[年报]东方精工(002611):2023年年度报告(英文版)
原标题:东方精工:2023年年度报告(英文版) 【Date of Disclosure】28 March 2024 Message to Our Shareholders Upon the pass of a fruitful year, we are now ready to embark on a new journey! In 2023, the world is evolving like never before. At this historical juncture, alongside our domestic and international partners, we have forged ahead with steadfast, pragmatic measures that have led to 13 consecutive years of robust main business growth since our IPO. Throughout 13 years of perseverance and resilience, from our 2011 debut on the stock market to 2023, our operating revenue soared from RMB360 million to RMB4,746 million, multiplying by over twelvefold; gross profit jumped from RMB89 million to RMB659 million, maintaining a compound annual growth rate (CAGR) of 18%; and net profit attributable to our shareholders leaped from RMB76 million to RMB433 million, achieving a CAGR of close to 16%. Today, Dongfang Precision stands as a global powerhouse, with operations and assets spanning Asia, Europe, and North America. With our base in China, we provide products and services for customers in over 100 countries and regions. Bolstered by the synergy of worldwide resources, leading-edge design concepts, and strong R&D capabilities, our high-end intelligent packaging equipment division now commands approximately 15% of the global market of this industry, the largest in China and the second largest worldwide. Looking back, what truly fills us with pride is not merely how Dongfang Precision evolved from a follower into a trailblazer in the industry, but also the fact that we have actively paved the way and garnered invaluable lessons for Chinese private enterprises venturing abroad. Our efforts include carrying out overseas M&As, and adeptly managing the subsequent integration and optimisation of acquired foreign entities. In 2014, we strategically acquired Fosber (now Fosber Group) in Italy, a professional manufacturer of high-end corrugated cardboard production lines, thereby swiftly integrating upstream and downstream sectors to assume leadership in the global industry. Subsequently, we took over EDF, a top-ranking manufacturer of box printing and packaging equipment, and Tiru?a (now Tiru?a Group), Spain's esteemed corrugated roller and pressure roller maker, along with Agnati (now Qcorr), an illustrious Italian provider of corrugated cardboard production lines. These moves culminated in a profound synergy among intelligent corrugated cardboard production lines, intelligent corrugated box printing equipment, and auxiliary intelligent systems for these equipment. reach of our industrial chain, and unlocked access to premium overseas assets, cutting-edge technologies, and sophisticated management expertise. Capitalising on our profound industry insights, foresight into market trends, and clear strategic development goals, coupled with robust strategic control and industrial integration capabilities, we have effectively integrated each of our merged and acquired businesses. This has unleashed continuous industrial chain synergies. As exemplified by Fosber Group and Parsun Power, following strategic empowerment by our management team, Fosber Group has surged into a phase of rapid expansion, registering a CAGR of roughly 15% in operating revenue and 26% in net profit between 2015 and 2023. Similarly, during 2016 to 2023, Parsun Power achieved a CAGR of around 20% in both operating revenue and net profit. Notably, Parsun Power's ChiNext IPO application has been approved by the Shenzhen Stock Exchange. Time will tell all. Throughout the past 13 years since our listing, we've consistently held that fostering enduring value outweighs the chase for fleeting growth spurts. Harnessing the power of capital for organic growth and external expansion, we've ceaselessly enhanced our prowess in industrial integration and empowerment, steadily fortifying and expanding our core business every step of the way. Our relentless pursuit of long-term value, coupled with adherence to independent innovation and active expansion, has shaped today's Dongfang Precision into an industry leader. It equips us with the backbone to navigate the current changes and drive the implementation of our Fourth Five-Year Strategic Plan, ensuring long-term, sustainable, and robust growth. Step by step, we keep moving forward! As an industry frontrunner, Dongfang Precision constantly heeds caution amidst prosperity. To sustain perpetual growth momentum, building on our previous three five-year strategic plans, in 2023, we have adopted a stance that safeguards our "stable" strategic footing while concurrently amassing "progressive" developmental impetus: Over the past year, we exercised rigorous cost control, maintained stable operations, concentrated on bolstering and expanding our core business, resulting in record-high revenue and industry-leading net profit attributable to our shareholders before exceptional gains and losses for four straight years. Over the past year, we boosted efficiency and service quality, cemented strong ties with key clients, and persistently delivered top-notch products and services to mid-to-large manufacturers in the overseas arena. Over the past year, we intensified marketing efforts, broadened our market reach, proactively aligned with national strategies, and fortified our presence in Belt and Road countries including Africa, South Asia, and Southeast Asia. We supplied these regions with high-end intelligent packaging equipment and services, thereby substantially expanding the market scope of our business. Over the past year, we initiated projects and ramped up production capacities, propelling the construction of Fosber Asia’s intelligent factory sprawling across approximately 80 mu, Parsun Power's eco-friendly, digitalised manufacturing plant and R&D centre with an annual output of 76,400 high-end water powersports products, Tiru?a Asia’s domestic corrugated and pressure roller production base, and Fosber Group's new European headquarters. These endeavours reinforce stability through advancement, laying a solid groundwork for consistent performance growth. Over the past year, we focused on innovation, drove upgrades, and dedicated ourselves to digital and intelligent upgrading in the industry. Leveraging next-generation technologies like IoT, cloud computing, big data, 5G, and AI, we constructed a novel, self-reliant, secure, and controllable industrial Internet platform. This platform extends to domestic markets in South and East China, as well as overseas territories in Southeast Asia and Africa. And we've made significant strides in independent R&D and innovation, breaking new ground from scratch. A brighter future lies ahead, and our journey continues! 