QRUNNINGCABLE(BJ:834682)2023-03-30 16:00Recognition and Awards - Ningbo Qrunning Cable Co., LTD was recognized as a "National Specialized and Innovative 'Little Giant' Enterprise" in September 2022[6]. - The company won the "Golden Bull Award" for high-quality development at the 24th Annual Golden Bull Award Ceremony in December 2022[7]. - The company received four honors from the China Quality Inspection Association, including "Leading Brand in the Wire and Cable Industry" and "National Quality Inspection Trusted Products" in the first quarter[7]. - The company has been recognized as a national-level "specialized, refined, distinctive, and innovative" small giant enterprise and received multiple quality honors during the reporting period[49]. - The company has been awarded the "Most Socially Responsible Award" by the China Social Welfare Foundation, reflecting its commitment to social responsibility[104]. Financial Performance - The company's operating revenue for 2022 was CNY 2,656,226,235.10, a decrease of 1.18% compared to CNY 2,688,053,061.23 in 2021[27]. - The net profit attributable to shareholders for 2022 was CNY 108,104,318.20, representing a 31.82% increase from CNY 82,011,714.15 in 2021[27]. - The gross profit margin improved to 12.62% in 2022 from 11.11% in 2021[27]. - Total assets at the end of 2022 were CNY 1,858,045,664.69, a decrease of 3.30% from CNY 1,921,379,025.55 in 2021[29]. - The total liabilities decreased by 11.34% to CNY 852,165,857.04 in 2022 from CNY 961,203,536.10 in 2021[29]. - The cash flow from operating activities for 2022 was CNY 168,591,102.68, a significant improvement of 230.24% compared to -CNY 129,442,076.86 in 2021[31]. - The weighted average return on equity for 2022 was 11.11%, up from 8.77% in 2021[27]. - The company reported a basic earnings per share of CNY 0.52 for 2022, an increase of 33.33% from CNY 0.39 in 2021[27]. Market Position and Competition - The company faces significant market competition with approximately 4,000 enterprises in the wire and cable industry, leading to intensified competition in the low and medium voltage power cable market[13]. - The company ranked 32nd in the list of the most competitive companies in the Chinese wire and cable industry for 2022[50]. - The competitive landscape remains challenging with over 12,000 companies in the cable industry, necessitating strategic measures to maintain market share and profitability[123]. Research and Development - The company completed the development of 11 new products, including B1 grade flame-retardant special cables for rail transit and high-voltage cables for electric vehicles, and received 5 national patent authorizations during the reporting period[48]. - R&D expenditure amounted to ¥88,209,331.62, representing 3.32% of operating revenue, an increase from 3.21% in the previous year[88]. - The total number of R&D personnel was 113, with a proportion of 19.28% of total employees, slightly up from 19.19%[90]. - The company holds 47 patents, down from 51 in the previous year, with 12 of them being invention patents[91]. - The company is actively developing new technologies, including energy-saving and environmentally friendly cables, to align with market trends and enhance brand image[93]. Supply Chain and Raw Materials - The company reported that copper materials account for over 80% of its main business costs, making it vulnerable to fluctuations in copper prices[13]. - The company has established measures to lock in costs through forward contracts for copper procurement[124]. - The company sourced 87.90%, 90.42%, and 89.29% of its total procurement from the top five suppliers in 2020, 2021, and 2022 respectively, indicating a high supplier concentration risk[130]. Corporate Governance and Shareholder Relations - The company has established measures to compensate for any dilution of immediate returns to shareholders[145]. - The company plans to distribute cash dividends to shareholders not less than 10% of the distributable profits achieved in each year for the next three years after listing on the selected layer[146]. - The company has committed to ensuring that any undistributed profits will be used to meet the funding needs for its development[146]. - The company has not reported any major changes in its financial dealings with related parties, maintaining a stable financial environment[143]. Future Outlook and Strategic Initiatives - The company is positioned to benefit from the national investment of over 2.9 trillion CNY in power grid construction during the "14th Five-Year Plan" period[52]. - The company aims to enhance its R&D capabilities and product quality, focusing on cost reduction and efficiency improvements to strengthen its competitive position[119]. - In 2023, the company plans to expand its market presence, particularly in the rail transit, petrochemical, photovoltaic, and wind power sectors, to achieve steady sales growth[117]. - The company will continue to implement a cost leadership strategy to strengthen its position in the medium and low voltage cable market while focusing on the development of special and ultra-high voltage cables[123]. Social Responsibility and Environmental Initiatives - The company donated 1 million yuan to support the "Qiu Guan Public Welfare Assistance Action (2022)" project, contributing to rural development and poverty alleviation efforts[104]. - The company has expanded its rooftop solar power generation facilities, promoting green development and energy conservation initiatives[109]. - The company has implemented a green supply chain management system and achieved certification during the reporting period[49].