Company Overview - The Group has become the largest foreign-branded CNC machine tool manufacturer in the Chinese market, achieving significant growth since its establishment in 2003[5]. - The Group's main products include precision lathes, precision machining centers, and precision grinding machines, primarily serving the automobile parts, IT electronics, and industrial automation sectors[19]. - The Group's products are mainly sold in Mainland China and Taiwan, with exports to Japan, South Korea, Europe, and the United States through Tsugami Japan's overseas sales channels[19]. - The Group emphasizes high precision, high speed, and high rigidity in its manufacturing processes, aligning with the globally leading technology of Tsugami Japan[18]. - The Group aims to provide cost-effective products and services to its customers while contributing positively to society[18]. - The Group's customer base includes renowned auto manufacturers, home appliance manufacturers, and smartphone manufacturers globally[19]. Financial Performance - The financial results for the fiscal year ended March 31, 2022, reflect the Group's commitment to quality and customer satisfaction, although specific financial figures are not detailed in the provided content[18]. - The Group recorded sales revenue of approximately RMB4,419,887,000, representing an increase of approximately 41.8% compared to the same period last year[20]. - The gross profit margin increased from approximately 24.6% in the previous year to approximately 26.5% for the Year under Review[20]. - The net profit for the Year under Review amounted to approximately RMB667,404,000, representing a year-on-year increase of approximately 70.3%[20]. - Basic earnings per share amounted to approximately RMB1.75, representing an increase of approximately 70% compared with the same period last year[20]. - The demand for CNC machine tools from various downstream sub-sectors was exceptionally strong, particularly in the new energy vehicle parts manufacturing sector[23]. - The overseas CNC machine tool market has fully recovered, with demand significantly increasing compared to the previous year, reaching the highest level in history[24]. Operational Strategy - The Group continues to focus on professional customization and development of CNC high precision machine tools to meet diverse industry needs[19]. - The Group's strategic direction includes enhancing its market presence and expanding its product offerings to cater to evolving customer demands[18]. - The Group aims to clarify its development goals, expand production capacity, and improve operational efficiency to increase market share of key products[28]. - The Group has committed to enhancing its marketing, product lines, and cost control to achieve solid operational results[24]. - The Group plans to strengthen production capacity expansion and improve product cost-effectiveness to enhance core competitiveness[37]. - The company has increased its production capacity and is expanding its operations to meet the growing demand for CNC machine tools in the Chinese market[76]. Corporate Governance - The company has adopted the Corporate Governance Code to strengthen management accountability and investor confidence[104]. - The company has complied with all code provisions of the Corporate Governance Code during the year[105]. - The board is responsible for determining the business and investment plans of the group and preparing annual financial budgets[107]. - The company has a structured approach to risk management and control, covering potential legal actions faced by directors[105]. - The company has a diverse board with no material relationships among members[107]. - The company periodically reviews its corporate governance practices to ensure compliance with the CG Code[104]. Risk Management and Internal Control - The Group has established a risk management and internal control system to manage risks, including ESG risks, and continuously reviews its effectiveness[164]. - The Audit Committee assists the Board in overseeing the risk management and internal control systems, ensuring an annual review of their effectiveness[167]. - The Board has determined that the Company's risk management and internal control systems are effective and adequate based on reports from the internal audit department and ESG working group[170]. - Procedures have been established to safeguard assets, control capital expenditure, and ensure the reliability of financial information used for business[169]. Environmental, Social, and Governance (ESG) Initiatives - The Group emphasizes the integration of ESG concepts into its risk management system, which is crucial for its daily operations and governance structure[177]. - The Group aims to minimize its potential adverse impact on the environment and preserve natural resources as part of its commitment to sustainability[177]. - The Group treats its stakeholders with mutual respect and care, valuing their contributions and maintaining strong relationships[177]. - The Group's mission is to facilitate human creativity and innovation through the provision of high precision machine tools[177]. - The Group has received the ISO 14001:2015 Environmental Management System certificate, indicating its commitment to minimizing environmental impact[193]. - The Group has implemented various emission reduction measures, including encouraging staff to use public transport and electronic communication to reduce travel[195]. Leadership and Management - Dr. Tang was appointed as the CEO and Chairman of the Company on April 1, 2022, and has been responsible for overall management and strategic planning since joining the Group in November 2005[83]. - The management team has extensive backgrounds in engineering and business strategy, contributing to the Group's competitive edge in the industry[87]. - The leadership structure is designed to support the company's growth strategy and operational effectiveness in a competitive market[88]. - The company has a strong management team with diverse backgrounds in engineering, finance, and wireless communications technology[90][93][95]. Shareholder Engagement and Communication - The Company maintains a proactive investor relations policy, conducting analysts' briefings and participating in investor conferences[161]. - The Group's website provides timely access to press releases, financial reports, and announcements for investors[161]. - The Company encourages shareholders to submit proposals and enquiries in writing to facilitate effective communication[160][162]. Future Outlook - The management is confident in achieving outstanding results in the upcoming financial year, potentially exceeding the previous year's performance due to positive market demand and a substantial order backlog[79]. - The company has been operational for 19 years, gaining a deeper understanding of the market environment and its business model, which supports its confidence in achieving medium and long-term development goals[80].
津上机床中国(01651) - 2022 - 年度财报