TRIANGLE TYRE(SH:601163)2023-04-26 16:00Shareholder Information - The total number of common shareholders as of the end of the reporting period is 47,707, an increase from 46,998 at the end of the previous month[10] - There are no preferred shareholders with restored voting rights as of the end of the reporting period[10] - The company’s major shareholder is Triangle Group Co., Ltd., with key executives holding substantial shares[12] - The number of shares held by the largest shareholder, Triangle Group Co., Ltd., was 454,739,750, representing 56.84% of total shares[45] - The company has no significant changes in its controlling shareholder or actual controller during the reporting period[35] Financial Liabilities and Assets - The financial liabilities are classified at initial recognition as either measured at fair value with changes recognized in profit or loss, or as other financial liabilities[6] - The group applies the actual interest method for subsequent measurement of other financial liabilities at amortized cost[6] - The fair value of financial assets and liabilities is determined using market prices or valuation techniques based on observable inputs[6] - The group does not offset financial assets and liabilities in the balance sheet unless specific conditions are met[6] - The financial liabilities are terminated when the current obligations are fully or partially discharged[6] - The group has no foreign currency transactions that are applicable for the reporting period[4] - The group does not have any receivables from notes applicable for the reporting period[8] Financial Performance - The company's operating revenue for 2022 was CNY 9,220,123,780.56, representing a 2.97% increase from CNY 8,954,386,534.49 in 2021[59] - The net profit attributable to shareholders for 2022 was CNY 737,641,851.18, a 22.86% increase compared to CNY 600,406,918.38 in 2021[59] - The net cash flow from operating activities reached CNY 1,487,002,675.93, marking a significant increase of 215.26% from CNY 471,680,988.43 in the previous year[59] - The basic earnings per share for 2022 was CNY 0.92, an increase from CNY 0.75 in 2021, reflecting a growth of 22.67%[59] - The company achieved operating revenue of 76,475.58 million RMB in 2022, with a net profit of 23,510.36 million RMB, reflecting a strong performance in the tire production sector[175] Assets and Liabilities - Total assets increased to ¥17,693,317,404.66, up from ¥16,738,781,984.91, representing a growth of approximately 5.73% year-over-year[44] - Non-current liabilities totaled ¥5,996,906,724.66, compared to ¥5,592,496,325.58, indicating an increase of about 7.24%[44] - Current liabilities rose to ¥5,402,023,733.03, up from ¥4,993,891,739.19, reflecting a growth of approximately 8.17%[44] - The total equity attributable to shareholders reached ¥11,695,620,920.05, an increase from ¥11,145,136,308.02, marking a growth of about 4.93%[44] - The company reported a decrease in deferred income to ¥313,558,188.80 from ¥500,666,070.43, a decline of approximately 37.38%[44] Inventory and Receivables - The accounts receivable on the consolidated financial statements amounted to RMB 989.33 million, with a provision for bad debts of RMB 99.13 million, resulting in a net value of RMB 890.20 million[20] - The inventory on the consolidated financial statements had a carrying amount of RMB 1,427.52 million, with a provision for inventory impairment of RMB 28.91 million, leading to a net value of RMB 1,398.61 million[20] - The company reported a significant decrease in receivables, with accounts receivable down by 86.29% to ¥5,910,068.86[136] Audit and Compliance - The company is responsible for preparing financial statements in accordance with accounting standards to ensure fair representation and maintain necessary internal controls[25] - The audit report confirms that the financial statements fairly reflect the company's financial position as of December 31, 2022, and its operating results for the year[13] - The audit procedures included evaluating the effectiveness of internal controls related to accounts receivable and inventory[20] - The company maintained compliance with independence-related ethical requirements throughout the audit process[29] - The audit report indicates no significant uncertainties regarding the company's ability to continue as a going concern[30] Market and Product Development - The company has a significant focus on general equipment manufacturing and repair, as well as real estate leasing and sales of lubricants and automotive parts[12] - The company launched 158 new products during the reporting period, focusing on low rolling resistance products and specialized tires for electric buses and long-distance transport[66] - The company was recognized with the "Supplier Excellence Recognition" award from Caterpillar for its outstanding product quality and service[66] - The company was included in the national list of green manufacturing for 2022, highlighting its commitment to sustainable practices[66] - The company is focusing on the development of electric vehicle tires, which are becoming a new growth point in the tire industry, driven by the rapid growth of the electric vehicle market[176] Research and Development - The company employed 889 R&D personnel, representing 15.62% of the total workforce, with a significant portion holding advanced degrees[104] - The company has established a tire technology center in the U.S. to enhance its R&D capabilities and has applied for over 10 invention patents in various countries[141] - The company has invested CNY 432,692,707.07 in R&D, representing 4.69% of its operating revenue[156] - The company holds a total of 817 patents, including 84 invention patents and 49 international patents[123] Sustainability and Environmental Commitment - The company was recognized as a provincial-level green factory in Shandong and received the first green product certification from the China Quality Certification Center in March 2023, highlighting its commitment to sustainable practices[1] - The company is committed to achieving zero pollution and zero emissions in its manufacturing processes, aligning with national policies for green transformation in the tire industry[1] - The tire industry in China has seen a shift towards high-quality development, with a focus on green and intelligent manufacturing processes, as well as the use of eco-friendly materials[176] Financial Strategy and Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements related to its future strategies and financial performance[71] - The company has established a scientific and standardized corporate governance structure, ensuring compliance with relevant laws and regulations[185] - The company actively engages with stakeholders and fulfills social responsibilities related to environmental protection and resource conservation[186] - The company has revised its information disclosure and investor relations management systems to ensure timely and accurate communication with investors[186] - The company plans to continue expanding into emerging markets and enhancing its global competitiveness through innovation and strategic market development[183] Production and Sales Trends - In 2022, the company produced 22.48 million tires, a year-on-year decrease of 10.22%, with a capacity utilization rate of approximately 83.63%[65] - Domestic sales volume decreased by 16.7% due to weak demand in the automotive and engineering machinery sectors, while domestic sales of radial engineering tires increased by 20.9%[65] - The company exported tires to regions such as the CIS countries, Central and South America, and the Middle East and Africa, with a notable increase of over 30% in giant tire exports[65] - The company’s products are sold in over 180 countries, with more than 50% of sales generated from international markets[115] - The company maintains a global marketing network covering over 180 countries and regions, with more than 600 local brand stores established[96] Cost Management - Raw material costs for tire products amounted to ¥6,233,952,675.93, representing 79.39% of total costs, an increase of 2.38% compared to the previous year[130] - Energy costs increased by 12.71% to ¥585,994,863.47, accounting for 7.46% of total costs[130] - The procurement cost of steam natural gas increased by 18.0% year-on-year, with a total procurement volume of 85.73 million tons[195] - The procurement cost of natural gas rose by 28.1% year-on-year, with a total procurement volume of 665 million cubic meters[195] Challenges and Competition - The company faces intense competition in the tire manufacturing industry, with many domestic manufacturers and established foreign brands dominating the mid-to-high-end market[183] - Fluctuations in the USD/RMB exchange rate can impact overseas sales and profitability, prompting the company to implement various strategies to mitigate foreign exchange risks[183] - The tire industry is experiencing a consolidation trend, with the number of monitored tire factories in China decreasing from over 500 to 390 due to environmental regulations and capacity restrictions[176] - The domestic market for construction machinery saw a decline, with total loader sales dropping by 12.2% year-on-year, while exports increased by 24.9%[113]