CHANGHONG HUAYI(000404)2024-03-28 16:00Dividend Distribution - The company plans to distribute a cash dividend of 2.5 yuan per 10 shares to all shareholders, based on a total of 695,995,979 shares[6]. - The company reported a cash dividend of 2.5 yuan per 10 shares, amounting to a total cash dividend of 173,998,994.75 yuan, which represents 100% of the profit distribution[197]. - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling 173,998,994.75 CNY, which represents 84.04% of the distributable profit for 2023 and 48.04% of the net profit attributable to shareholders[198]. - The cash dividend distribution plan is subject to approval at the shareholders' meeting[198]. Shareholder Information - The controlling shareholder, Sichuan Changhong, holds 30.60% of the company's total shares, amounting to 212,994,972 shares[22]. - The company reported a total share capital of 140 million shares, with 75% held by the controlling shareholder, Jingdezhen Huayi Electric[22]. - The company’s profit available for distribution to shareholders was 443,519,523.58 yuan[197]. Financial Performance - The company's operating revenue for 2023 was ¥12,889,012,389.22, a decrease of 1.58% compared to ¥13,095,484,579.32 in 2022[24]. - Net profit attributable to shareholders increased by 37.83% to ¥362,158,575.34 in 2023 from ¥262,750,915.73 in 2022[24]. - The net profit after deducting non-recurring gains and losses was ¥309,175,143.43, up 38.89% from ¥222,610,450.12 in the previous year[24]. - The basic earnings per share rose to ¥0.5203, reflecting a 37.83% increase from ¥0.3775 in 2022[24]. - Total assets at the end of 2023 reached ¥13,902,538,933.55, marking a 10.57% increase from ¥12,573,398,459.37 in 2022[24]. - The weighted average return on equity improved to 9.77%, up 2.29 percentage points from 7.48% in 2022[24]. Market Performance - The company reported a significant growth in the domestic refrigerator compressor market, with an 18.4% increase in domestic sales, while exports decreased by 1.4%[34]. - In the new energy vehicle air conditioning compressor sector, production and sales reached 9.587 million and 9.495 million units respectively, with year-on-year growth of 35.8% and 37.9%[36]. - The company achieved a record sales volume of 72.73 million refrigerator compressors in 2023, maintaining its position as the global leader for eleven consecutive years, with a compound annual growth rate of 9.3% over the past three years, significantly higher than the industry average of 1.2%[46]. - The company’s commercial compressor sales reached 8.34 million units in 2023, a year-on-year increase of 14%, while inverter compressor sales grew by 10% to 17.91 million units[46]. - In the new energy vehicle air conditioning sector, the company sold 380,000 compressors in 2023, marking a 62% increase, surpassing the industry growth rate of 34%[47]. Operational Efficiency - The company has successfully implemented digital factory initiatives, including the integration of 5G networks and various management systems, to improve operational efficiency[51]. - Lean production practices have been fully adopted across all bases, resulting in significant improvements in production efficiency through 197 projects focused on automation and quality enhancement[52]. - The company’s operating costs for the equipment manufacturing sector decreased by 4.36% to approximately ¥11.12 billion in 2023[63]. Research and Development - The company has established a joint R&D center with Zhejiang University, focusing on advanced technologies such as variable frequency control algorithms and high-efficiency motor performance optimization[41]. - Research and development expenses for 2023 were ¥476,958,124.73, a 2.24% increase compared to ¥466,503,469.63 in 2022[71]. - The number of R&D personnel decreased by 48.99% from 743 in 2022 to 379 in 2023[72]. Investment Activities - The company reported a significant increase in investment, with total investments amounting to ¥531,087,814.34, a 145.53% increase compared to ¥216,298,350.80 in the previous year[90]. - The company has ongoing non-equity investments totaling CNY 184,328,134.01, with CNY 125,164,199.50 invested during the reporting period[98]. - The company is pursuing market expansion through strategic investments in new technologies and products[93]. Corporate Governance - The company held 8 supervisory board meetings during the reporting period, reviewing 36 proposals, ensuring compliance and efficiency in operations[137]. - The company implemented a performance evaluation system and continued to promote the "14th Five-Year Performance Incentive Plan," enhancing management and employee motivation for high-quality development[138]. - The company disclosed 130 announcements during the reporting period, adhering to regulations for timely and accurate information disclosure[140]. - The company revised its governance documents to strengthen internal management and compliance, ensuring protection of shareholder rights[141]. - The company maintained fair and reasonable related party transactions, with independent directors reviewing and approving transactions to protect minority shareholders' interests[142]. Employee Information - The total number of employees at the end of the reporting period was 7,797, including 1,705 at the parent company and 6,092 at major subsidiaries[189]. - The company has a total of 83 employees with postgraduate degrees and 737 with bachelor's degrees, indicating a diverse educational background among staff[190]. - The company has implemented a sustainable salary management policy that combines basic and performance-based pay to enhance employee motivation[191]. - The company conducted various training programs covering management, technical skills, and safety training to improve employee competencies[192]. Future Outlook - For 2024, the company aims to ensure refrigerator compressor production and sales of 7,500,000 units, with a target of 7,700,000 units[120]. - The company plans to ensure sales revenue of 11 billion yuan for 2024, striving for 12 billion yuan[120]. - The company aims to enhance its manufacturing capabilities through digital factory upgrades, utilizing IoT, 5G, and AI technologies[124]. - The company is committed to green and low-carbon projects, including rooftop photovoltaic and energy storage projects, as well as carbon reduction management systems across its bases[127]. Risk Management - The company faces risks from macroeconomic fluctuations, which can impact disposable income and consumption levels, and plans to adjust strategies accordingly[128]. - The volatility in raw material prices, particularly steel and aluminum, poses a risk to cost control, prompting the company to implement lean production and management practices[129]. - The company is exposed to exchange rate fluctuations, with over 30% of its revenue coming from exports, primarily settled in USD and EUR, and it employs risk-neutral policies for management[131].