[年报]苏常柴Ｂ(200570):2023年年度报告（英文版）
原标题:苏常柴Ｂ:2023年年度报告（英文版） ANNUALREPORT2023 April2024 PartIImportantNotes,TableofContentsandDefinitions TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoas the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.XieGuozhong,theCompany’slegalrepresentativeandGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary. Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks. TheCompanyhasdescribedindetailtherisksitmightfacein“XIProspects”in“PartIIIManagementDiscussionandAnalysis”herein. TheBoardhasapprovedafinaldividendplanasfollows:basedonthe705,692,507shares,acashdividendofRMB0.47(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves. TableofContents PartIImportantNotes,TableofContentsandDefinitions...........................................................2 PartIICorporateInformationandKeyFinancialInformation...................................................6 PartIIIManagementDiscussionandAnalysis..............................................................................12 PartIVCorporateGovernance.......................................................................................................43 PartVEnvironmentalandSocialResponsibility..........................................................................65 PartVISignificantEvents...............................................................................................................66 PartVIIShareChangesandShareholderInformation................................................................74 PartVIIIPreferredShares..............................................................................................................82 PartIXBonds...................................................................................................................................83 PartXFinancialStatements............................................................................................................84 DocumentsAvailableforReference 1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment. 2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm. 3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod. 4.TheAnnualReportdisclosedinothersecuritiesmarkets. Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany. ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.Definitions
ICorporateInformation
TheindependentauditfirmhiredbytheCompany:
√Applicable□Notapplicable
□Applicable√Notapplicable VIKeyFinancialInformation Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes√No
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative. √Yes□No
1.NetProfitandEquityunderCASandIFRS □Applicable√Notapplicable NodifferencefortheReportingPeriod. 2.NetProfitandEquityunderCASandForeignAccountingStandards □Applicable√Notapplicable NodifferencefortheReportingPeriod. VIIIKeyFinancialInformationbyQuarter Unit:RMB
IXExceptionalGainsandLosses √Applicable□Notapplicable Unit:RMB
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—ExceptionalGain/LossItems: □Applicable√Notapplicable NosuchcasesfortheReportingPeriod. PartIIIManagementDiscussionandAnalysis IIndustryOverviewfortheReportingPeriod Weareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasharvesters,tractors,plantprotectionmachinery,smallengineeringmachinery,andshipbornemachinery.(1)Basicinformationontheindustry TheinternalcombustionengineisanimportantsupportforChina'smanufacturingindustrysecurity,energysecurityandnationaldefensesecurity,andanimportantbasicindustryofnationaleconomyandnationaldefenseconstruction.Theinternalcombustionengineisthemostpower-dense,thermallyefficientandwidelyusedheatenginepowerunit. Inordertoimplementthenationaloveralldevelopmentstrategyofenergyconservation,emissionreduction,transformation,andupgrading,theinternalcombustionengineindustryandagriculturalmachineryindustrywillstrengthenindependentinnovationandresearchanddevelopment,acceleratetheconstructionofacommonbasictechnologyplatform, optimizethe constructionofthe upstreamanddownstreamindustrychain,implementintelligent manufacturing, and actively carry out international exchange and cooperation to accelerate the realizationofindustrialtechnologyupgrading. (2)Developmentpatternandtrendoftheindustry Intermsofpolicies,nationalregulationspertainingtointernalcombustionenginetechnologyhaveconsiderablytightened,withanotableemphasisonenergyconservation,emissionsreduction,andreliability,therebymakingthem focalpoints ofindustrialdevelopment.The rigorous enforcementofnationalemission standardswillexpedite the development and deployment of core technologies and crucial components within internalcombustionengines.Theexplorationanddisseminationofefficientandcleaninternalcombustionengineproductswill