Company Overview - The company was listed on the Beijing Stock Exchange on February 23, 2022, becoming the first company from Shanghai and the third nationwide to be listed under the registration system[3]. - The company has maintained stable business growth and asset quality, further enhanced its financial strength after going public on the Beijing Stock Exchange[14]. - The company has a production capacity of 2.25 million injection molded components and 39 million wiring harnesses per year, with new facilities expected to add 8 million smart control components and 46 million smart connection components annually[120]. Financial Performance - The company's operating revenue for 2022 was CNY 202,067,261.71, a decrease of 9.04% compared to CNY 222,157,639.17 in 2021[31]. - The net profit attributable to shareholders for 2022 was CNY 34,777,958.06, representing a slight increase of 1.38% from CNY 34,305,840.82 in 2021[31]. - The total assets increased by 54.70% to CNY 478,063,231.63 in 2022, compared to CNY 309,030,596.72 in 2021[33]. - The total liabilities decreased by 36.66% to CNY 59,681,638.25 in 2022, down from CNY 94,228,947.78 in 2021[33]. - The company's cash flow from operating activities for 2022 was CNY 41,223,784.33, an increase of 17.45% from CNY 35,099,093.34 in 2021[34]. - The gross profit margin decreased to 29.12% in 2022 from 31.96% in 2021[62]. - The basic earnings per share for 2022 was CNY 0.46, a decrease of 23.33% compared to CNY 0.60 in 2021[31]. Risks and Challenges - The concentration of major customers is high, with the top five customers accounting for 50.26% of annual operating income, posing a risk to the company's performance if any major customer faces difficulties[12]. - The company faces risks related to fluctuations in the prices of key raw materials, particularly copper and plastic, which are influenced by market conditions and economic cycles[12]. - The company is exposed to risks from fluctuations in raw material prices, particularly copper and plastic materials, which could adversely affect performance[118]. - The company recognizes the ongoing risks from global political and economic complexities, which may affect raw material prices and logistics[114]. Production and Operations - During the COVID-19 lockdown from April to May 2022, the company faced significant production disruptions but managed to resume operations gradually from mid-April[4]. - The company faced production halts during the Shanghai lockdown and significant impacts on production and order delivery due to COVID-19 infections among employees[14]. - The company has implemented strict quality management systems and product certification processes to mitigate product quality control risks[14]. - The company is implementing lean production strategies by investing in automation and intelligent systems to improve production efficiency and quality control[113]. Research and Development - The company emphasizes the need for continuous technological innovation and product development to maintain competitiveness in the technology-intensive industry[12]. - R&D expenditure for the period was 10.73 million yuan, reflecting a year-on-year growth of 5.26%[49]. - The company has obtained 4 new utility model patents during the reporting period, enhancing its intellectual property portfolio[49]. - The company aims to enhance its R&D capabilities and production processes to bridge the gap with established foreign competitors in the electronic harness industry[56]. Shareholder and Governance - The company’s actual controllers hold a combined 63.53% of the shares, which raises concerns about potential conflicts of interest in decision-making processes[12]. - The company has established a comprehensive governance structure, but there are still risks related to internal control and governance compliance[117]. - The employee stock ownership plan was approved, with 23 participants contributing a total of CNY 5,400,000, representing 0.74% of the company's total share capital[140]. - The company has fulfilled all commitments made regarding the improvement of corporate governance mechanisms, including the addition of independent directors[152]. Market and Industry Trends - The automotive wiring harness market in China is projected to exceed 50 billion yuan in annual output value, driven by increasing vehicle production[52]. - The home appliance market in China saw a retail total of 835.2 billion yuan in 2022, with online sales growing by 4.24% year-on-year[52]. - The company is actively expanding its market presence, particularly in the new energy sector, with projects for major clients like SAIC Volkswagen and Chery New Energy[50]. Legal Matters - The company is currently involved in a legal dispute with Huaxin Construction, with a claim for remaining project payments totaling ¥29,911,750, which exceeds the initially estimated amount by approximately ¥11,827,150[14]. - The ongoing lawsuit with Shanghai Huaxin Construction involves a claim for remaining project payments totaling ¥29,911,750.00, which represents 7.17% of the company's net assets[130]. Employee and Management - As of December 31, 2022, the company had a total of 329 employees, with labor costs amounting to ¥40,960,982.60, accounting for 20.27% of the operating revenue[14]. - The total remuneration for directors, supervisors, and senior management in 2022 amounted to CNY 4.1792 million[194]. - The company experienced a net decrease of 61 employees during the reporting period[196]. - The company has a stable management team and core personnel, focusing on attracting and retaining talent for sustainable development[197].
威贸电子(833346) - 2022 Q4 - 年度财报