Harmontronics Automation(SH:688022)2023-04-28 16:00Dividend and Capital Increase - The company plans to distribute a cash dividend of 1.28 CNY per 10 shares (including tax) and to increase capital by 4 shares for every 10 shares held, resulting in a total cash dividend of approximately 15,992,060.03 CNY (including tax) based on a total share capital of 124,937,969 shares as of April 3, 2023[4]. - The cash dividend payout ratio for the year is 21.75%[4]. - Following the capital increase, the total share capital will rise to 174,913,157 shares[4]. - The profit distribution and capital increase plan has been approved by the board and requires shareholder meeting approval[5]. Financial Performance - The company reported a significant increase in revenue for 2022, reaching RMB X million, representing a Y% growth compared to 2021[12]. - The company achieved operating revenue of CNY 1,142.80 million in 2022, a year-on-year increase of 50.77%[23]. - Net profit attributable to shareholders of the listed company was CNY 73.51 million, up 20.90% compared to the previous year[24]. - Basic earnings per share increased to CNY 0.68, reflecting a growth of 21.43% year-on-year[23]. - The weighted average return on equity rose to 7.52%, an increase of 0.83 percentage points from the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 25.80 million, down 16.60% year-on-year[24]. - The comprehensive gross profit margin decreased to 28.30%, down by 5.46 percentage points year-on-year[35]. - The company reported a net asset attributable to shareholders of CNY 1,029.97 million at the end of 2022, an increase of 10.30% from the previous year[23]. Operational Efficiency and R&D - The company is focusing on AI and machine learning technologies to improve product offerings and operational efficiency, with a budget allocation of RMB G million for R&D[12]. - Research and development expenses accounted for 6.04% of operating revenue, a decrease of 2.27 percentage points compared to the previous year[23]. - The company has established a comprehensive supplier management system to ensure the quality and timeliness of material supplies, enhancing operational efficiency[68]. - The company is enhancing its internal control systems to ensure compliance and improve overall management efficiency[52]. - The company is focused on digital transformation, having implemented an integrated ERP system and a supplier relationship management (SRM) project to enhance efficiency and quality control[52]. Market Expansion and Product Development - The company is expanding its market presence by entering new regions, targeting an increase in market share by E% in the next fiscal year[12]. - New product development includes the launch of the flat wire motor, which enhances power density and efficiency, expected to contribute to future revenue streams[12]. - The company plans to continue investing in new product development and market expansion in the rapidly growing sectors of new energy and electric vehicle equipment[24]. - The company is actively expanding its production capacity in East China, West China, and North China to meet growing demand[126]. - The company is focusing on the new energy and automotive electrification sectors, achieving significant breakthroughs in these rapidly growing industries[151]. Risks and Challenges - The company has outlined various risks it may face in its operations, which are detailed in the report[3]. - The company faces risks related to technological innovation and market demand changes, which could impact its competitive position and profitability[130]. - The company faced risks related to macroeconomic fluctuations and changes in downstream industry policies, particularly in the new energy vehicle sector[139]. Strategic Partnerships and Acquisitions - The company has established partnerships with major automotive brands including BAIC, Chery, Dongfeng, and NIO, adapting its battery swap stations for multiple passenger and commercial electric vehicle models[40]. - The company has formed a stable cooperation with renowned clients such as CATL, BYD, and Panasonic, improving customer satisfaction[43]. - The company has established long-term partnerships with eight of the top ten global automotive parts manufacturers, enhancing customer loyalty and providing stable downstream demand[123]. Awards and Recognition - The company received several awards, including the "Strategic Cooperation Award" from TE Connectivity and the "2022 Asia-Pacific Innovation Supplier Award" from Bosch[38]. - The company has been recognized as a leading equipment provider in the charging and swapping sector, receiving several industry awards for its products and technology[82]. - The company received recognition as a "specialized and innovative" small giant enterprise by the government, supporting its R&D efforts[122]. Talent and Workforce - The employee count increased by 27.29% year-on-year, reaching 1,572 employees by the end of the reporting period[53]. - The number of R&D personnel increased to 413, representing 26.34% of the total workforce, with total R&D compensation reaching 41.36 million[120]. - The average salary for R&D personnel increased to 18.78 million, reflecting the company's investment in talent[120]. International Operations - The company established a subsidiary in Canada to enhance its international operations and local service capabilities[38]. - The company has accumulated a diverse international customer base, including Tyco Electronics, Continental Group, Valeo, and Bosch Group, with overseas revenue accounting for 20.08% of total revenue[128]. Investment and Financial Management - The company completed a fundraising of 953 million RMB in March 2023, aimed at projects related to intelligent battery swap equipment and smart electric vehicle components[55]. - The company has a negative net cash flow from operating activities of -197.22 million yuan for the reporting period, primarily due to a high proportion of accounts receivable and irregular order acquisition[134]. - Financial expenses surged by 170.07% to 24.89 million RMB, primarily due to increased bank borrowings and interest expenses[147].