LONCIN(SH:603766)2023-04-23 16:00Financial Performance - The general machinery business achieved revenue of 3.413 billion yuan in 2022, a year-on-year decrease of 18.78%[1] - The automotive parts business reported revenue of 290 million yuan, down 13.02% year-on-year[2] - The commercial generator business generated revenue of 504 million yuan, a decline of 15% year-on-year, resulting in a net profit of -297 million yuan for 2022[2] - The company's operating revenue for 2022 was approximately RMB 12.41 billion, a decrease of 4.96% compared to RMB 13.06 billion in 2021[26] - The net profit attributable to shareholders for 2022 was RMB 527.32 million, representing a 37.04% increase from RMB 384.80 million in 2021[26] - The net profit after deducting non-recurring gains and losses was RMB 472.80 million, a significant increase of 460.08% compared to RMB 84.42 million in 2021[26] - The company's net profit for the year was -297 million yuan, influenced by provisions for bad debts[2] - The net cash flow from operating activities for 2022 was RMB 1.20 billion, down 5.03% from RMB 1.26 billion in 2021[26] - The total assets at the end of 2022 were RMB 12.59 billion, a decrease of 4.78% from RMB 13.22 billion at the end of 2021[26] - Basic earnings per share for 2022 were RMB 0.26, up 36.84% from RMB 0.19 in 2021[35] Market Performance - The European market generated revenue of 1.141 billion yuan, accounting for 33.43% of the general machinery business revenue, an increase of 6.71 percentage points year-on-year[1] - The company’s motorcycle industry saw total sales of 21.42 million units in 2022, with large-displacement motorcycles (over 250cc) achieving sales of 553,400 units, a growth of 44.68%[4] - Electric motorcycle sales reached 7.6327 million units, a year-on-year decrease of 14.16%[4] - The motorcycle business generated sales revenue of 7.90 billion RMB, a year-on-year increase of 4.56%[47] - The company's self-owned brand revenue reached 2.35 billion RMB, a year-on-year increase of 22.83%, accounting for 18.93% of total revenue, up 4.27 percentage points[47] - In 2022, China's large-displacement motorcycle sales (over 250cc) reached 553,400 units, a year-on-year increase of 44.68%[109] - In 2022, China's two-wheeled electric vehicle sales were approximately 50.1 million units, a 15.2% increase from the previous year, with expectations to reach 54 million units in 2023[109] Strategic Initiatives - The company established a strategic partnership with Husqvarna to develop high-end garden machinery, successfully launching its first garden machinery terminal product with an annual production capacity of 50,000 units[1] - The company plans to continue expanding its market presence and invest in new product development to drive future growth[1] - The company plans to expand its product range in the 400cc-1000cc segment with the launch of the ATV700 all-terrain vehicle[50] - The company is actively developing a product matrix for electric motorcycles, with plans to launch an entry-level model soon[54] - The company aims to transition from fuel products to electric products and from mechanical products to smart products, enhancing its technological capabilities and brand marketing[114] - The company is focusing on developing high-demand products, including new series of motorcycles, emphasizing aesthetics and user experience[118] - The company is exploring partnerships with tech firms to leverage new technologies and improve operational efficiency[147] Research and Development - The company’s total R&D investment reached 561.63 million yuan, accounting for 4.53% of its operating revenue, with 17.43% of R&D costs capitalized[74] - The number of R&D personnel is 1,404, making up 16.45% of the total workforce, with a significant portion aged between 30 and 40 years[75] - Research and development investments have increased by 30%, focusing on sustainable technologies and product enhancements[147] - The company is investing in key technologies such as electrification and intelligence to enhance its innovation capabilities[118] Governance and Compliance - The board of directors consists of 9 members, including 3 independent directors, ensuring a balanced governance structure[131] - The company maintained strict compliance with laws and regulations, ensuring the protection of shareholders' rights, especially for minority shareholders[131] - The company has implemented a robust insider information management system to protect investor interests[131] - The company has been under regulatory scrutiny, with multiple warnings issued by the Shanghai Stock Exchange and the China Securities Regulatory Commission in recent years[161] - The company has undergone changes in its board composition, with several appointments and resignations of directors and supervisors due to personal reasons[157] Financial Management - The company has set a comprehensive credit limit application for the year 2022 to support its operational needs[164] - The company has improved credit management by revising the customer credit management policy, significantly reducing credit risk[191] - The company has actively pursued legal action to recover high-risk accounts receivable from 26 distributors, totaling significant amounts[191] - A financial risk prevention strategy has been implemented, including the establishment of a cash flow forecast for the next three months to manage potential funding gaps[198] Employee and Management - The total number of employees in the parent company is 2,027, while the main subsidiaries employ 6,508, resulting in a total of 8,535 employees[178] - The professional composition includes 3,984 production personnel, 558 sales personnel, and 1,404 technical personnel, among others[180] - The company has implemented a comprehensive training system to enhance employee skills, completing over 2,000 intermediate and above vocational skill assessments[183] - The company reported a total compensation of 5,951,000 for its executives, with an average of 1,350.28 per executive[143] Future Outlook - The company aims to achieve a revenue of 13 billion CNY in 2023, focusing on increasing the share of its own brands[118] - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach 1.875 billion[147] - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget allocation of 50 million[147] - The management emphasized the importance of digital transformation, aiming for a 30% increase in online sales channels by the end of 2023[151]