Financial Performance - The main business revenue from the commutator was 502 million RMB, a decrease of 3.59% compared to the same period last year[4]. - The company's operating revenue for 2023 was ¥665.81 million, a decrease of 0.46% compared to ¥668.86 million in 2022[21]. - The net profit attributable to shareholders was -¥90.87 million in 2023, a decline of 465.68% from ¥24.85 million in 2022[21]. - The total assets at the end of 2023 were ¥957.59 million, down 14.20% from ¥1,116.05 million at the end of 2022[21]. - The total net assets attributable to shareholders decreased by 14.83% to ¥521.77 million at the end of 2023 from ¥612.63 million at the end of 2022[21]. - The company reported a net loss of 90.87 million yuan for the year, with total assets decreasing by 14.20% to 958 million yuan[40]. - The company’s weighted average return on equity was -16.02% in 2023, a decrease of 20.14% from 4.12% in 2022[21]. - The company reported a significant increase in sales in the new energy vehicle sector, contributing to improved profitability[33]. Market and Product Development - The company is focusing on opportunities in the new energy vehicle motor market, with a rebound in downstream industry demand supported by favorable policies[4]. - The company successfully entered the supplier systems of major clients such as BorgWarner and GAC Group, with orders for commutator products increasing in the new energy vehicle sector[5]. - The company plans to continue the development and production of brushless motor components to adapt to market changes[36]. - The company is focusing on the development of automotive gear motor commutators, with plans for mass production from July to October 2023 after passing industry tests[62]. - The company is committed to breaking foreign technology barriers in the automotive sector, aiming to capture market share in high-end brands[62]. - The company is actively expanding into the electric vehicle market, anticipating significant growth in the motor market due to government policies promoting vehicle upgrades[85]. - The company is focusing on the design and manufacturing of various components for its new product lines, ensuring they meet international performance standards[62]. Research and Development - The company holds a total of 131 patents, including 40 invention patents, indicating strong research and development capabilities[44]. - Research and development expenses increased by 13.30% to 30,216,204.35 yuan in 2023 from 26,669,144.87 yuan in 2022[60]. - The number of R&D personnel increased by 14.88% to 193 in 2023, with a higher proportion of staff aged over 40 years, which rose by 28.57%[65]. - The company plans to increase R&D investment to maintain its competitive edge, focusing on the development of new products like the roll-type and micro-switching devices[84]. Strategic Initiatives - The company is actively enhancing strategic cooperation with suppliers to mitigate the impact of rising raw material prices and exchange rate fluctuations[5]. - The company aims to enhance its strategic cooperation with suppliers and increase domestic material substitution to mitigate the impact of rising raw material prices[43]. - The company is committed to enhancing its governance structure in compliance with relevant laws and regulations to improve operational standards[93]. - The company is focusing on optimizing asset usage and expanding its market presence through strategic initiatives[80]. Corporate Governance - The company has established a modern corporate governance structure, including a general meeting of shareholders, board of directors, supervisory board, and management team[100]. - The company held 2 shareholder meetings during the reporting period, ensuring compliance with regulations and providing equal rights for all shareholders[94]. - The board of directors convened 7 meetings during the reporting period, with all members fulfilling their duties diligently and participating in relevant training[95]. - The company is committed to maintaining transparency and accountability in its corporate governance practices[107]. Challenges and Risks - The overall performance decline was attributed to reduced demand in the electric tools and home appliance sectors due to a sluggish real estate market[4]. - The company faces risks from macroeconomic fluctuations that could impact its customer orders and inventory levels, necessitating strategic adjustments[87]. - Raw material price volatility, particularly for copper and electrical wood powder, poses a risk to the company's operating performance and cash flow[87]. - Talent retention and recruitment are critical challenges for the company, given the increasing demand for skilled workers in a competitive market[88]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[110]. - New product launches are expected to contribute an additional 200 million yuan in revenue over the next fiscal year[110]. - The company plans to enhance its online sales channels, targeting a 30% increase in e-commerce revenue[110]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million yuan for potential deals[110]. Financial Commitments and Performance - The company has performance commitments for net profits of CNY 2,500,000, CNY 3,000,000, and CNY 4,500,000 for the years 2021, 2022, and 2023 respectively, totaling CNY 10,000,000[187]. - The performance commitment for 2023 was not met, with a net profit of -CNY 90,866,476.07, resulting in a performance completion rate of 30.25%[189]. - The compensation amount due for 2023 is CNY 31,388,516.71, calculated as the difference between the promised net profit and the actual net profit[190]. - The company has notified the performance commitment parties to fulfill their obligations as per the agreement[190].