TELLHOW(600590)2023-04-28 16:00Financial Performance - Revenue for 2022 reached 6,190,555,977.61 RMB, a 2.11% increase compared to 2021[21] - Net profit attributable to shareholders decreased by 16.25% to 77,366,841.28 RMB in 2022[22] - Operating cash flow worsened significantly, with a net outflow of 1,275,178,207.76 RMB, a 112.10% decline from 2021[22] - Total assets slightly decreased by 0.34% to 13,995,404,599.44 RMB at the end of 2022[22] - Shareholders' equity decreased by 5.82% to 3,535,317,491.24 RMB at the end of 2022[22] - Basic earnings per share decreased by 18.18% to 0.09 yuan per share in 2022 compared to 0.11 yuan per share in 2021[23] - Weighted average return on equity decreased by 0.46 percentage points to 2.04% in 2022[23] - Revenue for Q4 2022 was 3.13 billion yuan, significantly higher than the previous quarters (Q1: 983.24 million yuan, Q2: 870.46 million yuan, Q3: 1.20 billion yuan)[25] - Net profit attributable to shareholders in Q4 2022 was -183.08 million yuan, a sharp decline compared to Q1 (151.20 million yuan), Q2 (101.09 million yuan), and Q3 (8.16 million yuan)[25] - Non-recurring gains and losses in 2022 amounted to 351.33 million yuan, a decrease from 504.85 million yuan in 2021[27] - The company achieved a total operating revenue of 6,190.56 million yuan in 2022, a year-on-year increase of 2.11%[49] - Net profit for 2022 was 143.56 million yuan, a decrease of 5.75 million yuan compared to the previous year[49] - The company's operating cash flow was -1.275 billion yuan, a decrease of 112.10% compared to the previous year[50] - Investment cash flow was 159.32 million yuan, a decrease of 59.18% compared to the previous year[50] - Financing cash flow was 535.71 million yuan, an increase of 45.79% compared to the previous year[50] - The company's 2022 net profit was -107,210,865.53 yuan, with accumulated undistributed profits of -273,397,601.49 yuan[127] - The company's net profit attributable to shareholders after deducting non-recurring gains and losses in 2022 was RMB -273.97 million, a 33.58% improvement compared to 2021[187] - The company's debt-to-asset ratio decreased slightly from 69.18% in 2021 to 68.49% in 2022, mainly due to the reduction in the scope of consolidation[187] - The company's EBITDA to total debt ratio decreased by 11.11% from 0.09 in 2021 to 0.08 in 2022, primarily due to the recognition of financing funds as financial liabilities[187] - The company's interest coverage ratio decreased by 14.95% from 1.94 in 2021 to 1.65 in 2022, mainly due to a decline in total profit and an increase in interest expenses[187] - The company's cash interest coverage ratio decreased significantly by 72.95% from -2.78 in 2021 to -4.81 in 2022, primarily due to a decline in net cash flow from operating activities[188] - The company's EBITDA interest coverage ratio decreased by 20.99% from 2.62 in 2021 to 2.07 in 2022, mainly due to an increase in interest expenses caused by higher interest-bearing debt[188] - The company's loan repayment rate and interest payment rate remained at 100% in both 2021 and 2022, indicating no changes in debt servicing[188] Business Segments - The company's core business revenue (excluding non-core and non-commercial income) grew by 1.81% to 6,102,013,960.36 RMB[21] - Revenue from military and civilian emergency power supply businesses increased by 15.04 percentage points in 2022[33] - Revenue from military equipment products reached 2.122 billion yuan, slightly lower than the previous year[50] - Revenue from emergency power equipment industry grew by 31.61% year-on-year to 3.108 billion yuan[50] - Military equipment business revenue decreased by 2.88% YoY to 2,121,747,757.53 RMB, with a gross margin increase of 2.25 percentage points to 25.33%[52] - Emergency equipment business revenue increased by 31.61% YoY to 3,108,406,446.90 RMB, but gross margin decreased by 1.95 percentage points to 11.98%[52] - Smart power business revenue decreased by 39.74% YoY to 871,859,755.93 RMB, with a gross margin decrease of 2.08 percentage points to 8.08%[52] - Overseas business revenue grew by 20.24% YoY to 909,715,169.94 RMB, driven by emergency power product exports[53] - Production of military power equipment decreased by 16.64% YoY to 16,644 Kw, while sales decreased by 3.05% YoY to 17,777 Kw[54] - Production of smart emergency power products increased by 33.70% YoY to 361 Mw, with sales increasing by 31.73% YoY