2023 marks the first year for Dongfang Precision's fourth five-year strategic blueprint. Anchored by the operational guideline of “steady growth, core business concentration, and intelligent upgrading”, we've made concrete strides in the kickoff phase, efficiently advancing pivotal initiatives. From 2023 to 2027, we will intensify our "1+N" strategic dominance, stay rooted in China yet embracing a worldwide outlook. While concentrating on our core business, we'll also dynamically shape new growth trajectories harnessing the power of capital for organic growth and external expansion. Amid the surging tide of a new scientific and technological revolution and industrial shift, the reshuffle of the global innovation landscape and competitive structure accelerates, mandating China's commitment to nurturing new quality productive forces for high-quality growth. We consistently balance the development of existing businesses through intelligent transformation and the incubation of emerging business opportunities. To this end, we first amplify forward-thinking R&D, spur innovation towards "intelligent, digital, and autonomous equipment", and transform from a mere intelligent equipment maker to a provider of comprehensive intelligent factory solutions. Concurrently, we invest in groundbreaking, disruptive and frontier technologies to empower domestic firms in emerging fields like AI, cloud computing and big data, thereby continually energising the engine for high-quality development. Such measures represent not just practical strides to expedite new quality productive force generation but also vital explorations in forging new edges for high-quality growth. Supported by an experienced team with profound know-how in the industry, we are confident that we have the experience and capabilities needed to enhance strategic leadership, stimulate the vitality for reform through “new” productive forces, and erect core competitive barriers through "quality" productive forces. Thus, we strive to build ourselves as a "business card for the world" for China's new quality productive forces. We also believe that China's high-end intelligent equipment sector has just embarked on its "golden era". We will remain steadfast in our pursuit of intelligent transformation in our long-term business operations and technological exploration. Forging ahead towards the untapped ocean of the high-end intelligent equipment market, we aim to chart a remarkable growth trajectory, ultimately delivering greater returns to our investors. Thank you! Chairman of the Board: Tang Zhuolin Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Guangdong Dongfang Precision Science & Technology Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the contents of this Report are true, accurate and complete and free of any misrepresentations, misleading statements or material omissions, and collectively and individually accept legal responsibility for such contents. Tang Zhuolin, the Company’s legal representative, Shao Yongfeng, the Company’s Chief Financial Officer, and Chen Nan, the Head of the Company’s Accounting Department (equivalent to Financial Manager) hereby guarantee that the financial statements carried in this Report are truthful, accurate and complete. All directors of the Company attended in person the board meeting for the approval of this Report. The future development strategies, business plans and other forward-looking statements mentioned in this Report shall be deemed as uncertain plans instead of promises to investors. Therefore, investors are reminded to exercise caution when making investment decisions. For possible risks with respect to the Company, please refer to “(III) Possible Risks and Countermeasures” in “XI Prospects” of “Part III Management Discussion and Analysis” herein. And investors are kindly advised to read through the aforesaid contents. The Company planed not to distribute cash dividends, neither give away bonus shares, nor capitalize from public reserve. This Report has been prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................... 6 Part II Corporate Information and Key Financial Information ................................................. 11 Part III Management Discussion and Analysis ............................................................................. 16 Part IV Corporate Governance ...................................................................................................... 90 Part V Environmental and Social Responsibilities ..................................................................... 122 Part VI Significant Events ............................................................................................................. 124 Part VII Share Changes and Shareholder Information ............................................................. 138 Part VIII Preference Shares .......................................................................................................... 149 Part IX Corporate Bonds .............................................................................................................. 