Hainan Jinpan Smart Technology Co., Ltd.
Byfocusingonitscorebusiness,HainanJinpanSmartTechnologyCo.,Ltd.hereinafterreferredtoas"theCompany"or"JinpanTechnology")seeksstablegrowthandcontinuousimprovementintechnologicalinnovation.Additionally,itcontinuestooptimizeitsfinancialmanagementsystem,strengthencommunicationwithinvestors,andactivelygivebacktoshareholders.Ithasthusdemonstratedahighsenseofunderstandingofitsresponsibilityandpositiveactions.Toimplementtheinitiativeof"improvingqualityandefficiencytoincreasereturns"forcompanieslistedontheSTARMarketandadheretotheinvestor-orientedconcept,theCompanyhasformulatedanActionPlanforImprovingQualityandEfficiencytoIncreaseReturnsin2024.Thedetailsareasfollows.
Since2019,JinpanTechnologyhasbeenattheforefrontoftheindustrybyinitiatingacomprehensivedigitaltransformation.Overthepastfiveyears,theCompanyhasmadegreateffortsandsuccessfullybuiltdigitalfactoriesfordry-typetransformers,completesetsofequipmentandenergystorageequipmentinChinawiththesupportofitsdigitalteam.Thishasdisruptedthetraditionalmanufacturingmodelwithdigitalproductivity.Throughthecomprehensiveempowermentofdigitaltechnology,theCompanyhasimprovedqualityandefficiency,promotedhigh-qualitydevelopment,andcontributedtoitsleapfroggrowthinperformancefrom2021to2023.Theseachievementsfullydemonstratedthegreatpotentialof"newqualityproductiveforces"inthetraditionalmanufacturingindustry.
In2024,theCompanywillfollowthenewtrendofincorporatingdataassetsintobalancesheetsandactivelycarryoutin-depthcooperationwiththird-partyinstitutionsandbigdataexchangestopromotethelisting.ThismovewillundoubtedlyfurtherenhancethedigitaltransformationoftheCompany.
Inaddition,theapplicationoflarge-scaleAImodelswillbecome anintegralpartoftheCompany'seffortsinvigorouslypromotingdigitaltransformation.In2024,theCompanywillactivelyusethemassivedataofdigitalfactoriestotrainlarge-scaleAImodels,thusdrivingforwarditsexplorationinartificialintelligence,intelligentmanufacturing,andvirtualhuman-operateddigitalfactories.
JinpanTechnology'sthree-stepstrategyfullyembracestheconceptofnewqualityproductiveforces.ItdemonstratestheCompany'scommitmenttoinnovation-drivendevelopmentanditsroleasanenterprisewithahighsenseofunderstandingofitsresponsibilityandpositiveactionsinthenewera.
Cultivate the Core Business forEnhanced Competitiveness
Affectedbythegreattideoftheglobalindustrialrevolution,JinpanTechnology,asapioneerintheindustry,isabouttotakeanewstepaftercompletingtheconstructionofdigitalfactories.Itwilllaunchtrainingonlarge-scaleAImodelstoexplorethepathtowardanintelligentupgradefordigitalfactories.Throughtheconstructionofdigitalfactories.JinpanTechnologyhasachievedtransparency,automationandinformatizationinitsproductionprocess,greatlyimprovingproductionefficiencyandproductquality.Tofurthertaptheproductionpotential,theCompanyplanstouselarge-scaleAImodelstodeeplyanalyzeproductiondata,optimizeprocesses,andpredictandsolveproblems.Bybuildingalarge-scaleAImodelofitsown,JinpanTechnologyaimstopromoteanewleapinmanagementandproductionefficiency.Inthisprocess,thefullutilizationofdataresourcesisparticularlyimportant.TheCompanywillcontinuouslyimproveitsdatacollectionandprocessingsystemtoensureaccurateandcompletedata.Throughin-depthanalysisofdata,theCompanycanhaveamoreaccurateinsightintomarketdemands,predictmarkettrendsandprovidestrongsupportforscientificdecision-making.Inaddition,activelyrespondingtotherequirementsoftheera,JinpanTechnologyhastakenstepstoincorporatedataassetsintoitsbalancesheets,soastoexplorethepotentialofdataasanewproductionfactor.Throughcontinuousexplorationandpractice,theCompanywilldrivetheimprovementofproductionefficiencyandmarketcompetitivenesswithdata.
