那么普林呢是我们公司这几年新打造的一个品牌那么他的这个slogan是为电动时代而生我们在中国市场推出的一些电动车轮胎都是在这个普林的品牌下面去进行一个营销 那么我们普林城商的这个公司体量呢按照23年全球商业企业75强的排行榜呢我们当时是以22年的营业收入来计呢我们当时是位列第28位那么希望在今年的这个情况呢会有一个改变因为23年我们的营业收入增长是领先了几个位置 那么在中国的这个橡胶工业百强企业中轮胎类呢我们当时二三年呢是位列第八位啊那么这个排名呢同样它是以二二年的营业收入来计那么如果是以二三年的营业收入来计呢我们有机会提前两到三个位置 这就是我们公司在行业中一个整体的一个体量那我们公司的发展历程的分为几个阶段那么公司的前身是荣城市橡胶厂那么他是在1976年是比较早开始发展这个轮胎轮胎这个行业在90年代的时候呢我们建立了国内首条的子午线轮胎生产线 在03年的时候,龙城市橡胶厂改制成为成山集团。那么在04年的时候,我们是中国当时的第三大轮胎制造商。 以及中国轮胎行业的一个三观网在05年到14年期间公司进入了一个合资期我们与美国库珀成立了一个库珀诚山山东轮胎有限公司那么我们是在14年的时候库珀提出退出当时诚山集团 ...

首先有请曹总各位下午好我是曹雪玉我是普林承商的投资者关系那么非常感谢今天下午大家有时间来我们一起交流一下我们普林承商的一个情况我今天的介绍是以我们公司2023年的年度业绩报告作为一个框架那么通过这样一个框架我们希望可以为各位介绍一下我们公司 我们的产品我们的市场以及我们的这个一些的这个这个不同的产品结构那我接下来就是首先介绍一下我们公司的概况 普利城山是一家拥有高增长网级的成熟轮胎制造商我们在山东和泰国有两大生产基地有三个产品品类主要是全钢胎半钢胎和斜焦胎那我们的产品是通过四个品牌销往全球市场首先是城山轮胎那么城山轮胎是我们最早的一个品牌那么它在卡克车司机这个领域有非常良好的口碑 那么我们为了在海外市场以及其他的一些细分市场推出我们的产品我们的奥通和复神就是这样的品是这样是通过奥通和复神这两个品牌来销往全球市场普林是我们新培育的一个品牌它主要侧重于一个高端的市场 在2023年的中国橡胶工业百强企业轮胎类的排名中我们以2022年的营业收入我们当时是位列中国轮胎的第八位那么我们根据2023年的营业收入我们目测应该我们是属于第五第六位是这样的一个体量 那普林城山的发展有它的这样一个历程那么它最早是在1976年在山东 ...

研究报告Research Report 24 May 2024 浦林成山 Prinx Chengshan Holdings (1809 HK) 2023 年净利润同比增长 162%，重点项目为公司增长奠定基础 2023 Net Profit +162% YoY & Key Projects Lay the Foundation for Company Growth [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab维le_持Inf优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 评级 优于大市OUTPERFORM  2023 年净利润同比增长 162%。2023 年公司实现营收人民币 99.5 亿元，同比增长 22%。公司实现净利润人民币 10.3 亿元， 现价 HK$9.08 目标价 HK$9.43 同比增长 162%。2023 年，公司坚定不移地实施全球化战略， 通过智能制造、技术创新与精益管理，持续增强核心竞争优 HTI ESG 4.0-4.0-4.0 势。得益于在乘用车轮胎领域 ...

