Kaizhong Precision(002823)2024-04-15 13:44Financial Performance - Revenue for 2023 reached 3.024 billion yuan, a year-on-year increase of 13.60%[9] - Net profit attributable to shareholders of the listed company was 76.7186 million yuan, a year-on-year increase of 209.54%[9] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 81.2539 million yuan, a year-on-year increase of 1,204.81%[9] - Sales expenses decreased by 13.50% to 62,485,583.98 RMB in 2023 compared to 72,239,552.33 RMB in 2022[29] - Management expenses decreased by 7.86% to 117,865,571.50 RMB in 2023 compared to 127,913,605.54 RMB in 2022[29] - Financial expenses increased by 13.43% to 60,628,145.30 RMB in 2023 compared to 53,449,407.16 RMB in 2022[29] - R&D expenses increased by 2.03% to 93,123,429.64 RMB in 2023 compared to 91,268,406.24 RMB in 2022[29] - R&D investment increased by 4.35% to 114,851,015.27 RMB in 2023 compared to 110,058,133.16 RMB in 2022[30] - R&D investment as a percentage of revenue decreased by 0.33% to 3.80% in 2023 compared to 4.13% in 2022[30] - Capitalized R&D investment decreased by 13.56% to 21,727,585.63 RMB in 2023 compared to 25,136,771.53 RMB in 2022[30] - The proportion of capitalized R&D investment to total R&D investment decreased by 3.92% to 18.92% in 2023 compared to 22.84% in 2022[30] - The company's monetary funds increased to 167,307,230.94 yuan, accounting for 4.37% of total assets, up by 0.10% compared to the previous year[178] - Accounts receivable rose to 500,937,704.06 yuan, representing 13.09% of total assets, an increase of 1.00% due to higher revenue[178] - Inventory grew to 555,466,672.68 yuan, making up 14.51% of total assets, with a 0.37% increase[178] - Fixed assets expanded significantly to 1,927,813,248.62 yuan, accounting for 50.36% of total assets, a 6.38% rise due to new factories and production lines[178] - Construction in progress decreased to 131,526,551.22 yuan, representing 3.44% of total assets, a drop of 6.09% as projects were transferred to fixed assets[178] - Short-term loans stood at 729,594,769.66 yuan, making up 19.06% of total assets, a slight decrease of 0.63%[178] - Long-term loans were 421,540,389.84 yuan, accounting for 11.01% of total assets, down by 0.58%[178] - The company's financial liabilities amounted to 7,313,451.17, with a net change of -7,313,451.17, resulting in a balance of 0.00[184] R&D and Innovation - The company is focusing on R&D projects in the new energy vehicle sector, aiming to optimize product structure and expand market share[30] - R&D personnel decreased by 1.23% to 401 in 2023 compared to 406 in 2022[30] - The company has achieved market breakthroughs in the fields of new energy vehicle three-electric systems, fuel cells, and energy storage, securing new customer projects from first-tier automakers and well-known enterprises[9] - The company's new energy vehicle components have seen strong demand, with orders for power battery and motor control components growing significantly[9] - The company plans to accelerate the implementation of the project for new energy vehicle power battery components and connectors due to rapid market growth, with production in China by KZ Precision and packaging and sales in Germany by KZ Walter[43] Global Expansion and Customer Relationships - The company has established a global layout with sales, R&D centers, and production bases in mainland China, Hong Kong, Taiwan, Germany, and Japan[11] - The company has been appointed as a long-term strategic partner by global well-known component customers such as Bosch, ZF, Brose, Nidec, and Denso[8] - The company has obtained dozens of projects and hundreds of product designations from international and domestic well-known customers in the field of new energy vehicle components[8] - The top five customers accounted for 40.70% of the total annual sales, with a total sales amount of 1.23068263472 billion yuan[26] - The company will continue to promote overseas R&D, production, and customer collaboration, enhancing local supporting capabilities to meet global customer needs and improve market competitiveness[55] Corporate Governance and Shareholder Information - The company's top shareholder, Zhang Haoyu, holds 26.84% of the shares, totaling 77,428,676 shares, with 58,071,507 restricted shares and 19,357,169 unrestricted shares[47] - The second-largest shareholder, Wu Ying, holds 22.79% of the shares, totaling 65,734,669 shares, with 53,589,521 restricted shares and 12,145,148 unrestricted shares[47] - The company's top 10 shareholders did not change during the reporting period, and no repurchase transactions were conducted[52] - The company's controlling shareholder, Wu Ying, is a natural person with Hong Kong nationality and holds residency rights in other countries or regions[56] - The company's limited-sale condition shares decreased by 12,365,999, resulting in a total of 116,902,154 shares, representing 40.53% of the total shares[196] - The company's unrestricted shares increased by 13,702,538, resulting in a total of 171,538,693 shares, representing 59.47% of the total