Changshu Tongrun Auto Accessory (SH:603201)2023-04-10 16:00Financial Performance - In 2022, the company achieved a net profit attributable to shareholders of 173,288,840.64 CNY, with the parent company reporting a net profit of 31,313,893.89 CNY[6]. - The total distributable profit for the parent company reached 225,377,773.23 CNY, with a proposed cash dividend of 4.20 CNY per 10 shares, totaling 33,387,200.28 CNY[6]. - The cash dividend represents 19.27% of the net profit attributable to ordinary shareholders[6]. - The company's operating revenue for 2022 was ¥2,762,268,070.13, a decrease of 9.60% compared to ¥3,055,736,581.61 in 2021[23]. - The net profit attributable to shareholders of the listed company increased by 21.90% to ¥173,288,840.64 in 2022 from ¥142,153,467.40 in 2021[23]. - The net cash flow from operating activities surged to ¥222,441,484.90, a significant increase of 3,264.45% compared to ¥6,611,529.67 in 2021[23]. - The total assets at the end of 2022 reached ¥2,284,320,361.71, reflecting a growth of 19.42% from ¥1,912,881,561.55 in 2021[23]. - The basic earnings per share for 2022 was ¥2.55, representing a 7.14% increase from ¥2.38 in 2021[24]. - The weighted average return on equity decreased to 19.23% in 2022, down by 7.60 percentage points from 26.83% in 2021[24]. - The net profit after deducting non-recurring gains and losses was ¥165,955,580.52, an increase of 27.85% from ¥129,808,333.07 in 2021[23]. Business Operations and Strategy - The company operates in the automotive parts sector, focusing on both OEM and aftermarket markets[14]. - The company plans to increase its total share capital from 79,493,334 shares to 111,290,668 shares through a capital reserve transfer of 4 shares for every 10 shares held[7]. - The company has outlined various risk factors that may affect its future development strategies and operational goals[9]. - The company is actively developing professional automotive maintenance equipment for the new energy vehicle aftermarket, aiming to create new growth points[35]. - The company optimized its supply chain by adjusting the layout of its production base in Changshu, improving efficiency and reducing costs[34]. - The company has initiated the construction of a new production base and R&D center for automotive maintenance equipment, with the bidding and approval processes completed in December 2022[38]. - The company is implementing an ERP system upgrade to enhance digital management and operational efficiency across its business units[38]. - The company has established a strong presence in the automotive aftermarket, serving over 30,000 stores across more than 100 countries, with major clients including Walmart and Autozone[44]. - The company holds a market share of over 35% in the domestic OEM market, collaborating with major manufacturers such as Ford, GM, and Volkswagen[45]. Market Trends and Projections - The global automotive aftermarket is projected to grow at an annual rate of approximately 3%, reaching a market size of €1,200 billion by 2030[39]. - The automotive aftermarket in China is expected to grow from CNY 1.07 trillion in 2017 to CNY 1.74 trillion by 2025, with a compound annual growth rate (CAGR) of 6.3%[40]. - By the end of 2022, the total number of vehicles in China reached 319 million, indicating a continuous increase in vehicle ownership, although the per capita vehicle ownership remains lower than that of developed countries[40]. - The proportion of vehicles over 5 years old in China increased from 39% in 2010 to 47% in 2018, leading to higher maintenance demand in the aftermarket[41]. - In 2022, global automotive production reached 85.1 million units, a 6.0% increase from 2021, with a forecasted growth of 4.0% in 2023[42]. - In China, automotive production and sales in 2022 were 27.02 million and 26.86 million units, respectively, representing year-on-year growth of 3.4% and 2.1%[43]. - The market share of new energy vehicles in China reached 25.6% in 2022, with sales exceeding 6.8 million units[43]. Research and Development - The company reduced its R&D expenses by 38.59% to CNY 36,504,064.73 due to a decrease in the number of new R&D projects[54]. - The total R&D expenditure was 36.50 million yuan, which is 1.32% of the operating revenue[66]. - The number of R&D personnel was 124, making up 5.13% of the total workforce[67]. - The company has obtained over 300 domestic and international patents, indicating a strong focus on innovation and technology development[49]. - The company plans to invest in R&D and develop new products targeting the aftermarket for electric vehicles to create new growth points[101]. Environmental and Social Responsibility - The company invested 3.6136 million yuan in environmental protection during the reporting period[153]. - The subsidiary Chengde Runhan is a key pollutant discharge unit, managing various pollutants including COD and nitrogen compounds[154]. - Wastewater from production is treated at a sewage treatment plant, with 2022 discharge concentrations for COD at less than 46 mg/L and ammonia nitrogen at less than 1.23 mg/L, both below the discharge limits[156]. - The company has implemented pollution control facilities, including a sewage treatment station and various air pollution control devices, ensuring compliance with emission standards[159]. - The company did not face any administrative penalties related to environmental issues during the reporting period[163]. - The company made a total donation of 10,000 CNY to the Changshu Charity Foundation during the "Chinese Charity Day" event[164]. Governance and Management - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - The management team has over 20 years of industry experience, enhancing the company's competitive advantage[52]. - The company has established a performance evaluation and incentive mechanism for senior management based on multiple factors including operational performance and management efficiency[149]. - The company has a structured salary system that ensures internal equity and competitiveness in attracting talent[138][139]. - The company has appointed independent directors and management positions during the board meetings held in January and February 2022[128]. - The company has a diverse board with members holding positions in various other organizations, enhancing its governance structure[125]. Shareholder and Financial Policies - The company plans to distribute a cash dividend of 4.20 RMB per 10 shares, totaling approximately 33.39 million RMB, which represents 19.27% of the net profit attributable to ordinary shareholders[143][147]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends if there are no major investment plans[142]. - The company will use raised funds to increase the registered capital of its wholly-owned subsidiary, Changshu Tianrun Automotive Maintenance Equipment Co., Ltd.[133]. - The company has established a profit distribution policy to ensure stable returns for investors, including a three-year dividend plan post-listing[191]. - The actual controller, JUN JI, has committed to not interfering in the company's management and to fulfill compensation measures for investors[192]. Risks and Challenges - The company faces risks related to potential slowdowns in global automotive ownership growth, which could negatively impact the aftermarket demand[99]. - The company has not reported any significant changes in competition or business operations that would impact its performance[111]. - The company has not disclosed any significant mergers or acquisitions during the reporting period[111]. - The company has implemented various measures to mitigate the impact of currency fluctuations, including a pricing mechanism linked to exchange rates[107].