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 9,948.983 million, a 22.0% increase from RMB 8,151.952 million in 2022[11]. - Net profit for the same period was RMB 1,033.440 million, reflecting a significant increase of 162.4% compared to RMB 393.822 million in 2022[12]. - Gross profit margin improved to 21.3%, up from 14.3% in the previous year, indicating enhanced operational efficiency[12]. - EBITDA for the year was RMB 1.71 billion, reflecting a year-on-year growth of 102.4%[18]. - The gross profit for the fiscal year ending December 31, 2023, was approximately RMB 2,121.7 million, an increase of about 81.4% from RMB 1,169.8 million, resulting in a gross margin of 21.3% compared to 14.3% in 2022[65]. - The company's net profit for the fiscal year ending December 31, 2023, rose to approximately RMB 1,033.4 million, an increase of about RMB 639.6 million from RMB 393.8 million in the previous year, primarily due to increased revenue and lower raw material prices[74]. Assets and Liabilities - Total assets increased to RMB 10,602.448 million, a rise from RMB 9,985.743 million in 2022[12]. - The total liabilities decreased to RMB 5,168.705 million from RMB 5,533.874 million in 2022, improving the company's financial stability[12]. - The capital debt ratio as of December 31, 2023, was 8.7%, down from 19.1% in 2022, indicating improved financial stability[84]. - Trade receivables increased to RMB 1,860.4 million as of December 31, 2023, up by approximately RMB 547.9 million from RMB 1,312.5 million in 2022, driven by revenue growth[79]. - Inventory as of December 31, 2023, was RMB 1,637.5 million, an increase of RMB 360.1 million from RMB 1,277.4 million in 2022, attributed to increased production and year-end raw material reserves[78]. Market and Sales Performance - The sales volume of semi-steel radial tires grew by 42.7%, while the sales volume of all-steel radial tires increased by 20.5%[19]. - The company sold approximately 25.0 million tires in 2023, representing a year-on-year increase of 35.1%[26]. - The average operating rate for semi-steel radial tires was 69%, an increase of 9.4% compared to 2022[23]. - The average operating rate for all-steel radial tires reached 60.2%, up by 8.2% year-on-year[23]. - The company's international marketing revenue amounted to RMB 6,326.2 million, reflecting a year-on-year growth of 11.9%, with approximately 49.1% of this revenue coming from the Thailand tire production base[36]. Research and Development - The company continues to focus on tire design, R&D, manufacturing, and sales, positioning itself as a leading manufacturer in the Chinese commercial tire market[14]. - Research and development expenses increased by approximately 4.7% to RMB 240.0 million, reflecting the growth in R&D projects[68]. - A total of 463 new products were developed in 2023, including 70 all-steel radial tires and 393 semi-steel radial tires[50]. - The company obtained 52 new patents in 2023, bringing the total to 382 intellectual property rights granted[50]. - The company is actively developing 26 new all-steel radial tire patterns and 181 semi-steel radial tire patterns to meet market demand and expand overseas[54]. Strategic Initiatives - The company aims to maintain its core competitiveness and market leadership by leveraging its R&D advantages into product competitiveness[21]. - The company plans to continue developing high-performance products and expanding its market presence through innovative strategies[21]. - The company is focusing on internationalization and enhancing its management philosophy to optimize production, R&D, and sales processes[21]. - The company has established friendly relations with local governments and communities in Thailand, engaging in social responsibility activities[57]. - The company is committed to sustainable development by promoting the use of environmentally friendly materials and enhancing tire retreading technology[59]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[108]. - The board includes members with significant legal and financial expertise, enhancing governance and strategic oversight[110]. - The company has established a robust framework for risk management and strategic development through its committees[110]. - The company has undergone changes in its board of directors, with new appointments effective from March 28, 2024[118]. - The company has a focus on enhancing its international sales operations, particularly in Southeast Asia, Oceania, and Russia[115]. Shareholder Information - The company reported a final dividend of HKD 0.30 per ordinary share for the year ending December 31, 2023, subject to shareholder approval at the annual general meeting on May 31, 2024[137]. - The company has confirmed that no shareholders have waived or agreed to waive any dividends for the year ended December 31, 2023[176]. - The controlling shareholders hold 69.43% of the issued share capital of the company as of the report date[191]. - Major shareholder Sinotruk (BVI) Limited holds 61,400,000 shares, accounting for 9.65% of the company's equity[169]. - The company has maintained at least 25% of its issued shares held by the public, complying with the minimum public float requirement[193].