Developnewqualityproductiveforcesandpursueintelligentmanufacturingforabetterfuture
ThevigorousdevelopmentoftheglobalnewenergyindustryandAIhaspromotedthetremendousgrowthofthepowermarket,thuscreatingunprecedenteddevelopmentopportunitiesforJinpanTechnology.Toadvancedevelopmentinbothdomesticandinternationalmarkets,theCompanyplanstoadoptaseriesofactivemarketstrategiesaroundtheworld,includingactivelyparticipatingininternationalcooperationandexchanges.Throughparticipationininternationalexhibitions,itwillexplorenewindustries,clientsandproducts,signstrategiccooperationagreements,andleverageotheropportunities,soastocontinuouslyenhanceitsinternationalinfluence.Atthesametime,itwillfurtherexpanditssalesreachinChina.Tothisend,itwillbuildawiderrangeofsaleschannels,andfurtherpenetrateintolower-tiercities,thuspromotingthedeepdevelopmentofthesalesmarket.ThisapproachwillenabletheCompanytoachievebalancedandsustainabledevelopmentinbothdomesticandinternationalmarkets.Byprovidinghigh-qualityproductsandservicestoglobalclients,theCompanywillcreateamoreextensivedevelopmentspaceforitself.
Advancethedevelopmentathomeandabroadandwriteanewchapterofprogress
TheinvestmentprojectsoftheCompanyhavebeenbasicallycompletedandputintooperation.In2024,theCompanywillrapidlyincreasethenewproductioncapacityofinvestmentprojectsfromthefollowingaspects.Firstly,itwillsetupahighlyprofessionalandexperiencedteamdedicatedtostrengtheningtheoperationandmanagementoftheseprojects.Additionally,itwillstrengthenemployeetrainingtoensurethatitsworkforcepossessesthenecessaryskillstoadapttodigitalfactoryenvironmentsandcontinuouslyimproveproductioncapacityandefficiency.Secondly,itwillpayattentiontothepreciseexecutionofordersandoptimizeproductionprocessestoensurethatordersarecompletedwithhighqualityandefficiency.Thirdly,theCompanywillleveragetheadvantagesofdigitalfactoriestoincreaseproductionorders,aimingtorapidlyenhanceproductioncapacityinresponsetomarketdemands.Bypromotingtherapidimprovementinthenewproductioncapacityin2024,theCompanywillcontributetoitshigh-qualitydevelopment.
Rapidlyenhancethenewproductioncapacityofinvestmentprojectstoachievethetargetoutputassoonaspossible
TechnologicalinnovationhasalwaysbeenthecoredrivingforcefortheCompany'ssustainabledevelopmentandthesourceofvaluecreation.Throughclosecooperationwithclients,theCompanyaccuratelygraspedthemarketdynamics,flexiblyadjusteditsresearchanddevelopmentplans,andcontinuedtoupgradeandinnovate.Itsproductshavecoveredmultipleindustriesandapplicationscenarios,asJinpanTechnologylauncheddry-typetransformers,developedandproducedabatchofliquid-immersedtransformers,continuouslyimprovedtheenergyefficiencyratiooftransformers,andmadetechnicalbreakthroughsinafullrangeofproductsfromLVenergystoragetoHVenergystoragedevices.Inadditiontostandardizedproductionofproducts,theCompanypaysmoreattentiontocustomizedservicesthatmeettheindividualneedsofclients.Itiscommittedtodrivingproductupgradingwithscientificandtechnologicalinnovationandprovidingdiversifiedsolutionsforglobalclients.In2024,theCompanywillcontinuetodeepenthedevelopmentofitsR&Dsystemandseektechnologyandproductinnovation.Throughtechnologicalinnovation,itwillcontinuouslyintroducedigital,low-carbonandintelligentproducts,cultivatemorenewqualityproductiveforces,andcontributetothegoalofhigh-qualitydevelopmentoftheCompany.TheCompanywillcontinuetopromotetheapplicationofdry-typetransformerseriesproductsinmorefields,conducttheR&Dofthetechnologyforlarge-capacityandhigh-voltagedry-typeboosttransformersintheoffshorewindpowerfield,andactivelypromotethecommercializationofnewproducts.Additionally,itwillfurtherresearchanddevelophigh-voltagedry-typepowertransformersappliedinthefieldofsmartgridsandactivelypromoteresearch,developmentandverificationofproductprototypes.Throughtheseefforts,itaimstoprovideproductswithhighersafetylevelsforurbancentralsubstationsorundergroundsubstations.TheCompanywillalsocontinuetodevelopenvironment-friendlyliquid-immersedtransformerswithhighervoltagelevelsandactivelypromotetheindustrializationprocessofliquid-immersedtransformerseriesproductsintheglobalmarket.Intermsofdigitalenergymanagement,theCompanywillfocusondevelopingoverallsolutionsfordigitalenergyinzero-carbonparks,designingandpromotingdigitaldistributedphotovoltaicplatformsandcentralizedcontrolsystemsforenergystoragepowerstations.Simultaneously,itwillcontinuetocarryoutR&DandapplicationofvirtualpowerplantsIn2024,theCompanywillalsoactivelyutilizedigitaltechnology,fullylearnartificialintelligencetechnology,andintegrateAItechnologyintotheproductionandmanufacturingprocessestocontinuouslyoptimizethematerialtransferefficiencyofitsdigitalfactories.Besides,theCompanywilltakeadvantageofdigitalmeansandsimulationplatformstofurtherexplorethemodetoimproveR&Defficiencyandconsolidateitstechnologicalstrengthinthefieldofnewenergypowerequipment.
Promote the R&D of new products and drive the innovation and upgrading of theindustrial chain
Strengthen R&D and TalentDevelopment Strategies toContinuously Improve the Capacity forScientific and Technological Innovation
TheCompanyvaluesthedevelopmentoftheR&Dteamandhasformedasoundtalent-cultivatingmechanisminlong-termdevelopmentaswellasemployment,managementandcultivationsystemsfortechnicians.Meanwhile,itactivelycarriesouton-the-jobtrainingfortechnicianstoensurethattheyalwaysmasteradvanceddesignideas,R&Dmethodsandproductionprocessesintheindustry.In2024,theCompanywilloptimizeitstalentincentivemechanismbymakingitmoretargetedandoriented,soastoachievetheunityoftheR&DgoalsandtheCompany'sgoals.Byoptimizingtheemployeeperformanceassessmentsystemandimplementingamechanisminwhicheachindividualwillbeevaluatedthroughanassessmentform,theCompanywillguideemployeestofurtherrecognizetheirgoals.Basedonperformanceassessmentresults,theCompanywillidentifytalentsandrewardvaluabletalentsthroughimprovedincentivessuchasperformancebonuses,equityincentives,andothermeans.Byfosteringindustry-university-researchcooperation,theCompanywillcreateopportunitiesforemployeestobroadentheirhorizonsandimprovetheirskills.Thisincludesparticipatingindomesticandinternationalexhibitionsandacademicexchangestostayinformedaboutindustrytrends.Throughtheestablishmentofcollaborationswithuniversitiesorscientificresearchinstitutes,theCompanyplanstoconductpre-researchoncutting-edgetechnologies,graspindustrydevelopmenttrends,andpreparefortheincubationofnewproductsandtechnologies.Theultimategoalistoremainattheforefrontoftechnologicaladvancementintheindustry.Moreover,theCompanyplanstodiscusswithuniversitiesandindustrypartnersthejointconstructionofindustrialdesignresearchinstitutesorkeylaboratoriestopromotethein-depthintegrationofenterprises,universities,andresearchinstitutes.
Optimize the talent incentive mechanism and deepen industry-university-researchcooperation
Optimize Client Structure andManagement and Improve Efficiency
Optimizeclientstructureandimproverevenuequality
In2023,JinpanTechnologyhadmorethan1,000clients.From2021to2023,theCompany'stopfiveclientsaccountedfor34.98%,23.54%and22.37%ofitsoperatingrevenuerespectively,showingadecreasingtrendyearbyyear.
