Shanghai Smart (001266)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was ¥407,254,352.88, a decrease of 18.95% compared to ¥502,482,422.42 in 2021[24] - The net profit attributable to shareholders for 2022 was ¥71,652,955.33, down 44.99% from ¥130,257,222.81 in the previous year[24] - The net profit attributable to the parent company was ¥47,968,159.46, reflecting a decline of 61.10% compared to ¥123,327,279.84 in 2021[24] - Basic and diluted earnings per share decreased by 57.40% to 0.72 CNY from 1.69 CNY in the previous year[25] - The weighted average return on equity dropped to 7.81% from 39.08% in 2021, a decline of 31.27%[25] - The total operating revenue for 2022 was ¥407,254,352.88, a decrease of 18.95% compared to ¥502,482,422.42 in 2021[64] - Revenue from smart electric control products was ¥348,886,670.52, accounting for 85.67% of total revenue, down 11.26% from ¥393,152,960.05 in 2021[64] - The gross profit margin for the industrial automation control system manufacturing sector was 38.33%, a decrease of 7.35% from the previous year[67] - The company reported a net cash inflow from operating activities of ¥108,137,228.36, an increase of 32.38% from ¥81,686,835.20 in 2021[80] - The total cash and cash equivalents increased by ¥567,165,933.78, representing a significant rise of 843.89% compared to ¥60,088,181.39 in 2021[80] Dividend and Profit Distribution - The company plans to distribute a cash dividend of ¥2 per 10 shares (including tax) based on a total of 102,816,000 shares[4] - The company proposed a cash dividend of 2.00 CNY per 10 shares, totaling 20,563,200 CNY, which represents 28.70% of the net profit attributable to shareholders for the year 2022[171] - The cash dividend amount for 2022 was 20,563,200 CNY, which accounted for 100% of the total profit distribution[171] - The total distributable profit of the company as of December 31, 2022, was 165,549,624.73 CNY[171] - The cash dividend distribution plan was approved at the 2021 annual general meeting and was implemented on July 14, 2022, with a distribution of 6.00 CNY per 10 shares for the year 2021[169] Business Operations and Strategy - The company has not reported any changes in its main business since its listing[23] - The company has maintained its registered address and has no changes in its historical registration[19] - The company has engaged Da Xin Accounting Firm for auditing services during the reporting period[24] - The company has a continuous supervision agreement with CITIC Securities from February 28, 2022, to December 31, 2024[24] - The company emphasizes the importance of risk factors that may adversely affect its future development strategies and operational goals[4] - The company has not made any changes to its controlling shareholders since its listing[23] - The company aims to enhance the efficiency and reduce costs of mobile machinery and special vehicles through the application of new technologies in intelligent electrical control systems[42] - The company is focused on the development of intelligent electrical control systems for mobile machinery and special vehicles, leveraging years of technical accumulation[41] - The company has established new subsidiaries, including Shenzhen Hongying New Energy Technology Co., Ltd. and Shanghai Youdianlai New Energy Technology Co., Ltd.[71] - The company plans to expand its electric and intelligent solutions into broader application markets, focusing on automation and connectivity[103] Market and Product Development - The market for engineering machinery supporting products has seen a decline in demand due to tightened upstream and downstream markets and slowed project progress[40] - The company's smart electric control products include display and control products, control products, sensor products, and signal transmission products, providing a one-stop solution for intelligent control of mobile machinery and specialized vehicles[43] - The company has achieved a high level of reliability and environmental adaptability in its products, which are widely used in complex working environments, earning recognition as a "National Specialized and Innovative 'Little Giant' Enterprise" from the Ministry of Industry and Information Technology[44] - The company’s main products are categorized into smart electric control products, smart electric control assemblies, and other services, with a focus on providing customized technical development and processing services[45][49] - The sales model is primarily a front-mounted approach, where products are sold to manufacturers who then install them in vehicles before selling to end customers, allowing for better understanding of customer needs[50] - The company employs a flexible production model, allowing for rapid conversion between various product types based on customer demand and rolling production plans[51] - The company has developed a comprehensive quality management system, ensuring strict supplier admission and thorough testing standards, contributing to its reputation for high-quality products[61] - The