HTGD(SH:600487)2023-04-25 16:00Financial Performance - The company's operating revenue for 2022 was CNY 46.46 billion, representing a 12.58% increase from CNY 41.27 billion in 2021[22]. - Net profit attributable to shareholders for 2022 was CNY 1.58 billion, up 10.25% from CNY 1.44 billion in 2021[22]. - The basic earnings per share for 2022 was CNY 0.67, a 9.84% increase compared to CNY 0.61 in 2021[23]. - The weighted average return on equity increased to 7.46% in 2022, up from 7.02% in 2021, reflecting a 0.44 percentage point increase[23]. - The total assets at the end of 2022 were CNY 55.68 billion, a 6.14% increase from CNY 52.46 billion at the end of 2021[22]. - Cash flow from operating activities decreased by 37.89% to CNY 854.67 million in 2022, down from CNY 1.38 billion in 2021[22]. - The net assets attributable to shareholders increased by 14.11% to CNY 23.70 billion at the end of 2022, compared to CNY 20.77 billion at the end of 2021[22]. - The company reported a total of CNY 194.41 million in government subsidies recognized in 2022, which are closely related to its normal business operations[26]. Corporate Governance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The company has confirmed that all board members attended the board meeting, ensuring the authenticity and completeness of the annual report[9]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity of the annual report[8]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company has committed to ensuring the accuracy and completeness of the financial report[4]. - The company held six extraordinary general meetings in 2022, with key resolutions including the approval of daily related party transactions and credit limits for financial institutions[194][195]. - The company has proposed to provide guarantees for its wholly-owned subsidiaries and joint ventures in 2023, as discussed in the sixth extraordinary general meeting[195]. - The company’s chairman, Cui Wei, has been in position since May 2021 and is expected to serve until May 2024[197]. - The company’s board of directors is composed of experienced professionals, with an average age of 50 years among the directors[197]. Strategic Initiatives - The company plans to distribute a cash dividend of 0.80 RMB per 10 shares, totaling 195,614,490 RMB (including tax) to shareholders[5]. - The company plans to establish a new submarine cable production base in Jiangsu, with the first phase expected to be operational in the second half of 2023[40]. - The company is actively expanding its offshore wind power solutions, securing multiple domestic and international project contracts, including significant projects in Vietnam, Saudi Arabia, and Mexico[37]. - The company aims to optimize its product structure by launching a high-end aluminum and aluminum alloy cable project in Shandong, targeting energy-saving special power cables for various industries, including renewable energy and rail transit[43]. - The company is focused on becoming a leading provider of smart city solutions, leveraging its strengths in communication networks and energy interconnection[55]. - The company plans to spin off its subsidiary Hengtong Marine Optical Network for independent listing, focusing on marine communication and smart city solutions[58]. - The company aims to enhance its international brand influence through quality management and innovation, having received the "2021 China Enterprise Brand Innovation Achievement Award" from the China Quality Association[86]. Research and Development - The company has invested CNY 1,967.21 million in R&D during the reporting period, representing an 8.79% increase year-on-year, positioning it among the top in the industry[74]. - The company has been awarded 1,010 invention patents and 197 PCT international patents, reflecting its commitment to innovation and industry standards[74]. - The company has developed the world's first 32-fiber submarine communication repeater prototype and a 32-fiber submarine cable, leading the industry into the Petabit-level transmission era[76]. - The company is focusing on technological innovation in the 5G sector, becoming the sole provider for key projects related to 100G and 400G optical modules[34]. - The company is committed to strengthening its R&D investments and core talent development to counteract potential impacts from policy and market fluctuations[183]. Market Trends and Opportunities - The optical fiber and cable industry is experiencing a recovery, with improved supply-demand dynamics and increased capital expenditure on communication infrastructure globally[60]. - The global market investment in submarine cable construction is expected to exceed 10 billion USD from 2022 to 2024[110]. - The global fiber optic cable demand reached approximately 540 million core kilometers in 2022, surpassing the previous peak in 2018, indicating a historical high in demand[128]. - The global cloud infrastructure service expenditure is expected to grow by 23% in 2023, driven by the demand for AI and computing infrastructure, which will boost the demand for optical modules[131]. - The investment in ultra-high voltage projects during the 14th Five-Year Plan period is expected to reach 380 billion RMB, a 35.7% increase compared to the previous plan[113]. Risk Management - The company is actively addressing risks from raw material price volatility, particularly for copper and aluminum, by utilizing futures and options for hedging[187]. - The company is enhancing its compliance management system to mitigate risks associated with overseas investments and operations in complex international environments[184]. - The company is monitoring industry information and policy trends to adapt its investment and product development strategies accordingly[183]. - The company has established an ESG committee to improve governance and align with environmental, social, and governance standards[191]. Employee Engagement - The company successfully implemented an employee stock ownership plan involving 9.6 million shares, aimed at enhancing employee engagement and aligning interests[87]. - The company plans to implement an employee stock ownership plan in 2023, which was approved in the fifth extraordinary general meeting[195]. - The total number of employees listed is 26,000[200]. Operational Performance - The company reported a total revenue of 1,054.98 million for the period[200]. - The company has a financial director with a reported salary of 26.25 million[200]. - The sales director's reported salary is 59 million[200]. - The quality director's reported salary is 50 million[200]. - The company has a total of 5 independent directors[200]. - The average age of the board members is approximately 48 years[200]. - The company has a total of 4 supervisors, including employee representatives[200].