drive the widespread adoption of independent-brand electronic fuel injection systems, high-efficiency superchargers,andadvancedafter-treatmentsolutions. Inrecentyears,theissuanceoftheNo.1Documentbythecentralgovernmenthasunderscoreditscommitmenttoelevatingtheimportanceofagricultureandbolsteringagriculturaldevelopment.In2024,theNo.1Documentoutlineda"roadmap"tovigorouslyandeffectivelypropelcomprehensiveruralrevitalization.Tostimulatedemand throughindustrialpolicies, itis imperative toenhancethe researchandapplicationproficiencyofagriculturalmachineryandequipment,promotetheinnovationframeworkforcutting-edgeagriculturalmachinery, vigorously address the deficiencies in agricultural machinery and equipment, bolster the information-based capabilities and service provision of agricultural machinery and equipment, advance the intelligence and automationlevelsofagriculturalmachinery,reinforcethesynergybetweentechnologyandreform,andintensifyeffortsincoretechnologyresearchanddevelopment,allofwhichwilldelineatethetrajectoryforagriculturalmodernization. Asaresultofthenationalpolicyofsubsidiesforthepurchaseofmachinery,industrialdevelopmentpoliciesandtheimpactofenvironmentalregulationsandrequirements,overallmarketdemandforsingle-cylinderdieselenginesforsmallagriculturalmachineryremainedlow,causingintensecompetition.Despitethegradualincreaseintheuseofsingle-cylinderenginesinthenon-agriculturalsector,overallsalesremainedonadownwardpath.machineryindustryhasenteredadrastic“reshuffle”period.Fromthepointofviewofthedevelopmentoftheindustryasawhole,thesalesoflow-qualityproductscontinuedtoweaken,andhigh-qualityproductscontinuedtotakeovermoremarketshare,whichpromotedthesustainabledevelopmentoftheindustryasawhole.Withthefull-scaleimplementationofNationalEmissionStandardIVforNon-roadVehiclesandtheevolvingmarketdynamics,thepaceofdevelopmentforhigh-endagriculturalmachineryproductsinChinahasaccelerated.High-endandintelligenttrendsofagriculturalmachinerycatalyzedafreshwaveofstructuraltransformationwithintheagriculturalmachineryindustry.Thesectorhasenteredaphaseofprofoundadjustmentspropelledbyoptimizationandupgrading,withagriculturalmachineryenterprisesconcurrentlyembarkingonatrajectoryofhigh-qualitydevelopment,hasteningtheintegrationandadvancementofadvancedtechnologiesencompassingenergyconservationandemissionsreduction,intelligentmanufacturing,andtheenhancementofproductqualityand efficiency.As new opportunities for development arise in the national strategic deployment and the acceleratedtransformationandupgradingprocess,theagriculturalmachinerymarkethasabroadspaceforgrowth. IIPrincipalActivityoftheCompanyintheReportingPeriod 1.PrincipalOperationsoftheCompany WemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasoline engines under the brand "Robin". Our products are mainly used in agricultural machinery, small engineering machinery,generator sets and shipborne machinery and other fields closely related to people's livelihood. IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.2.MainProductsoftheCompany Ourmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
(1)R&Dmodel Wehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability. (2)Purchasingmodel Weadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile, the purchasing department makes a plan to guide parts procurement according to the salesdepartment'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.(3)Productionmodel Weadoptthe"make-to-order" production managementmodel.The sales departmentmakes sales plansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedback of existing customers' purchasing intentions. The Company's production department makes the productionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality. (4)Salemodel Weadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory, andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.4.TheCompany'spositioninthemarket WemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsof China InternalCombustion EngineIndustryAssociation (CICEIA), asthe largestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.5.KeyPerformanceDrivers (1)Nationalpolicydriver Inrecentyears,theNo.1Documentissuedbythecentralgovernmenthasdemonstratedthegovernment'sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment,soastopromotethe developmentofagricultureandruraleconomyandsociety,andstrengthenthesupportofagriculturaltechnologyandequipment.China'sagriculturalmachineryandequipmentindustrylayouthasalwaysbeenbasedonthemainlineofinnovation,focusedoncoretechnology,strengthenedtheconstructionofinnovationcapacity,andstroveto makeupfortheshortcomingsandweaknesses.ThefullimplementationofNationalEmissionStandardIVandthehigh-endandintelligenttrendsofagriculturalmachineryhavelettheagriculturalmachineryindustrytowardsanewstageofdevelopment.TheActionPlanforPromotingLarge-scaleEquipmentRenewalsandConsumerGoodsTrade-insin2024clarifiesthatoldagriculturalandindustrialmachinerywillberenewed,subsidypolicieswillbecontinuouslyimplementedforagriculturalmachineryscrappingandrenewal,thescrappingandrenewalofoldagriculturalmachinerywillbepromoted,andthestructuraladjustmentofagriculturalmachinerywillbeaccelerated.Theaccelerationofthereplacementprocessofoldequipmentofengineeringmachineryhascreatedafavourablepolicyenvironmentfortheapplicationofinternalcombustionengines.