to 357 Mw[54] - Material costs for emergency equipment business increased by 34.09% YoY to 256,827.39 million RMB, accounting for 50.14% of total costs[55] - Top five customers accounted for 22.13% of total sales, with 137,015.31 million RMB in sales[57] - Top five suppliers accounted for 24.23% of total procurement, with 124,752.5 million RMB in procurement[57] - Revenue from emergency equipment products reached RMB 132,399,338.90, accounting for 2.17% of total revenue[149] - Revenue from military equipment products was RMB 713,870.80, contributing 0.01% to total revenue[149] - Revenue from other products reached RMB 1,545,953.52, representing 0.03% of total revenue[149] - Revenue from technical services provided by Taizhou Information Technology Co., Ltd. was RMB 37,735.85, contributing 0.04% to total revenue[149] - Revenue from emergency equipment products sold by Feierte Energy (Dongguan) Co., Ltd. reached RMB 12,962,116.91, accounting for 0.21% of total revenue[149] Strategic Initiatives and Investments - The company completed the sale of non-core assets, including Jiangxi Tellhow Power's equity, to focus on its core military equipment business[34] - The company has completed the first phase of military new material production line renovation and started production, with the second phase under construction to prepare for future market orders[35] - The company successfully won contracts for multi-source power supply systems, modular photovoltaic power generation devices, and portable solar storage charging power supplies, marking a breakthrough in the new energy market[35] - The company delivered a large satellite navigation contract and is advancing multiple models of anti-jamming navigation equipment, air traffic control equipment, and land-based navigation equipment[35] - The company completed the divestiture of its smart power distribution business by transferring 100% equity of Jiangxi Tellhow Smart Power Technology[56] - R&D investment totaled 565.07 million yuan, accounting for 9.13% of total revenue, with 41.12% of R&D expenses capitalized[58] - The company has 666 R&D personnel, representing 33.08% of the total workforce, with 56 holding master's degrees and 461 holding bachelor's degrees[59] - The company is focusing on the development of military equipment, aiming to upgrade traditional platforms to be more informationalized and intelligent, while also exploring algorithm and software businesses[92] - The company is actively exploring the new energy market in the emergency equipment industry, aiming to enhance product competitiveness and market share[93] - In 2023, the company plans to increase investment in military equipment industry resources, including the development of unmanned platforms, new materials, and military new energy sources[95] - The company is optimizing its industrial and asset structure by introducing strategic investors and effectively disposing of non-core assets to concentrate resources on the development of the military industry[96] - The company's wholly-owned subsidiaries, Taihao Military Industry and Shanghai Hongsheng, introduced strategic investors and employee持股 platforms, with a total增资 amount of up to 915 million yuan. The actual增资 amount signed was 614.85 million yuan, with 488.34 million yuan for Taihao Military Industry and 126.52 million yuan for Shanghai Hongsheng[163] Corporate Governance and Shareholder Information - The company's stock code is 600590 and is listed on the Shanghai Stock Exchange[18] - The company's registered and office address is located in the High-tech Development Zone, Nanchang, Jiangxi Province[16] - The company's website is http://www.tellhow.com and its email is stock@tellhow.com[16] - The company's financial report was audited by Da Xin Certified Public Accountants, who issued a standard unqualified opinion[4] - The company's board of directors and supervisors strictly adhere to the "Articles of Association" and relevant rules, ensuring effective governance and protection of shareholder rights[100] - The company maintains a high level of transparency and compliance with information disclosure regulations, ensuring equal access to information for all shareholders[100] - The company actively engages with investors through various channels, including hotlines, emails, and performance briefings, to address inquiries and protect the interests of minority investors[100] - The company's governance