In2024,theCompanywillcontinuetodeepenmarketexpansion.Adheringtoaglobalizationstrategyinclientdevelopment,itwillfurtheroptimizeclientstructure,consolidatelong-termcooperationwithstrategicclientsandunremittinglyexplorenewclientgroups.Stickingtothedevelopmentconceptof"domesticandinternationalcirculations,"itwillremainactiveinadaptingtotheinternationalsituationandbeefupeffortstodevelopglobalmarkets.Whileimprovingproductperformance,itwillcontinuetodeveloptransformer,energystorageandotherseriesofproductssuitablefordifferentfieldssoastoconstantlyexpandproductapplicationindownstreamfieldsandacceleratetheintroductionofnewclients.Inaddition,theCompanywillalsoactivelyexpandthenewbusinessofoveralldigitalsolutionsandpromotetheextensiveapplicationofdigitaltechnologyinintelligentmanufacturingtomeetthegrowingdemandfordigitaltransformationindiscretemanufacturingandimprovetheCompany'srevenuequality.
TheCompanyhasalwaysbeencommittedtoempoweringmanagementwithdigitaltechnologyandoptimizingfinancialmanagementbycontinuouslyenablingsmoothinternaldataflow.Inrecentyears,ithasrolledouttheconsolidationmanagementsoftwareBPCproject.Atthesametime,basedonthedigitalplatform,ithasalsolaunchedtheintelligentbusinessdecision-makingsystemSACprojectfortheboardofdirectors,establishingamulti-dimensionalanalysisframeworkconsistingofthethreelevelsoftheboardofdirectors,themanagementlevelandthebusinessdepartmentandrealizingthereal-timeavailability,traceabilityandvisualizationofthereportdata.Throughautomaticdataprocessing,theCompanycanprovidereal-timeandrapidassistancefordecision-making,effectivelyintegratethedataresourcesofmultiplecorporatesystems,andprovidetimelyandaccuratesupportforanalysisanddecision-making.In2024,theCompanyplanstointroducelarge-scaleAImodeltechnologytofurtherempowercorporatemanagement.Throughreal-timeanalysis,monitoringandearlywarningofdata,theCompanywillbeabletoprovidemorerapidandaccurateassistancefordecision-making,thusfurtherimprovingoperationalefficiencyandinjectingcontinuousimpetusintosustainablecorporatedevelopment.
Empower management with digital technology and improve theefficiency of operation and management
Jinpan Technology has always adhered tothe principle of standardized governanceand is committed to building a scientificand compliant governance systemImprove CorporateGovernance and PromoteHigh-quality CorporateDevelopment
In2023theCompanycomprehensivelyandsystematicallyrevisedatotalof26systemsincludingthecorporatearticlesofassociation,theworkingsystemforindependentdirectorsandtherelatedpartytransactionmanagementsysteminlinewiththelatestlawsandregulations,rulesoftheCSRCandbusinessrulesoftheexchanges,thusprovidingasolidinstitutionalguaranteefortheCompany'sscientificdecision-makingandstandardizedoperation.Inaddition,theCompanyactivelyrespondedtothecalloftheCSRCandconductedanin-depthself-examinationofthequalificationsofindependentdirectorstoensurethatallincumbentindependentdirectorsmetthequalificationsandconditionsstipulatedintheAdministrativeMeasuresforIndependentDirectorsofListedCompaniesandtheWorkingSystemforIndependentDirectorsofHainanJinpanSmartTechnologyCo.,Ltd.
