candycrush1| Xu Ji Electric's net profit in 2023 will exceed 1 billion yuan, and only 300 million yuan will be used as dividends. Why is the chairman's annual salary of 0 yuan?

Li Beibei, a reporter from Huaxia Times, a trainee reporter reporting from Beijing.

The distributable profit is as high as 4.8 billion yuan, but only 3%Candycrush102 million yuan came out to pay dividends, but this is the largest dividend paid by Xu Ji Electric (000400.SZ).

Xu Ji Electric recently released its annual report for 2023, its operating income was 17.061 billion yuan, an increase of 13.51% over the same period last year, and its net profit was 1.005 billion yuan, an increase of 28.03% over the same period last year. Although the performance has increased, Xu Ji's dividends are still small, and executive pay has declined. The cash dividend is 302 million yuan for every 10 shares, accounting for only 6.29% of the distributable profits.

Xu Ji has not paid much dividends over the years, and the amount of dividends from 2019 to 2022 has not exceeded 20% of the net profit, while its distributable profits have accumulated more and more, reaching 4.8 billion yuan by the end of 2023. In addition, the company disclosed that Dong Gaojian's salary in 2023 was 9.7415 million yuan, down from 10.2376 million yuan in 2022. It is worth mentioning that Sun Jiqiang, the chairman of the company, has received neither remuneration from the company nor related parties since taking office in 2021, but only holds 7000 shares, at the current share price of about 190000 yuan.

In view of performance dividends, financial data and other issues, a reporter from the Huaxia Times called Xu Ji and sent an interview outline, but had not received a reply as of the date of publication.

Liu Zhigeng, a well-known financial and tax audit expert and chief consultant of Jiangsu Siwei Consulting Group, told the Huaxia Times.Candycrush1As long as listed companies make long-term profits and do not pay dividends for a long time, there will be more and more profits available for distribution. However, the long-term non-dividend will seriously affect the interests of minority shareholders, which will not only lead to the loss of confidence of minority shareholders in the listed company, but also may affect the stock price of the company. "

Distributable profits account for 45% of net assets

Xu Ji seems to be more satisfied with the dividend plan of 2023.

According to it, "when the company formulated the profit distribution plan for 2023, according to the actual situation of the company, it significantly increased the cash dividend rate and dividend amount, and actively implemented the special action of 'double improvement of quality and return' to better reward shareholders."

This is indeed Xu Ji's largest dividend, with 302 million yuan, accounting for 30 per cent of the net profit belonging to the shareholders of the parent company.

But if you refer to its distributable profits, these dividends are negligible. Xuji Electric has a distributable profit of 4.811 billion yuan in 2023, of which the dividend only accounts for 6.29%.

So how did Xuji's distributable profits accumulate to such a high level? The reporter checked his annual report over the years and found that its distributable profit was very high as early as a few years ago. It is 3.827 billion yuan in 2020, 4.269 billion yuan in 2021 and 4.348 billion yuan in 2022.

The reason is that Xu Ji's dividend ratio is relatively low over the years. From the dividend situation in previous years, Xu Ji electric dividend amount is not large, the dividend rate is not high. From 2019 to 2022, the dividends were 60.4996 million yuan, 101 million yuan, 101 million yuan and 141 million yuan respectively, accounting for 12.86%, 14.08%, 13.95% and 13.31% of net profit respectively.

The available distributive profit is the balance of the company's net profit after deducting the surplus reserve and distributing the profit to investors, which can be used for investment or future distribution of profits. However, Xu Ji Electric has not made a large investment in recent years. The net cash flow generated by its investment activities from 2019 to 2023 is-87.0813 million yuan,-472 million yuan,-149 million yuan,-113 million yuan and-539 million yuan, respectively.

In other words, most of Xu Ji's net profit has remained over the years, until now it accounts for as much as 45 per cent of its net assets (10.705 billion yuan at the end of 2023).

The annual salary of several senior executives is 0 yuan.

At the same time, Xu Jie's salaries for directors, supervisors and executives have also been reduced.