[Table_StockInfo] 买入 2024年 04月 01日 （维持） 证券研究报告• 2023年年报点评 当前价： 6.90港元 浦林成山（1809.HK） 汽车 目标价： 11.98港元 全年业绩大幅增长，加码泰国三期项目 投资要点 西南证券研究发展中心 [T ab事le件_S：u3m月m2a8ry日] ，公司发布2023年年度业绩公告，2023年实现营业收入99.49 亿元，同比增长22.04%；归母净利润10.33亿元，同比增长162.18%；毛利率 [分Ta析bl师e_：Au郑th连or声] 为 21.3%，同比提高7.0pp，净利率为10.4%，同比提高5.6pp。 执业证号：S1250522040001 电话：010-57758531  2023年轮胎行业需求复苏，公司产品销量大增。据国家统计局和海关总署数据， 邮箱：zlans@swsc.com.cn 2023年，国内橡胶轮胎外胎产量累计9.9亿条，同比增长15.5%；出口累计6.2 亿条，同比增长11.6%，轮胎消费需求回升明显。2023年公司实现轮胎销量2500 联系人：冯安琪 万条，同比增长 35.1%。其中，全钢胎销量 81 ...

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 9,948,983,000, representing a year-over-year increase of 22.0% from RMB 8,151,952,000 in 2022[9]. - The gross profit for the same period was RMB 2,121,708,000, with a gross margin of 21.3%, up from 14.3% in 2022, indicating a significant improvement in profitability[9][14]. - The net profit attributable to shareholders was RMB 1,033,391,000, reflecting a remarkable increase of 162.4% compared to RMB 393,783,000 in the previous year[9][14]. - Basic earnings per share for the year were RMB 1.62, compared to RMB 0.62 in 2022, showcasing strong earnings growth[9]. - The company’s EBITDA for 2023 was RMB 1.71 billion, reflecting a growth of 102.4% year-on-year[25]. - The total sales revenue for the year was approximately RMB 9,949 million, reflecting a year-on-year growth of 22.0%, while gross profit reached approximately RMB 2,122 million, up 81.4%[38]. - The net profit attributable to the company's owners for the year was approximately RMB 1,033 million, representing a year-on-year increase of 162.4%[38]. Asset and Liability Management - Total assets increased to RMB 10,602,448,000, up from RMB 9,985,743,000 in 2022, indicating robust asset growth[11]. - The company's total liabilities decreased to RMB 5,168,705,000 from RMB 5,533,874,000 in 2022, improving the overall financial stability[11]. - The return on equity (ROE) improved to 20.9% in 2023, compared to 9.4% in 2022, highlighting enhanced shareholder value creation[13]. - The capital debt ratio as of December 31, 2023, was 8.7%, down from 19.1% in 2022, calculated as net earnings/debt divided by total capital[115]. - The company’s bank borrowings decreased to approximately RMB 1,211.30 million from RMB 2,203.30 million in 2022, indicating improved financial management[106]. Market Expansion and Sales Growth - The sales volume of semi-steel radial tires grew by 42.7%, while the sales volume of all-steel radial tires increased by 20.5%[27]. - The company established three major sales centers in China, North America, and Europe to enhance its global development layout[19]. - The company sold approximately 25.0 million tires during the reporting period, a year-on-year increase of 35.1%, with sales of all-steel radial tires at about 8.1 million (up 20.5%) and semi-steel radial tires at about 16.4 million (up 42.7%)[38]. - The company expanded its international marketing channels, achieving a sales volume of 17.36 million tires, a 32.8% increase year-on-year, and an operating income of RMB 6,326.2 million, an 11.9% increase[52]. - Revenue from direct sales to automotive manufacturers increased by 64.8% to RMB 1,020.3 million, up from RMB 619.1 million in 2022, primarily due to growth in the domestic commercial vehicle and export markets[54]. Research and Development - The company plans to continue its internationalization strategy and enhance product quality and innovation capabilities to meet high-end tire market demands[30]. - The company developed 463 new products during the reporting period, including 70 all-steel radial tires and 393 semi-steel radial tires, enhancing market competitiveness[72]. - Research and development expenses rose by approximately 4.7% to RMB 240.00 million, reflecting an increase in R&D projects[95]. - The company is committed to enhancing its research and development capabilities to adapt to market changes and improve product offerings for various regions[128]. - The company has allocated 50 million for research and development in new tire technologies, aiming to enhance performance and sustainability[176]. Strategic Initiatives - The company maintains a strategic focus on cost leadership, efficiency-driven operations, and global expansion, with production bases in China and Thailand[15][17]. - Future outlook includes continued investment in research and development for new tire technologies and expansion into international markets[15]. - The company plans to enhance its market presence through strategic partnerships and potential acquisitions to drive growth[15]. - The company is actively pursuing international expansion and has established overseas production bases to