SHIJIA TECH(002796)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was ¥1,095,101,190.15, a decrease of 15.64% compared to ¥1,298,180,013.97 in 2021[22]. - The net profit attributable to shareholders improved significantly to -¥31,419,436.75 in 2022, a 95.29% increase from -¥666,811,740.64 in 2021[22]. - The cash flow from operating activities turned positive at ¥72,571,634.55, compared to -¥80,180,953.91 in the previous year, marking a 190.51% improvement[22]. - The total assets at the end of 2022 were ¥1,443,895,348.87, down 9.70% from ¥1,598,918,782.71 at the end of 2021[22]. - The company reported a basic earnings per share of -¥0.13 for 2022, an improvement of 95.08% from -¥2.64 in 2021[22]. - The net profit after deducting non-recurring gains and losses was -¥37,123,382.62, a 94.47% improvement from -¥671,612,458.61 in 2021[22]. - The company's total revenue for the industrial sector was approximately ¥1.07 billion, a decrease of 15.23% year-over-year, with a gross margin of 7.97%[61]. - The industrial segment contributed ¥1,066,421,980.86, accounting for 97.38% of total revenue, down 15.23% from the previous year[58]. Business Operations - The mobile communication equipment business, including filters and antennas, is a key revenue driver, influenced by the investment pace of telecom operators in 4G/5G base stations[34]. - The company’s main business includes mobile communication equipment and precision box systems, reflecting a diversified product portfolio[33]. - The company delivered products to major clients such as ZTE, Japan Electric Power, Ericsson, and Datang Mobile, indicating strong market relationships[34]. - The company has established production bases in Suzhou and Zhongshan to quickly respond to customized demands for precision box systems in the Yangtze River Delta and Pearl River Delta regions[43]. - The company’s precision box system business primarily generates revenue from elevator cabin systems, which are essential for residential, commercial real estate, and urban renewal projects[43]. - The company is one of the few mobile communication equipment suppliers with independent R&D and production capabilities for both filters and antennas, with a leading level of automation in the industry[40]. Research and Development - The company invested ¥52,025,500 in R&D, representing 4.75% of total revenue, focusing on precision metal processing and mobile communication equipment[53]. - The company is actively pursuing new technologies in 5G communications, with established R&D centers dedicated to this field[54]. - The company is developing a new ceramic dielectric filter and duplexer aimed at achieving a frequency coverage range of 600MHz to 3GHz, enhancing product competitiveness[82]. - A new type of sheet metal filter is under development to meet 5G communication base station requirements for miniaturization and cost reduction[82]. - The company is working on an automated water testing technology for new energy storage devices, aiming to improve testing efficiency and reduce water resource waste[84]. - A high-precision automatic welding technology for electrical cabinets is in the trial production stage, aimed at improving welding efficiency for mass production[84]. Market Challenges and Strategies - The company plans to optimize resource allocation, focus on profitable products, and reduce low-margin or loss-making products to address the decline in operating performance[46]. - The company aims to enhance its 5G filter product development and improve product processes to reduce costs while tracking future communication technology advancements[47]. - The company will diversify its customer base and product offerings, increasing its share of communication products supplied to Ericsson and expanding into the renewable energy and medical sectors[46]. - The company is exposed to raw material price fluctuations, particularly for stainless steel, carbon steel, and aluminum, which could adversely affect its operating performance if prices remain high[129]. - The company faces risks from international trade frictions and political uncertainties, which have led to some countries discontinuing the use of Chinese communication equipment[125]. - Approximately 85% of the market share in the communication industry is concentrated among four major integrators: Huawei, Ericsson, Nokia, and ZTE, leading to high customer concentration risk for the company[127]. Governance and Management - The company has established a fair and transparent performance evaluation and incentive mechanism, effectively enhancing employee motivation and responsibility[144]. - The company maintains complete independence in assets, personnel, finance, organization, and business from the controlling shareholder, ensuring a fully independent operational capability[146]. - The company has a dedicated financial department with a complete accounting system, ensuring independent financial management and tax compliance[149]. - The company has developed a complete main business system, including the research, production, and sales of precision box systems and mobile communication devices, with no competition with the controlling shareholder[152]. - The company has implemented strict internal control systems and governance structures to maintain operational transparency and protect stakeholder interests[143]. - The company’s independent directors actively safeguard the interests of minority shareholders and provide independent opinions on significant matters[141]. Employee and Training - The total number of employees at the end of the reporting period was 2,053, with 906 in the parent company and 1,147 in major subsidiaries[177]. - The company’s employee training programs are designed to enhance skills and align with the company's development strategy[180]. - The company’s workforce includes 1,289 production personnel, 254 technical personnel, and 53 sales personnel[177]. Cash Flow and Investments - The net cash flow from operating activities for 2022 was ¥72,571,634.55, a significant increase of 190.51% compared to a net outflow of ¥80,180,953.91 in 2021[88]. - Total cash inflow from operating activities decreased by 14.85% to ¥1,233,800,516.82 in 2022, down from ¥1,448,608,775.94 in 2021[88]. - The total cash outflow from operating activities decreased by 24.07% to ¥1,161,228,882.27 in 2022, compared to ¥1,528,789,729.85 in 2021[88]. - The total cash inflow from investment activities plummeted by 95.16% to ¥18,755,884.70 in 2022, down from ¥387,267,397.80 in 2021[88]. - The company reported a significant decrease in sales volume for antennas (down 16.09%) and RF devices (down 35.16%) compared to the previous year[64]. Compliance and Internal Control - As of December 31, 2022, the company reported no significant deficiencies in internal control over financial reporting[185]. - The internal control self-assessment report indicated that 92.57% of total assets and 90.80% of total revenue were included in the evaluation scope[190]. - The company maintained effective internal control over financial reporting as per the internal control audit report dated April 29, 2023[192]. - The company has established a comprehensive internal control system in accordance with the "Basic Norms for Enterprise Internal Control"[188]. - The internal control audit report received a standard unqualified opinion, confirming the effectiveness of internal controls[193]. - The company has not encountered any major deficiencies in internal control during the reporting period[188].