Financial Performance - Revenue for the year ended December 31, 2022, was RMB 5,066.8 million, a decrease of 11.8% from RMB 5,744.9 million in 2021[2] - Gross profit for the same period was RMB 1,148.5 million, down 18.3% from RMB 1,405.2 million in the previous year[2] - Net profit attributable to shareholders was RMB 503.5 million, representing a decline of 24.2% compared to RMB 664.4 million in 2021[2] - Basic earnings per share decreased by 25.8% to RMB 0.181 from RMB 0.244 in the prior year[2] - Total comprehensive income for the year was RMB 443.4 million, down from RMB 683.9 million in the previous year[7] - The total revenue for 2022 was RMB 5,066,807 thousand, a decrease of 11.8% compared to RMB 5,744,873 thousand in 2021[16] - The company reported a total current liabilities of RMB 7,918,937 thousand, an increase from RMB 7,761,073 thousand in the previous year[11] - The company recognized government grants totaling RMB 31,878,000 in 2022, compared to RMB 66,017,000 in 2021[26] - The net profit before tax for 2022 was RMB 519,360,000, a decrease from RMB 751,655,000 in 2021[23] - The company reported a loss provision for trade receivables of RMB 24,645,000 in 2022, significantly higher than RMB 5,318,000 in 2021[28] Revenue Breakdown - The revenue from mold steel in 2022 was RMB 2,703,341 thousand, an increase of 13.0% from RMB 2,391,914 thousand in 2021[16] - The revenue from high-speed steel decreased to RMB 964,780 thousand in 2022, down 4.0% from RMB 1,005,436 thousand in 2021[16] - The revenue from cutting tools was RMB 756,726 thousand in 2022, a decline of 28.5% compared to RMB 1,057,984 thousand in 2021[16] - Revenue from external customers in China for 2022 was RMB 1,951,642,000, down 42% from RMB 3,358,645,000 in 2021[25] - Domestic sales of tool steel fell by 24.6% to RMB 917,466,000, while export sales increased by 51.9% to RMB 1,785,875,000[54] - High-speed steel revenue accounted for 19.0% of total revenue, totaling RMB 964,780,000, a decrease of 4.0% from RMB 1,005,436,000 in 2021[55] - The company experienced a significant decline in sales of cutting tools, which dropped by 28.5% to RMB 756,726,000[51] - Titanium alloy domestic sales increased by 37.3% to RMB 356,983,000, while export sales rose by 78.2% to RMB 5,437,000[59] Financial Position - The net asset value increased by 3.6% to RMB 7,141.3 million from RMB 6,892.6 million in the previous year[2] - The net debt position was RMB 193.6 million, compared to zero in the previous year, indicating a shift in financial leverage[2] - The net debt to equity ratio was 2.7%, up from 0.0% in 2021, highlighting increased financial risk[2] - The total assets net of current liabilities stood at RMB 8,283,669 thousand, an increase from RMB 8,080,954 thousand in the previous year[11] - The total assets reported for 2022 were RMB 13,363,151,000, an increase from RMB 12,564,586,000 in 2021[23] - The total liabilities for 2022 amounted to RMB 6,221,818,000, up from RMB 5,672,029,000 in 2021[23] Cost and Expenses - The sales cost for 2022 was RMB 3,918,320,000, down 9.7% from RMB 4,339,675,000 in 2021, reflecting the decrease in revenue[66] - Distribution costs for 2022 were RMB 219,776,000, slightly up from RMB 217,737,000 in 2021, with distribution costs accounting for approximately 4.3% of revenue[75] - Administrative expenses increased from RMB 134,575,000 in 2021 to RMB 146,666,000 in 2022, representing about 2.9% of revenue[76] - Employee costs totaled RMB 365,053 thousand in 2022, representing a marginal increase of 1.4% from RMB 360,069 thousand in 2021[30] Market and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[19] - The company plans to continue focusing on expanding its export markets to offset domestic demand weakness[54] - The company is exploring new strategies for market expansion and product development to enhance competitiveness[54] - The company has entered the guidance phase for its A-share market listing, marking a significant milestone in its capital market strategy[89] - The company is committed to transforming long-term accumulated results and experiences into innovative applications in the steel metallurgy industry[90] Tax and Regulatory Matters - The current tax expense for 2022 was RMB 52,350 thousand, down 32.3% from RMB 77,310 thousand in 2021[32] - The deferred tax expense for 2022 was a negative RMB 57,100 thousand, compared to a positive RMB 2,715 thousand in 2021, indicating a significant change in tax position[32] - The company’s effective tax rate in China remained at 25% for 2022, consistent with the previous year[33] - The company’s subsidiaries in Thailand benefited from a 0% corporate tax rate starting May 2021, which will last