NWM(603700)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was CNY 1,554,958,423.76, a decrease of 9.45% compared to CNY 1,717,290,642.31 in 2021[26]. - The net profit attributable to shareholders for 2022 was CNY 126,387,869.92, down 46.30% from CNY 235,370,594.62 in 2021[26]. - The basic earnings per share for 2022 was CNY 0.63, a decline of 45.69% from CNY 1.16 in 2021[28]. - The net cash flow from operating activities for 2022 was CNY 84,251,373.07, a decrease of 47.67% compared to CNY 161,012,833.00 in 2021[27]. - The total assets at the end of 2022 were CNY 2,350,421,284.77, an increase of 5.83% from CNY 2,220,987,101.31 at the end of 2021[27]. - The weighted average return on equity for 2022 was 8.07%, down 7.41 percentage points from 15.48% in 2021[28]. - The company reported a net loss of CNY 4,316,088.61 in the first quarter of 2022, followed by a profit of CNY 63,217,312.22 in the fourth quarter[30]. - The company achieved total revenue of ¥1,554,958,423.76 in 2022, a decrease of 9.45% compared to the previous year[93]. - Net profit attributable to shareholders was ¥126,387,869.92, down 46.30% year-on-year[93]. - Total assets increased by 5.83% to ¥2,350,421,284.77 compared to the beginning of the year[93]. Dividend and Share Repurchase - The company plans to distribute a cash dividend of 3 RMB per 10 shares, totaling approximately 60.1 million RMB, which represents 47.55% of the net profit attributable to shareholders for 2022[6]. - The total amount paid for share repurchases during the reporting period was approximately 33.4 million RMB, combined with the proposed cash dividend, this accounts for 73.96% of the net profit attributable to shareholders[6]. - The company reported a total share capital of 203,242,000 shares, with 2,920,036 shares held in the repurchase account excluded from the dividend calculation[6]. Market and Industry Trends - The company is focused on expanding its market presence and developing new technologies, particularly in smart water meters and IoT applications[15]. - The company faced significant pressure on profits due to high raw material prices and intensified industry competition[29]. - The average price of mainstream products, such as NB-IoT smart water meters, declined by 7.00%-8.00% year-on-year, significantly impacting the company's performance[38]. - The sales revenue of smart 2.0 water meters increased by over 60% year-on-year, indicating strong market demand for new products[42]. - The company’s overseas sales revenue increased by 6.41% year-on-year, reflecting successful international market expansion efforts[42]. - The water meter industry remains fragmented with low concentration, leading to intensified competition due to product homogeneity[61]. - Policies promoting water infrastructure and rural revitalization are expected to drive industry development, providing potential benefits for the company[62]. - The company recognizes the increasing competition in the smart water meter market, with a focus on technological advancements and product differentiation[66]. - The smart water meter market is experiencing a clear upgrade trend towards intelligent hardware-based solutions, driven by policy guidance and technological demand[70]. - The demand for smart water meters is increasing due to stricter management requirements and the need for automation in water supply systems, with a focus on IoT and data integration[70]. Research and Development - The company applied for 128 patents and 23 software copyrights during the reporting period, demonstrating its commitment to innovation and technology development[48]. - The company has made significant investments in R&D, focusing on optimizing traditional products and developing new technologies to enhance core competitiveness[44]. - Research and development expenses amounted to ¥60,276,565.06, a decrease of 3.83% from the previous year[95]. - The company reported a total R&D expenditure of CNY 60,276,565.06, which accounted for 3.88% of total operating revenue[106]. - The company has a total of 208 R&D personnel, accounting for 17.05% of the total workforce[107]. Operational Efficiency and Challenges - The company is focusing on improving its operational efficiency and exploring new market opportunities to counteract the current challenges[29]. - The company has improved its supply chain management and production efficiency, ensuring quality and safety in production processes[49]. - The company is focused on developing comprehensive solutions for urban underground water supply network optimization, including hardware and software services[75]. - The company is committed to providing superior smart water solutions through the application of digital, information, and intelligent technologies in water meter manufacturing[69]. - The company is addressing the risk of intensified market competition and product price volatility by enhancing product quality and leveraging emerging technologies[168]. Governance and Compliance - The company has established a compliance management committee to enhance governance and compliance practices[175]. - The company has committed to transparent information disclosure, ensuring compliance with legal and regulatory requirements[175]. - The company held two shareholder meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[172]. - The board of directors convened eight meetings, adhering to legal requirements and ensuring effective decision-making[173]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[191]. Future Outlook and Strategic Goals - The company aims to develop the next generation of multi-parameter smart water meters to meet the needs of water supply enterprises for refined management and real-time data[63]. - The company plans to enhance the digitalization, networking, and intelligence of water resource management systems[64]. - The company aims to transition from traditional manufacturing to a "manufacturing + service" model, focusing on providing comprehensive smart water solutions over the next 4-6 years[156]. - The company has established a strategic goal to become a comprehensive group enterprise capable of providing full-field smart water services within 7-10 years[156]. - The company plans to leverage its 60 years of industry experience to overcome technical bottlenecks in smart water management and strengthen its competitive advantage[147].