Lettall Electronic(SH:603629)2023-04-25 16:00Financial Performance - The net profit attributable to the shareholders of Jiangsu Lettall Electronic Co., Ltd. for the year 2022 was RMB 65.9165 million[6]. - The company's operating revenue for 2022 was CNY 2,025,425,217.56, representing a 12.24% increase compared to CNY 1,804,495,655.47 in 2021[23]. - Net profit attributable to shareholders for 2022 was CNY 65,916,492.05, up 14.20% from CNY 57,718,261.85 in 2021[23]. - The net cash flow from operating activities increased significantly by 103.59% to CNY 154,935,292.81 from CNY 76,103,283.30 in 2021[23]. - The total assets decreased by 8.27% to CNY 2,877,254,677.60 at the end of 2022, down from CNY 3,136,694,923.27 at the end of 2021[23]. - The basic earnings per share for 2022 was CNY 0.36, a decrease of 12.20% from CNY 0.41 in 2021[24]. - The company reported non-operating income from government subsidies amounting to CNY 16,361,150.49 in 2022[29]. - The overall gross margin for 2022 was 16.33%, an increase of 0.40 percentage points from 15.93% in 2021, with electronic components showing a significant increase in gross margin by 13.23 percentage points[36]. - The company achieved an annual revenue of CNY 202,542.52 million in 2022, representing a 12.24% increase compared to 2021[50]. - The company reported a total revenue of 1.2 billion in 2022, representing a year-over-year growth of 15%[115]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 2.40 per 10 shares (including tax) and to increase capital by 4 shares for every 10 shares held[6]. - The company has proposed to apply for a comprehensive credit limit from banks for the year 2022[97]. - The company plans to distribute at least 30% of the average distributable profit over the last three years as cash dividends, contingent on certain conditions being met[129]. - The cash dividend policy stipulates that during the mature phase without significant capital expenditures, cash dividends should constitute at least 80% of the profit distribution[131]. - The total cash dividend amount represents a significant return to shareholders, reflecting the company's strong financial performance during the reporting period[136]. - The company has not proposed a cash profit distribution plan despite having positive distributable profits, and it is required to disclose the reasons and plans for the retained earnings[135]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[8]. - The company faces risks from concentrated customer bases, with over 50% of sales coming from the top five clients, which could impact performance if market conditions change[87]. - Fluctuations in raw material prices, particularly for galvanized sheets and aluminum profiles, pose a risk to the company's profit margins, despite recent stabilization in prices[87]. - The company acknowledges risks associated with the changing LCD TV market and the emergence of new display technologies, which could impact the demand for precision metal components[92]. - The company is aware of potential uncertainties in project implementation due to market environment changes, policy shifts, and operational challenges, particularly for projects located in Mexico[91]. Corporate Governance - The company has engaged Tianjian Accounting Firm (Special General Partnership) for its audit, which issued a standard unqualified audit report[5]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring the report's authenticity and completeness[4]. - The company has established strict internal control systems in compliance with regulatory requirements, continuously improving and enforcing internal control norms[97]. - The company has not reported any significant differences in governance compared to regulatory requirements, ensuring the protection of minority shareholders' rights[97]. - The company has established a robust investor relations management system to enhance communication with shareholders and gather feedback on its development strategies[96]. Research and Development - Research and development expenses totaled 86.60 million yuan, accounting for 4.28% of revenue, with 4 patent applications submitted and 12 patents granted during the period[37]. - The company has a strong R&D capability, being one of the first to develop curved precision metal stamping components, and maintains a rapid response system for customer orders[46]. - The company is investing $10 million in R&D for new technologies aimed at enhancing product efficiency[103]. - The company has allocated 50 million for research and development of new technologies in 2023, focusing on AI and machine learning[115]. Market Expansion and Strategy - The company has established overseas production bases, with the Juarez factory in Mexico already in production and the Tijuana factory expected to start production in 2023[34]. - The company aims to strengthen its core business while seeking new growth opportunities to ensure stable and sustainable performance growth[39]. - The company is actively seeking opportunities in new industries such as communications, semiconductors, and defense, utilizing its technology and talent reserves[85]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[105]. - A strategic acquisition of a competitor is anticipated to close by Q3 2023, expected to increase market share by 10%[106]. Employee and Management - The company has a structured salary management system to attract and retain talent, with compensation for management and technical staff primarily consisting of base salary, overtime pay, and bonuses[125]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.4049 million yuan[107]. - The company experienced changes in its management team, including the resignation of several key personnel due to personal reasons or retirement[108][109]. - The company appointed Xu Liqun as the new Chief Financial Officer and Qian Xu as the new Vice General Manager in January 2022[110]. Environmental Responsibility - The company has invested 1,063,800 CNY in environmental protection during the reporting period, demonstrating its commitment to environmental responsibility[143]. - The company has not faced any significant environmental violations or penalties during the reporting period, adhering to national and local environmental regulations[145]. - The company has implemented comprehensive energy-saving renovations on production lines and replaced equipment with low-energy, high-efficiency devices to reduce carbon emissions[147]. - The company is committed to optimizing production processes to minimize pollutant emissions in the future[146]. Financial Management - The company has invested CNY 429.1 million in bank wealth management products, with no overdue amounts[200]. - The company has not faced any delisting risks or bankruptcy reorganization matters[193]. - The company has confirmed that there are no major accounting errors or changes in accounting policies that would impact financial reporting[191]. - The company has maintained a good integrity status for both itself and its controlling shareholders during the reporting period[193].