Jiangsu Huachen(SH:603097)2023-04-21 16:00Financial Performance - Jiangsu Huachen reported a net profit attributable to ordinary shareholders of RMB 91,256,926.61 for the year 2022[7]. - The company's operating revenue for 2022 was RMB 1,024,500,199.44, representing a year-on-year increase of 17.62% compared to RMB 871,050,776.59 in 2021[27]. - The net profit attributable to shareholders for 2022 was RMB 91,256,926.61, up 16.37% from RMB 78,416,550.45 in 2021[27]. - The basic earnings per share for 2022 was RMB 0.6367, a decrease of 2.57% from RMB 0.6535 in 2021[28]. - The weighted average return on equity decreased to 13.06% in 2022 from 16.84% in 2021, a drop of 3.78 percentage points[28]. - The gross margin for the electrical equipment manufacturing industry was 20.37%, a decrease of 1.17 percentage points year-on-year[84]. - The company's comprehensive gross margin decreased from 22.46% in 2021 to 21.24% in 2022, highlighting potential risks to profitability[136]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2022, representing a year-over-year increase of 15%[158]. - The gross profit margin for the year was reported at 35%, an improvement from 30% in the previous year[158]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 1.50 per 10 shares, totaling RMB 24,000,000.00, which represents 61.37% of the net profit for the year[7]. - The cash dividend ratio for the year is 61.37%, including RMB 32 million distributed in the first half of 2022[177]. - The company will not issue bonus shares or convert capital reserves into share capital for the year 2022[7]. - The company has established a clear cash dividend policy and a three-year dividend return plan post-listing[177]. Assets and Liabilities - As of December 31, 2022, the company's distributable profits amounted to RMB 331,079,409.78[7]. - The total assets increased by 59.97% to RMB 1,354,262,430.59 at the end of 2022, up from RMB 846,589,258.59 at the end of 2021[27]. - The net assets attributable to shareholders rose by 64.79% to RMB 831,989,005.67 at the end of 2022, compared to RMB 504,876,229.58 at the end of 2021[27]. - Accounts receivable increased by 111.48% to 2,776,165.20 RMB, reflecting higher customer settlement amounts[105]. - Inventory rose to ¥242,046,154.25, reflecting a 44.07% increase from ¥168,004,096.36, driven by sales revenue growth[106]. - Short-term borrowings increased significantly to ¥139,458,412.84, a 318.24% rise from ¥33,343,902.50, due to increased bank loans for operational needs[106]. Research and Development - A total of 27 R&D projects were undertaken with R&D expenditure of ¥39,643,227.22, which is an increase of ¥2,856,387.95 from the previous year[42]. - The company holds 121 patents, including 112 utility model patents and 9 invention patents, and has participated in the revision of 2 national standards[42]. - The company invested 100 million RMB in R&D for new technologies, aiming to improve efficiency by 15%[158]. - Research and development expenses amounted to ¥39,643,227.22, reflecting a 7.76% increase year-on-year[80]. - The number of R&D personnel is 116, making up 13.68% of the total workforce[96]. Market and Industry Position - The company is positioned in the "C38 Electrical Machinery and Equipment Manufacturing" sector, which is a key strategic industry in China[47]. - The demand for power transmission and distribution equipment is expected to grow significantly due to the increasing electricity demand[50]. - The transformer industry is shifting towards energy efficiency, with a focus on promoting high-efficiency transformers in various sectors[118]. - The future market for power distribution equipment is expected to show characteristics of high-end, automation, information integration, with a focus on high-value-added products[56]. - The company is focusing on the development of new energy transformers, with plans to achieve mass production of 10MVA new energy transformers[98]. Risks and Challenges - The company has identified risks related to product and technology innovation, raw material price fluctuations, intensified market competition, and declining gross margins[10]. - Increased competition from international companies like Schneider Electric and ABB poses a risk to the company's market position[135]. - The company faces risks related to continuous product and technology innovation in a rapidly evolving industry[133]. - Direct material costs accounted for 92.00% of the main business costs, indicating significant exposure to raw material price fluctuations[134]. Governance and Compliance - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[4]. - The company has received a standard unqualified audit report from Tianjian Accounting Firm[6]. - The company maintained a consistent shareholding of 84 million shares for the chairman throughout the reporting period[155]. - The company has established a performance evaluation system linking executive compensation to business performance[145]. - The company emphasizes investor relations management, utilizing various channels for effective communication with investors[147]. Sustainability and Social Responsibility - The company invested 50.75 million yuan in environmental protection during the reporting period[188]. - The solar power project with a capacity of 1.88 MW is expected to generate an average annual output of 2.26 million kWh, saving approximately 739 tons of standard coal and reducing carbon dioxide emissions by 2,249 tons annually[192]. - The second solar power project, with a capacity of 2.94 MW, is projected to generate 3.53 million kWh annually, saving 1,157.20 tons of standard coal and reducing carbon dioxide emissions by 3,517.40 tons[193]. - The company made a total donation of 2 million yuan to the Red Cross Society in Xuzhou City for public welfare projects[194].