SCMC(SH:600984)2023-04-14 16:00Financial Performance - The net profit attributable to shareholders of the listed company for 2022 was -44,691,332.77 RMB, a decrease of 111.93% compared to the previous year[4]. - Operating revenue for 2022 was 3,887,667,784.22 RMB, down 17.71% from 4,724,616,257.82 RMB in 2021[24]. - The net profit attributable to shareholders of the parent company was -44.69 million RMB, representing a year-on-year decline of 111.93%[32]. - The basic and diluted earnings per share were both -0.0356 RMB, a decrease of 109.19% from 0.3874 RMB in 2021[25]. - The weighted average return on equity was -0.73%, down 6.97 percentage points from 6.24% in 2021[25]. - In 2022, the company achieved a main business revenue of CNY 3,873.85 million, a decrease of 17.75% year-on-year[51]. - The leasing business revenue for the year was CNY 3,647.97 million, down 19.27% compared to the previous year[51]. - The subsidiary, Pangyuan Leasing, reported a revenue of CNY 3.542 billion in 2022, a decline of 18.28% year-on-year[52]. - The company’s equipment sales revenue was CNY 100.52 million, a decrease of 6.53% year-on-year[51]. - The revenue from road construction equipment and parts sales increased by 3.24% year-on-year, reaching CNY 80.36 million[51]. - The company’s steel structure construction products achieved a revenue of CNY 125.36 million, an increase of 49.77% year-on-year[51]. Cash Flow and Assets - The net cash flow from operating activities increased significantly to 264,649,471.97 RMB, a rise of 1,002.85% compared to 23,996,850.07 RMB in 2021[24]. - Total assets at the end of 2022 were 17,991,636,117.22 RMB, an increase of 2.21% from 17,602,567,240.94 RMB at the end of 2021[24]. - The asset-liability ratio at year-end was 66.60%[4]. - The net assets attributable to shareholders of the listed company decreased by 1.44% to 6,008,761,750.90 RMB compared to 6,096,678,060.54 RMB at the end of 2021[24]. - The company reported a net cash outflow from investment activities of ¥1,654,266,591.26, an improvement from a larger outflow of ¥2,278,486,225.10 last year[53]. - The total amount of cash received from borrowings increased by 44.82% to ¥5,907,516,648.14, compared to ¥4,079,329,984.00 in the previous year[53]. - The company’s long-term borrowings increased by 56.61% to 2,507,107,792.91, now representing 13.93% of total assets[71]. Market Position and Strategy - The company maintained the highest tower crane tonnage globally and ranked 18th in the "Top 100 Global Rental Companies" by KHL[33]. - The company signed annual strategic agreements with over ten large state-owned enterprises in 2022, enhancing its market position[33]. - The company focused on improving accounts receivable recovery, achieving significant reductions in long-standing receivables[33]. - The company continued to expand its tower crane export business, particularly in the central and southwestern regions of China[34]. - The company aims to enhance its core competitive advantages by integrating manufacturing, rental services, and remanufacturing into a circular industrial chain, focusing on green, intelligent, and intensive development[97]. - The company plans to strengthen its leasing service brand by improving management, service quality, and operational standards to maintain competitiveness in the tower crane rental industry[97]. Industry Challenges and Outlook - The company faced significant challenges in 2022, leading to a substantial decline in net profit and revenue[4]. - In 2022, the domestic engineering machinery industry saw a decline in key metrics, with revenue, total profit, and product sales down by 11.5%, 36%, and 8.13% respectively compared to 2021[36]. - The Producer Price Index (PPI) for the domestic engineering machinery industry increased by 10.3% year-on-year in 2022, indicating ongoing pressure from rising raw material costs[36]. - The domestic engineering machinery rental industry remains at a cyclical low, with reduced orders due to the deep adjustment in the real estate sector, leading to increased competition among operators[92]. - The company anticipates a gradual recovery in the engineering machinery industry in 2023, supported by favorable macroeconomic policies and a stabilizing real estate market[37]. Governance and Compliance - The company has revised its governance documents to enhance investor relations and ensure compliance with relevant laws and regulations[105]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, organization, and business operations[109]. - All major decisions during the reporting period were made independently by the company without interference from the controlling shareholder[109]. - The company has established a comprehensive information disclosure management system to ensure timely and accurate communication with shareholders[107]. - The company has committed to enhancing its investor relations management plan for 2022[105]. Environmental and Social Responsibility - The company invested CNY 3,230,300 in environmental protection during the reporting period[150]. - The company generates 80 tons of domestic sewage per day, treated by its own sewage treatment station with a capacity of 150 tons per day[152]. - The company has established an organic waste gas purification system, sewage treatment system, and high-efficiency dust removal system, all operating normally[154]. - A total investment of 1.1282 million yuan was made in poverty alleviation and rural revitalization projects, benefiting 2,750 people through consumption assistance[164]. Employee and Management Changes - The total number of employees at the parent company and major subsidiaries is 4,163, with 2,794 in production roles[132]. - The company has a fair and competitive compensation policy linked to performance, ensuring employee benefits align with company profits[133]. - The company has undergone significant management changes, including the appointment of a new general manager, with multiple executives being hired and dismissed due to work adjustments[118].