for six years[33] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the annual report and financial statements for 2022, confirming compliance with applicable accounting standards[120] - The company has adhered to the corporate governance code, with minor deviations noted[118] - The company has not established any share incentive plans as of December 31, 2022[115] Future Outlook - The group expects strong export orders in 2023 following the normalization of demand after inventory digestion in 2022[93] - The group aims to produce 10 million powder metal taps by the end of 2023, significantly enhancing China's manufacturing capabilities[95] - The group is focusing on upgrading its product offerings in the high-end hard alloy cutting tool market to meet growing domestic demand[96]

Financial Performance - The company's revenue for 2021 increased by 10.0% to RMB 5,744,873,000 compared to RMB 5,220,944,000 in 2020[12] - The net profit attributable to shareholders rose to RMB 664,371,000, up from RMB 537,024,000 in the previous year, reflecting a significant growth[4] - The basic earnings per share increased to RMB 0.244 from RMB 0.209, indicating improved profitability[4] - The overall gross profit margin improved to 24.5%, up 1.2 percentage points from 23.3% in 2020, enhancing the company's profitability[12] - The company's total revenue for 2021 was RMB 5,744,873,000, a 10.0% increase from RMB 5,220,944,000 in 2020[33] - The gross profit margin improved to 24.5% in 2021, up from 23.3% in 2020[35] - The company's attributable profit increased by 23.7% from RMB 537,024,000 in 2020 to RMB 664,371,000 in 2021, with the profit margin rising from 10.3% to 11.6%[50] - Total comprehensive income attributable to equity holders rose to RMB 676,701,000 in 2021 from RMB 538,979,000 in 2020, including a foreign exchange translation difference of RMB 12,086,000[51] Sales and Revenue Breakdown - The sales of high-speed steel grew by 29.6% to RMB 1,005,436,000, while cutting tools sales increased by 20.9% to RMB 1,057,984,000[15] - The export revenue for mold steel surged by 54.5% to RMB 1,175,538,000, driven by increased overseas demand[18] - The domestic sales of mold steel decreased by 23.5% to RMB 1,216,376,000, reflecting a strategic focus on meeting export demand[18] - In 2021, the overall revenue from high-speed steel increased by 29.6% to RMB 1,005,436,000, compared to RMB 775,501,000 in 2020[24] - High-speed steel export revenue surged by 81.2% to RMB 435,075,000 in 2021, up from RMB 240,162,000 in 2020[23] - Domestic demand for high-speed steel remained stable, with revenue increasing by 6.5% to RMB 570,361,000 in 2021, compared to RMB 535,339,000 in 2020[23] - The cutting tools segment accounted for 18.4% of total revenue in 2021, with overall revenue rising by 20.9% to RMB 1,057,984,000 from RMB 875,166,000 in 2020[25] - Cutting tools export revenue increased by 24.9% to RMB 772,564,000 in 2021, compared to RMB 618,529,000 in 2020[26] - Titanium alloy revenue grew by 54.4% to RMB 263,146,000 in 2021, up from RMB 170,474,000 in 2020, driven by a 50.5% increase in sales volume[30] Production Capacity and Expansion - The annual production capacity for mold steel reached 300,000 tons after the completion of a 50,000-ton expansion project, enhancing competitiveness[13] - The company completed a 50,000-ton high-alloy tool steel capacity expansion project by the end of 2021, enhancing its production capabilities[63] - The company plans to complete the second phase of its Thailand project by the end of 2022, aiming to double its production capacity to nearly 100 million pieces[71] - The factory in Thailand has an annual production capacity of 48 million pieces, utilizing fully automated production lines to enhance efficiency[63] - The company is committed to achieving a production capacity of 300,000 tons of alloy tool steel after the completion of its expansion projects[67] Financial Management and Investments - The company's interest-bearing borrowings amounted to RMB 2,638,786,000 as of December 31, 2021, down from RMB 3,365,819,000 in 2020[84] - The adjusted net debt-to-equity ratio was 0.0% as of December 31, 2021, a significant decrease from 43.6% in 2020[84] - Capital expenditures for 2021 amounted to RMB 136,820,000, mainly due to investments in powder metallurgy production lines[89] - As of December 31, 2021, the group's capital commitments were RMB 1,022,087,000, significantly up from RMB 544,430,000 in 2020, with a large portion related to heavy forging production lines and new projects in Thailand[89] - The group raised approximately HKD 834,000,000 from the placement of 200,000,000 shares at HKD 4.22 each, representing 7.16% of the