shares[196] - The company's total shares increased by 1,336,539, resulting in a total of 288,440,847 shares[196] Environmental, Social, and Governance (ESG) - The company will actively implement ESG concepts, continuously improve corporate governance, environmental protection, and social responsibility, and enhance comprehensive management levels to promote high-quality sustainable development[50] - The company has implemented energy-saving measures such as waste heat recovery from air compressors and the use of energy-efficient lighting to reduce carbon emissions[165] - The company has achieved zero discharge of wastewater and organized high-altitude emissions of dust and exhaust gases after treatment, meeting environmental standards[160] - The company respects and protects the legitimate rights and interests of stakeholders, balancing the interests of society, shareholders, the company, and employees[83] Employee and Workforce Information - Total number of employees at the end of the reporting period is 4,362, with 2,559 from the parent company and 1,803 from major subsidiaries[122] - Production personnel account for 2,752 employees, representing 63.1% of the total workforce[122] - Sales personnel account for 88 employees, representing 2.0% of the total workforce[122] - Technical personnel account for 849 employees, representing 19.5% of the total workforce[122] - Employees with a high school education (including vocational school) account for 1,038, representing 23.8% of the total workforce[122] - Employees with a bachelor's degree or college diploma account for 866, representing 19.9% of the total workforce[122] - Employees with a postgraduate degree or higher account for 53, representing 1.2% of the total workforce[122] - The company provides extensive training programs covering automation, information systems, quality management, and employee development to enhance skills and support strategic goals[79] Fund Management and Capital Allocation - The company used RMB 6,485.93 million of raised funds to replace self-raised funds previously invested in the project[43] - The company temporarily supplemented working capital with RMB 31,000 million of idle raised funds, which was fully returned to the raised funds account by June 20, 2019[43] - The company temporarily supplemented working capital with RMB 23,900 million of idle raised funds, which was fully returned to the raised funds account by April 9, 2020[43] - The company temporarily supplemented working capital with RMB 19,000 million of idle raised funds, which was fully returned to the raised funds account by February 25, 2021[43] - The company used RMB 16,000,000 of idle funds raised from the issuance of convertible bonds to temporarily supplement working capital, with a usage period not exceeding 12 months from February 25, 2021, to February 24, 2022[45] - RMB 14,250,000 of the temporarily supplemented working capital was returned to the special fundraising account by December 7, 2021[45] - The company used RMB 9,000,000 of idle funds raised from the issuance of convertible bonds to temporarily supplement working capital, with a usage period not exceeding 12 months from December 8, 2021, to December 7, 2022[45] - RMB 9,000,000 of the temporarily supplemented working capital was returned to the special fundraising account by November 25, 2022[45] - The company used RMB 7,400,000 of idle funds raised from the issuance of convertible bonds to temporarily supplement working capital, with a usage period not exceeding 12 months from November 28, 2022, to November 27, 2023[45] - RMB 7,400,000 of the temporarily supplemented working capital was returned to the special fundraising account by October 25, 2023[45] - The company used RMB 5,328,000 of idle funds raised from the issuance of convertible bonds to temporarily supplement working capital, with a usage period not exceeding 12 months from October 26, 2023, to October 25, 2024[45] - RMB 1,371,900 of the temporarily supplemented working capital was returned to the special fundraising account by December 31, 2023, with the remaining RMB 3,956,100 to be returned by October 25, 2024[45] - As of December 31, 2023, the unused raised funds amounted to RMB 3,979,920, with RMB 3,956,100 temporarily supplementing working capital and RMB 23,820 stored in the special fundraising account for future use according to the investment plan[45] - The company reported no changes in the use of raised funds during the reporting period[46] Strategic Initiatives and Future Plans - The company's strategic positioning is to become a globally competitive integrated precision component solution provider, focusing on core precision component businesses and seizing opportunities in new energy vehicles and industrial 4.0[49] - The company plans to expand its business around core customers, focusing on key precision components for new energy vehicle power battery systems, drive motor systems, electronic control systems, lightweight vehicles, and intelligent driving[49] - The company adjusted the implementation entity and location