Text |Zhang Jiaru.
On the evening of December 28, 2023, Yichang Technology, a leading auto parts stock, announced the 2023 restricted ** incentive plan (draft), and the number of restricted ** shares to be granted to the incentive object is 22 million shares, of which 1777 are granted for the first time100,000 shares, reserved for grant 422900,000 shares. The restrictive grants of the first and reserved grants are 3$16 shares.
On December 29, 2023**, Yichang Technology's share price was quoted at 624 yuan, which is 3 than the restrictive ** granted$16 is 97% higher.
The introduction of incentive plans is an important way for listed companies to stimulate the enthusiasm of management and key personnel, thereby boosting performance improvement, and also reflects the management's confidence in the company's future performance.
It is worth noting that in May 2022, Yichang Technology launched an incentive plan and set performance appraisal targets from 2022 to 2024.
However, in April 2023, at the same time that Yichang Technology disclosed its 2022 annual report, the company canceled the incentive plan. Judging from the performance data in 2022, Yichang Technology did not complete the assessment target in the equity incentive plan. If the incentive plan is not cancelled, according to the data of the first three quarters of 2023, it will be challenging to achieve the assessment target for the whole year.
What has Yichang Technology experienced?
Recently, Huawei's cooperation with Cialis M9 was officially launched, this car was called the best SUV within 10 million by Yu Chengdong, and it was set to exceed 10,000 within two hours of listing. In the second half of 2023, Wenjie Auto is a dark horse among the new car-making forces, and related concept stocks have also attracted attention.
For example, Yichang Technology is known as "Huawei's new automobile leader" because some of its products are used in Wenjie Automobile and Zhijie Automobile. In October 2023, the company said on the interactive platform that the holding company Anhui Huihetai Intelligent Technology is the first luminous car logo of the world. Yichang Technology also provides some exterior parts for Zhijie Automobile, which Huawei has cooperated with Chery Automobile.
In addition to automotive accessories, Yichang Technology has a wide range of businesses, involving automobiles, new energy, and medical and health tracks, among which in terms of automobiles, the company's products are interior and exterior decoration parts, lightweight parts, and automotive molds. In the exterior category, the main products are fenders and bumpers, and the interior includes the main instrument panel, sub-dashboard, door panels, ABC pillars and other products.
The main customers of Yichang Technology's auto parts business include well-known enterprises such as BYD, Chery Automobile, Leapmotor, GM-Wuling, Xiaopeng, etc., and are supported by GAC, Great Wall Motor, Changan Automobile and other car companies through the system. Yichang Technology said in the financial report that in the automotive field, the company has leading technology and rich mass production cases.
In several super tracks, including automobiles, Yichang Technology's revenue and net profit in the first three quarters of 2023 both declined. In the first three quarters of 2023, Yichang Technology achieved a total operating income of 175.9 billion yuan, down 1338%；The net profit loss was 4026410,000 yuan, deducting a non-net profit loss of 6065970,000 yuan.
Regarding the decline in sales revenue and net profit loss in the first three quarters of 2023, Yichang Technology said in a survey in November 2023 that the company took the initiative to optimize some home appliance businesses and shut down the TV business, resulting in a decline in business income such as injection molding parts in the home appliance industry in the first three quarters. The liquidation of the assets and personnel of the household appliance business increased the related expenses, which in turn led to a decline in the company's overall gross profit margin and net profit.
Yichang Technology also said that in terms of home appliances, the company decided to clear most of the home appliance business and only retain part of the structural parts business with high added value. The company's main focus is on the development of automobile, new energy, medical and health business. In the process of product transformation and upgrading of the company's downstream industries such as new energy vehicles and medical health, orders have increased considerably, and production capacity is being released.
According to the previous 2022 semi-annual report, Yichang Technology's largest revenue ** is the home appliance industry business, accounting for 3721%, but the year-on-year revenue decline was also the largest, reaching 322%。The automotive industry ranked second in terms of revenue, with revenue growth of 2971%, the business revenue of the new energy and medical and health industries are declining.
In the countdown to 2023, Yichang Technology launched an equity incentive plan in order to stimulate the enthusiasm of management and key personnel. The first restrictive ** assessment year granted is the three fiscal years from 2024 to 2026, of which the performance appraisal target for 2024 is that the net profit is not less than 50 million yuan, or the non-net profit is not less than 30 million yuan.
"Net profit" and "net profit after deduction" are the values excluding the impact of share-based payment expenses involved in all of the company's equity incentive plans and employee stock ownership plans (if any) during the validity period.
Combing through the performance data of previous years, Yichang Technology's assessment target for 2024 is "net profit of not less than 50 million yuan, or deduction of non-net profit of not less than 30 million yuan", and the assessment target compliance line is higher than the data in 2022, but lower than the data from 2019 to 2021.
Before this equity incentive plan, in May 2022, Yichang Technology also launched the 2022 ** option incentive plan (draft), setting performance assessment targets from 2022 to 2024, of which the target for 2022 is to take the company's net profit in 2021 as the base, and the net profit growth rate is 30%.
The "net profit" here refers to the audited net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses, and excludes the value of share-based payment expenses involved in the company's equity incentive plan and employee stock ownership plan within the validity period as the basis for calculation.
On April 27, 2023, Yichang Technology's 2022 annual report was released, with a revenue decline of 2760%, net profit fell 4286%, deducting non-net profit fell by 75%.70%。Such a non-net profit deduction data performance is obviously a huge gap with the "growth rate of 30%".
On the same day, Yichang Technology announced the termination of the implementation of the 2022 ** option incentive plan, saying that the current market environment has undergone significant changes compared with expectations, and at the same time, with the company's strategic transformation and upgrading, the company focuses on the development of new energy and medical and health businesses, and the demand for talents has changed accordingly, and it is difficult to achieve the expected incentive purpose and incentive effect by continuing to implement the incentive plan.
In the 2022** option incentive plan, the assessment target for 2023 is based on the company's net profit in 2021, with a net profit growth rate of 60%. In the first three quarters of 2023, Yichang Technology will have a net profit loss, and even if the incentive plan is not canceled, it will be very difficult to complete the assessment target.
Before the incentive plan, Yichang Technology's performance goals were also disappointed. In the 2019 annual report, Yichang Technology said that it has formulated a business plan for 2020 based on the actual situation of the company: the estimated operating income in 2020 will strive to reach 4.2 billion yuan, and strive to complete the net profit attributable to shareholders of the parent company of 50 million yuan.
In 2020, Yichang Technology's operating income was 306.3 billion yuan, a year-on-year decrease of 1285%, with a net profit of 6584540,000 yuan, a year-on-year decrease of 5091%。Among them, Yichang Technology's net profit target has been completed, but the indicator of operating income is far from the business target in the 2019 annual report.
In the 2020 and 2022 annual reports, Yichang Technology no longer discloses the business plan of the next year's revenue and net profit data.
At present, Yichang Technology is in a critical period of transformation, from home appliances to automobiles and new energy, with the help of the newly launched incentive plan, whether Yichang Technology can successfully complete the transformation and achieve the assessment goals, we will keep an eye on.