KPA(688681)2024-05-28 14:14Summary of Conference Call Minutes for 科汇股份 Company Overview - Company Name: 科汇股份 (Kehui Co., Ltd.) - Industry: Electrical Automation and Industrial IoT Key Points and Arguments 1. Market Value Management - The company is committed to improving its main business operations while closely monitoring stock price performance. It plans to actively conduct market value management research and engage with investors to enhance market recognition of its value [1]. 2. Talent Attraction and Retention - The company emphasizes technological innovation as a vital part of its development, maintaining high R&D investment levels. It has established programs for nurturing young talent and key position successors, aiming to strengthen its core competitiveness [1][2]. 3. 2023 Performance Overview - In 2023, the company achieved a revenue of 344.01 million yuan, a 10.95% increase year-over-year. The net profit attributable to shareholders was 12.72 million yuan, an increase of 20.15 million yuan compared to the previous year [1][2]. 4. 2024 Outlook - The company plans to focus on its core business, enhance its technical and market advantages in the power sector, and explore the potential of switched reluctance motors and user-side energy storage technologies [2]. 5. Three-Year Strategic Plan - The company aims to increase R&D investment, optimize market layout, and reform performance evaluation methods. It will also enhance its digital operations and talent development strategies [2]. 6. Market Promotion Innovations - The company has optimized its sales network based on customer characteristics from major clients like State Grid and Southern Power Grid, enhancing customer service and brand service advantages [2]. 7. Core Competitiveness - The company focuses on R&D and industrialization of new technologies in electrical automation and IoT, particularly in smart grid fault monitoring and automation, which has established a strong industry reputation [2][3]. 8. ESG Performance - The company is committed to improving its ESG performance, adhering to a green, low-carbon development philosophy, and has established a comprehensive environmental management system [3]. 9. M&A Plans - The company will consider mergers and acquisitions based on strategic planning and market conditions, ensuring compliance with legal disclosure requirements [3]. 10. Impact of National Equipment Update Policy - The national policy for large-scale equipment updates is expected to create new market demands, positively impacting the company's operations, particularly in automation equipment and switched reluctance motors [4]. 11. Challenges in Switched Reluctance Motor Business - The company acknowledges challenges in the switched reluctance motor sector due to global trade disruptions and competition. It plans to accelerate technology upgrades and expand product applications [4][5]. 12. Share Buyback and Financial Health - The company is executing its share buyback plan in accordance with regulations and aims to improve its financial health after a profitable turnaround in 2023 [5]. 13. Accounts Receivable Management - The company’s accounts receivable primarily arise from its smart grid monitoring and automation business, with provisions for bad debts already accounted for in compliance with accounting standards [6]. Additional Important Information - The company has a structured plan for shareholder returns, ensuring a stable and scientific return mechanism while balancing investor interests with sustainable development [3]. - The company is actively working on enhancing its competitive edge in the switched reluctance motor market despite facing competition from other manufacturers [4].