company has established a strong customer base, supplying various models to major domestic manufacturers such as SANY Group and Zoomlion, enhancing its market presence[60] - The company focuses on integrating technology with application, providing customized complete electric control systems that enhance customer product efficiency and reduce management costs[56] - The company implements an integrated product development (IPD) management approach, enabling rapid response to customer needs and facilitating quick market entry for new designs[57] - The company has developed intelligent features such as remote control systems and automated navigation systems, enhancing the competitiveness of customer products in the market[58] Research and Development - Research and development expenses increased by 17.95% to ¥51,364,542.79 from ¥43,546,926.19 in 2021[78] - The company is committed to maximizing the efficiency of its fundraising and investment projects in light of current market conditions[95] - The company is facing temporary delays in project implementation due to macroeconomic conditions, but this will not affect the overall progress of its investment projects[95] - The company has a strong technical foundation for the rapid development of new energy and intelligent applications, with successful case studies in various mobile machinery[103] - In 2023, the company plans to strengthen its core technology R&D, focusing on key components and systems related to electrification and intelligence[105] - The company will increase investment in R&D to continuously update and innovate its technologies, ensuring market leadership[110] - The company is investing heavily in R&D, with a budget of 200 million RMB allocated for new technology development in 2023[196] - Investment in R&D increased by 20% in 2022, focusing on developing advanced AI technologies and smart solutions[200] Governance and Management - The board of directors consists of 8 members, including 5 non-independent directors and 3 independent directors, complying with legal and regulatory requirements[119] - The company has established a complete and independent governance structure, ensuring independence in assets, personnel, finance, organization, and business from the controlling shareholders[126] - The company has a fully independent financial accounting system, allowing for independent financial decision-making and management[128] - The company has established specialized committees under the board, including the Strategy and Investment Committee, Audit Committee, Nomination Committee, and Compensation and Assessment Committee[119] - The company maintains independent operations in procurement, production, and sales, ensuring no competition or unfair transactions with controlling shareholders[131] - The company has a dedicated human resources department, ensuring independence in labor, personnel, and salary management[127] - The company actively communicates with stakeholders to balance interests among shareholders, employees, and society[124] - The company’s independent directors play a crucial role in governance, ensuring compliance and strategic oversight[137] Employee and Social Responsibility - The total number of employees at the end of the reporting period was 485, with 343 in the parent company and 142 in major subsidiaries[166] - The professional composition of employees includes 154 production personnel, 62 sales personnel, 175 technical personnel, 10 financial personnel, and 84 administrative personnel[166] - The educational background of employees shows 174 with a bachelor's degree, 9 with a master's degree, and 302 with an associate degree or below[166] - Employee training programs include onboarding, company culture promotion, management knowledge training, and skills training to enhance overall employee quality[168] - The company received ISO 45001 certification for occupational health and safety management system, emphasizing employee health and safety[188] - The company obtained ISO 14001 certification for environmental management system in the first half of 2022, reflecting its commitment to green and low-carbon operations[190] - The company actively engaged in social responsibility, responding to government calls for poverty alleviation and receiving the "Poverty Alleviation Love Award"[191] Future Outlook - The company provided a revenue guidance for 2023, projecting a growth rate of 25% compared to 2022, aiming for 1.875 billion RMB[143] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[143] - A strategic acquisition of a local tech firm was announced, expected to enhance the company's product offerings and market reach[143] - The company aims to reduce operational costs by 15% in 2023 through efficiency improvements and automation[143] - Future guidance includes maintaining a gross margin of 40% while expanding the customer base and enhancing service offerings[197] - The management emphasized the importance of maintaining shareholder value, committing to a share buyback program of up to 100 million RMB in 2023[197]