YAPP(603013)2023-03-30 16:00Group Structure and Control - The group includes 15 subsidiaries, with full control over 10 and holding control over 5[1]. - The group includes all controlled subsidiaries and structured entities in the consolidated financial statements[15]. - Significant internal transactions, balances, and unrealized profits within the consolidation scope are offset in the consolidated statements[15]. - The group recognizes joint venture assets and liabilities based on agreements and confirms income and expenses accordingly[18]. Financial Reporting and Accounting Policies - The financial statements are prepared based on the assumption of going concern, with no significant factors affecting the group's ability to continue operations in the next 12 months[6]. - The accounting period for the group is from January 1 to December 31 each year[8]. - The group adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect the true financial position and results[7]. - The group has a comprehensive approach to accounting estimates and policies, ensuring compliance with relevant standards[5]. - The financial reports reflect the group's financial condition, operating results, and cash flows accurately[7]. Currency and Transactions - The group uses Renminbi as its functional currency for accounting purposes[10]. - Foreign currency transactions are converted to RMB at the spot exchange rate on the transaction date, with monetary items at the balance sheet date's exchange rate[20]. - Cash and cash equivalents are defined as cash on hand and deposits available for payment, with cash equivalents having a maturity of no more than 3 months[19]. Financial Assets and Liabilities - Financial assets are classified based on the business model and cash flow characteristics, including those measured at amortized cost and fair value[23]. - The group recognizes gains or losses from financial assets based on their classification, impacting current profits or other comprehensive income[23]. - The group classifies financial liabilities primarily at amortized cost, using the effective interest method for subsequent measurement[27]. - Financial liabilities measured at fair value through profit or loss include trading financial liabilities and derivatives, with gains or losses recognized in the current profit or loss[27]. - The group does not offset financial assets and liabilities in the balance sheet unless specific criteria are met[31]. Credit Losses and Impairment - The company utilizes an expected credit loss model for financial assets measured at amortized cost and debt instruments measured at fair value, recognizing loss provisions based on the difference between all contractual cash flows and expected cash flows[34]. - The company categorizes the impairment of financial instruments into three stages, with different accounting treatments for each stage[34]. - The company assesses credit risk for receivables at each balance sheet date, categorizing them into three stages based on the increase in credit risk since initial recognition[76]. - The company applies a simplified model for expected credit losses for receivables and lease receivables, measuring loss provisions based on expected credit losses over the entire lifetime[34]. Revenue and Profitability - The company's operating revenue for 2022 was approximately ¥8.44 billion, representing a 4.79% increase from ¥8.06 billion in 2021[44]. - The net profit attributable to shareholders for 2022 was approximately ¥500.98 million, a slight increase of 0.50% compared to ¥498.48 million in 2021[44]. - The net profit after deducting non-recurring gains and losses for 2022 was approximately ¥505.92 million, showing a significant increase of 21.32% from ¥417.00 million in 2021[44]. - The net cash flow from operating activities for 2022 was approximately ¥772.19 million, which is a 13.49% increase from ¥680.42 million in 2021[44]. Assets and Investments - The total assets at the end of 2022 were approximately ¥6.04 billion, reflecting a 1.90% increase from ¥5.93 billion at the end of 2021[44]. - The net assets attributable to shareholders at the end of 2022 were approximately ¥3.78 billion, marking a 7.56% increase from ¥3.51 billion at the end of 2021[44]. - The company primarily invests in subsidiaries and joint ventures, holding over 20% but less than 50% of the invested units, indicating significant influence[135]. Research and Development - The company applied for 51 patents, with 43.14% being invention patents, and received 15 invention patent authorizations, maintaining a double-digit authorization rate for three consecutive years[54]. - Research and development expenses decreased by 4.88% compared to the previous year, indicating a strategic shift in investment priorities[118]. - The company is actively promoting new technologies and products, including hybrid high-pressure fuel systems and lightweight battery pack housings, which are gaining market acceptance[99]. Market Performance and Trends - In 2022, China's automotive production and sales reached 27.02 million and 26.86 million units, respectively, marking year-on-year growth of 3.4% and 2.1%[55]. - Global light vehicle sales in 2022 were 80.98 million units, a slight decline of 0.6% compared to 2021, with China remaining the largest automotive market[58]. - The global sales of new energy vehicles reached 16.07 million units in 2022, representing a year-on-year growth of 41% and a penetration rate of 19.8%[58]. Operational Efficiency and Management - The company has established long-term stable relationships with suppliers, ensuring a reliable procurement process based on actual supply needs[65]. - The company reported a steady improvement in the operational performance of its overseas subsidiaries, particularly in the U.S., where profitability significantly increased due to automation upgrades and refined management[54]. - The company has established 25 production bases globally, enhancing its ability to respond quickly to customer demands[111]. Employee Benefits and Liabilities - The group recognizes liabilities for employee benefits based on the established contribution plan, with amounts calculated and confirmed as liabilities during the accounting period[186]. - The group measures the net liabilities or net assets of defined benefit plans based on the expected accumulated benefit unit method, considering service costs and interest net amounts[189]. Mergers and Acquisitions - The company is actively seeking high-quality acquisition targets that align with its strategic development direction to promote business transformation[62]. - The company is pursuing mergers and acquisitions to expand its business footprint and enhance its technological capabilities[99].