KEHUA HENGSHENG(SZ:002335)2023-04-28 16:00Financial Performance - The company reported a net profit of 1,654,506.26 yuan for the period, with significant contributions from non-operating income and expenses adjustments [7]. - The total revenue for the year was 4,206,449.55 yuan, reflecting a decrease of 8,710,566.33 yuan in net profit from subsidiaries during the consolidation period [7]. - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares to all shareholders, based on a total of 461,567,391 shares [19]. - In 2022, the company's operating revenue reached ¥5,648,497,927.46, representing a 16.09% increase compared to ¥4,865,706,292.44 in 2021 [54]. - The net profit attributable to shareholders was ¥248,364,002.93, a decrease of 43.40% from ¥438,691,895.36 in the previous year [54]. - The net profit after deducting non-recurring gains and losses was ¥246,709,496.67, down 23.58% from ¥322,842,791.21 in 2021 [54]. - The net cash flow from operating activities increased by 91.87% to ¥1,594,826,333.30 from ¥817,614,807.99 in 2021 [54]. - The total assets at the end of 2022 were ¥9,977,763,291.45, a 3.76% increase from ¥9,571,292,317.69 in 2021 [54]. - The company's weighted average return on equity decreased to 6.86% from 12.74% in the previous year, a decline of 5.89% [54]. Business Stability and Governance - The company has not experienced any changes in its main business since its listing, indicating stability in its operational focus [5]. - There were no significant changes in the controlling shareholders, maintaining consistent governance [5]. - The company has confirmed that there are no adjustments or restatements required for previous years' accounting data due to the consolidation of entities under common control [13]. - The company has not disclosed any significant differences in net profit and net assets between international and Chinese accounting standards during the reporting period [34]. Risk Management and Future Outlook - The company has acknowledged potential risks in its future development and outlined corresponding countermeasures in its management discussion [42]. - The company has emphasized the importance of risk awareness for investors regarding forward-looking statements and future plans [10]. - The company faces risks related to supply shortages and price fluctuations of semiconductor components, particularly IGBT power modules, which are primarily sourced from foreign manufacturers [180]. - The company identifies several risks including accounts receivable risk, R&D innovation risk, talent loss risk, rapid expansion risk, and core raw material supply risk [200]. Market Growth and Opportunities - The UPS market in China is expected to grow at a compound annual growth rate of 10%-15%, with the market size projected to exceed ¥20 billion by 2026 [61]. - The new energy storage sector is forecasted to reach a cumulative scale of 97GW by 2027, with a compound annual growth rate of 49.3% from 2023 to 2027 [65]. - The digital economy in China surpassed ¥50 trillion in 2022, accounting for over 40% of GDP, indicating robust growth potential for the company's market [59]. - The company anticipates good future prospects in data centers, new infrastructure, and new energy sectors, but also faces increased competition due to more investors entering the industry [198]. Product Development and Innovation - The company launched several new energy products, including the S³ liquid-cooled energy storage system, and successfully applied it in a 100MW high-safety power electronics liquid-cooled energy storage demonstration project [72]. - The company has completed the development of a 200KW modular energy storage system, enhancing the lifecycle efficiency and safety of battery systems [139]. - The company developed a new three-phase household energy storage system to meet increasing household electricity demands, with a target output of 10-12KW for overseas markets [140]. - The company is committed to continuous product innovation to enhance core competitiveness and maintain market advantage through IPD management processes and market research [197]. Sales and Revenue Growth - The revenue from the new energy sector surged by 166.96%, reaching approximately ¥1.77 billion, up from ¥662.53 million in 2021 [108]. - The company maintained a direct sales revenue of 4,286,785,306.34 CNY, with a year-on-year growth of 28.79% [131]. - The total sales volume for new energy products reached 70,299 units, a remarkable increase of 85.45% compared to the previous year [131]. - The company signed major sales contracts totaling 1,007,274,753.27 CNY, accounting for 17.83% of the annual sales [116]. Research and Development - R&D expenses increased by 30.41% to ¥348,103,128.64 in 2022, up from ¥266,934,918.38 in 2021, reflecting a significant investment in innovation [139]. - Research and development personnel increased by 22.28% from 965 in 2021 to 1,180 in 2022, with a proportion of 26.56% of total employees [140]. - R&D investment amounted to ¥376,602,295.05 in 2022, representing a 20.29% increase from ¥313,081,964.13 in 2021, accounting for 6.67% of operating revenue [140]. Supply Chain and Production - The company emphasizes supply chain optimization and lean production efficiency to enhance operational effectiveness and reduce manufacturing costs [104]. - The company is actively optimizing its supplier structure and strengthening strategic partnerships to ensure supply chain security amid global trade fluctuations [180]. - The company aims to optimize supply chain management by improving supplier management, procurement, inventory management, and production planning, thereby shortening delivery cycles [197]. - The company plans to expand production capacity by introducing new production lines and enhancing efficiency through automation and standardization, with expansions in Xiang'an, Zhangzhou, and Jiaomei [197]. Brand and Market Position - The company is actively enhancing its brand value and strengthening its market position through digital and green transformation initiatives [79]. - The company has been recognized as a "National Manufacturing Single Champion Enterprise" by the Ministry of Industry and Information Technology for its continuous innovation in smart power products [69]. - The company received multiple awards in 2022, including recognition as one of the top 500 global new energy enterprises and the most influential energy storage enterprise in China [100]. - The company holds the top market share in the UPS and micro-module data center sectors within the financial industry in China, according to CCID reports [94].