2024-03-25-上交所科创板-Wuxi_Autowell_Technology_Co.,_Ltd._Action_Plan_for_Improving_Quality,_Efficiency,_and_Shareholder_Re_7页_250kb

Wuxi Autowell Technology Co., Ltd. 2024 Action Plan Summary

Core Content

Wuxi Autowell Technology Co., Ltd. (hereinafter referred to as "the Company") has developed an Action Plan for 2024 aimed at improving quality, efficiency, and shareholder returns. The plan was approved by the Board of Directors and is designed to enhance investor confidence, stabilize the stock price, and strengthen the company's position in the capital market. It includes strategic initiatives across multiple areas such as investor returns, R&D investment, proceeds investment projects, asset management, corporate governance, and investor communication.

Main Measures

I. Emphasize Investor Returns

• Dividend Policy: The Company plans to distribute RMB20 per 10 shares in 2024, which is an 82.23% increase over 2022. The total cash dividend is expected to be RMB448 million.
• Dividend Ratio: The payout ratio is planned to be 35–40% of the net profit attributable to shareholders.
• Share Repurchase: The Company has previously repurchased shares worth RMB219 million and will continue to explore new shareholder return methods.
• Stock Price Stabilization: A 2024 stock price stabilization plan is being developed to maintain market confidence and stock price stability.

II. Increase R&D Investment

• R&D Focus: The Company is committed to technology upgrades in PV, lithium-ion battery, energy storage, and semiconductor equipment.
• 2023 R&D Achievements: Developed new equipment for N-type cells and 12-inch wafers, and received its first export order for monocrystal growth furnaces.
• 2024 R&D Plan:
  • Enhance technological innovation and application through existing labs and collaboration with industries, universities, and research institutes.
  • Improve the R&D system and incentive mechanisms for the R&D team.
  • Introduce equity incentives, competitive compensation, and innovative business co-investment to motivate R&D personnel.

III. Accelerate Proceeds Investment Projects

• Funds Raised: The Company has raised RMB574 million through IPO, RMB530 million through private placement, and RMB1.14 billion through convertible bonds.
• Project Progress:
  • IPO Production Base: Operational since 2021, increased production capacity from RMB1 billion to RMB5 billion.
  • R&D Center: Operational since 2022, significantly improved R&D efficiency and application.
  • Ongoing Projects: 21.04% of planned investment has been completed, including the science and technology reserve fund.
• 2024 Goals:
  • Complete 70% of the LPCVD/boron mine expansion project by mid-2024.
  • Complete 50% of the flip chip bonder and wire bonder projects by their respective deadlines.
  • Ensure 50% of the funds raised are utilized in the platform-based smart factory project.

IV. Strengthen Asset Management

• Accounts Receivable: Increased by RMB850.57 million in 2023, slightly higher than operating income growth.
• Inventory Management: Focus on equipment installation and commissioning, shortening ramp-up periods, and increasing acceptance ratios to improve inventory turnover.
• Credit Risk Mitigation: Implement stricter payment terms for small and medium customers, and take legal actions for high-risk customers to ensure timely payments.

V. Optimize Corporate Governance

• Governance Structure: Aligned with SSE Science and Technology Innovation Board rules, with a clear division of roles among Board of Directors, Board of Supervisors, and management.
• Executive Compensation: Performance-based compensation is higher than basic compensation and is tied to company performance.
• Training for Key Executives: Organize at least four training sessions for the "key few" to improve their duty performance and governance awareness.

VI. Improve Disclosure Quality and Investor Engagement

• Disclosure Performance: Received an "A" rating for information disclosure from the Shanghai Stock Exchange (2022–2023).
• 2024 Disclosure Plan:
  • Improve readability and effectiveness of disclosures using images, animations, and videos.
  • Release ESG reports in both Chinese and English.
  • Hold at least four Investor Open House events and six online meetings with investors.
  • Organize no less than 50 investor communication events, including conference calls and offline meetings.
  • Actively solicit and respond to investor feedback to enhance transparency and quality.

Key Information

• The Action Plan was approved by the Board of Directors on March 25, 2024.
• The dividend payout ratio for 2024 is 35–40% of net profit.
• The Company's 2023 total cash dividends and share repurchases amounted to RMB721 million, or 57.40% of net profit.
• The Company sells PV equipment to over 40 countries, with a market share of over 60%.
• R&D investment in 2023 was RMB327.3 million, a 38.3% increase from 2022.
• The Company is committed to high-quality development, global market expansion, and sustainability.