structure is fully compliant with relevant laws and regulations, with no significant differences from the requirements of the China Securities Regulatory Commission[101] - The company held its 2021 annual general meeting on May 20, 2022, approving 12 proposals including the 2021 Board Work Report and the 2021 Annual Report[102] - The company held its first interim shareholders' meeting on September 13, 2022, approving the revision of the Articles of Association[102] - The company held its second interim shareholders' meeting on September 30, 2022, approving the introduction of strategic investors and an employee持股 platform for its subsidiary[102] - The company's chairman, Yang Jian, holds 6,370,000 shares, with no changes during the reporting period, and received a pre-tax remuneration of 0.00 million yuan[105] - The company's president, Li Ziqiang, received a pre-tax remuneration of 57.90 million yuan during the reporting period[105] - The total pre-tax remuneration for all directors, supervisors, and senior management during the reporting period was 354.14 million yuan[105] - Li Ziqiang has served as the company's director and president since June 2021[107] - Wang Jun has been the company's director and vice president since July 2021[107] - Wang Jinyong has been an independent director of the company since July 2018[107] - Li Shigang has been an independent director of the company since July 2021[107] - Rao Caimin has been the vice president and CFO of Taimeng Group since December 2014 and the chairman of the company's supervisory board since May 2020[107] - Shi Sheng has been the company's supervisor since December 2020[107] - Huang Tiancheng has been the company's supervisor since July 2021[107] - Qian Hongsheng has been the company's vice president since July 2021[107] - Liu Ting has been the company's vice president since June 2021[107] - Zhu Yuhua has been the company's vice president and CFO since July 2018[107] - The total actual remuneration obtained by all directors, supervisors, and senior management at the end of the reporting period was 3.5414 million yuan[112] - The company transferred 100% equity of Jiangxi Taihao Intelligent Power Technology Co., Ltd. and 6.36% equity of Jiangxi Guoke Military Industry Group Co., Ltd. during the reporting period[113] - The company held multiple board meetings in 2022, including the 6th to 11th meetings of the 8th Board of Directors, to review and pass various proposals such as financial reports, profit distribution plans, and strategic investor introductions[114] - The company's total number of employees is 2,013, with 103 in the parent company and 1,910 in major subsidiaries[122] - The company's employee composition includes 687 production personnel, 281 sales personnel, 666 technical personnel, 95 financial personnel, and 284 administrative personnel[122] - The company's employee education level consists of 126 with a master's degree or above, 964 with a bachelor's degree, 476 with a college degree, 284 with a technical secondary school or technical school degree, and 163 with a high school degree or below[122] - The company's training plan includes a "Green Talent" program for new graduates, a "Red Talent" program for employees with over 10 years of service, and MBA/EMBA courses for middle and senior management[125] - The company's Audit Committee held 4 meetings in 2022, reviewing financial reports, internal control evaluations, and audit firm appointments[117] - The company's Strategic Committee held 1 meeting in 2022, reviewing the company's development strategy and 2022 business plan[120] - The company's Compensation and Assessment Committee held 1 meeting in 2022, reviewing the 2021 performance and compensation of directors and senior management, and confirming the 2022 compensation plan[119] - The company has established a comprehensive target, responsibility, and performance evaluation system for senior management, with approximately 50% of their compensation linked to individual annual performance indicators[129] - The company's largest shareholder, Tongfang Co., holds 167,315,574 shares, accounting for 19.62% of the total shares, while the second-largest shareholder, Tellhow Group, holds 128,569,272 shares, accounting for 15.07%[175] - The company has no controlling shareholder or actual controller, with Tongfang Co. and Tellhow Group each nominating one director to the board[175][176] - Strategic