Financial Performance - For the year ended December 31, 2022, the Group's revenue increased by 13.6% to approximately RMB12,845.9 million compared to RMB11,303.1 million in 2021[14]. - Gross profit for the same period rose by 5.6% to RMB1,594.8 million, up from RMB1,509.7 million in 2021[14]. - Profit attributable to owners of the parent surged by 225.3% to RMB442.8 million, compared to RMB136.1 million in the previous year[14]. - Basic earnings per share increased to RMB0.33 from RMB0.10 in 2021, based on a weighted average of 1,357,854,935 shares issued during the year[17]. - The Group's overall revenue for the year reached RMB12,845.9 million, a 13.6% increase from RMB11,303.1 million in 2021[41]. - Profit for the period amounted to RMB464.4 million, compared to RMB166.7 million for the year ended December 31, 2021, with profit attributable to owners of the parent at RMB442.8 million[123]. Dividends and Shareholder Returns - The Board recommended a final dividend of 10 HK cents per share for the year ended December 31, 2022, compared to no dividend in 2021[18]. - The Group did not declare or pay any interim or special dividends during the year ended December 31, 2022[19]. Revenue Breakdown - Revenue from the battery business amounted to RMB10,432.8 million, a 12.8% increase from RMB9,249.2 million in the same period of 2021, driven by a 25.8% growth in overseas markets and 1.9% in the PRC market[39]. - Sales of reserve power batteries reached RMB6,006.1 million, representing a 26.2% increase compared to RMB4,758.9 million in 2021, accounting for approximately 57.6% of total battery sales revenue[44]. - Revenue from recycled lead products was RMB2,413.0 million, an increase of 17.5% from RMB2,053.9 million in 2021, despite higher collection costs impacting profit margins[56]. - SLI battery sales decreased by 4.9% to RMB2,860.1 million from RMB3,006.0 million in 2021, representing 27.4% of total battery sales revenue[46]. - Motive power batteries recorded sales revenue of RMB1,258.3 million, a 2.9% increase from RMB1,223.1 million in 2021, accounting for approximately 12.1% of total battery sales revenue[51]. Market Expansion and Strategy - The Group plans to expand its business with key accounts and strengthen its distribution sales network in various battery segments, with a focus on the aftermarket as a driving engine for sales and profit[28]. - The lithium battery and Energy Storage System applications are identified as another key growth driver for the company[28]. - The Group's sales network spans over 100 countries and regions, with more than 80 sales offices and centers globally, employing over 700 dedicated sales and marketing staff[57]. - The Group anticipates that the APAC region will be a major contributor to overseas business growth in 2023, driven by China's economic recovery[112]. - The Group aims to expand its market share in China by investing sufficient resources in the new energy vehicle segment, which includes partnerships with major domestic brands[100]. Research and Development - The company is investing more in technology and product development, with a R&D team of 1,000 engineers, enabling the production of over 3,000 different battery models and holding more than 900 patents[29]. - R&D expenses surged by 59.9% to RMB 382.9 million, focusing on enhancing existing products and developing new ones[144]. - The battery R&D team consists of over 350 researchers and technicians, focusing on new models of lead-acid and lithium-ion batteries[62][64]. Economic and Market Conditions - The global economic growth is projected to fall to 2.9% in 2023, with inflation expected to decrease to 6.6%[78][81]. - The automobile market in China is expected to grow at a rate of approximately 3% in 2023, supported by economic stabilization policies and alleviation of chip supply shortages[96]. - The demand for reserve power batteries for 5G applications in the PRC market is increasing, with expectations for further growth due to infrastructure development[89][92]. Operational Efficiency - The Group's cost of sales increased by 14.9% to RMB 11,251.1 million, primarily due to increased sales volume[136]. - Gross profit rose by 5.6% to RMB 1,594.8 million, but the overall gross profit margin decreased from 13.4% in 2021 to 12.4% in 2022[137]. - The Group's factory has maintained full capacity operations despite industry-wide challenges, contributing to sustained growth in recycled lead output[118]. Employee and Workforce Management - Employee benefit expenses totaled RMB1,053.1 million for the period, an increase from RMB1,020.2 million in 2021, covering wages, bonuses, and retirement benefits[191]. - The Group has established a share option scheme for selected participants to incentivize and reward contributions[193]. - The Group encourages continuous education and training for employees to enhance their skills and personal development[193]. Future Outlook - The Group plans to invest in a battery assembly plant in Mexico in 2023 to enhance competitiveness in the Americas[67]. - The establishment of a lithium battery recycling business is planned for 2023, following a careful evaluation of the industry's future prospects[119].
理士国际(00842) - 2022 - 年度财报