optimize capacity and mitigate trade policy risks[35]. - The company is implementing a multi-brand and differentiated development strategy to enhance brand awareness and influence through product, brand, and market strength[55]. Sustainability and Corporate Responsibility - The group is committed to sustainable development and has been recognized as a "Green Low-Carbon Enterprise" in Shandong Province[81]. - The company is pursuing a "green and sustainable development" strategy by promoting the use of environmentally friendly materials and enhancing tire recycling technologies[85]. - The company is integrating climate risk management into its overall risk management framework[131]. - The company is preparing emergency plans and safety stock measures to address potential disruptions caused by natural disasters and extreme weather events[131]. Governance and Management - The company has a diverse board with members holding various qualifications, including CPA and advanced financial management certifications, enhancing governance and oversight capabilities[149][152][155]. - The company is focused on strategic guidance and risk management, with Mr. Che Hongzhi serving as the chairman and providing professional advice since the group's inception[149]. - The board includes independent directors with extensive legal and financial backgrounds, which strengthens the company's compliance and strategic decision-making processes[155]. - The company has established subsidiaries in various regions, including Thailand and Hong Kong, to support its market expansion strategy[146]. - The company emphasizes the importance of continuous professional development for its management team, with members holding advanced degrees and certifications[147][152].

Financial Performance - For the first half of 2023, the company's revenue reached RMB 4,336,159 thousand, representing an increase of 6.0% compared to RMB 4,091,195 thousand in the same period of 2022[12]. - The company's profit before tax was RMB 378,064 thousand, a significant increase of 184.5% from RMB 133,034 thousand in the first half of 2022[12]. - The net profit attributable to shareholders was RMB 327,134 thousand, up 106.5% from RMB 158,577 thousand in the same period last year[12]. - Revenue for the reporting period was approximately RMB 4,336.2 million, an increase of 6.0% year-on-year, while gross profit rose by 53.3% to approximately RMB 823.1 million[19]. - Net profit attributable to the company's owners reached approximately RMB 327.1 million, marking a significant year-on-year increase of 106.3%[19]. - Operating profit for the six months ended June 30, 2023, was approximately RMB 412.5 million, an increase of about RMB 254.8 million compared to the previous year[64]. - Total comprehensive income for the period was RMB 437,996 thousand, compared to RMB 289,469 thousand in the previous year, marking a growth of 51.6%[132]. - Basic and diluted earnings per share for the period were RMB 0.51, compared to RMB 0.25 in the same period last year, reflecting a 104.0% increase[131]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 10,028,405 thousand, a slight decrease from RMB 10,313,272 thousand at the end of 2022[12]. - The company reported a total liability of RMB 5,251,225 thousand, down from RMB 6,208,052 thousand in the previous year[12]. - Cash and cash equivalents as of June 30, 2023, were approximately RMB 989.2 million, a decrease of about RMB 183.5 million from RMB 1,172.7 million as of December 31, 2022[68]. - Trade receivables increased to approximately RMB 1,550.0 million as of June 30, 2023, from RMB 1,312.5 million as of December 31, 2022, reflecting higher sales revenue[72]. - The capital-to-debt ratio as of June 30, 2023, was 14.3%, down from 19.1% as of December 31, 2022, calculated based on earnings/debt net of total capital[80]. Market and Sales Performance - The demand for tires in the domestic market improved significantly, driven by the recovery of the Chinese economy and increased overseas market demand[18]. - In the first half of 2023, the production and sales of commercial vehicles in China increased by 16.9% and 15.8% year-on-year, respectively[18]. - The company sold approximately 11.5 million tires in the first half of 2023, representing a year-on-year growth of 22.8%[19]. - The group's revenue from domestic distributors reached approximately RMB 1,128.5 million, an increase of 29.4% compared to RMB 872.3 million in the same period of 2022[29]. - International marketing generated revenue of approximately RMB 2,727.0 million, a decrease of about 5.5% from RMB 2,887.1 million in the same period of 2022, with 44.5% of revenue coming from