BAOSHENG SCI(SH:600973)2023-03-14 16:00Financial Performance - The company reported a net loss of ¥76,241,435.40 as of December 31, 2022, indicating no distributable profits for the year[5]. - The company's operating revenue for 2022 was CNY 41.48 billion, a decrease of 3.51% compared to CNY 42.99 billion in 2021[24]. - The net profit attributable to shareholders was CNY 64.75 million, a significant decline from a loss of CNY 762.76 million in the previous year[24]. - The basic earnings per share for 2022 was CNY 0.05, recovering from a loss of CNY 0.56 per share in 2021[25]. - The weighted average return on equity increased to 1.75%, up by 19.13 percentage points from -17.38% in 2021[25]. - The total assets at the end of 2022 were CNY 21.19 billion, reflecting a 1.57% increase from CNY 20.86 billion at the end of 2021[24]. - The cash flow from operating activities was CNY 399.68 million, down 11.42% from CNY 451.21 million in 2021[24]. - The company reported a significant increase in derivative financial assets, with a year-end balance of CNY 41.12 million, up from CNY 9.63 million at the beginning of the year[31]. - The company achieved a new sales figure of over 21 million yuan from new products in the aerospace sector, including ARJ21 and C919 aircraft[54]. - The company reported a total of 7,799 employees, with 3,377 in the parent company and 4,422 in major subsidiaries[113]. Governance and Compliance - The company received a standard unqualified audit report from Da Xin Accounting Firm, ensuring the accuracy and completeness of the financial statements[4]. - The company held one annual general meeting and two extraordinary general meetings during the reporting period, ensuring compliance with relevant laws and regulations[90]. - The board of directors was restructured, increasing from 8 to 11 members, with independent directors rising from 3 to 4, meeting legal requirements[91]. - A total of 11 board meetings were held during the reporting period, with 10 meetings for the seventh board and 1 for the eighth board[92]. - The supervisory board, consisting of 5 members, held 6 meetings, ensuring compliance and oversight of the company's operations and financial activities[92]. - The company has established a robust internal control system to improve risk prevention capabilities and ensure compliance with operational standards[93]. - The company actively engaged with investors through various communication channels, emphasizing fair treatment and protection of investor rights[93]. - The company has independent directors and their roles are clearly defined within the governance structure[100]. - The company has a structured approach to managing executive compensation, ensuring alignment with performance metrics[102]. - The company has not reported any significant changes in its financial structure or shareholding during the reporting period[96]. Market and Industry Insights - The cable industry in China has become the second-largest supporting industry in the national economy, with annual sales revenue exceeding 1 trillion yuan[43]. - The market share of the top ten cable companies in China is less than 10%, compared to over 70% in the US and 65% in Japan, indicating a low industry concentration[44]. - The offshore wind power sector in China saw a record bidding scale of 25GW in 2022, marking a significant year-on-year increase[46]. - The cumulative installed capacity of offshore wind power in China is expected to exceed 40GW from 2023 to 2025, with a projected new installed capacity of 10GW in 2023, doubling year-on-year[46]. - The market for submarine cables, which account for 10%-12% of total offshore wind investment, is expected to grow, reaching 38.5 billion yuan by 2025[48]. - The cost of photovoltaic power generation has decreased by over 90% globally in the past decade, making it the most competitive energy source[49]. - The installed capacity of distributed photovoltaic systems in China has increased from 6.06 million kW in 2015 to over 100 million kW, with its share of total photovoltaic capacity rising to over 35%[50]. - The Chinese government has implemented various policies to support the development of distributed photovoltaic projects, indicating a strong growth outlook for the industry[50]. - The offshore wind power market is expected to see significant demand growth due to local subsidy policies and the achievement of grid parity in some regions[46]. - The aerospace cable industry is anticipated to experience substantial market growth due to the acceleration of military aircraft upgrades during the 14th Five-Year Plan[50]. Strategic Initiatives and Developments - The company established a new energy project department in August, securing orders worth CNY 230 million within four months and successfully developing new clients in the wind and solar energy sectors[36]. - The company’s marketing strategy led to a successful bid for a CNY 700 million framework contract with China Metallurgical Group and multiple significant projects, including support for the 2022 Beijing Winter Olympics[38]. - The company initiated 108 process improvement projects, completed 88, and applied for 68 utility model patents and 20 invention patents, achieving a new record in patent authorizations[39]. - The company reduced outstanding receivables from 2.903 billion yuan at the beginning of the year to 2.36 billion yuan by year-end, a decrease of 18.5%[54]. - The company improved its cash flow situation significantly, recovering 1.5 billion yuan in difficult receivables[54]. - The company is committed to transforming from a product manufacturer to a service-oriented manufacturer through systematic integration[86]. - The company is focusing on six key areas: marketing, technology, quality, safety, cost, and party building[86]. - The company plans to optimize its product structure and enhance profitability by leveraging opportunities in new infrastructure and renewable energy markets[87]. - The company has committed to improving its information disclosure practices to avoid future delays in performance announcements[139]. - The company has taken legal actions against customers to recover overdue payments, indicating a proactive approach to managing receivables[139]. Social Responsibility and Environmental Initiatives - The company has implemented internal control measures, with no significant deficiencies reported during the period[117]. - The company has established an environmental protection mechanism but did not disclose specific investment amounts for environmental protection during the reporting period[118]. - The company has actively implemented green office practices and circular production, significantly reducing energy consumption and water usage in its operations[127]. - In 2022, the company purchased over 1 million yuan worth of agricultural products to support poverty alleviation efforts, demonstrating its commitment to social responsibility[127]. - The company raised 360,200 yuan through charitable donations and contributed 11,480 yuan to the local Red Cross, reflecting its engagement in community support initiatives[127]. - The company has committed to avoiding any competition with its listed subsidiaries and ensuring fair treatment of all subsidiaries during its control period[131]. - The company has emphasized the importance of adhering to environmental regulations and minimizing its impact on the environment through waste recycling and treatment processes[127]. - The company recognizes the need for ongoing efforts to meet stakeholder expectations regarding social responsibility and sustainable development[128]. - The company has actively participated in volunteer activities, including blood donation drives and support for underprivileged families[127]. Risks and Challenges - The company has outlined potential industry and market risks in the report, emphasizing the need for investor awareness[9]. - The company is addressing potential risks, including policy risks and market competition risks in the wire and cable industry, which has over 10,000 enterprises[87]. - The company faces risks related to the shortage of core technical personnel, which could impact its competitive advantage[88]. - The company recognized impairment signs for overdue commercial acceptance bills due to customer financial difficulties, leading to cautious impairment provisioning[139]. - The company has no significant litigation or arbitration matters in the current year[138]. - The company has not reached the original profit forecast for its assets or projects during the reporting period, but this is not applicable[134]. - The company has no plans to take measures against delisting risks, as there are no applicable situations[138].