Hoshine Silicon(603260)2023-04-20 16:00Financial Performance - The company's operating revenue for 2022 was approximately CNY 23.66 billion, representing a 10.62% increase from 2021[17]. - The net profit attributable to shareholders for 2022 was approximately CNY 5.15 billion, a decrease of 37.39% compared to 2021[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 5.06 billion, down 38.24% from the previous year[17]. - The net cash flow from operating activities for 2022 was negative CNY 626 million, compared to positive cash flow in 2021[17]. - The total assets at the end of 2022 were approximately CNY 53.73 billion, an increase of 77.18% from the end of 2021[17]. - The net assets attributable to shareholders at the end of 2022 were approximately CNY 23.83 billion, an increase of 18.38% from the end of 2021[17]. - Basic earnings per share decreased by 41.37% to CNY 4.79 in 2022 compared to CNY 8.17 in 2021[18]. - The weighted average return on equity dropped by 31.61 percentage points to 23.63% in 2022 from 55.24% in 2021[18]. - The gross profit margin for the non-metal smelting sector decreased by 12.87 percentage points to 36.27%[45]. - The gross profit margin for the chemical industry decreased by 23.10 percentage points to 32.70%[45]. Dividend Distribution - The company plans to distribute a cash dividend of 8.8 RMB per 10 shares, totaling approximately 1,040,342,108.08 RMB based on a total share capital of 1,182,206,941 shares as of April 20, 2023[4]. - The cash dividend per 10 shares is CNY 8.80, including tax[134]. - The company declared a cash dividend of CNY 1,040,342,108.08, which represents 20.21% of the net profit attributable to ordinary shareholders in the consolidated financial statements[134]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm for the fiscal year 2022[3]. - The board of directors has confirmed that all members attended the board meeting, ensuring the integrity of the annual report[2]. - The company has confirmed that there are no issues with the accuracy and completeness of the disclosed annual report[6]. - The report outlines the company's commitment to transparency and accountability in financial reporting[2]. - The internal control audit report issued by Tianjian Accounting Firm confirmed effective financial reporting internal controls as of December 31, 2022[140]. Risk Management - The management has detailed potential risks in the third section of the report, highlighting challenges for future development[6]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[5]. - The management provided a cautious outlook for 2023, anticipating challenges in maintaining profit margins due to market volatility[11]. - The company faces risks from macroeconomic fluctuations that could impact demand for its products in various downstream industries[91]. - The company faces intensified market competition risks due to rapid development in the domestic industrial silicon and organic silicon industries, which may lead to significant product price fluctuations and impact profitability[92]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance production efficiency[11]. - The company is focusing on the development of new products to meet increasing market demand[11]. - The company is exploring potential mergers and acquisitions to strengthen its market position[11]. - The company is actively investing in environmental upgrades and automation of production equipment to enhance production efficiency and reduce costs[25]. - The company is expanding its research and development capabilities, including the construction of a new R&D center in Shanghai to attract global talent[25]. Environmental Responsibility - The company has invested CNY 48,991.52 million in environmental protection during the reporting period[140]. - The company is committed to promoting low-carbon technologies and increasing the proportion of green energy usage[90]. - The company is focused on reducing emissions to comply with the ultra-low emission standards for coal-fired power plants[141]. - The company has established a comprehensive environmental monitoring system, combining self-monitoring and third-party assessments to ensure compliance with pollution discharge standards[168]. - The company is committed to continuous improvement in environmental performance through the adoption of advanced technologies[154]. Governance and Management - The company ensures the independence of its management team, with key executives not holding positions in other controlled enterprises, maintaining a total of 274,416,792 shares held by executives at year-end[109]. - The company has established a commitment to independent tax compliance[178]. - The company has a performance-based compensation system that includes basic salary, monthly performance pay, and annual performance pay for its internal directors and senior management[117]. - The company has established specialized committees, including an audit committee and a strategic committee, to enhance governance[122]. - The company’s board has a compensation and assessment committee that implements performance evaluations for senior management[137]. Legal Matters - The company is involved in significant litigation, with claims totaling approximately RMB 6,781.12 million related to breach of contract and damages[194]. - The company has ongoing civil lawsuits with amounts exceeding RMB 1,000 million, which are classified as major cases for disclosure in reports[195]. - The company is currently in the process of reviewing and managing its legal risks associated with ongoing litigation[194]. - The company has reported a total of RMB 7,697.05 million in claims related to mining rights transfer disputes[196]. Research and Development - The company has a total of 368 authorized patents, including 50 invention patents, and has participated in the formulation or revision of 36 industry standards[36]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency[113]. - The number of R&D personnel was 1,915, accounting for 11.44% of the total workforce, highlighting the company’s commitment to innovation[54]. - The company is expanding its production capacity, which has led to increased sales volume across various product lines[43]. Customer and Market Engagement - The company emphasizes customer service and has a diversified customer base to mitigate reliance on single clients, particularly in the organic silicon sector[33]. - The company achieved a total revenue of approximately CNY 21.99 billion from domestic sales, reflecting a year-on-year increase of 9.99%[76]. - International sales generated approximately CNY 1.53 billion, marking a year-on-year growth of 19.76%[76]. - User data showed an increase in active users by 15% year-over-year, reaching 3 million active users[113].