the Thailand tire production base[29]. Research and Development - The company aims to lead tire innovation and contribute to sustainable development in the industry[3]. - The company completed 97 Lean Six Sigma projects at its Shandong tire production base, with 1,018 rationalization suggestions implemented in the first half of 2023[21]. - The company has accumulated 347 intellectual property rights, including 16 invention patents, 181 utility model patents, and 150 design patents by the end of the reporting period[42]. - The company has made breakthroughs in key technologies such as A-class rolling resistance, wet grip, and heavy-duty tire bead performance improvement, contributing to product innovation[42]. - The company has enhanced its digital R&D capabilities through the construction of a Product Lifecycle Management (PLM) platform, improving design and testing capabilities[42]. Sustainability and Environmental Initiatives - The company is promoting the use of new environmentally friendly materials and enhancing tire retreading technology as part of its commitment to sustainable development[50]. - The company has initiated a "carbon footprint" project at its Shandong tire production base to monitor and reduce carbon emissions[48]. - The group organized 77 emergency drills for flood prevention and fire safety at its Shandong tire production base during the reporting period to manage climate change risks[88]. Employee and Management - Employee welfare expenses for the first half of 2023 were approximately RMB 316.6 million, compared to RMB 289.5 million for the same period in 2022, reflecting a year-on-year increase[92]. - The company employed 6,405 staff as of June 30, 2023, up from 6,144 employees at the end of 2022, indicating a growth in workforce[92]. - The company has implemented a performance management system and a value-oriented compensation system to enhance employee engagement and productivity[92]. - The company has established partnerships with several universities for talent development, enhancing its employer brand and reputation in the industry[93]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[116]. - The company has maintained compliance with the corporate governance code throughout the reporting period[114]. - The company did not declare any interim dividend for the six months ended June 30, 2023[116]. Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, which are essential for ongoing risk management strategies[150]. - The group has not made significant changes to risk management policies since the year-end[150]. - The group reported a liquidity risk analysis showing no significant changes in the contractual undiscounted cash outflows of financial liabilities compared to the previous year-end[151].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 4,336,159 thousand, representing an increase from RMB 4,091,195 thousand in the same period of 2022, which is a growth of approximately 6%[12]. - The company's profit before tax for the same period was RMB 378,064 thousand, significantly up from RMB 133,034 thousand in the previous year, marking an increase of approximately 184%[12]. - The net profit attributable to shareholders for the first half of 2023 was RMB 327,134 thousand, compared to RMB 158,577 thousand in the prior year, reflecting a growth of about 106%[12]. - Revenue for the reporting period was approximately RMB 4,336.2 million, an increase of 6.0% year-on-year, while gross profit rose by 53.3% to approximately RMB 823.1 million[19]. - Net profit attributable to the company's owners reached approximately RMB 327.1 million, marking a significant year-on-year increase of 106.3%[19]. - Operating profit for the six months ended June 30, 2023, was approximately RMB 412.5 million, an increase of about RMB 254.8 million compared to the previous year[64]. - Total comprehensive income for the period was RMB 437,996 thousand, compared to RMB 289,469 thousand in the previous year, marking a growth of 51.5%[132]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 10,028,405 thousand, a slight decrease from RMB 10,313,272 thousand at the end of 2022[12]. - The company’s total liabilities decreased to RMB 5,251,225 thousand from RMB 6,208,052 thousand, indicating a reduction of approximately 15%[12]. - The company’s equity attributable to shareholders increased to RMB 4,777,339 thousand from RMB 4,105,400 thousand, representing a growth of about 16%[12]. - As of June 30, 2023, the capital debt ratio was 14.3%, a decrease from 19.1% as of December 31, 2022[80]. - The company reported a cash and cash equivalents balance of RMB 836,884 thousand, down from RMB 982,037 thousand at the