DAHAO TECHNOLOGY(603025)2023-04-20 16:00Corporate Governance and Independence - The company reported a complete separation from its controlling shareholder, Beijing Yiqing Holdings, in terms of assets, personnel, finance, and operations, ensuring independent management and governance[9]. - The company maintains independent financial management systems, with no interference from controlling shareholders or related parties, ensuring clear ownership of assets[9]. - The company has established a complete business system with independent production, supply, and sales capabilities, avoiding any competition with its controlling shareholder[9]. - The board of directors and management team are elected and appointed according to regulations, ensuring a robust governance structure[9]. - The company has a comprehensive labor, personnel, and compensation management system, reinforcing its operational independence[9]. - The company has a clear and independent financial accounting system, with no shared bank accounts with controlling shareholders[9]. - The company has a complete set of governance institutions, including a shareholders' meeting, board of directors, and supervisory board, ensuring effective oversight[9]. - The company has no reported issues regarding the authenticity and completeness of its annual report, as all board members can guarantee its accuracy[11]. Financial Performance and Planning - The company has outlined its financial budget for 2022, indicating a proactive approach to financial planning and resource allocation[13]. - The financial data indicates a total of 281,568,100 shares issued, with a total equity incentive repurchase and cancellation of 436,000 shares[27]. - The company’s total remuneration for directors, supervisors, and senior management was 14.85599 million yuan (pre-tax) for the reporting period[49]. - The company reported a total export of sewing machinery products amounting to $3.428 billion in 2022, representing a year-on-year growth of 8.98%[63]. - The company’s revenue from network security devices increased significantly due to the acquisition of Beijing Xinghan, while sales of sewing control systems decreased by approximately 17% year-on-year[89]. - Revenue from the sewing and knitting equipment control systems was approximately CNY 1.36 billion, a decrease of 6.94% year-over-year, while the gross margin increased by 0.95 percentage points to 41.00%[117]. - The net cash flow from operating activities decreased by 14.33% to CNY 218.23 million compared to the previous year[126]. - The investment cash flow was negative at CNY -55.23 million, primarily due to the acquisition payment[126]. Research and Development - The company has implemented a fully digital automatic tension control system to improve operational efficiency[18]. - The financial report highlights a significant investment in R&D to maintain control over core technologies from hardware to software[18]. - The company’s R&D team consists of 440 personnel, accounting for 34.32% of the total workforce, with a focus on enhancing product development capabilities[96]. - Research and development expenses totaled ¥163,818,553.36, accounting for 10.25% of total revenue[149]. - The company has a strong R&D team with over ten years of experience in hardware design for x86 and ARM platforms[110]. - The company is focusing on technological innovation, increasing investment in machine vision, artificial intelligence, and industrial internet technologies to enhance product functionality[78]. Market Expansion and Strategic Acquisitions - The company aims to expand its market presence through new product development and technological advancements[18]. - The company acquired a controlling stake in Xinghan Internet, entering the new market of network security hardware and cloud-edge terminal[35]. - The company is actively pursuing market expansion and new strategies to enhance its competitive position in the industry[37]. - The company is actively pursuing international market expansion and strategic acquisitions to enhance its global presence[165]. - The company acquired the cybersecurity business of Xinghan Network and established a wholly-owned subsidiary for financing leasing, which supports business scale expansion[173]. Technological Innovation - The company possesses fully independent intellectual property rights and is a global leader in the technology of automatic thread-changing robots[18]. - The integration of an industrial internet system aims to optimize production factors and restructure business models for economic transformation[18]. - The company is focusing on high-end technology development, including modular design and independent drive technology, to achieve breakthroughs in mid-to-high-end sewing technology[184]. - The company aims to leverage advanced technologies such as AI, IoT, and big data to enhance its service-oriented manufacturing capabilities[185]. Industry Challenges and Trends - In 2022, the sewing machinery industry saw a revenue decline of 10.82% and a profit drop of 22.20%, with an operating income profit margin of 5.65%, below the national industrial average of 6.09%[40]. - The total production of industrial sewing machines in the industry was approximately 6.3 million units in 2022, a year-on-year decline of about 37%[62]. - The company is facing challenges from rising costs and industry constraints, which may impact the growth of small and medium-sized enterprises[183]. - The cybersecurity market remains fragmented with a low concentration of competition, influenced by the high degree of product segmentation and decentralized bidding practices among core clients[190]. Corporate Social Responsibility - The company has maintained a commitment to social responsibility, integrating it into its business operations and actively engaging in community support activities[55]. - The company actively invested in the construction of photovoltaic power stations, contributing to clean energy initiatives and demonstrating corporate responsibility[60].