Riyue HI(SH:603218)2023-04-24 16:00Financial Performance - In 2022, the company achieved a net profit attributable to shareholders of 344,327,059.00 CNY, with the parent company net profit at 147,518,453.77 CNY[4]. - The proposed cash dividend is 2.00 CNY per 10 shares, totaling 206,204,000.00 CNY, which represents 59.89% of the net profit attributable to shareholders[4]. - The company achieved a total operating revenue of 4,865,018,545.48 RMB in 2022, representing a year-on-year increase of 3.25%[57]. - The net profit attributable to shareholders was 34,432.71 million RMB, a significant decrease of 48.40% from 2021[57]. - The company reported a net cash flow from operating activities of 182,366,560.65 RMB, down 71.52% year-on-year[58]. - The gross margin for the casting segment decreased by 7.63 percentage points to 12.69%[46]. - The company achieved operating revenue of 486,501.85 million yuan in 2022, a year-on-year increase of 3.25%, with sales growth in ductile iron and alloy steel products contributing to this increase[61]. - The basic earnings per share for 2022 decreased by 49.28% to 0.35 yuan per share compared to 2021[130]. - The company reported a significant decrease in earnings per share by 49.28% due to reduced profits in 2022[103]. Production and Capacity - The company produced 45.81 million tons and sold 44.93 million tons in 2022, indicating a high capacity utilization rate and a balanced production-sales ratio[14]. - As of December 31, 2022, the company has established a casting capacity of 480,000 tons and precision processing capacity of 220,000 tons[31]. - The company aims to achieve a total annual casting capacity of 700,000 tons and precision processing capacity of 540,000 tons upon completion of ongoing projects[40]. - The company’s annual production capacity for key offshore casting components has reached 180,000 tons, with ongoing projects expected to enhance this capacity further[42]. - By the end of 2022, the company had an annual casting capacity of 480,000 tons, with plans to increase this to over 700,000 tons through ongoing projects[137]. Research and Development - The company invested 22,157.03 million CNY in R&D during the reporting period, resulting in a total of 131 patents, including 53 invention patents[27]. - The company has invested a total of 221.57 million RMB in R&D during the reporting period, reinforcing its comparative advantage in product technology development[40]. - The company holds 131 authorized patents, including 53 invention patents, reflecting its strong focus on technology development[121]. - The company has initiated a project to develop ductile iron technology, aiming to enhance product performance and expand into new markets[139]. Market and Product Development - The company is actively developing large-scale wind power products to capture the domestic and international offshore wind power market[31]. - The company is expanding its product line to include large die-casting machines for new energy vehicles, enhancing its product offerings and risk resilience[41]. - The company is focusing on optimizing its supply chain by introducing high-cost performance new materials and suppliers, while managing raw material costs through various strategies[15]. - The company is expanding its production base outside Ningbo to enhance operational efficiency and market reach[139]. Cost Management and Challenges - The operating cost increased to 4,240,442,500.73 RMB, up 12.9% compared to the previous year[58]. - Total operating costs for 2022 were 456,982.99 million yuan, up 13.07% year-on-year, primarily due to high prices of raw materials such as pig iron, scrap steel, and alloys, as well as increased depreciation and labor costs[61]. - The company is focusing on optimizing costs and enhancing product value amid rising raw material prices and increased labor costs[57]. - The company faced challenges from high raw material prices, which affected gross margins, leading to a focus on cost control and quality improvement initiatives[109]. Inventory and Cash Flow - To ensure timely delivery, the company increased inventory for certain products, resulting in a rise in ending inventory levels[64]. - The net cash flow from operating activities showed a negative trend in Q3 and Q4, with a total of RMB -273.27 million in the last two quarters[132]. - The net cash flow from operating activities decreased due to rising raw material costs and increased payments to suppliers[127]. Assets and Liabilities - Current assets totaled RMB 2,991,459,418.33, an increase of 24% from RMB 2,411,796,928.90 in the previous year[168]. - Non-current assets amounted to RMB 5,262,914,019.15, up from RMB 4,932,543,173.18, reflecting a growth of approximately 6.7%[172]. - Total assets reached RMB 8,254,373,437.48, representing a year-over-year increase of 12.4% from RMB 7,344,340,102.08[172]. - Total liabilities were RMB 984,157,368.78, compared to RMB 775,634,658.03, indicating an increase of 26.8%[172]. - Owner's equity rose to RMB 7,270,216,068.70, up from RMB 6,568,705,444.05, marking a growth of 10.7%[172]. Audit and Compliance - The company evaluates the appropriateness of accounting policies and estimates made by management during the audit process[195]. - The company ensures that significant misstatements due to fraud or error are identified and addressed during the audit[195]. - The company maintains a high level of professional skepticism throughout the audit process to mitigate risks of material misstatement[195].