for the "Commutator and Slip Ring Production Line Technical Transformation Project," adding Heyuan KZ Precision as an implementation entity and Heyuan City as a new location[43] - The company proposed a plan to issue shares to specific targets through a simplified procedure in 2023, including a feasibility analysis report on the use of raised funds and a three-year (2023-2025) shareholder return plan[110] - The company adjusted its organizational structure and proposed a plan to issue shares to specific targets through a simplified procedure in 2023, including a feasibility analysis report on the use of raised funds and a three-year (2023-2025) shareholder return plan[110] Risk Management and Compliance - The company faces risks from fluctuations in raw material prices, which could impact product gross margins[65] - The company strictly adheres to laws and regulations in information disclosure, ensuring timely, accurate, and fair disclosure of major information[84] - The company reported no speculative derivative investments during the reporting period[197] - The company's derivative investments include currency swaps, foreign exchange forwards, and options, with a total initial investment of 118,853.02 and a net change of -2,272.22[193] - The company's foreign exchange forward contracts had an initial investment of 49,259, with a net change of -2,193.36[193] - The company's option contracts had an initial investment of 57,388.02, with a net change of 389.02[193] Awards and Recognitions - The company has been recognized as a "Global Excellent Supplier" by Bosch for four consecutive terms (8 years), the only company in the industry to receive this honor[168] Shareholder Returns and Dividends - Cash dividend distribution plan: 0.81 RMB per 10 shares, totaling 23,300,000 RMB[123] - Total distributable profit is 544,283,704.94 RMB, with cash dividends accounting for 100% of the profit distribution[123] - The 2023 employee stock ownership plan holds 1,204,819 shares, representing 0.42% of the total share capital[141] - The company implemented a 2021 profit distribution plan, distributing RMB 0.101011 per 10 shares to all shareholders based on a total share capital of 287,095,780 shares, with the ex-dividend date set for June 1, 2022[97] - The conversion price of Kaizhong Convertible Bonds was adjusted from RMB 10.09 per share to RMB 10.08 per share, effective from June 1, 2022[97] Board and Committee Activities - The company's audit committee held 4 meetings in 2023, reviewing various reports including the 2022 annual report, financial statements, and internal audit summaries[81] - The company's compensation and assessment committee approved the 2023 employee stock ownership plan and its management measures in May 2023[81] - The company's board of directors held 6 meetings in 2023, with all directors attending either in person or via teleconference[91] - The company elected new independent directors and employee representative supervisors, with Liu Xiangqing elected as an independent director on January 15, 2024, and Ming Yao elected as an employee representative supervisor on April 3, 2024[111] Guarantees and Liabilities - The total approved guarantee quota for subsidiaries at the end of the reporting period is 160,500, with the actual guarantee balance for subsidiaries being 30,565.48[180] - The total guarantee amount for objects with a debt-to-asset ratio exceeding 70% is 38,223.89[188] Convertible Bonds and Share Repurchases - The company adjusted the conversion price of its convertible bonds multiple times due to equity distributions and share repurchases, with the latest adjustment to 12.96 RMB per share on September 30, 2020[78] - The company adjusted the conversion price of its convertible bonds from 12.86 yuan/share to 10.09 yuan/share, effective from March 8, 2022[82] - The company conducted a share repurchase plan from April 25, 2023, repurchasing 2,075,498 shares, representing 0.23% to 0.47% of the total share capital, with a repurchase amount ranging from 10 million to 20 million RMB[76] - UBS AG held the largest share of the company's convertible bonds at the end of the reporting period, with 185,130 bonds worth 18,513,000 yuan, accounting for 4.61% of the total[92] Corporate Independence and Related Party Transactions - The company maintains strict independence in business, personnel, assets, organization, and finance from its controlling shareholders and actual controllers[86] - The company has a complete R&D, procurement, production, and sales system, with no reliance on related party transactions for its main business income and profits[87] - The company's directors, supervisors, and senior management received their annual compensation on time and in full according to the company's remuneration management system[88] Product and Market Information - The company's main products include commutators and slip rings, high-strength elastic parts, pneumatic components, new energy vehicle components, and communication and consumer products, which are closely related to the macroeconomic environment[59]