(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborative production,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargaining power.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines. (3)StableandefficientR&Dteam Wehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.(4)Well-knownbrandwithmanywell-knowncustomers TheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachineryandcommercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnership time exceeding15 years. Many main engine plantcustomers ofthe Companyare well-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.IIICoreCompetitivenessAnalysis 1.AdvantagesinBrand Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.Itisoneoftheearliestprofessionalmanufacturersofinternalcombustionengines inChina.Thebrand"Changchai" is theearliestdomestic trademark of production goods known as China's well-known trademarks. The diesel engine of"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949quality systems, ISO14001 environmental management system, IATF16949 automotive product qualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyranked among“theTopOne HundredChineseEnterprises inEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterprise ofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAward ofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2023,theCompanyanditsproductsgarneredprestigiousaccolades.TheCompanywasrecognizedasoneoftheTop500MachineryIndustryEnterprisesinChina,aNationalDemonstrationEnterpriseofProductandServiceQualityIntegrity,aNationalLeadingEnterpriseintheQualityoftheInternalCombustionEngineIndustry,aNationalLeadingBrandintheQualityoftheInternalCombustionEngineIndustry,andformaintainingStableQualifiedProductsinNationalQualityInspections.Additionally,theCompanywashonouredasoneoftheTop50+AgriculturalMachineryEnterprisesinChina,aLargeKeyOutstandingEnterpriseintheMechanicalIndustry,andreceivedthedistinctionofbeinganInternationallyRenownedBrandCultivatedandDevelopedbyJiangsuProvincefrom2023to2025.Furthermore,theCompanywasrecognizedasanIndustrialFourStarEnterpriseinChangzhou.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights. 2.AdvantagesinTechnology TheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,theCompanywasratedasExcellentintheperformanceappraisalbythe provincial engineering technology research centre in 2023, and it was awarded the first prize of the achievementsintheNationalExcellentQualityManagementGroupActivityintheMachineryIndustryin2023.At the same time, multiple products were awarded the provincial certification of new products and new technology,andthemunicipalcertificationofhigh-techproducts.DuringtheReportingPeriod,theCompanyobtained 19 patent authorizations.As at 2023, the Company had a total of 155 valid patents authorized domesticallyandinternationally,including13inventionpatents. 3.AdvantagesinMarketing Changchaihasbuiltupasalesservicenetworkcoveringthewholecountry,withfivemarketingentities,24salesservicecentersand717designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.IVCoreBusinessAnalysis 1.Overview In2023,China'smacroeconomiclandscapedemonstratedasteadyrecoveryandexhibitedadiscernibleupwardtrajectory,althoughoverallvolatilitysurpassedmarketexpectations.Theinternalcombustionenginemarketbenefitedfromvariouspolicies,facilitatingitsrecovery,whilebothupstreamanddownstreamsectorsoftheindustryexperiencedimprovement.WiththecomprehensiveimplementationoftheNationalEmissionStandardIVforNon-roadVehiclesandtheadvancementofmarketdemand,theentireagriculturalmachinerymarketenteredaperiodofin-depthadjustmentsledbyoptimizationandupgrading.Competitionwasintensifying,terminal-sidesaleswereweak,andhigh-qualityoperationanddecelerationoperationremainedthefocusofdevelopment.TheCompanyrallieditseffortsfromtoptobottomtosurmountchallenges,concentratingonaligningproductdevelopment,marketexpansion,andproductionqualitywithannualpoliciesandobjectives.Byseizingopportunities,theCompanyattainedcommendableoutcomesinmarketpenetration,productinnovationandenhancement,aswellascorporatebrandpromotion,thusfosteringthestableandrobustdevelopmentoftheenterprise.DuringtheReportingPeriod,theCompanysoldapproximately630,000dieselengines, gasolineenginesandgeneratorsets,generatingtotalsalesrevenueofRMB2.156billion,almostflatwithlastyear.Intermsofproductdevelopmentandsupport,theCompanycompleted