TENGEN(605066)2024-04-22 10:56Financial Performance - The company achieved operating revenue of CNY 2,878,933,990.87 in 2023, representing an 18.14% increase compared to 2022[21]. - The net profit attributable to shareholders reached CNY 161,704,514.40, a significant increase of 258.34% year-on-year[21]. - The net profit after deducting non-recurring gains and losses was CNY 133,546,482.30, reflecting a 311.43% increase from the previous year[21]. - The cash flow from operating activities amounted to CNY 480,208,936.09, up 307.55% compared to 2022[21]. - Basic earnings per share were CNY 0.40, an increase of 263.64% from CNY 0.11 in 2022[22]. - The weighted average return on equity rose to 8.75%, an increase of 6.16 percentage points compared to the previous year[22]. - The total assets of the company at the end of 2023 were CNY 3,459,281,819.17, a 13.16% increase from the end of 2022[21]. - The company reported a total of 5,550.04 thousand units produced for terminal electrical appliances, with a slight increase in production of 2.58% year-on-year[69]. - The total sales volume for distribution electrical appliances was 2,144.07 thousand units, reflecting a year-on-year increase of 9.73%[70]. - The company achieved a revenue of 2.879 billion RMB, representing an 18.14% increase compared to the previous year[62]. Dividend and Share Capital - The company plans to distribute a cash dividend of 2.5 CNY for every 10 shares, totaling 101,594,750 CNY (including tax) based on a total share capital of 406,379,000 shares[7]. - The company will increase its share capital by 2.5 shares for every 10 shares held, resulting in a total share capital of 507,973,750 shares after the distribution[7]. - The company has a total share capital of 406,783,000 shares before the planned repurchase and cancellation of 404,000 restricted shares[7]. - The proposed capital reserve conversion plan includes a distribution of 2.5 shares for every 10 shares held, increasing the total share capital to 507,973,750 shares[143]. Research and Development - R&D expenses increased by 8.77% year-on-year, with 163 patent applications filed, including 31 invention patents, and a total of 1,029 patents held by the end of 2023[33]. - The company has established a research institute and R&D center to enhance product competitiveness and has implemented an IPD process to improve customer response and new product success rates[53]. - The company is investing heavily in R&D, with a budget allocation of 150 million for new technologies and product development[119]. - The company plans to enhance its capabilities by collaborating with top universities and research institutions, aiming for rapid development in core technologies and products[100]. Market Expansion and Strategy - The company expanded its market presence in sectors such as renewable energy, electricity, telecommunications, and construction, enhancing its core capabilities[30]. - The company plans to continue developing new first-level distributors in underrepresented markets to boost distribution efforts[30]. - The company is positioned to benefit from the "3060" dual carbon goals, which are expected to drive significant market opportunities in the renewable energy sector, including solar and wind power[95]. - The company aims to leverage new technologies and market expansion strategies to enhance its competitive position in the low-voltage electrical industry[39]. - The company is accelerating its internationalization efforts to enhance its global market presence and competitiveness in the low-voltage electrical industry[97]. Corporate Governance and Compliance - The board of directors has ensured the authenticity, accuracy, and completeness of the annual report[4]. - The company has received a standard unqualified audit report from Zhongxinghua Accounting Firm[6]. - The company has not faced any violations in decision-making procedures for providing guarantees[9]. - The company maintains a clear separation from its controlling shareholder in terms of personnel, assets, and operations, ensuring independence[109]. - The company emphasizes transparency and timely information disclosure to all shareholders, adhering to relevant laws and regulations[109]. Risk Management - The company faces risks from macroeconomic changes and market demand recovery, particularly in the real estate sector[104]. - The company acknowledges intense competition in the low-voltage electrical industry, necessitating continuous improvement in its competitive capabilities[104]. - The company faces significant risks from raw material price fluctuations, which can impact production costs and profit margins[105]. - Customer credit risk has increased with business expansion, necessitating enhanced credit management and risk prevention measures[105]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 3,399, with 2,040 in production, 528 in sales, and 477 in technical roles[137]. - The company has established a comprehensive training program aimed at enhancing employee skills and performance[139]. - The company has a structured compensation policy that aligns employee remuneration with individual performance and company profitability[138]. - The company has implemented a performance evaluation mechanism for senior management, which is directly accountable to the board of directors, ensuring alignment with the company's strategic goals[151]. Environmental and Social Responsibility - The company reduced carbon emissions by 1,863 tons through various measures, including the installation of photovoltaic power generation and intelligent control of air compressors[157]. - The company made a total donation of 66,000 CNY for public welfare projects, including a 20,000 CNY donation to the Leqing Charity Association for local support initiatives[158]. - The company has committed to donating 100,000 CNY annually to Xi'an Jiaotong University for three consecutive years, supporting scholarships and educational initiatives[158]. Shareholder Commitments - The controlling shareholder, Tianzheng Group, committed not to transfer or entrust the management of shares held prior to the IPO for 36 months from the listing date[164]. - The actual controller, Gao Tianle, made a similar commitment regarding the transfer of shares for 36 months from the listing date[165]. - The commitments made by the controlling shareholders are aimed at stabilizing the stock price post-IPO[165]. - The company will ensure compliance with relevant laws and regulations regarding share transfers by shareholders and executives[166].