HAGG(SH:601177)2023-04-11 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥2.196 billion, representing a year-on-year increase of 2.62% compared to ¥2.140 billion in 2021[23]. - Net profit attributable to shareholders was approximately ¥209.38 million, a significant increase of 39.62% from ¥149.96 million in the previous year[23]. - The basic earnings per share (EPS) rose to ¥0.5234, reflecting a growth of 39.65% compared to ¥0.3748 in 2021[24]. - The net profit after deducting non-recurring gains and losses was approximately ¥171.21 million, up 138.22% from ¥71.87 million in 2021[23]. - The weighted average return on equity increased to 10.21%, up by 2.27 percentage points from 7.94% in the previous year[24]. - The net cash flow from operating activities decreased to approximately -¥15.20 million, a decline of 109.36% compared to ¥162.45 million in 2021[23]. - Total assets at the end of 2022 were approximately ¥4.441 billion, down 4.01% from ¥4.626 billion at the end of 2021[23]. - The company reported a decrease in cash received from sales, attributed to changes in product sales structure and an increase in accounts payable[25]. - The company’s expenses decreased by 1.50% year-on-year, totaling 277.01 million yuan[35]. - The company achieved operating revenue of CNY 2,196,065,145.69, an increase of 2.62% year-on-year[52]. - Net profit attributable to the parent company was CNY 209,376,700, an increase of 39.62% year-on-year[52]. - The net profit excluding non-recurring gains and losses was CNY 171,206,000, an increase of 138.22% year-on-year[52]. - The company reported a net profit margin of 12% for the fiscal year, up from 10% in the previous year[127]. Dividend and Share Capital - The company plans to distribute a cash dividend of 0.71 RMB per 10 shares, totaling 28,404,260 RMB (including tax) to shareholders as of December 31, 2022[5]. - The total share capital of the company as of December 31, 2022, is 400,060,000 shares[5]. - The company has not proposed any capital reserve transfer to increase share capital[5]. - A total cash dividend of ¥8,801,320.00 was distributed to shareholders, representing 5.87% of the net profit attributable to ordinary shareholders in the consolidated financial statements, which was ¥149,957,180.59[155]. - The cash dividend per 10 shares was ¥0.22, with no stock dividends or capital increases proposed for the year[155]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company has not violated decision-making procedures for providing guarantees[8]. - The board of directors has confirmed that all members attended the board meeting[4]. - The company has not faced any issues with more than half of the directors being unable to ensure the authenticity, accuracy, and completeness of the annual report[9]. - The company emphasizes transparency in information disclosure, adhering to relevant laws and regulations, ensuring timely and accurate information release[119]. - The company has established a robust internal control management system, ensuring compliance with relevant laws and regulations, which enhances decision-making efficiency and protects shareholder interests[157]. - The company has received a standard unqualified opinion from Tianjian Accounting Firm regarding the effectiveness of its internal control over financial reporting for the year ended December 31, 2022[159]. - The company has not reported any significant internal control deficiencies during the reporting period, indicating effective governance practices[158]. Research and Development - The company completed the development of 93 new products and 11 key components, with 41 patents and software copyrights filed, and 38 patents granted[37]. - Research and development expenses increased by 24.02% to CNY 132,169,127.41, reflecting higher investment in new product development[52]. - The number of R&D personnel is 440, accounting for 15.10% of the total workforce[71]. - The company is committed to enhancing its research and development efforts to stay competitive in the market[124]. - The company intends to increase investment in R&D and strengthen collaborations with professional teams to mitigate risks associated with technology updates and product development[115]. Market and Industry Trends - The global shipbuilding industry faced challenges, with new orders down 32.1% year-on-year, while the hand-held order volume increased by 10.2%[41]. - The engineering machinery industry saw excavator sales drop by 23.8%, but exports increased by 59.8%[43]. - The company expanded its market presence in the Central Asian market, achieving significant breakthroughs in product sales[36]. - The company’s wind power products saw substantial sales growth by focusing on mainstream models and rapid customer demand response[36]. - As of December 2022, China's wind power installed capacity reached 36,544 MW, a year-on-year increase of 11.2%, while new installed capacity was 3,763 MW, a decrease of 21%[45]. - Offshore wind power installed capacity reached 3,051 MW by the end of 2022, representing a year-on-year growth of 15.61%[45]. - The total output value of China's agricultural machinery manufacturing industry was approximately 501.86 billion CNY in 2022, with the agricultural machinery market size at 382.05 billion CNY[46]. - Agricultural machinery exports amounted to 6.429 billion USD in 2022, reflecting a year-on-year increase of 28.2%, while imports decreased by 14.4% to 703 million USD[46]. Strategic Initiatives and Future Outlook - The company plans to continue improving management and reducing costs to enhance performance in the future[24]. - The company aims to enhance its production capabilities and product quality through advanced management practices and a comprehensive quality management system[51]. - The company is focusing on green and low-carbon transformation in the shipbuilding industry, aligning with national policies aimed at high-quality development[101]. - The company plans to focus on innovation and product upgrades to maintain its industry-leading position, particularly in high-value and high-reliability products[110]. - The company aims to enhance its market presence by collaborating with leading wind power manufacturers and expanding its business coverage[109]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of 100 million allocated for potential deals[127]. - The company provided guidance for the next quarter, expecting revenue to grow by 10% to 1.32 billion[127]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[135]. Governance and Management - The board of directors consists of 9 members, including 3 independent directors, ensuring a diverse and professional structure[118]. - The company has established a performance evaluation and incentive mechanism linking senior management compensation to company performance, with a total pre-tax remuneration of 72.00万元 for the chairman[122]. - The company has implemented a cumulative voting system for the election of directors and supervisors to protect the rights of minority shareholders[118]. - The company has a total of 5 supervisors, including 2 employee representatives, ensuring effective oversight of financial and operational activities[118]. - The company has maintained a stable leadership structure, with several executives having long tenures[124]. - The company has implemented a performance evaluation system for executives to align with its strategic goals[138]. Environmental and Sustainability Efforts - The company invested ¥4,644,800 in environmental protection during the reporting period, demonstrating its commitment to sustainability[160]. - The company maintains a wastewater treatment facility that meets discharge standards, with average COD concentration significantly below the regulatory limit of 500 mg/L[162]. - The company has established an environmental management system compliant with the revised ISO14001 standards, reflecting its commitment to sustainable development[167]. - The company has replaced organic solvents with water-based paints to reduce VOC emissions, showcasing its efforts in pollution prevention[168]. - The company has initiated energy-saving processes and advocated for green commuting among employees to reduce carbon emissions[169]. Legal and Regulatory Matters - The company is involved in a significant lawsuit against Hangzhou Changjiang Automobile Co., with a claim amount of 4.03 million RMB, which is currently under enforcement proceedings[192]. - The company has been involved in the bankruptcy restructuring of Hangzhou Changjiang Automobile, which was declared bankrupt on February 8, 2023[193]. - The company has reported no significant litigation or arbitration matters for the current year, indicating a stable legal standing[191]. - The company disclosed that it will continue to monitor and disclose information regarding the bankruptcy and litigation matters as they progress[193]. Financial Management - The company reported a total cash asset management of RMB 1 billion for the year 2022[200]. - The overall entrusted financial management situation is applicable, indicating active engagement in asset management strategies[200]. - The company has implemented various financial management strategies to optimize cash flow and enhance returns on investments[200]. - The report highlights a focus on risk management in entrusted financial activities to safeguard assets[200]. - The company aims to increase the scale of entrusted financial management in the upcoming fiscal year[200].