SMEIC(SH:600835)2023-03-24 16:00Financial Performance - The total revenue for the year 2022 was RMB 23,569,528,884.33, with elevator equipment sales contributing RMB 15,330,353,411.46, accounting for 65.04% of total revenue[14]. - The company's operating revenue for 2022 was approximately RMB 23.57 billion, a decrease of 4.64% compared to RMB 24.72 billion in 2021[95]. - Net profit attributable to shareholders for 2022 was approximately RMB 981.47 million, an increase of 21.03% from RMB 810.92 million in 2021[95]. - The net cash flow from operating activities for 2022 was approximately RMB 693.79 million, a decrease of 3.69% compared to RMB 720.40 million in 2021[95]. - The company's total assets at the end of 2022 were approximately RMB 37.51 billion, an increase of 0.79% from RMB 37.21 billion at the end of 2021[95]. - Basic earnings per share for 2022 were RMB 0.96, representing a 21.52% increase from RMB 0.79 in 2021[95]. - The company's total equity attributable to shareholders reached ¥12,953,505,648.87 in 2022, compared to ¥12,314,716,558.76 in 2021, marking a growth of around 5.2%[51]. - The company's net assets attributable to shareholders increased by 5.19% to approximately RMB 12.95 billion at the end of 2022[95]. - The weighted average return on equity for 2022 was 7.78%, an increase of 1.07 percentage points from 6.71% in 2021[95]. Assets and Liabilities - As of December 31, 2022, the net amount of receivable commercial acceptance bills was RMB 830,289,719.32, with an impairment provision of RMB 393,094,975.44[29]. - The net amount of accounts receivable was RMB 4,564,653,184.92, with an impairment provision of RMB 2,254,635,425.68[29]. - The net amount of contract assets was RMB 1,786,191,419.32, with an impairment provision of RMB 81,578,242.51[29]. - The total current assets amounted to RMB 4,907,699,517.49, a decrease from RMB 5,205,967,433.05 in the previous year[40]. - Long-term equity investments increased to RMB 5,803,659,447.62 from RMB 5,766,133,820.15 year-over-year[40]. - The company's cash and cash equivalents increased to ¥12,193,306,945.26 in 2022 from ¥11,741,355,617.27 in 2021, representing a growth of about 3.87%[48]. - The company's inventory decreased to ¥8,941,024,556.45 in 2022 from ¥9,381,861,037.89 in 2021, reflecting a decline of approximately 4.7%[48]. - The company's retained earnings increased to ¥8,661,973,405.75 in 2022 from ¥8,022,285,873.61 in 2021, showing a growth of about 8%[51]. - The total liabilities and equity amounted to ¥37,506,646,836.54 in 2022, slightly increasing from ¥37,211,624,416.36 in 2021, which is a growth of about 0.8%[51]. Investments and Partnerships - The company holds a 28.39% stake in Yinghe Technology and a 60% stake in Electric Wind Power as of December 31, 2022[6]. - The company has a significant investment in subsidiaries, with ownership stakes ranging from 40% to 100% in various entities[187]. - The partnership with Nabtesco aims to capture opportunities in the rapidly growing Chinese robotics market[67]. - Shanghai Electric's subsidiary, Shanghai Mitsubishi Elevator, holds a 52% stake and has shown strong operational performance with a revenue of RMB 2,201,625.03 million[197]. - The company plans to expand its market presence through strategic partnerships and acquisitions, focusing on enhancing its technological capabilities[197]. Operational Strategies and Future Outlook - The company expects to achieve approximately CNY 24 billion in revenue for 2023[58]. - The elevator business will focus on enhancing maintenance and renovation services, expanding service areas[57]. - The company aims to transition from equipment manufacturing to providing comprehensive system solutions[58]. - The digital printing segment will shift focus from newspaper printing to book printing and actively explore packaging printing markets[57]. - The precision hydraulic sector will leverage existing foundations to accelerate product innovation and expand market share[57]. - The company is addressing market risks due to tightening liquidity in the real estate sector and is closely monitoring customer solvency[59]. - The company plans to enhance operational quality by improving management of new orders, cash flow, accounts receivable, and inventory[58]. - The company is committed to high-quality development and innovation to drive transformation[58]. - The company aims to enhance order management and increase market share while improving service quality[180]. - The company plans to implement new technologies and industry layouts as part of its strategic development[180]. Research and Development - The number of R&D personnel is 573, accounting for 12.42% of the total workforce[152]. - The company's R&D expenses decreased by 5.01% to ¥789.05 million from ¥830.67 million year-on-year[134]. - R&D expenses totaled ¥789,051,407.44, representing 3.35% of total revenue[183]. - The company has applied for over 1,000 patents, showcasing its commitment to innovation and technology development[165]. - The company has invested in a 236-meter high-speed elevator test tower, enhancing its R&D capabilities for high-speed elevator technology[165]. Market Conditions and Challenges - The elevator industry in China is experiencing a strategic turning point from growth to decline, leading to intensified competition[164]. - The company is focusing on high-quality development and dual-driven product services to enhance competitiveness and market share in the new elevator market[164]. - There is a growing demand for elevator renovation projects due to the aging of existing elevators and the need for installation in older buildings, driven by population aging[164]. - The transition from manufacturing to modern service industry in the elevator sector is accelerating, with a focus on smart elevators and IoT trends[164]. - Accounts receivable increased due to slower sales collection influenced by the real estate sector, highlighting market challenges[168]. Corporate Governance and Internal Controls - The company has not experienced any changes in its total share capital or share structure during the reporting period[2]. - The company has implemented internal controls to ensure the financial statements are free from material misstatement due to fraud or error[32]. - The audit committee is responsible for overseeing the financial reporting process of the company[33]. - The company maintains independence in assets, personnel, finance, organization, and business operations, ensuring no conflicts with controlling shareholders[42]. - The company has established a comprehensive internal control system to oversee major investment decisions, financial management, and compliance with legal regulations[41]. - The company emphasizes transparency in information disclosure, ensuring all shareholders have equal access to information[41]. Customer Service and Product Offerings - The company has established over 720 maintenance service networks, providing 24-hour customer service nationwide[133]. - The introduction of a ten-year warranty service for five core components aims to enhance customer loyalty and promote revenue growth from new elevators and services[133]. - The company launched several smart products, including the SmartEYE monitoring system and SmartK-II intelligent escalator, to meet the growing demand for intelligent solutions[131]. - The company has successfully launched a 10-meter per second high-speed elevator, expanding its product offerings in the high-speed segment[165]. - The introduction of the LNK intelligent elevator digital solution integrates nine categories of digital products, promoting a new digital business track for the company[165].