BHAS(SH:600960)2023-04-26 16:00Financial Performance - Bohai Automotive reported a net profit attributable to shareholders of -62.58 million RMB for 2022, compared to -90.11 million RMB in 2021, indicating an improvement of 30.5% year-over-year[6]. - The company's total revenue for 2022 was approximately 4.10 billion RMB, a decrease of 7.08% from 4.41 billion RMB in 2021[20]. - Operating cash flow net amount increased by 70.15% to 233.09 million RMB in 2022, up from 136.99 million RMB in 2021[20]. - The total assets of the company decreased by 10.38% to 7.39 billion RMB at the end of 2022, down from 8.25 billion RMB at the end of 2021[20]. - The company's net assets attributable to shareholders decreased by 9.19% to 4.57 billion RMB at the end of 2022, compared to 5.03 billion RMB at the end of 2021[20]. - Basic earnings per share for 2022 were -0.0655 RMB, an improvement from -0.0948 RMB in 2021[22]. - The weighted average return on net assets was -1.29% for 2022, compared to -1.79% in 2021, showing a slight recovery[22]. - The company will not distribute profits for 2022 due to the negative net profit, and no capital reserve will be converted into share capital[6]. Market Performance - In 2022, the company achieved operating revenue of CNY 4,102.29 million, a decrease of 7.08% compared to the previous year[30]. - The net profit attributable to shareholders of the listed company was CNY -62.26 million, a reduction in losses by CNY 27.85 million year-on-year[30]. - The company sold 9.52 million commercial vehicle pistons in 2022, maintaining a leading position in the domestic market despite a significant market decline[31]. - Sales of passenger vehicle pistons increased by 23.35% year-on-year, with revenue growth of 12%, outperforming the industry average[31]. - The export business of pistons generated operating revenue of CNY 214.88 million, benefiting from the recovery of international markets[31]. - The lightweight business saw a revenue increase of 29% year-on-year, supported by sales growth from key clients like Chery and Geely[32]. - The subsidiary BTAH achieved operating revenue of CNY 1.738 billion, a year-on-year growth of 18.4%[32]. - The company secured new project approvals from major clients in the commercial vehicle market, including Weichai and Sinotruk[33]. - The company expanded its market presence in the passenger vehicle sector, obtaining project approvals from BYD and Chery[33]. Operational Efficiency - The company actively pursued cost reduction and management efficiency to stabilize operations amid challenging economic conditions[30]. - The company accelerated the development of lightweight products in the new energy sector, securing projects with Daimler, Beijing Benz, and Huaren Yuntong[34]. - During the reporting period, the company obtained 14 new patents, including 12 invention patents, enhancing its R&D capabilities[35]. - The company completed the development and sample delivery of three hybrid cylinder blocks for BYD and multiple structural components for other clients[35]. - The company’s lightweight subsidiary, Binzhou Lightweight, has been awarded project designations from high-end clients like Beijing Benz[43]. Industry Trends - The domestic automotive market saw production and sales of 27.02 million and 26.86 million vehicles in 2022, representing year-on-year growth of 3.4% and 2.1% respectively[37]. - The commercial vehicle sector experienced a significant decline, with production and sales dropping by 31.9% and 31.2%, respectively, in 2022[37]. - The lightweight automotive trend is expected to enhance the company's growth opportunities, with a 10% reduction in vehicle weight potentially leading to a 6%-8% decrease in fuel consumption[39]. - The overall automotive parts industry in China is projected to continue growing, with expectations of a 3% increase in 2023 due to supportive policies and improved market conditions[38]. Financial Management - Operating costs decreased to CNY 3,731,446,369.44, down 5.37% year-on-year, in line with the drop in sales volume[55]. - The net cash flow from operating activities increased by 70.15% to CNY 233,094,014.03, driven by increased sales revenue from subsidiaries[55]. - Sales expenses were reduced by 22.69% to CNY 87,187,153.45, attributed to lower sales volume in the commercial vehicle sector[55]. - Financial expenses decreased significantly by 71.08% to CNY 23,812,447.94, due to repayment of maturing medium-term notes and bank loans[55]. Research and Development - The total R&D expenditure amounted to ¥91,801,957.16, representing 2.24% of total revenue, indicating the company's commitment to innovation[64]. - Research and development expenses decreased by 27.38% to ¥91,801,957.16 in 2022 from ¥126,408,043.04 in 2021[67]. - The number of R&D personnel is 294, accounting for 5.96% of the total workforce[65]. Corporate Governance - The company held three shareholder meetings during the reporting period, all in compliance with relevant laws and regulations[101]. - The total remuneration for the chairman, Mr. Xie Wei, during the reporting period was 0 million yuan, indicating no compensation received[105]. - The total remuneration for the vice chairman and general manager, Mr. Chen Geng, was 57.56 million yuan[105]. - The company has not reported any changes in shareholding for its directors and senior management during the reporting period[105]. - The company maintains independence from its controlling shareholders and has not reported any significant changes in competition or business operations[106]. Environmental Responsibility - The company invested 5.06 million yuan in environmental protection facilities in 2022, focusing on the operation and upgrade of pollution control equipment[143]. - The company achieved a reduction of 4 tons in carbon dioxide equivalent emissions through the use of geothermal heat pump heating and cooling systems in its technical and office buildings[148]. - The wastewater discharge limits are set at 500 mg/L for COD and 45 mg/L for ammonia nitrogen, with all emissions meeting the required standards[142]. - The company has implemented a monthly monitoring plan for wastewater and annual monitoring for exhaust emissions, all results conforming to environmental standards[146]. Social Responsibility - The company provided assistance to 170 employees in need, with a total funding of 190,300 RMB[151]. - The company continues to engage in poverty alleviation efforts, collaborating with local agricultural cooperatives to promote sales of poverty alleviation products[153]. - The company emphasizes its commitment to social responsibility, aiming for long-term stable development while contributing to the automotive industry[153]. Legal Matters - The company has faced significant litigation matters, including a lawsuit related to a guarantee agreement amounting to 100 million RMB[161]. - The company has successfully won several lawsuits related to loan recoveries, with ongoing enforcement actions[164]. - The company has been involved in environmental litigation concerning the sale of aluminum waste, with potential liabilities estimated at approximately 3.05 million RMB[163].