thecertificationandapplicationofmultiple models for the National Emission Standard IV for Non-road Vehicles, and orderly promoted the developmentandapplicationofproductsfortheNationalEmissionStandardIVforNon-roadVehiclesinthefieldofengineeringmachinery;basedonmarketvalidationandfeedback,theCompanystrengthenedtheoptimizationofthefullseriesoftheproductsfortheNationalEmissionStandardIVforNon-roadVehicles,providingpowerfulsupportforproductupgrades.TheCompanycontinuouslypromotedthespecialdevelopmentofgeneratorsetsinunmannedaerialvehicleflightdefence,parkingandotherfields,promotedtheresearchanddevelopmentofoutboardengineprojectsandhybridpowerproducts,completedperformancedebuggingandreliabilitytestingofdieselenginesforoutboardenginesofmorepowerranges,andachievedprogressintheresearchanddevelopmentofhybridpowerproductsasscheduled. Intermsofmarketservices,thedomesticmarketadjustedandoptimizeditsdistributionnetwork,consolidateditsadvantages in application fields, continuously deepened its support for single-cylinder engines to multiple non-agriculturalsegments,andachievedthecomprehensiveinstallationandapplicationofmulti-cylinderengines fortheNationalEmissionStandardIVforNon-roadVehicles;thegeneratorsetsweregraduallymovingtowardshigh-endandspecializeddevelopmentinthesegmentedfieldofthegeneralmachinerymarket,andlightengineswere applied into scenarios of micro and unmanned equipment, further optimizing product structure and distributionchannels.Atthesametime,theCompanystrengthenedthebuildingofserviceresourcesandthecontrolofserviceprocesses,implementedmultipleroundsofservicetrainingandsystematiccasestudies,andadjustedservicepoliciesduringthebusyfarmingperiod,effectivelyimprovingtheserviceguaranteeworkoftheproductsfortheNationalEmissionStandardIVforNon-roadVehicles.Intermsofqualitymanagement,theCompanycomprehensivelyimprovedthequalitybuildingoftheproductsfortheNationalEmissionStandardIVforNon-roadVehicles,strengthenedwholeprocessmanagement,promotedtheworkofstabilizingandstrengtheningsupplychains,expandedandsupplementedthesupplychainsofcorecomponentsuppliers,andstrictlycontrolledthequalityofproductspareparts.DuringtheReportingPeriod,theCompanyorganizedanannualmanagementreview,conductedaninternalauditonthequalitymanagementsystem,andpassedtheexternalauditsonISO9001andIATF16949qualitymanagementsystems.Intermsofinternalmanagement,theCompanycompletedtheelectionoftheBoardofDirectors,theBoardofSupervisors, and the Management, and improved its internal control procedures and policies, continuously improvingtheCompany'smanagementlevel.TheCompanyeffectivelystrengthenedcostcontrolandreducedcostsandexpenses.Additionally,theCompanyfullyimplementedvariouspoliciesandemergencymechanismssuchaspublicsecurityandfiresafety,carriedoutspecialactionsonfiresafety,andorganizedsafetyriskcontrol andhiddendangerinspectionandtreatment.Theseactionseffectivelypreventedandresolvedvarioussafetyrisks, andcreatedasafeandstableenvironmentforenterpriseproductionandoperation.TheCompanycarriedoutaseriesofactivitiestocelebratethe110thanniversaryoftheestablishmentoftheplant,withafocusonproductionandoperation,corporateculture,andbrandimagepromotion,andstrengthenedthedevelopmentofcorporateculture,achievinggoodresults. DuringtheReportingPeriod,thefundsraisedfromtheprivateplacementinvestmentprojectforrelocatinglightengineswereeffectivelydeployed,andtheinnovationcapacitybuildingprojectofthetechnologycentrewassuccessfullyconcluded.Anysurplusfundsraisedwillbepermanentlyallocatedtoworkingcapitalfollowingthecompletionofrelevantprocedures.InDecember2023,theCompanyacquired7.5%equityheldbythreenaturalpersonshareholdersofZhenjiangSiyang.CurrentlytheCompanyholdsatotalof49%equityinZhenjiangSiyang.Thehouseswithintheexpropriationscopeofthebusplantareas(Phases1and2),includingtheCompany'sWuxingBranch,andthehouseswithintheexpropriationscopeoftheSanjingBranch'soldcityrenovationprojectweresubjecttogovernmentexpropriation.TheCompanyhassignedacompensationagreementforhousingexpropriationwithrelevantgovernmentdepartments.AsatJanuary2024,theCompanyhadreceivedatotalofRMB117millionincompensationforhousingexpropriationfromWuxingBranchandRMB30millioninthefirstphaseofcompensationforhousingexpropriationfromSanjingBranch.2.RevenueandCostAnalysis (1)BreakdownofOperatingRevenue Unit:RMB
√Applicable□Notapplicable Unit:RMB
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