Huafon Aluminium(SH:601702)2023-04-26 16:00Financial Performance - The total revenue for the aluminum processing segment was approximately CNY 8.38 billion, a decrease of 36.58% compared to the previous year[12]. - The gross profit margin for the aluminum processing segment decreased by 3.79 percentage points to 13.80%[12]. - Revenue from composite materials was approximately CNY 5.01 billion, down 30.75% year-on-year, with a gross profit margin of 17.70%[12]. - The revenue from non-composite materials increased by 33.64% to approximately CNY 2.52 billion, with a gross profit margin of 9.46%[12]. - Domestic revenue was approximately CNY 5.68 billion, representing a year-on-year increase of 32.53%, while the gross profit margin decreased by 5.38 percentage points to 11.35%[12]. - International revenue reached approximately CNY 2.70 billion, up 45.96% year-on-year, with a gross profit margin of 18.94%[12]. - The revenue from direct sales was approximately CNY 7.96 billion, a decrease of 39.49% year-on-year, with a gross profit margin of 13.97%[12]. - The revenue from distribution sales was approximately CNY 422.74 million, showing a slight decrease of 1.97% year-on-year, with a gross profit margin of 10.43%[12]. - The company's operating revenue for 2022 was ¥8,544,766,680.10, representing a 32.51% increase compared to ¥6,448,633,971.18 in 2021[53]. - Net profit attributable to shareholders for 2022 was ¥665,771,454.65, a 33.11% increase from ¥500,162,716.49 in 2021[53]. - Basic earnings per share for 2022 was ¥0.67, up 34.00% from ¥0.50 in 2021[28]. - The weighted average return on equity increased to 19.38% in 2022, up 2.09 percentage points from 17.29% in 2021[28]. - The company's net assets attributable to shareholders increased by 18.84% to ¥3,732,538,392.44 at the end of 2022, compared to ¥3,140,852,230.48 at the end of 2021[53]. - The net cash flow from operating activities for 2022 was ¥326,505,961.58, a decrease of 14.21% from ¥380,578,702.46 in 2021[53]. - The company achieved total revenue of RMB 854,476.67 million in 2022, representing a year-on-year increase of 32.51%[59]. - Net profit attributable to shareholders reached RMB 66,577.15 million, up 33.11% compared to the previous year[78]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 64,533.69 million, reflecting a growth of 34.11% year-on-year[78]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.10 per share, totaling approximately CNY 99.85 million, which represents a cash dividend payout ratio of 15.00%[6]. - The proposed cash dividend distribution is 0.10 CNY per share, amounting to a total of 99,853,060.00 CNY, which represents 15.00% of the annual net profit attributable to shareholders[170]. - The cash dividend payout ratio for the year is below 30% of the net profit attributable to shareholders, indicating a strategy to retain earnings for operational needs[171]. - The total cash dividend amount (including tax) is RMB 99,853,060.00, which accounts for 15.00% of the net profit attributable to ordinary shareholders in the consolidated financial statements[195]. - The net profit attributable to ordinary shareholders in the consolidated financial statements is RMB 665,771,454.65[195]. - The total dividend amount (including tax) also represents 15.00% of the net profit attributable to ordinary shareholders in the consolidated financial statements[195]. Market and Production Insights - The average aluminum price in 2022 increased compared to the previous year, but the company's gross margin declined due to a decrease in market aluminum prices during the year[48]. - The company has reported a significant increase in the number of orders on hand, which has impacted its production capacity and procurement strategies[48]. - The production volume of non-composite materials increased by 20.72% year-on-year, while sales volume rose by 20.22%[71]. - The company has developed over 100 new energy customers, with products like aluminum strips for battery shells and water-cooled plate aluminum materials showing strong competitive advantages[79]. - The company has established a production base in Shanghai with an annual capacity of 140,000 to 150,000 tons and in Chongqing with an annual capacity of 200,000 tons, aiming for a total capacity of 340,000 to 350,000 tons per year[126]. - The company operates two major production bases in Shanghai and Chongqing, equipped with advanced manufacturing equipment to meet diverse customer needs across various industries[122]. - The company has implemented various digitalization and automation projects to enhance production efficiency and reduce material input[91]. - The company has effectively managed supply chain challenges during emergencies, ensuring stable production and enhancing customer confidence[78]. Research and Development - The company has developed various high-strength, corrosion-resistant materials for new energy vehicle battery thermal management, establishing a solid foundation for future business growth[80]. - As of the end of the reporting period, the company and its subsidiaries hold a total of 78 authorized patents, including 30 invention patents and 48 utility model patents, indicating significant R&D achievements[80]. - The company plans to continue strengthening the development of new technologies and products to meet the growing demand in the new energy sector[79]. - The company has undertaken multiple technology projects, including the development of new rare earth aluminum alloy thermal transmission materials, positioning itself at the forefront of industry innovation[117]. - The company aims to continuously develop high-quality battery-related materials and aluminum thermal transfer materials for the electric vehicle and energy storage sectors, with increased investment in technology research and development[174]. Operational Strategy - The company has established a mature production model centered on sales, utilizing a "sales-driven production" approach to align production plans with customer demand and historical inventory experience[104]. - The company’s operational strategy includes a flexible production and logistics system that allows for rapid response to customer demands, enhancing its competitive edge in the market[133]. - The company maintains a strong emphasis on quality, with a comprehensive production process that includes casting, rolling, and packaging to ensure high standards[122]. - The company has received certifications for IATF16949, ISO14001, and ISO45001, ensuring quality management and environmental standards, which have garnered recognition from numerous global automotive suppliers[124]. Employee and Governance - The company has a total of 1,890 employees, with 1,390 in production, 264 in technology, and 63 in sales, reflecting a diverse workforce[185]. - The company has established a competitive compensation policy based on job functions and performance, encouraging employee productivity and engagement[192]. - The company emphasizes employee training across various departments to improve skills and management capabilities, supporting its strategic goals[176]. - The company has no reported risks from the supervisory board during the reporting period, indicating stable governance[181]. - The company is committed to maintaining a clear and transparent profit distribution standard, ensuring the protection of minority shareholders' rights[194]. Financial Management - The company reported a significant decrease in financial expenses by 70.65% to CNY 33.99 million, indicating improved financial management[139]. - The company’s manufacturing costs increased by 37.50% to CNY 7,356.76 million, driven by higher production volumes and material costs[139]. - The company’s raw material costs amounted to CNY 6,249.62 million, accounting for 88.54% of total costs, reflecting a 47.31% increase from the previous year due to higher sales orders and material prices[137]. - The company has faced challenges in securing stable raw material supplies due to fluctuations in the market influenced by domestic energy controls and international political factors[173]. - The company has a cumulative retained earnings strategy to support its operational cash flow needs amid market volatility[173]. - The company is focusing on increasing its daily related transaction limits for 2022[153]. - The company has approved the issuance of non-public A-shares to raise funds for operational needs[153].