Financial Performance - The company's revenue for 2022 increased by 1.6% to RMB 10,812.0 million compared to RMB 10,645.3 million in 2021[7]. - Gross profit rose by 10.1% to RMB 2,273.5 million, with a gross margin improvement to 21.0% from 19.4%[7][11]. - EBITDA increased by 27.6% to RMB 1,521.6 million, reflecting strong operational performance[7]. - Net profit attributable to shareholders surged by 81.8% to RMB 558.2 million, with basic earnings per share rising to RMB 20.99 from RMB 13.46[7][11]. - Total assets grew by 6.1% to RMB 21,010.0 million, while total liabilities increased by 7.3% to RMB 13,086.2 million[7]. - The revenue for 2022 increased by 1.6% year-on-year to RMB 10,812 million, primarily due to higher average selling prices and increased sales volume in overseas markets[25]. - The gross profit rose by RMB 208.6 million or 10.1% to RMB 2,273.5 million, with a gross margin increase of 1.6 percentage points to 21.0%[26]. - Net profit increased by RMB 251,200,000 or 81.8% to RMB 558,200,000 in 2022, compared to RMB 307,000,000 in 2021[38]. Market Dynamics - The export revenue of radial tire steel cord maintained growth despite a slowdown in overseas demand in the latter half of the year[12]. - The automotive market showed signs of recovery in the second half of 2022, positively impacting related demand[12]. - The domestic market accounted for 68.9% of radial tire steel cord sales, while the overseas market accounted for 31.1%, showing a shift in demand dynamics[22]. - The total sales volume of the group was 1,054,700 tons, a decrease of 2.1% year-on-year, with sales of radial tire steel cord down 1.9% to 834,800 tons, accounting for 79.2% of total sales[18]. - The sales volume of truck radial tire steel cord decreased by 6.8% to 470,300 tons, while sales of passenger car radial tire steel cord increased by 5.1% to 364,500 tons[19]. Operational Efficiency - The production capacity of radial tire steel cord increased by 3.2% to 972,100 tons, with an overall plant utilization rate of 84.7%[22]. - The group aims to expand its overseas market presence and enhance production capacity to align with economic recovery trends[17]. - The average cost of major raw materials decreased in 2022, contributing to the improved gross margin[26]. Corporate Governance - The company has maintained high standards of corporate governance, ensuring transparency, accountability, and independence throughout the fiscal year ending December 31, 2022[81]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse range of expertise and experience[84]. - The company has established an audit committee, a remuneration and management development committee, and a nomination committee to comply with corporate governance codes[81]. - The independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring the board's integrity[84]. - The company has a structured approach to training and continuous professional development for its directors and company secretary, adhering to corporate governance standards[82]. Risk Management - The risk management and internal control system was evaluated by the audit committee and board, confirming no significant deficiencies were found for the fiscal year ending December 31, 2022[152]. - The company has engaged an independent professional internal control consultant to assist in evaluating and improving the internal control system[143]. - The risk management policy includes strategic, financial, operational, and compliance controls, with assessments conducted at least annually[142]. - The company aims to provide reasonable assurance regarding the absence of material misstatements and losses through its risk management and internal control systems[150]. Employee Relations - The total employee cost, including directors' remuneration, was approximately RMB 905.8 million for the year ended December 31, 2022, slightly down from RMB 909 million in 2021[57]. - The group employed about 7,400 full-time employees as of December 31, 2022, a decrease from approximately 7,800 employees a year earlier[57]. - Contributions to the Xingda Union amounted to RMB 20.3 million for the year ended December 31, 2022, compared to RMB 14.9 million in 2021[57]. Future Outlook - The Chinese government has emphasized the importance of stabilizing growth, employment, and prices in 2023, which is expected to positively impact the industry[64]. - The total sales of new energy vehicles in China are projected to reach 9 million units in 2023, representing a 35% year-on-year growth, which will benefit the radial tire steel cord market[64]. - The company plans to leverage its position as an industry leader to drive new developments in 2023, better meeting consumer and market demands[65]. Shareholder Engagement - The company has conducted multiple one-on-one meetings with institutional investors and shareholders to enhance communication and understanding of the group's performance[158]. - The company allows shareholders to propose suggestions for discussion at the annual general meeting following specific procedures[135]. - The company has adopted a dividend policy to provide stable and sustainable returns to shareholders, considering various factors before declaring dividends[170].
兴达国际(01899) - 2022 - 年度财报