ADD(SH:603089)2023-04-20 16:00Financial Performance - The company's operating revenue for 2022 was CNY 1,700,011,389.14, representing a 5.55% increase compared to CNY 1,610,663,736.51 in 2021[23]. - The net profit attributable to shareholders for 2022 was CNY 70,552,927.39, which is a 12.61% increase from CNY 62,653,682.11 in the previous year[23]. - The net profit after deducting non-recurring gains and losses surged by 175.56% to CNY 63,581,121.73 from CNY 23,073,280.27 in 2021[23]. - The cash flow from operating activities for 2022 was CNY 245,493,570.87, a significant recovery from a negative cash flow of CNY -31,766,344.26 in 2021[23]. - Total assets at the end of 2022 reached CNY 2,395,920,723.94, an 8.04% increase from CNY 2,217,558,867.31 at the end of 2021[23]. - The net assets attributable to shareholders increased by 5.39% to CNY 1,106,429,701.77 from CNY 1,049,847,161.57 in the previous year[23]. - Operating profit was CNY 79,654,500, a decrease of 0.89% compared to the previous year[61]. - The operating costs increased to CNY 1,338,775,988.77, up 5.30% year-on-year, primarily due to increased revenue[62]. - The basic earnings per share increased to 0.32 yuan, a rise of 14.29% from 0.28 yuan in 2021[24]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1 per 10 shares, totaling CNY 22,250,100.30 based on the total share capital of 222,501,003 shares[5]. - The cash dividend distribution represents 31.54% of the net profit attributable to ordinary shareholders in the consolidated financial statements, which amounts to CNY 70,552,927.39[158]. - The company has established a cash dividend policy that requires a minimum of 45% of the average distributable profit over the last three years to be distributed in cash, provided conditions are met[154]. - The company plans to continue improving its corporate governance structure and internal control mechanisms to enhance risk awareness among management[123]. - The company plans to implement a shareholder return plan for the next three years (2022-2024), focusing on dividend distribution[136]. Research and Development - The company emphasizes R&D investment, maintaining a focus on traditional suspension systems while developing new products such as air suspension dampers and adjustable dampers, with some high-end products already on sale[40]. - The company invested CNY 75.8887 million in R&D, accounting for 4.46% of the annual revenue, focusing on projects like semi-active hydraulic mounts and adjustable dampers[78]. - The number of R&D personnel is 384, representing 12.53% of the total workforce[77]. - The company has 40 ongoing R&D projects, with most completed in 2022[78]. - The company plans to continue increasing R&D investment, focusing on high-tech and high-value-added products, particularly in intelligent electric control suspension systems[109]. Market and Industry Trends - The domestic automotive aftermarket is expected to grow rapidly due to increasing vehicle ownership and age, particularly with the rise of new energy vehicles, creating a new incremental market for high-end intelligent suspension systems[38]. - The global automotive aftermarket is projected to grow, supported by a stable increase in vehicle ownership, with over 1.5 billion vehicles worldwide by the end of 2022[44]. - The automotive parts industry accounts for approximately 50% of the total value of the automotive industry, with a significant portion of the market driven by the aftermarket[42]. - The company has established a stable customer base in the automotive aftermarket over 20 years, leveraging a global sales platform to penetrate the domestic market, aiming for a dual-engine growth model between domestic and international markets[38]. Production and Capacity Expansion - The company has expanded its production capacity for suspension system shock absorbers and is advancing the construction of its intelligent manufacturing park[36]. - The company established a production line for air spring airbags to ensure the production and sales of high-end air suspension systems[36]. - The company is enhancing its production clusters and upgrading existing facilities to improve efficiency and reduce costs[37]. - The company is shifting production focus towards high-margin, high-value products to enhance core competitiveness in the automotive sealing and damping segments[41]. Environmental and Social Responsibility - The company has invested CNY 2,427,600 in environmental protection during the reporting period[165]. - The company has implemented a comprehensive internal control system to enhance decision-making efficiency and safeguard shareholder interests[161]. - The company has completed the construction of pollution prevention facilities for waste gas, waste water, noise, and solid waste, all of which are in good condition and operating effectively[169]. - The company has adopted measures to reduce carbon emissions, such as phasing out old manufacturing equipment and using new energy-efficient manufacturing devices[176]. - The company has established a third-party certified environmental management system to ensure compliance with environmental management activities[175]. Governance and Compliance - The company has not reported any significant changes in competition or business operations that would impact its market position[123]. - The company has no major differences in governance compared to regulations set by the China Securities Regulatory Commission[123]. - The company has established a performance evaluation mechanism for its board members and senior management, contributing to improved corporate governance[160]. - The company has committed to enhancing the awareness of standardized operations and risk control among its board members and senior management[123]. - The company has seen changes in its board composition, with key personnel transitions impacting management structure[133]. Risks and Challenges - The company acknowledges risks from a prolonged global economic downturn, which could slow the growth of global vehicle ownership and impact sales[113]. - Currency fluctuations pose a risk to the company's profitability, as major sales are in USD and EUR, affecting exchange rate stability[114]. - Raw material price volatility is a significant risk, as direct material costs constitute a large portion of the company's expenses, potentially impacting gross margins[115]. - Trade barriers in importing countries could adversely affect the company's export business and competitiveness in overseas markets[116]. - The company faces risks in maintaining its product development and manufacturing capabilities, which are critical for meeting diverse customer demands in the aftermarket[117].