On April 12, Shuanghuan Transmission released its 2023 annual report, during the reporting period, the company achieved operating income of 8.074 billion yuan, a year-on-year increase of 18.08%, net profit attributable to the parent company of 816 million yuan, a year-on-year increase of 40.26%, and a net cash flow from operating activities of 1.572 billion yuan, a year-on-year increase of 29.12%. The company has increased the level of cash dividends, and intends to distribute a cash dividend of 1.2 yuan (tax included) to all shareholders for every 10 shares.
The main business of Shuanghuan Transmission is the R&D, design and manufacture of mechanical transmission gears and related parts, and the main application fields cover the transmission system of automobiles, the power drive devices of new energy vehicles, the transmission devices of non-road machinery (including construction machinery and agricultural machinery), as well as the drive and transmission application scenarios in rail transit, wind power generation, power tools, robot automation and other industries.
For the reasons for the steady improvement of performance, Shuanghuan Transmission explained that the company has always focused on its main business, closely carried out various operations around the development strategy and operation and management objectives, and actively promoted the extension of high-precision manufacturing platform and the diversified development of the market. During the reporting period, the company's heavy-duty truck automatic transmission gear business and new energy vehicle gear business showed a good growth trend, and the continuous promotion of internal cost reduction and efficiency improvement, independent innovation and other work effectively improved manufacturing capacity, reduced unit costs, and promoted the steady growth of the company's performance.
In terms of products, in 2023, the main business of Shuanghuan Transmission will achieve revenue of 4.223 billion yuan, accounting for 52.31% of the total revenue, a year-on-year increase of 15.66%, commercial vehicle gears will achieve revenue of 880 million yuan, accounting for 10.90% of the total revenue, a year-on-year increase of 71.25%, and Minsheng Gear will achieve revenue of 379 million yuan, accounting for 4.69% of the total revenue, a year-on-year increase of 87.47%.
The annual report shows that in 2023, the profitability and gross profit margin of passenger car gears and commercial vehicle gears of Shuanghuan Transmission will increase.
The gear products of double ring transmission have undoubtedly caught the "free ride" of the automotive industry. According to the statistical analysis of the China Association of Automobile Manufacturers, the production and sales of automobiles will exceed 30 million units in 2023, achieving double-digit growth throughout the year. In 2023, passenger vehicle production and sales will be 26.124 million units and 26.063 million units, up 9.6% and 10.6% y/y, respectively, commercial vehicle production and sales will be 4.037 million units and 4.031 million units, up 26.8% and 22.1% y/y, respectively, and NEV production and sales will be 9.587 million units and 9.495 million units, up 35.8% and 37.9% y/y, respectively.
It is worth noting that in the field of passenger cars, Shuanghuan Transmission has many benchmark customers in the automotive industry chain, including OEMs and suppliers of supporting transmission components, such as the world's leading electric vehicle manufacturers, Toyota, Volkswagen, BYD, GAC, General Motors, Ford, NIO, ZF, Nidec, Schaeffler, Inovance, BorgWarner, etc., and has accumulated a lot of industrial experience;
In terms of production capacity layout, Shuanghuan Transmission is based on domestic and actively expands overseas markets. In July 2023, the company announced that it would invest in the construction of a production base in Hungary to produce gear transmission components for new energy vehicles. From 2024 to 2025, the company will gradually build a Hungarian production base in stages based on downstream demand, and gradually release production capacity according to existing orders and capacity construction.
At the same time, Shuanghuan Transmission further expanded its business scope through the acquisition of Vietnam Sandole Co., Ltd., and in the automotive field, Sandole can cover electric tailgates, smart light adjustments, seat adjusters and other products, forming a good synergy with the company. At the same time, Shuanghuan Drive's subsidiary, Huan Drive Technology, began to support the business expansion of Sandole in the first half of 2023, and at present, a breakthrough has been formed in the field of sweepers, and the share of clients has increased significantly. In the first half of 2023, Sandole has turned losses into profits. The company's competitiveness in the stock market of people's livelihood gear is becoming more and more prominent.
In the future, the company will further combine the lean production model, information management model and industrialized R&D model with the capitalized operation model to achieve two-wheel drive and promote enterprise growth. Based on the above, the company will set the overall development strategy as concentric diversification, focus on the field of high-precision gear transmission, actively grasp the outbreak of the new energy vehicle market and the opportunity of commercial vehicle manual transmission to automatic transmission and new energy transmission system, and vigorously expand the business in the field of robot joints and people's livelihood.