end of 2022[134]. - The company’s total non-current assets reached RMB 5,508,380 thousand, an increase from RMB 5,378,599 thousand at the end of 2022, reflecting growth in asset base[172]. Sales and Market Performance - The demand for tires in the domestic market improved, driven by a recovery in the automotive industry, with commercial vehicle production and sales increasing by 16.9% and 15.8% respectively in the first half of 2023[18]. - The company sold approximately 11.5 million tires in the first half of 2023, representing a year-on-year growth of 22.8%[19]. - The group's revenue from domestic distributors reached approximately RMB 1,128.5 million, an increase of 29.4% compared to RMB 872.3 million in the same period of 2022[29]. - International marketing generated revenue of approximately RMB 2,727.0 million, a decrease of about 5.5% from RMB 2,887.1 million in the same period of 2022, with 44.5% of revenue coming from the Thailand tire production base[29]. - Direct sales to automotive manufacturers generated revenue of approximately RMB 480.7 million, an increase of 44.9% from RMB 331.8 million in the same period of 2022, driven by the recovery in domestic commercial vehicle demand[32]. Research and Development - The company completed 97 Lean Six Sigma projects at its Shandong tire production base, with 1,018 rationalization suggestions implemented in the first half of 2023[21]. - Research and development expenses increased to approximately RMB 126.7 million for the six months ended June 30, 2023, up about 12.9% from RMB 112.3 million in the same period of 2022[58]. - The company has accumulated 347 intellectual property rights, including 16 invention patents, 181 utility model patents, and 150 design patents by the end of the reporting period[42]. - The company launched the C901 electric bus tire, achieving a mileage benchmark of 104% in the industry, and received the first-class award for technological innovation in Shandong Province[46]. - The company aims to enhance tire performance and durability through ongoing technological innovation in response to market demands[84]. International Expansion and Market Strategy - The company is focusing on international expansion by establishing overseas production bases to enhance its competitive advantage in the global market[18]. - The group has expanded its international presence, launching the "PRINX" brand in Europe with a significant event in Milan in May 2023[34]. - The company is actively expanding its international market presence, developing new products tailored for North America and Europe[46]. - The company has successfully opened 61 new overseas distributors across 36 countries during the reporting period[29]. Employee and Organizational Development - Employee welfare expenses for the first half of 2023 were approximately RMB 316.6 million, compared to RMB 289.5 million for the same period in 2022, reflecting a year-on-year increase[92]. - The company had a total of 6,405 employees as of June 30, 2023, up from 6,144 employees as of December 31, 2022[92]. - The company has implemented a performance management system and a value-oriented compensation system to enhance employee engagement and organizational performance[92]. - The company has established partnerships with several universities for talent development, enhancing its employer brand and reputation in the industry[93]. Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[116]. - The company has complied with the Corporate Governance Code during the six months ended June 30, 2023[114]. - The company has not identified any violations of the standard code of conduct for securities trading by its employees during the reporting period[115]. Cash Flow and Dividends - Cash flow from operating activities for the six months ended June 30, 2023, was RMB 441,991 thousand, a significant improvement from a cash outflow of RMB 131,104 thousand in the same period of 2022[140]. - The company declared cash dividends amounting to RMB 114,190 thousand for the six months ended June 30, 2023, compared to RMB 108,818 thousand in the same period of 2022, representing an increase of approximately 4.0%[140]. Financial Risk Management - The group’s financial risk factors include market risk, credit risk, and liquidity risk, which are essential for assessing overall financial health[150]. - The group has not made any significant changes to risk management policies since the year-end, maintaining a consistent approach to financial risk management[150]. - The liquidity risk analysis shows no significant changes in the contractual undiscounted cash flows of financial liabilities compared to the previous year-end[151].