expanded issued share capital[91] Operational Efficiency and Digital Transformation - The company has invested heavily in digital transformation through the "Smart Tian Gong" digital information system to enhance operational efficiency[80] - The company has expanded its online sales channels significantly, leveraging major e-commerce platforms to boost sales during the pandemic[78] - The net cash generated from operating activities was RMB 542,300,000 for the year, a decrease from RMB 1,307,414,000 in 2020, primarily due to increased inventory in anticipation of demand[85] - In 2021, the cash conversion cycle was 181 days, an increase from 175 days in 2020, primarily due to inventory buildup in anticipation of sales growth and rising material costs[87] - The inventory turnover days increased to 167 days in 2021 from 156 days in 2020, reflecting a strategic decision to stock up on inventory[87] Human Resources and Employee Management - Employee costs increased to RMB 360,069,000 in 2021 from RMB 267,114,000 in 2020, attributed to higher production levels and the removal of COVID-19 social insurance exemptions[98] - The group implemented a "New Employee Orientation Training Management Method" to standardize training for new employees, ensuring they quickly adapt to the corporate culture and systems[126] - The group established a "Safety Production Responsibility System" to clarify safety responsibilities across various levels, aiming to reduce the frequency and severity of safety incidents[128] - The group conducts regular employee health checks, including pre-employment, annual, and exit medical examinations, to ensure employee well-being[128] - The company emphasizes the importance of human resources, providing competitive compensation and regular training to enhance productivity[107] Environmental, Social, and Governance (ESG) Initiatives - The company has integrated ESG principles into its governance structure, with the board overseeing ESG strategies and risk management[121] - An ESG working group has been established to assist the board in implementing ESG policies and monitoring progress towards development goals[123] - The company has set multiple medium to long-term ESG development goals, which have been reviewed and approved by the board[123] - The group identified three ESG risks at a "medium" level and twelve at a "low" level, with no risks classified as "high" or "very high" during the reporting period[126] - The group has implemented an environmental protection management system and various regulations to enhance environmental compliance and reduce negative impacts[148] Safety and Quality Management - The group follows GB/T19001-2016/ISO9001:2015 standards for quality management, ensuring product quality throughout its lifecycle[130] - The group has a structured approach to product quality control, including raw material sampling and testing of finished products before market release[130] - The group emphasizes continuous improvement in risk management and internal control systems to enhance shareholder returns[133] - The group has established a comprehensive safety production management system to achieve the goal of zero casualties in safety work[195] - All employees are required to undergo comprehensive safety training, ensuring familiarity with all safety management systems before officially performing their duties[198] Community Engagement and Environmental Protection - The company is committed to community engagement and environmental protection through various charitable activities and initiatives[147] - The group successfully achieved its annual environmental management goals, including no more than 5 major environmental pollution incidents and 100% compliance with hazardous waste disposal standards[152] - The group aims to reduce direct and indirect greenhouse gas emissions by improving energy efficiency and utilizing renewable energy sources[153] - The group has implemented a real-time monitoring system to ensure compliance with national standards for wastewater and waste gas emissions[157] - The group has established a water recycling system to reuse treated wastewater for cooling production equipment[159]

（於開曼群島註冊成立的有限公司） 股份代號：826 中期報告 2021 僅供識別 目錄 公司資料 2 管理層討論及分析 3 董事會報告 17 獨立審閱報告 23 綜合損益表 24 綜合損益及其他全面收益表 25 綜合財務狀況表 26 綜合權益變動表 28 簡明綜合現金流量表 30 未經審核中期財務報告的附註 31 公司資料 註冊名稱 Tiangong International Company Limited （天工國際有限公司） 中文名稱 天工國際有限公司 股份代號 香港聯交所：826 董事會 執行董事 朱小坤先生 （主席） 吳鎖軍先生 嚴榮華先生 蔣光清先生 獨立非執行董事 高翔先生 李卓然先生 王雪松先生 公司秘書 李榮先生 授權代表 李卓然先生 李榮先生 審核委員會 李卓然先生 （主席） 高翔先生 王雪松先生 薪酬委員會 王雪松先生 （主席） 朱小坤先生 高翔先生 李卓然先生 提名委員會 高翔先生 （主席） 朱小坤先生 王雪松先生 李卓然先生 開曼群島註冊辦事處 P.O. Box 309 G.T. Ugland House South Church Street George Town, Grand ...