HIGHLY(SH:600619)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was CNY 16.50 billion, an increase of 4.66% compared to CNY 15.77 billion in 2021[23]. - The net profit attributable to shareholders decreased by 89.02% to CNY 35.46 million from CNY 322.93 million in the previous year[23]. - The basic earnings per share dropped by 91.18% to CNY 0.03 from CNY 0.34 in 2021[24]. - The weighted average return on equity decreased by 5.60 percentage points to 0.58% compared to 6.18% in 2021[24]. - The net cash flow from operating activities increased by 22.68% to CNY 510.30 million from CNY 415.94 million in 2021[23]. - The total assets as of the end of 2022 were CNY 20.21 billion, a decrease of 4.19% from CNY 21.10 billion in 2021[23]. - The company's operating costs increased by 6.50% year-on-year, totaling approximately CNY 14.91 billion[49]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which fell by 616.77%[25]. - The company reported a significant non-operating profit of ¥123,055,834.08 due to fair value changes related to performance compensation from Haili Marili, indicating non-sustainable profit sources[69]. Dividend Distribution - The company plans to distribute a cash dividend of 0.1 RMB per 10 shares, totaling approximately 10.83 million RMB, which represents 30.55% of the net profit attributable to shareholders for the year 2022[5]. - The company distributed cash dividends of 1.50 RMB per 10 shares, totaling 162,662,985.90 RMB (including tax), based on a total of 1,084,419,906 shares[138]. - The company declared a cash dividend of 0.10 CNY per 10 shares, totaling 10,832,794.06 CNY, which represents 30.55% of the net profit attributable to ordinary shareholders in the consolidated financial statements[142]. Audit and Compliance - The company has received a standard unqualified audit report from PwC Zhongtian[4]. - The company has not reported any violations in decision-making procedures regarding external guarantees[7]. - The company’s management team guarantees the authenticity, accuracy, and completeness of the annual report[9]. - The company has not disclosed any significant changes in its board of directors that would affect the report's integrity[8]. - The company reported no significant deficiencies in internal control during the reporting period[146]. - The company has established a comprehensive asset management mechanism, ensuring clear ownership and usage of assets, independent from the controlling shareholder[109]. - The company maintains an independent financial accounting system, with no shared bank accounts with the controlling shareholder[109]. - The company has not faced significant differences in governance compared to regulations set by the China Securities Regulatory Commission[108]. Operational Strategy and Market Position - The company plans to continue focusing on market expansion and new product development to improve future performance[25]. - The company is actively optimizing its global factory layout and increasing R&D investment in China to strengthen its competitive position[42]. - The company is positioned to benefit from the ongoing transition towards energy-efficient and intelligent products in the air conditioning and automotive sectors[40]. - The company aims to solidify its market position in compressors, targeting a sales goal of 27.2 million units for the year[94]. - The company is committed to expanding its international presence and improving its market share through strategic initiatives and technological innovation[91]. - The automotive parts sector will focus on becoming a leading supplier of thermal management systems for new energy vehicles, leveraging existing core competencies[92]. Research and Development - The company launched a global R&D center in early 2022, focusing on advanced motor and drive technology, and initiated the construction of a new materials application platform[36]. - The company has filed a total of 2,630 domestic patent applications, including 951 invention patents, showcasing its strong R&D capabilities[45]. - Research and development expenses totaled 797.76 million yuan, accounting for 4.83% of operating revenue[61]. - The company is focusing on R&D projects aligned with trends in energy conservation, emission reduction, and material savings, including new compressor technologies and solutions for electric vehicle thermal management systems[64]. Environmental and Social Responsibility - The company has invested in pollution control facilities to ensure stable compliance with emission standards[160]. - The company has implemented a self-monitoring plan for environmental emissions, ensuring compliance with relevant standards[163]. - The company has reduced carbon emissions by 5,934 tons through measures such as solar energy utilization[166]. - The company invested 921,900 RMB in poverty alleviation and rural revitalization projects, focusing on industrial and educational support[170]. - The company has engaged in community support activities, including donations to the Shanghai Red Cross and participation in local charity events[169]. - The company received the "ESG Golden Bull Award - Rising Star Enterprise" from the China Social Responsibility Hundred Forum in November 2022[149]. Governance and Management Changes - The company experienced a significant turnover in its board, with several directors and senior management leaving, including the resignation of the general manager and vice chairman[112]. - The company appointed a new general manager, Miao Jun, effective February 2023, following the retirement of former general manager Zhuang Hua[118]. - The company reported a significant leadership change with multiple resignations and appointments in 2022 and early 2023, indicating a strategic shift in management[118]. - The company has a diverse board with members holding various significant positions in other organizations, enhancing its governance and strategic oversight[114]. - The total number of shares held by directors and senior management increased from 2,454,330 to 2,544,330, reflecting a net increase of 90,000 shares during the reporting period[112]. Shareholder Structure and Financing - The total number of ordinary shareholders increased from 50,541 to 53,015 during the reporting period[197]. - The largest shareholder, Shanghai Electric Holding Group Co., Ltd., holds 283,433,348 shares, representing 26.14% of total shares[200]. - The company is actively managing its shareholder structure, with significant changes noted in the top ten shareholders[200]. - The company’s financial strategies include the issuance of bonds with varying interest rates, such as SCP001 at 2.36% and MTN001 at 3.4%[196]. - The company is focused on maintaining a stable capital structure while exploring new financing options[196].