In2024
JinpanTechnologywillfurtherstrengthenstandardizedgovernance.Firstly,theCompanywillcontinuetostrengthencompliancetrainingfordirectors,supervisorsandseniorexecutives.WiththehelpofthetrainingplatformsoftheCSRC,exchangesandassociations,itwillcontinuouslystrengthentheawarenessof"improvingqualityandefficiencytoincreasereturns,"enhanceself-disciplineawarenessandpromotethecontinuousstandardizedcorporateoperation.Secondly,theCompanywillestablishacontinuoustrackingandfeedbackmechanismforregulatorydevelopmentstotimelycollect,analyzeandtransmitthelatestregulatoryinformation.Meanwhile,theCompanywillsortout,interpretandcompilethelatestregulatorypolicies,marketrules,relevantlawsandregulationsandotherinformationonaquarterlybasisforthereferenceoftheCompany'scontrollingshareholders,actualcontrollers,directors,supervisors,seniorexecutives,andsoon.Finally,theCompanywillcontinuetopayattentiontoregulatorydevelopmentsandtimelyrevisethearticlesofassociationandrelevantinternalcontrolsystemsinaccordancewiththelatestregulationsoftheCSRC,theShanghaiStockExchange(SSE)andotherorganizations,soastocontinuouslyimprovethecorporategovernancesystem,enhancethelevelofstandardizedgovernance,andeffectivelyprotectthelegitimaterightsandinterestsofinvestors.
Strengthen Communication
with Investors
Sinceitslisting,theCompanyhasactivelyparticipatedinthebriefingsonpublicperformanceandindustryperformanceorganizedbytheSSERoadshowCenter.Toimprovethereadabilityofperiodicreportsandmeettheneedsofdifferentinvestors,theCompanyhasreleasedthe"LearnMoreThroughOnePicture"seriesthroughitsofficialpublicaccountforinvestorrelationsafterdisclosingtheperiodicreportsandaddedvideostoitsperformancebriefingstomakeinformationmoreintuitiveandunderstandable.
Atthesametime,theCompanyhasattachedgreatimportancetocommunicationwithinvestors.Inadditiontoperformancebriefings,italsoregularlyholdsinvestorreceptiondays.Whenannouncingimportantmatters,itsynchronouslydisseminatesthemonmultipleplatformsthroughlive-streamingandotherforms,soastointeractandcommunicatewithinvestorsindiverseformsandconveythevalueoftheCompany.
In 2024,the Company will
renew itscommitment to the
investor-oriented
concept.
Itwillcontinuouslyoptimizeinvestorrelationsmanagement,buildaninvestorcommunicationsystemthatissupportedbymultipleplatforms,andmakefulluseofonlinechannelssuchasSSEe-interview,ComeinFinance(https://www.comein.cn/home/index)andTonghuashunFinance(https://www.10jqka.com.cn/).ItwillalsocontinuetoholdInvestorOpenDayactivities,invitinginvestorstovisitdigitalfactoriesandconductspecialdiscussionsandface-to-faceexchanges.
Inaddition,theCompanywillimprovethemechanismtoseekthesuggestionsandfeedbackofinvestors.ItwillsetupaconsultationcolumnintheCompany'sofficialpublicaccounttocarefullylistentoinvestors'suggestions,reportsuggestionstothecompany'smanagementregularlyinwrittenform,andmakerelevantresponsesinregularreports.
Itwillalsointerpretreportsinvariousformssuchaspictures,textsandvideos,andaddauxiliaryexplanationssuchasfiguresanddatacomparisontomakethecontentsofthereportsclearerandeasiertounderstand.TheCompanywillmakecontinuouseffortstocommunicatewithinvestorsinamoreefficientandconvenientway,soastoachievewin-winresultswithinvestors.
Improve Returns forInvestors
Sinceitslistingin2021,theCompanyhascontinuouslyimplementedaprudentandsustainabledividendstrategy.From2020to2022,thedividendamountoftheCompanyaccountedformorethan30%ofthenetprofitattributabletoshareholdersoflistedcompaniesintheconsolidatedstatementsofthatyear,withthecumulativedividendamountreachingRMB277.0351million.In2023,theCompanyplannedtofurtherincreaseitscashdividendsforinvestorsanddistributeatotalof38.11%ofthenetprofitattributabletoshareholdersoflistedcompaniesintheconsolidatedstatementsoftheyeartoinvestorsascashdividends.Comparedwiththepreviousyear,thecashdividendpershareachievedayear-on-yearincreaseof80%,reachinganall-timehigh.AcontinuoushighproportionofdividendsnotonlyreflectstheCompany'sreturnstoinvestors,butalsodemonstratesthesteadygrowthoftheCompany'sprofitability.In2024,JinpanTechnologywillformulateashareholderdividendreturnplanfor2024to2026.Thislong-termplanwillprovideshareholderswithclearerandmorestablecashdividendexpectations,ensurethattheinterestsofallshareholders,especiallythoseminorityones,canbefullyprotected,anddemonstraterespectforshareholders'interestsandconfidenceintheCompany'sfuturedevelopment.Meanwhile,theCompanywillcarryoutinterimdividenddistributioninduecourseincombinationwiththeactualoperatingsituation.Whileensuringnormalcorporateproductionandoperation,theCompanywillcontinuouslyincreasethereturnsforshareholderssoastosharethegrowthandsuccessoftheCompanywithshareholders.