In 2023, Xu Ji Dong Senior Supervisor earns an annual salary of 9.7415 million yuan, of which the highest salary is an outgoing deputy general manager with an annual salary of 813000 yuan, and the second is a 50-year-old employee supervisor who has also left office. The current Dong Gao prison has the highest annual salary of 41-year-old Dong Mi Wan Guilong, with an annual salary of 630600 yuan.

What is puzzling is that a number of senior executives, including the company's chairman Sun Jiqiang, have an annual salary of 0 and are not paid by related parties in the company. As chairman, Sun Jiqiang holds only 7000 shares, according to the current share price of 194500 yuan, there will be no increase or decrease in 2023.

The reporter learned that Sun Jiqiang had been touching and rolling Xu Jie until he reached the position of chairman. He has successively served as the director of the structural design room of Xuchang Relay Research Institute, the general manager of Xuji Electric Co., Ltd., the general manager of the electrical structure and components division of Xuji Electric Co., Ltd., the general manager of Xuji Electric Co., Ltd., and the deputy general manager of Xuji Electric Co., Ltd. Director of Marketing Department of Xu Ji Group, General Manager of Marketing Service Center, Deputy Party Branch Secretary of Marketing Department (Marketing Service Center), General Manager of Xu Ji Electric Co., Ltd., Deputy Secretary of Party Committee and General Manager of Xu Ji Group Co., Ltd. He is currently the party committee secretary and chairman of Xuji Group Co., Ltd., and the party committee secretary and chairman of Xu Ji Electric Co., Ltd.

According to Xu Ji's annual report, Sun Jiqiang's salary has been zero and his 7000 shares have remained unchanged since he became chairman in 2021. In this regard, Liu Zhigeng said: "the chairman of the central enterprise may be appointed by his superior, and his salary may be obtained from other channels, not from the company, so the annual salary is naturally zero."

As for the compensation system, Xu Jie once mentioned that the company adheres to the value contribution to determine the salary, and the income distribution is further skewed to the scientific research and marketing talents who make contributions. Therefore, in 2023, Xuji Electric R & D expenditure (813 million yuan) increased by 9.01% over the previous year (746 million yuan), mainly due to the increase in the salary of R & D personnel.

Gross profit margin decreased due to new energy business

After the release of the performance and dividend plan, Xu Ji's A shares performed better. The share price rose 8.52% the day after the release of the annual report, but fell by 0.51% in only one day in the last five trading days, and the rest rose. As of April 19, the share price closed at 28.1 yuan, up 13.44% in just a few days.

Xu Ji Electric is the leading enterprise of domestic power equipment, and its main business is intelligent power transformation and distribution system. Products include relay protection system, substation monitoring system, intelligent substation system, industrial control system, intelligent primary and secondary integration equipment, distribution terminal, distribution network automation system and so on. DC transmission system, the main products include DC converter valve, DC current measurement equipment, DC transmission control and protection system, DC simulation system; intelligent meter business, the main products include intelligent meter, intelligent power terminal, power collection system, etc.; intelligent medium voltage power supply business, products include switches, transformers, reactors, arc suppression coil grounding equipment, ring network cabinets and so on. The charging pile business, which accounts for a small proportion of business income, has occupied a large market share in China.

These are Xu Ji's traditional business, and in recent years the company has expanded to new energy sources, such as hydrogen energy, energy storage and so on. Based on the accumulation of the main industry of power equipment, Xu Ji Electric put its main goal on the hydrogen production power supply, and the company set up a hydrogen source technology branch at the end of 2023, aiming at the green hydrogen production and hydrogen energy comprehensive utilization market. In addition, Xu Ji Electric is also developing industrial and commercial energy storage products, but the competition in the energy storage market has become fierce. recently, the company has just won the bid for 125000 kilowatts of energy storage + 500000 kilowatts of energy storage equipment in Xinjiang Lixin Energy Qitai County at the lowest price in history.

The fierce market competition in these emerging businesses is one of the reasons for the decline in Xu Ji's gross profit margin. In 2023, its gross profit margin was 18%, down 1.35 percentage points from the same period last year. "it is mainly due to changes in the income structure, such as the increase in the income scale of the new energy and system integration sector, which has an income of 3.941 billion yuan and a low gross profit margin in 2023," it was mentioned at the performance presentation meeting on April 16. "

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