On the evening of April 9, 2024, Xingyuan Zhuomei disclosed its 2023 annual report. According to the data, in 2023, Xingyuan Zhuomei will achieve operating income of 352 million yuan, a year-on-year increase of 30.16%, net profit attributable to the parent company of 80.0821 million yuan, a year-on-year increase of 42.42%, and non-net profit of 67.0722 million yuan, a year-on-year increase of 28.11%. In addition, the company intends to distribute a cash dividend of 3.50 yuan (tax included) to all shareholders for every 10 shares.
Looking through the annual report data, it was found that Xingyuan Zhuomei's revenue scale has been expanding in recent years, and the growth rate has been at the forefront of the industry. In 2020, the company's total operating income was 174 million yuan, and combined with this year's data, the compound growth rate of Xingyuan Zhuomei's total operating income in the past three years was 26.50%, ranking second among the 11 companies in related industries that have disclosed annual reports.
In terms of business, Xingyuan Zhuo Magnesium is deeply engaged in the field of auto parts, mainly involving the research and development, production and sales of magnesium alloy, aluminum alloy precision die casting parts and supporting die casting molds. In 2023, the company's magnesium alloy and aluminum alloy products will still be the main revenue force, with magnesium alloy die castings contributing revenue of 212 million yuan, a year-on-year increase of 39.93%, accounting for 60.25% of operating income, and aluminum alloy die casting revenue of 112 million yuan, a year-on-year increase of 38.28%, accounting for 31.89% of operating income.
Due to the high degree of binding with the automobile industry, 2023 is destined to be a year full of opportunities for Xingyuan Zhuomei. From the perspective of the whole year, driven by new energy vehicles and automobile exports, the annual production and sales of automobiles in 2023 will reach a record high of 30.09 million units, a year-on-year increase of 9.90%, and the total production and sales volume will rank first in the world for 15 consecutive years.
With the support of the rapid development of the industry, Xingyuan Zhuomei further focuses on its main business, and its automotive application products "increase profits and increments". According to the annual report data, in 2023, the company's operating income of automotive products will reach 307 million yuan, a significant increase of 45.15% year-on-year, and the gross profit margin of such products will also reach 32.15%, a year-on-year increase of 1.60%. At the same time, Xingyuan Zhuo magnesium automotive products have achieved a boom in production and sales, and the production volume and sales volume have increased.
It is reported that Xingyuan Zhuomei's customers have covered Tesla, Ford, Chrysler, Audi, Hongqi, SAIC and other well-known domestic and foreign car companies.
While the business is expanding steadily, the debt situation of Xingyuan Zhuomei has also improved significantly. As of the end of 2023, the company's short-term borrowings decreased by 100.00% from the end of the previous year, accounting for 4.12% of the company's total assets, and other payables (including interest and dividends) decreased by 99.21% from the end of the previous year, accounting for 1.2% of the company's total assets. The company's debt-to-asset ratio also fell to 7.87%, down 33.13% year-on-year. On the whole, Xingyuan Zhuomei faces very little financial risk and debt repayment pressure, and still continues to maintain stable operation.
In order to cope with the possible intensification of industry competition, Xingyuan Zhuomei continues to increase R&D investment and consolidate its technological advantages. In 2023, Xingyuan Zhuomei will invest a total of 19.8098 million yuan in R&D expenses throughout the year, a significant increase of 31.53% year-on-year. In 2023, the company obtained 2 new utility model patents, 3 invention patents, and 921,000 invention patents for the year.
Industry analysts said that on the demand side, with the acceleration of the lightweight process of automobiles, magnesium alloy is expected to play an important role. In this context, as a pioneer in the field of magnesium alloy die-casting in China, Xingyuan Zhuo Magnesium is expected to benefit from the acceleration of the magnesium alloy industry trend. At present, the company is also focusing on its main business, continuing to accelerate the development of OEM customers and extending the layout of large-scale magnesium alloy products, and its products have shown a trend of rising volume and price. On the whole, the growth space of Xingyuan Zhuo Magnesium's main business field continues to expand, and the future performance growth can be expected.