GITI TIRE CORP(SH:600182)2023-04-28 16:00Financial Performance - The net profit of GITI Tire Corporation for 2022 was -9.94 million RMB, resulting in a distributable profit of 214.62 million RMB by the end of 2022 after accounting for previous undistributed profits and distributions made during the year [6]. - The company's operating revenue for 2022 was CNY 3,507,006,404.97, representing a year-on-year increase of 4.94% compared to CNY 3,341,881,316.25 in 2021 [28]. - The net profit attributable to shareholders for 2022 was CNY 34,422,679.73, a decrease of 4.76% from CNY 36,142,503.59 in 2021 [28]. - The net cash flow from operating activities decreased by 38.92% to CNY 189,948,305.50 in 2022 from CNY 310,989,371.87 in 2021 [28]. - The total assets at the end of 2022 were CNY 3,440,799,153.19, an increase of 3.02% from CNY 3,340,090,172.57 at the end of 2021 [28]. - The basic earnings per share for 2022 was CNY 0.1012, down 4.80% from CNY 0.1063 in 2021 [29]. - The weighted average return on equity for 2022 was 3.33%, a decrease of 0.24 percentage points from 3.57% in 2021 [29]. - The company reported a net cash flow from investing activities of -153,182,839.12 RMB, indicating increased investment in fixed assets [68]. - The company reported a total pre-tax compensation of 502.39 million CNY for its board members and senior management during the reporting period [121]. Dividends and Shareholder Returns - A cash dividend of 0.35 RMB per 10 shares (including tax) is proposed, totaling 11.90 million RMB to be distributed to shareholders [6]. - The total cash dividend amount (including tax) is CNY 11,900,000.00, which accounts for 34.57% of the net profit attributable to ordinary shareholders in the consolidated financial statements [147]. - The company has a remaining distributable profit of 202,717,633.06 yuan to be carried forward to future years [144]. Audit and Compliance - The company has received a standard unqualified audit opinion for its 2022 financial statements, indicating improved financial reporting compared to 2021 [10]. - The company has received standard unqualified opinions on its 2022 financial statements and internal control audit reports, allowing it to apply for the removal of delisting risk warnings [137][138]. - The company has been under administrative regulatory measures from the China Securities Regulatory Commission due to compliance issues, with multiple warnings and penalties issued throughout 2022 and 2023 [180][181]. - The company has not disclosed any significant deficiencies in internal control during the reporting period [151]. Risk Management and Governance - GITI Tire Corporation plans to apply for the removal of the delisting risk warning as it has met the necessary conditions according to the Shanghai Stock Exchange regulations [11]. - The company is still in the process of completing its share reform, which presents certain uncertainties and risks [12]. - The company faces risks related to the failure to complete the share reform, which may lead to uncertainties in corporate governance and shareholder relations [106]. - The company has not yet completed its share reform, which remains a significant governance issue that needs to be addressed [114]. Market and Industry Trends - The production of rubber tires in China decreased by 5.0% year-on-year, totaling 856 million units [40]. - The production of passenger car tires in China fell by 4.3% in 2022, with a total of approximately 667 million units produced [40]. - The company is facing intensified competition in the tire industry due to stricter environmental policies and rising raw material prices [101]. - The ongoing geopolitical tensions, particularly the Russia-Ukraine conflict, are expected to adversely affect tire export volumes and increase manufacturing costs due to rising prices of raw materials [108]. Research and Development - The company invested CNY 24.96 million in R&D, reflecting an increase of 11.43% year-on-year, indicating a commitment to enhancing product development [55][56]. - The company is focusing on technological innovation and product differentiation to capture market demand in the evolving automotive landscape [42]. - The company plans to launch over 130 new products in 2023, including 24 green energy tire products [102]. - The company has a strong focus on enhancing its research and development capabilities to drive innovation in new products [123]. Environmental Initiatives - The company has invested CNY 1,890.5 million in environmental protection during the reporting period [155]. - The company has implemented an online monitoring system for sulfur dioxide, smoke dust, and nitrogen oxides emissions in compliance with national environmental laws [157]. - The company actively promotes clean energy initiatives and has adopted advanced technologies to reduce pollutant emissions [169]. - The company reported a total sulfur dioxide emission of 2.38 tons, well below the regulatory limit of 31.65 tons [160]. Related Party Transactions - The total amount of related party transactions for 2022 was RMB 3.832 billion, which accounted for 8.02% of the total related party transactions [186]. - The actual amount of related party transactions in 2022 did not exceed the authorized transaction amounts approved at the second extraordinary general meeting of shareholders in 2022 [182]. - The company has engaged external agencies to audit the execution of related party transactions [186]. - The company maintains independent decision-making rights in procurement and sales, allowing for transactions with both related and non-related parties [186]. Strategic Initiatives - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year [123]. - The company is actively pursuing strategic partnerships and potential acquisitions to strengthen its market position [123]. - The company has committed to resolving industry competition issues by potentially acquiring other tire companies once financially capable, ensuring shareholder interests are protected [173]. - The company is focusing on smart manufacturing by introducing high-end automated production equipment and building a big data information system [102].