150 Part X Corporate Financial Statement ........................................................................................ 151 Documents Available for Reference 1. The financial statements signed and sealed by the Company’s legal representative, Chief Financial Officer, and the person-in-charge of the financial organ. 2. The original of the Auditor’s Report sealed by the CPA firm as well as signed and sealed by the certified public accounts. 3. All the originals of the Company’s announcements and documents that were disclosed to the public during the Reporting Period on the media designated by the CSRC for information disclosure. 4. The 2023 Annual Report carrying the signature of the legal representative. 5. The documents above are lodged in the Securities Department of the Company, 18A, China Merchants Plaza, 1166 Wanghai Road, Shekou, Shuiwan Community, Zhaoshang Street, Nanshan District, Shenzhen City, Guangdong Province, China. Definitions
Part II Corporate Information and Key Financial Information I Corporate Information
The independent auditor hired by the Company:
□ Applicable √ Not applicable The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period: □ Applicable √ Not applicable VI Key Financial Information Indicate whether there is any retrospectively restated datum in the table below. □ Yes √ No
losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern. □ Yes √ No Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and losses was negative. □ Yes √ No VII Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Net Profit and Equity under CAS and IFRS □ Applicable √ Not applicable No difference for the Reporting Period. 2. Net Profit and Equity under CAS and Foreign Accounting Standards □ Applicable √ Not applicable No difference for the Reporting Period. VIII Key Financial Information by Quarter Unit: RMB
disclosed in the Company’s quarterly or interim reports. □ Yes √ No IX Exceptional Gains and Losses √ Applicable □ Not applicable Unit: RMB
No such cases in the Reporting Period. Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable √ Not applicable No such cases in the Reporting Period.
1. The Industries to which the Company's Intelligent Packaging Equipment Business Segment Belongs 1.1 Demand side—customers The intelligent packaging equipment division of the Company specializes in “smart corrugated packaging equipment” and “digital printers”. This division primarily serves B-end customers such as corrugated cardboard and corrugated box manufacturers. As a machinery supplier, the Company provides various single machine and complete production line products for cardboard and box production, which makes the Company depend on the development of the downstream paper packaging industry to some extent. End demand for corrugated packaging is growing: The corrugated box field is one of the major fields of the paper packaging industry, of which the end demand is relevant to the prosperity of consumption and business activities. Corrugated packaging products are used in a vast number of fields, including food and beverage, household chemicals, electronic products, and e-commerce express delivery, and are inelastically demanded by consumers. Electronic products, food, beverage, and express delivery take up 26%, 20%, 21%, and 13% respectively of the downstream application market of paper packaging. Over the past few years, the scale of China’s express corrugated packaging market has been on the rise. By the forecast of Qianzhan Industry Research Institute, the scale of China’s express corrugated packaging market will continue to rise in the upcoming years and is estimated to reach RMB86.4 billion by 2025 (CAGR for 2019 to 2025: Approximately 15%). Terminal markets, including the express, electronics, and household chemicals terminal markets, show an increasing demand for corrugated box and board packaging, which will drive the expansion of the capacity of corrugated packaging enterprises and thus increase the demand for corrugated packaging machinery, benefiting the machinery manufacturers. Between 2017 and 2023, the domestic express business recorded rapid growth, with a compound annual growth rate (CAGR) of approximately 27%. Data from the State Post Bureau showed that the total volume of domestic express delivery for 2023 was 162.48 billion pieces, up 16.8% year-on-year. Trend of China's Express Business Volume Above Scale, 2016-2023 anticipated within the domestic corrugated packaging sector. In February 2024, the Central Financial and Economic Affairs Commission held its fourth meeting to promote a new round of large-scale equipment renewal and consumer goods trade-in, explicitly mentioning the need to “promote the renewal and technological transformation of various types of production equipment and service equipment”. On March 1, the State Council executive meeting considered and passed the Issuing the Action Plan for Promoting Large-scale Equipment Renewals and Consumer Goods Trade-ins, proposing to “promote the proportion of advanced production capacity to continue to increase”. Over the years, China's corrugated packaging sector has largely consisted of numerous small- and medium-sized box manufacturers dominated by low-end production capacities, leading to a highly decentralised market and relatively low industry consolidation. Responding to the Party Central Committee and State Council's “large-scale equipment renewal” policy directive, the corrugated packaging industry anticipates a heightened pace of equipment modernisation throughout the 14th Five-Year Plan period, with an expected surge in medium- to high-end production capacity proportions. With the continuous development of the downstream end consumption industry in China, the requirements of corporate customers for corrugated boxes gradually increase. In the corrugated packaging industry, market concentration