PIVOT AUTO(301181)2023-04-10 16:00Dividend and Capital Distribution - The company plans to distribute a cash dividend of 6 RMB per 10 shares to all shareholders, based on a total of 90,000,000 shares[3]. - The company will increase its capital reserve by converting 3 shares for every 10 shares held by shareholders[3]. - The cash dividend distribution accounted for 100% of the total profit distribution amount[171]. - The company has committed to a stable profit distribution policy, ensuring that cash dividends account for at least 10% of the distributable profits each year[193]. - In mature stages without significant capital expenditure, cash dividends should constitute at least 80% of the profit distribution; if there are major expenditures, this drops to 40%[193]. - The company reported a total of 54,000,000.00 CNY in cash dividends for the year, distributing 6.00 CNY per 10 shares to shareholders[171]. Financial Performance - The company's operating revenue for 2022 was ¥517,839,811.21, representing an increase of 8.17% compared to ¥478,722,736.79 in 2021[20]. - The net profit attributable to shareholders for 2022 was ¥121,176,253.65, a 19.56% increase from ¥101,355,550.29 in 2021[20]. - The net cash flow from operating activities reached ¥143,322,934.86, marking a significant increase of 40.17% from ¥102,250,386.10 in 2021[20]. - The total assets at the end of 2022 amounted to ¥1,455,346,767.76, a substantial increase of 176.49% from ¥526,359,022.46 at the end of 2021[20]. - The net assets attributable to shareholders at the end of 2022 were ¥1,312,599,408.68, reflecting a 222.21% increase from ¥407,377,789.70 at the end of 2021[20]. - The company reported a basic earnings per share of ¥1.40 for 2022, a decrease of 6.67% from ¥1.50 in 2021[20]. - The weighted average return on equity for 2022 was 10.72%, down from 28.41% in 2021, indicating a decline of 17.69%[20]. Market and Industry Trends - The automotive industry in China saw a production and sales volume of 27.02 million and 26.86 million vehicles respectively in 2022, with year-on-year growth of 3.4% and 2.1%[30]. - The market share of new energy vehicles reached 25.6% in 2022, with sales exceeding 6.8 million units, indicating a strong growth trajectory[30]. - The company is positioned to benefit from the ongoing transition towards energy-saving, lightweight, electric, and intelligent vehicles in the automotive sector[30]. - The Chinese government has introduced policies to promote the development of the automotive and automotive parts industry, aiming for new energy vehicles to account for about 20% of total new car sales by 2025[33]. Product Development and Innovation - The company is involved in the development of new energy vehicles, including hybrid and electric vehicles[14]. - The company has successfully mass-produced thermal management pipes and connectors for electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs)[33]. - The company has developed a multi-layer conductive fuel pipe solution, which has begun mass production in 2022[57]. - The company is developing a high-stability thermal management system for electric vehicles, aimed at improving cooling efficiency and reducing pump power consumption[71]. - The company is also focusing on the development of lightweight, water-resistant cooling pipe systems for automotive engines, which will enhance product competitiveness and open new market opportunities[71]. Research and Development - The company has developed a technical R&D center for nylon pipes and connection systems, utilizing CAD software and 3D printing technology to enhance product development efficiency[49]. - The company’s R&D investment in 2022 amounted to ¥23,008,063.94, representing 4.44% of total revenue, an increase from 4.28% in 2021[72]. - The number of R&D personnel increased by 7.58% to 71 in 2022, with a notable rise in the number of bachelor's degree holders by 40%[72]. - Research and development expenses increased by 12.20% to ¥23,008,063.94 in 2022[70]. Supply Chain and Production - The company is committed to enhancing its supply chain management and quality control systems[14]. - The company has established a qualified supplier directory and regularly evaluates suppliers to adjust procurement strategies based on supplier performance[39]. - The production capacity for automotive nylon pipes is 1,600 million units, with a utilization rate of 66.91% in 2022, while the connection components have a capacity of 4,100 million units and a utilization rate of 85.42%[43]. - The company has established long-term strategic partnerships with multiple suppliers to optimize costs and reduce risks[60]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[3]. - The report includes detailed descriptions of potential operational risks and corresponding mitigation measures[3]. - Risks include macroeconomic policy changes that could adversely affect the automotive industry and the company's performance[109]. - High customer concentration poses a risk, as major clients' production plans may impact the company's sales[111]. - Fluctuations in raw material prices could negatively impact the company's profitability and operational results[114]. Corporate Governance and Compliance - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, ensuring a complete business system and market-oriented operational capability[130]. - The company has established an independent financial department with a standardized accounting system and does not share bank accounts with its controlling shareholders[132]. - The company emphasizes transparency in information disclosure, adhering to legal regulations and ensuring all shareholders have equal access to information[127]. - The company has a complete governance structure that complies with legal and regulatory requirements, with no significant discrepancies noted[129]. Employee Management and Social Responsibility - The total number of employees at the end of the reporting period was 445, with 323 in production, 12 in sales, 70 in technical roles, 7 in finance, and 33 in administration[165]. - The company has established a competitive salary management system to ensure fair compensation for employees[166]. - The company plans to implement a training program aimed at enhancing employee skills and fostering a harmonious work environment[167]. - The company donated RMB 300,000 to the Jiangyin Charity Federation during the reporting period, highlighting its engagement in social responsibility[187]. Future Outlook and Strategic Initiatives - In 2023, the company plans to expand its presence in the new energy vehicle market while maintaining its traditional fuel vehicle business[105]. - The company aims to expand its product series and improve product added value through increased R&D efforts in cooling systems and exhaust pipes[72]. - The company plans to enhance production capacity through fundraising projects, introducing advanced automation equipment to improve efficiency and product quality[106]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency, with a target completion date by Q3 2023[150].