investor China Overseas Holdings Group's shares were fully unlocked by the end of the reporting period[173][174] - Tongfang Co. and Tellhow Group are the only two shareholders holding more than 10% of the company's shares, with no other significant changes in shareholding structure[178] Risk Management and Legal Matters - The company faces risks from changes in national defense policies and potential shortfalls in defense spending, which could impact its military equipment product revenue[97] - The company is addressing technological R&D risks by strengthening the identification of major project development and production regulations and implementing comprehensive risk control systems[97] - The company is mitigating market competition risks by leveraging its first-mover advantages in military vehicle communication command systems, power equipment, and shipborne combat auxiliary systems, and by exploring new business development models[97] - The company has won a lawsuit regarding Hu Jian's performance commitment and asset impairment compensation, with the case entering the enforcement stage[139] - Hu Jian, Yu Gongbu, and Cheng Hailin have compensated the company with a total of 5,877,458 shares and returned dividends of 1.2465 million yuan[139] - The company continues to urge Hu Jian and Yu Gongbu to fulfill their remaining compensation obligations[140] - The company has resolved issues related to competition and related-party transactions through commitments made by Taibao Group and other shareholders[140] - The company has implemented a five-phase stock release plan based on performance achievements, following a 12-month lock-up period[141] - The company has fulfilled its commitments regarding capital contributions and other obligations as per the 2016 asset purchase agreement[141] - The company has resolved competition issues with Tongfang Co., Ltd. through long-term commitments[141] - The company has addressed competition issues with Taibao Group through detailed equity change reports[141] - The company has resolved competition issues with Hezhen Partnership and Pan Hongsheng through commitments related to the acquisition of Shanghai Hongsheng System Engineering Co., Ltd.[141] - The company's acquisition of Shanghai Hongsheng System Engineering Co., Ltd. was completed on June 16, 2017, with a commitment period extending three years post-departure for key personnel[142] - Fuzhou Deta Power Equipment Co., Ltd. committed to cumulative non-GAAP net profits of RMB 20 million in 2019, RMB 25 million in 2020, and RMB 30 million in 2021, totaling RMB 75 million over three years[142] - The company reported no significant litigation or arbitration cases during the reporting period[146] - The company's integrity status was good, with no significant debts overdue or court judgments unfulfilled[146] Environmental and Social Responsibility - The company invested 3.618 million yuan in environmental protection during the reporting period[133] - The company reduced carbon dioxide emissions by 39 tons through measures such as using clean energy for power generation and developing new products that aid in carbon reduction[134] - The company's total social responsibility investment was 2.951 million yuan, including 2.855 million yuan in donations to various educational and poverty alleviation initiatives[136] - The company allocated 1.3 million yuan for poverty alleviation and rural revitalization projects, benefiting 260 people through employment and education support[136] Related-Party Transactions - The company engaged in significant related-party transactions, including RMB 16.33 million with Kangfu Technology Co., Ltd. for military equipment products, accounting for 0.32% of similar transactions[148] - The company's related-party transactions with Jinan Jimeile Power Technology Co., Ltd. amounted to RMB 11.31 million for military equipment products, representing 0.22% of similar transactions[148] - The company's related-party transactions with Taihao Shenyang Motor Co., Ltd. were minimal, totaling RMB 34,751.73 for emergency equipment products[148] - The company's related-party transactions with Jiangxi Ruiyue Environmental Art Engineering Co., Ltd. amounted to RMB 1.66 million for other products, accounting for 0.03% of similar transactions[148] - The company's related-party transactions with Jiangxi Taihao Air Conditioning & Electrical Appliance Co., Ltd. were RMB 894,275