Stock Options Overview - Prinx Chengshan Holdings Limited reported a total of 53,365,500 stock options granted under the 2019 and 2021 stock option plans as of December 31, 2022[5]. - The company had 39,123,461 stock options that remained unexercised as of December 31, 2022, indicating a significant potential for future equity compensation[5]. - As of December 31, 2022, 1,956,407 stock options had been exercised, representing approximately 3.67% of the total options granted[5]. - The total number of stock options that have lapsed or been canceled was 0 as of December 31, 2022, indicating effective management of the stock option program[5]. Stock Option Plans - The exercise price for stock options granted in 2021 was set at HKD 8.568, with a total of 29,550,000 options granted[5]. - The 2019 stock option plan allows options to be exercised within a maximum period of six years from the grant date[7]. - The 2021 stock option plan allows options to be exercised within a maximum period of eight years from the grant date[8]. Performance and Management - The company’s stock options are subject to performance targets, which must be met before they can be exercised[6]. - The fair value of the stock options granted is subject to accounting standards and is based on subjective assumptions, which may introduce uncertainty[5]. - The company’s board of directors retains discretion over the exercise price of stock options, ensuring alignment with market conditions at the time of grant[7].

Financial Performance - Total revenue for 2022 reached RMB 8,151.95 million, an increase of 8.2% year-over-year from RMB 7,537.16 million in 2021[5]. - Net profit for 2022 was RMB 393.82 million, representing a significant increase of 42.5% compared to RMB 276.30 million in 2021[5]. - Gross profit margin improved to 14.3%, up by 0.5 percentage points from 13.8% in the previous year[7]. - Net profit margin increased to 4.8%, reflecting a rise of 1.1 percentage points from 3.7% in 2021[7]. - The company's equity attributable to shareholders reached RMB 4,452.03 million, an increase from RMB 3,920.33 million in 2021[7]. - Basic earnings per share for 2022 were RMB 0.62, compared to RMB 0.43 in 2021, marking a year-over-year increase of 44.2%[8]. - The total revenue for the year was approximately RMB 8,152.0 million, representing a YoY increase of about 8.2%, while gross profit reached approximately RMB 1,169.8 million, up 12.6% YoY[18]. - The net profit attributable to the company's owners was approximately RMB 393.8 million, reflecting a significant YoY growth of about 42.5%[18]. - The gross profit for the year ended December 31, 2022, was approximately RMB 1,169.8 million, up from RMB 1,039.1 million in 2021, reflecting a gross margin of approximately 14.3% compared to 13.8% in the previous year[62]. - The company reported a revenue growth of 8.2% for the year ended December 31, 2022, compared to 20.0% in 2021[152]. - Net profit increased by 42.5% in 2022, recovering from a decline of 54.3% in the previous year[152]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 9,985.74 million, up from RMB 9,100.41 million in 2021[7]. - Non-current assets increased to RMB 5,498.64 million, up from RMB 4,931.75 million in 2021[7]. - Current liabilities rose to RMB 3,996.53 million, compared to RMB 3,469.39 million in 2021[7]. - The debt-to-asset ratio stood at 55.4%, a slight decrease from 56.9% in the previous year[7]. - The company's debt-to-capital ratio as of December 31, 2022, was 19.1%, compared to 21.4% as of December 31, 2021[83]. - The company's debt-to-asset ratio decreased by approximately 1.5 percentage points year-on-year, reflecting improved profitability[154]. Production and Sales - In 2022, the company sold approximately 18.5 million tires, with sales of all-steel radial tires at about 6.7 million (up 2.4% YoY) and semi-steel radial tires at about 11.5 million (flat YoY)[18]. - The company achieved a 55% year-on-year increase in sales volume in the commercial vehicle tire replacement channel despite a challenging market environment[24]. - The company opened 17 new domestic dealers and added 109 five-star stores in 2022, bringing the total to 168 dealers and 679 five-star stores by year-end[25]. - The company is actively expanding its market presence in the passenger car tire replacement market, with significant sales growth and a nationwide sales network[25]. - The company is actively expanding into high-value tire products, particularly for electric vehicles, to capture market share in the replacement market[17]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic appointments and expertise in various sectors[112]. Research and Development - The group developed 375 new products and overcame over 20 key technologies during the year, enhancing its core competitiveness[14]. - The company has focused on developing high-performance, high-quality, and high-value-added tire products, particularly targeting the new energy vehicle market[38]. - The company has implemented smart manufacturing initiatives, including the establishment of a big data analysis platform and automation in inventory management at its Thailand production base[42]. - The company plans to enhance its tire technology innovation and R&D, focusing on creating value through technical applications[53]. - R&D expenses decreased from approximately RMB 254.0 million for the year ended December 31, 2021, to approximately RMB 229.2 million for the year ended December 31, 2022, a reduction of about 9.8%[65]. Market Strategy and Expansion - The group aims to maintain effective capital investment and enhance production efficiency to achieve balanced domestic and international development[14]. - The focus for 2023 includes deepening technological R&D innovation, particularly in high-end new energy tires, to capture market share with high-tech, high-value-added products[14]. - The company is seeking new profit growth points through brand building and new business development initiatives[18]. - The company plans to mitigate risks from anti-dumping and countervailing duties by expanding sales in non-U.S. markets and leveraging R&D to develop products for these markets[94]. - The company is committed to pursuing green and sustainable development by increasing research on key technologies such as ultra-low rolling resistance tires and self-repairing technologies[54]. Corporate Governance and Management - The management team includes experienced professionals with over 15 years in the automotive tire industry and over 30 years in accounting and financial management[106][107]. - The company has established a training academy to enhance employer branding and improve employee retention and integration[102]. - The board includes members with significant academic and professional achievements, contributing to the company's governance and oversight[115]. - The company has a strong board of directors with diverse backgrounds in finance, engineering, and management, enhancing its strategic decision-making capabilities[115]. - The company emphasizes a results-oriented employee capability evaluation mechanism to promote the selection and cultivation of outstanding talent[103]. Environmental and Social Responsibility - The wastewater discharge from the Shandong tire production base decreased by 39% year-on-year in 2022, with significant reductions in COD and ammonia nitrogen emissions[49]. - The Thailand tire production base achieved a water recovery rate of 62%, saving approximately RMB 560,000 in costs[49]. - The company expanded its green supply chain project to include supplier sustainability actions, focusing on ethical business practices and environmental responsibility[50]. - The company donated sports equipment to local schools and provided essential supplies to impoverished communities in Thailand[50]. - The company has established a comprehensive environmental management system to support its sustainable development goals[49]. Stock Options and Employee Engagement - The company has implemented a stock option plan aimed at attracting and retaining management and key employees, linking their interests to the company's performance[123]. - The profit-sharing plan aims to attract and retain key employees, linking personal performance to company performance[145]. - A total of 35,050,000 stock options were conditionally granted in 2021, with an exercise price of HKD 8.568 per share[125]. - The company aims to align the interests of management and key employees with the company's performance through the stock option plans[133]. Related Party Transactions - The annual cap for related party transactions with Chengshan Group for property leasing was set at RMB 8 million, with actual transactions amounting to approximately RMB 7.439 million for the year ended December 31, 2022[190]. - The annual cap for energy management services with Rongcheng Chengshan Energy Management was RMB 5 million, with actual transactions totaling RMB 4.838 million for the year ended December 31, 2022[190]. - The annual cap for property services with Rongcheng Chengshan Property was RMB 6.4 million, with actual transactions amounting to approximately RMB 5.964 million for the year ended December 31, 2022[190].