and the phase-out of low-end production capacity is an inevitable trend, due to market competition, capacity upgrading, M&A, etc. It is estimated that the line machinery that is more intelligent and productive will replace the existing corrugated cardboard production lines and corrugated box printing and packaging production line equipment in the upcoming five to ten years. By statistics, there are over 6,000 existing corrugated cardboard production lines in the domestic market, and more corrugated box printing and packaging machinery. Data show that the domestic market share of the 15 listed corrugated packaging companies in China combined has risen from 5.7% in 2017 to 10.1% in 2022, and further to 11.3% in the first half of 2023. This indicates the continued concentration of the domestic corrugated packaging industry and the steadily increasing market share of major manufacturers. Data from SCI99.COM show that, as of the end of November 2023, China's corrugated cardboard production capacity grew against the trend. A corrugated cardboard market analyst at SCI99.COM said that in 2023, the production capacity of China's corrugated cardboard industry was still in the midst of a new expansion cycle, with new capacity constantly being put in place and the industry's supply capacity constantly being increased. Digital and intelligent upgrading of the paper packaging and printing industry bring new development opportunities. The traditional production mode has caused domestic paper packaging and printing enterprises to be overly dependent on skilled technicians at critical positions and slow to identify the outdated management mode. The “strategy of robot assembling line” and “smart factory” are increasingly recognized by the industry. Amid intelligent manufacturing, the paper packaging and printing industry will usher in industrial upgrading and transformation. Additionally, leading packaging enterprises, including Xiamen Hexing Packaging Printing Co., Ltd. (HXPP), MYS Group Co. Ltd. (MYS), Shenzhen YUTO Packaging Technology Co., Ltd., and Shenzhen Jinjia Group Co., Ltd., have pushed ahead with Internet-based development in recent years by entering into intelligent manufacturing, cloud printing, or other markets, expected to launch a revolution in the Internet-based development of the paper packaging and printing industry and injecting new impetus into industry integration. Concurrently, amid intelligent manufacturing and Internet-based packaging, leading enterprises engaged in corrugated packaging machinery are also expected to embrace new development opportunities. Overseas demand is growing steadily: In recent years, corrugated packaging markets in Europe and the US have operated at high levels due to factors like global supply chain restructuring, onshoring of manufacturing in Europe and the US, and increased overseas consumer online spending. Based on the annual and quarterly data of major listed corrugated packaging companies in Europe and the US, capex of these companies continued to hit record highs in H1 2023. According to China Customs statistics, China's exports of printing equipment totaled USD3.176 billion in 2023, up 2% YoY, with the figure being USD3.03 billion in December alone, up 5% YoY. In recent years when environmental pollution becomes more and more serious, growing environmental awareness has led to “plastic bans and restrictions” across the world, providing a major boost to paper as an alternative to plastic. England announced a ban on single-use plastics starting October 2023, covering items like disposable plastic plates, trays, bowls and utensils. France is phasing in bans on single-use plastic packaging for around 30 fruits and vegetables starting January 2022. The U.S. Department of the Interior announced that single-use plastics will be gradually phased out in national parks and other public lands by 2032. The global green packaging market is projected to grow from USD262.27 billion in 2023 to USD381.98 billion in 2028, with a compound annual growth rate of 7.81% during the forecast period (2023-2028). The corrugated cardboard produced by corrugated cardboard production lines is used to make various corrugated boxes, corrugated cartons and other corrugated packaging materials, which are rigid consumer products in European and American countries. According to Statista data, the US e-commerce market is expected to grow at a compound annual growth rate of 12.7% from 2017 to 2027. The philosophy of “sustainability” is gaining ground in the European and US consumer goods packaging markets. With the growing trend of "replacing plastics with paper" in the packaging industry, demand for corrugated packaging materials in the European and US consumer goods markets continues to grow steadily, helping to drive demand for corrugated packaging production line equipment. 1.2 Supply side——the Company’s presence in the industry A． World-leading comprehensive strength Corrugated cardboard production lines: Major manufacturers of corrugated cardboard production lines around the world include Fosber Group, BHS (Germany), Marquip (a wholly-owned subsidiary of the American Barry-Wehmiller), and J.S. Machine. Among them, Fosber Group and its major rival from Germany, BHS, lead the others and are leaders in the global middle- and high-end corrugated cardboard production line field. Fosber Group holds approximately 30% of the global middle- and high-end corrugated cardboard production line market and more than 50% of the North American market. Corrugated & pressure rollers, key components of corrugated cardboard production lines: The subsidiary Tiru?a Group has more than 40 years of experience in the corrugated and pressure roller segment and is renowned in Europe as a world-leading specialist in this segment. Corrugated box printing and packaging production line equipment: Major manufacturers in this field include （未完）  |