Continuouslygivebacktoinvestors:Increasecashdividendsandsharedevelopmentresults
Relyingonthefirmbeliefinfuturedevelopmentprospectsanddeeprecognitionoflong-termcorporatevalue,theCompanyhasdeliberatedandapprovedasharerepurchaseprogram.Accordingtotheprogram,theCompanyplanstorepurchaseshareswithtotalself-ownedfundsnotlessthanRMB50million(includingRMB50million)butnotmorethanRMB100million(includingRMB100million)atapricenotexceedingRMB42.36pershare(includingRMB42.36)andplanstousetherepurchasedsharesfortheemployeestockownershipprogramorequityincentives.Thismoveaimstofurthergathercoretalents,strengthenteamcohesionandsolidarity,betterstimulateemployees'innovationvitality,enhancetheCompany'scorecompetitiveness,andinjectstrongimpetusintothelong-termdevelopmentoftheCompany.In2024,JinpanTechnologywillactivelypromotetheimplementationandprogressoftherepurchaseworkinanorderlymanneraccordingtotherequirementsoftheresolutionoftheboardofdirectors.
PromotetheimplementationoftheCompany'srepurchasescheme
Strengthen Interest Sharing and MutualRestriction between the Management andShareholders
In2024,theCompanywilladjustthefixed/floatingratioofthecompensationstructureforseniorexecutives,increasetheamountofperformanceassessmentanditsproportion,andlinkperformanceassessmentbonusandtheCompany'soperatingperformanceandotherfactors.Besides,theCompanyhasissuedarepurchaseannouncementfor2024andplanstouseallrepurchasedsharesforequityincentives.Byadoptingbusinessobjectivesandothercontentsthataremorecloselyrelatedtoinvestors'interestsasassessmentindicators,theCompanystrivestorealizethealignmentofinterestandsharingofrevenueamongthemanagement,corebusinessteamandallshareholdersoftheCompany,thusincreasingtheoverallvalueoftheCompany.
In2024,JinpanTechnologywillmakepositiveeffortstofurtheroptimizethemanagementcompensationandincentivemechanismtopromotethedeepintegrationoftheinterestsofthemanagementandshareholders.TheCompanyhasformulatedacompensationpolicyforseniorexecutivesthatiscloselyrelatedtocorporateoperationsoastomakeseniorexecutivesfocusmoreontheCompany'sbusinessdevelopmentandtherealizationoftheCompany'sobjectiveswhenmakingdecisionsandtoensurethatthecompensationandperformanceofseniorexecutivesaredirectlylinkedtotheoverallperformanceoftheCompany.
Other Issues
JinpanTechnologywillconstantlyevaluatetheactionof"improvingqualityandefficiencytoincreasereturns"anddiscloseinformationinatimelymanner.
TheCompanywillfocusonitsmainbusiness,strengthenitscorecompetitiveness,profitabilityandriskmanagementcapabilities,givebacktoinvestorswithexcellentperformanceandstandardizedgovernance,andfulfillitsresponsibilitiesasalistedcompany.Affectedbythemarketenvironment,policyadjustmentandotherfactors,theimplementationoftheactionplanfacesuncertainty,soinvestorsshouldmakeprudentdecisionsandpayattentiontorisks.
Board of Directors of Hainan Jinpan Smart Technology Co., Ltd.
March 21, 2024