Shenli(SH:603819)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was CNY 1,469,785,326.04, representing a year-on-year increase of 1.94% compared to CNY 1,441,858,674.22 in 2021[22]. - The net profit attributable to shareholders of the listed company was CNY -80,569,750.94, a significant decrease of 349.08% from CNY 32,346,437.37 in the previous year[22]. - The cash flow from operating activities was CNY 186,228,240.72, recovering from a negative cash flow of CNY -126,523,135.96 in 2021[22]. - The basic earnings per share for 2022 was CNY -0.37, down 346.67% from CNY 0.15 in 2021[23]. - The total assets decreased by 11.39% to CNY 1,518,935,573.27 at the end of 2022, compared to CNY 1,714,097,911.40 at the end of 2021[22]. - The company recognized impairment losses of CNY 159,948,800 for goodwill and CNY 68,275,000 for intangible assets due to underperformance of its subsidiary[23]. - The weighted average return on equity decreased to -10.59% in 2022 from 4.14% in 2021, indicating a significant decline in profitability[23]. - The total net profit for Q4 2022 was CNY -109,203,787.80, reflecting ongoing challenges in profitability[25]. - Non-recurring gains and losses amounted to CNY 86,869,527.72 in 2022, compared to CNY 8,473,777.82 in 2021, indicating a significant increase in non-operational income[28]. Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and protecting shareholder rights[117]. - The board of directors operates effectively, with clear responsibilities and independent oversight, ensuring that major decisions are made in the best interest of the company and its shareholders[118]. - The company has implemented a comprehensive performance evaluation and incentive mechanism for senior management, ensuring transparency and compliance with legal requirements[118]. - The company strictly adheres to legal regulations for information disclosure, ensuring timely and fair access to information for all stakeholders[119]. - The total remuneration for the board members and senior management amounted to CNY 2.187 million, with the highest individual remuneration being CNY 420,000 for the chairman[124]. - The company has not identified any significant differences in governance compared to regulatory requirements[119]. - The company has not faced any major changes in competition or conflicts of interest with its controlling shareholders[119]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and strategic developments, advising investors to be cautious[7]. - The company has detailed the major risks associated with its operations in the report, urging investors to review the relevant sections[9]. - The company has established an internal control system and conducted risk assessments, with no significant internal control deficiencies reported during the evaluation period[158]. - The company faces risks from macroeconomic fluctuations, which could adversely affect electric motor market demand and lead to a decline in operating profits if global economic indicators continue to decline[112]. - The company’s main raw material, silicon steel, is subject to price volatility, which can impact production costs and profitability; significant fluctuations in raw material prices could increase operational challenges[113]. Research and Development - Research and development expenses increased by 54.12% to ¥15,155,082.64, aimed at ensuring product quality and competitiveness[58]. - The company has 104 R&D personnel, representing 15.20% of the total workforce[78]. - The company is one of the few in China with complete independent fluorescent quenching technology, supported by various national projects[55]. - The company holds 57 patents, including 10 invention patents and 18 utility model patents, demonstrating its strong R&D capabilities in the security equipment sector[48]. - The company aims to enhance its product offerings by integrating advanced information technology into electric motor manufacturing, aligning with the "Made in China 2025" initiative[98]. Market Position and Strategy - The company maintains a stable operational outlook and anticipates good development prospects for the future[6]. - The company continues to expand its market share while strengthening internal management and quality control[36]. - The company aims to leverage its technological advancements in motor production to capitalize on the growing demand for energy-efficient motors[90]. - The company is committed to green, low-carbon, and high-quality development, focusing on energy-efficient and environmentally friendly products[100]. - The company plans to focus on developing high-efficiency motors, intelligent motors, and wind power generators as part of its future strategy[97]. Shareholder Relations and Dividends - The company proposed a cash dividend of RMB 0.20 per share (including tax) for every 10 shares based on the total share capital as of the dividend record date[6]. - The company plans to distribute cash dividends amounting to at least 20% of the annual distributable profits, contingent on profitability and cash flow conditions[146]. - The company will prioritize cash dividends over stock dividends when conditions allow, ensuring a stable and continuous profit distribution policy[145]. - The board will review the shareholder return plan every three years, adjusting it based on operational conditions and shareholder feedback[149]. - The company declared a cash dividend of 0.20 yuan per 10 shares, totaling 4,354,603.74 yuan, despite a net profit attributable to shareholders of -80,569,750.94 yuan[153]. Environmental and Social Responsibility - The company invested 400,000 yuan in environmental protection initiatives during the reporting period[161]. - The company reduced carbon emissions by 1,268 tons through measures such as using photovoltaic power generation[164]. - The company has complied with national environmental protection laws, achieving ISO14001:2004 certification[162]. - The company has established various environmental protection procedures to manage noise and solid waste effectively[163]. - The company actively participates in social welfare activities, enhancing its corporate image and reputation[36]. Subsidiary Performance - The company acquired 55% equity in Shenzhen Lijian Defense Technology Co., Ltd. for RMB 264 million and completed the capital increase of RMB 30 million, totaling RMB 294 million[179]. - Lijian Defense reported a net profit of -RMB 9.67 million for 2022, failing to meet the commitment of RMB 65 million[180]. - The cumulative net profit from 2020 to 2022 was RMB 19.32 million, significantly below the promised total of RMB 120 million[180]. - The company recognized an impairment loss of RMB 27.75 million related to goodwill, with RMB 15.99 million attributable to the company[181]. Employee Management - The total number of employees in the parent company is 621, while the main subsidiaries have 63 employees, resulting in a total of 684 employees[140]. - The company has established a comprehensive training system to enhance employee skills and performance, which is linked to career advancement[143]. - The compensation policy aims to increase the proportion of variable pay to incentivize high-quality and creative work among employees[142]. - The company encourages employee participation in training and development, utilizing internal trainers to foster talent[143].