70% by the end of 2021, with the remaining amount to be collected by the end of 2022[52] - The company's controlling shareholders and related parties have pledged to avoid any business activities that compete with the company's main business or products, and to transfer any competitive business opportunities to the company[53] - The company's controlling shareholders and related parties have committed to minimizing and regulating related-party transactions with the company and its subsidiaries, ensuring fair and reasonable terms[53] - The company has confirmed that it possesses all necessary qualifications, permits, and approvals required for its production and operations[53] - The company's controlling shareholder, Lian Jie, remained unchanged during the reporting period[66] - The company did not engage in any significant related transactions during the reporting period[56][57] - The company did not have any significant leasing or hosting arrangements during the reporting period[59][60] - The company did not have any other significant contracts during the reporting period[63] Research and Development - Research and development (R&D) expenditures are capitalized if they meet specific criteria, including technical feasibility, intent to complete, and ability to generate economic benefits[138][139] Financial Instruments and Risk Management - The company's financial statements were audited with a focus on identifying and assessing risks of material misstatement due to fraud or error, and evaluating the overall presentation of the financial statements[88][89] - The company determines the fair value of financial instruments using observable market prices or valuation techniques with observable inputs when available[171] - The company uses a 12-month operating cycle as the standard for classifying the liquidity of assets and liabilities[172] - Financial instruments are classified into three categories based on business models and contractual cash flow characteristics[163] - Financial assets are initially measured at fair value, with transaction costs either expensed or capitalized depending on the category[164] - Debt instruments classified as amortized cost are subsequently measured using the effective interest method[166] - The company recognizes financial assets and liabilities when it becomes a party to the financial instrument contract[161] - The company classifies financial assets at fair value through other comprehensive income (FVTOCI) if the contractual cash flows consist solely of payments of principal and interest, and the business model is to both collect contractual cash flows and sell the assets[167] - Non-trading equity investments designated as FVTOCI have their dividend income recognized in profit or loss, while fair value changes are recorded in other comprehensive income[168] - Financial liabilities are initially classified as either at fair value through profit or loss (FVTPL) or other financial liabilities[169] - Financial liabilities at FVTPL are measured at fair value, with changes in fair value recognized in profit or loss, except for changes due to the company's own credit risk, which are recorded in other comprehensive income[170] - The company measures expected credit losses for financial assets based on a three-stage model, considering changes in credit risk since initial recognition[181] - Accounts receivable with low credit risk are measured for expected credit losses over the next 12 months, assuming no significant increase in credit risk since initial recognition[183] - The company categorizes financial assets into different groups based on shared risk characteristics for credit risk assessment, including aging groups, bank acceptance bills, and commercial acceptance bills[183] - For aging groups of receivables, the company applies expected credit loss rates based on historical experience and future economic forecasts: 3% for within 1 year, 10% for 1-2 years, 30% for 2-3 years, 50% for 3-4 years, 70% for 4-5 years, and 100% for over 5 years[184] - Bank acceptance bills are considered low-risk and no bad debt provision is made for them[184] - Commercial acceptance bills are subject to bad debt provisions based on continuous aging principles[185] - The company classifies certain receivables as financing receivables, measured at fair value with changes recognized in other comprehensive income, except for interest income, impairment losses, and exchange differences which are recognized in current profit or loss[186] - Financial assets are derecognized when substantially all risks and rewards are transferred, while retained control leads to continued recognition of the asset and corresponding liabilities[197] Inventory and Long-term Investments - Inventory includes raw materials, work-in-progress, finished goods, and consumables, with cost determined using the weighted average method[189][190] - Inventory impairment is recognized when the cost exceeds the net realizable value, with reversals allowed if the impairment factors no longer exist[191] - Long-term equity investments from business combinations are measured at the share of the acquiree's net assets in the consolidated financial statements of the ultimate controlling party[192] Business Combinations and Consolidation - In business combinations under common control, the company recognizes assets and liabilities at their carrying amounts in the ultimate controlling party's financial statements[173] - For non-common control business combinations, the company allocates the purchase price to the identifiable assets and liabilities at their fair values, with any excess recognized as goodwill[174] - The company determines the scope of consolidated financial statements based on control, including subsidiaries and structured entities[150] - Joint arrangements are classified as either joint operations or joint ventures, with different accounting treatments[153] Foreign Currency and Taxation - The company uses RMB as its functional currency[148] - Foreign currency transactions are translated into RMB using the spot exchange rate at the transaction date[156] - The company operates as an independent taxpayer, filing and fulfilling tax obligations separately from shareholders[33] Share-based Payments and Equity - The company's share-based payments are classified as equity-settled or cash-settled, with equity-settled payments measured at the fair value of the equity instruments granted[119] - The company's 2020 stock option incentive plan saw 103 million shares exercised in the first exercise period, increasing the total share capital from 315.89 million shares to 316.92 million shares[27] - The company adjusted the exercise price of the 2020 stock option incentive plan from 7.49 yuan/share to 7.43 yuan/share[47] - 1 million reserved stock options were granted to 1 incentive object at an exercise price of 7.26 yuan/share[47] - 45,000 stock options granted to former employees were canceled[48] - 2,069,000 stock options were canceled due to unmet performance targets and employee resignations, reducing the number of incentive objects from 29 to 25[49] Other Financial and Operational Matters - The company's long-term deferred expenses are amortized over their beneficial periods, and any remaining unamortized value is transferred to current profit or loss if the expenses no longer benefit future periods[111] - The company's contract liabilities represent obligations to transfer goods or services to customers in exchange for consideration received or receivable, with contract assets and liabilities under the same contract presented net[112] - The company's estimated liabilities are recognized when there is a present obligation, a probable outflow of economic benefits, and the amount can be reliably measured[117] - The company's intangible assets include land use rights, patents, software, and customer relationships, with land use rights based on legal usage periods and patents amortized over 5-10 years[135][137] - The company's total owner's equity at the end of the period is RMB 891,587,204.25, with a capital stock of RMB 316,920,479.00 and retained earnings of RMB 214,681,538.37[146] - Non-controlling interests' equity and profits are separately presented in the consolidated balance sheet and income statement[151] - Cash and cash equivalents include cash on hand and deposits readily available for payment[155] - The company's total assets at the beginning of the year were 893,936,813.84, with a decrease of 2,349,609.59 during the period, primarily due to a reduction in comprehensive income and owner contributions[121]