Huarui Precision(SH:688059)2023-03-30 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥601.64 million, representing a 23.93% increase compared to ¥485.48 million in 2021[27]. - The net profit attributable to shareholders for 2022 was approximately ¥165.92 million, a 2.20% increase from ¥162.35 million in 2021[27]. - The net profit after deducting non-recurring gains and losses was approximately ¥157.69 million, up 3.52% from ¥152.32 million in 2021[27]. - The company's total assets increased by 64.71% to approximately ¥1.89 billion at the end of 2022, compared to ¥1.15 billion at the end of 2021[27]. - The net cash flow from operating activities decreased by 29.48% to approximately ¥145.33 million in 2022, down from ¥206.10 million in 2021[27]. - The basic earnings per share for 2022 was ¥3.77, a decrease of 2.08% from ¥3.85 in 2021[25]. - The company's net assets attributable to shareholders increased by 25.29% to approximately ¥1.11 billion at the end of 2022, compared to ¥889.21 million at the end of 2021[27]. - The company's gross profit margin for its main business was 48.65%, a decrease of 1.72 percentage points compared to 2021, influenced by lower demand and increased fixed costs during the production ramp-up phase[95]. Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 12 per 10 shares, totaling RMB 52.81 million, representing a cash dividend ratio of 31.83%[6]. - The company intends to increase its total share capital by 4 shares for every 10 shares held, resulting in an increase of 17,603,208 shares, raising the total share capital to 61,611,229 shares[7]. - The total distributable profit at the end of the reporting period was RMB 405.46 million[174]. - The cash dividend payout ratio for the year was 31.83%[174]. Research and Development - The R&D investment as a percentage of operating revenue increased to 6.91% in 2022, up from 5.13% in 2021, indicating a focus on innovation[25]. - The company increased its R&D investment, resulting in 53 authorized patents, including 25 invention patents[36]. - R&D expenses for the year amounted to ¥41,556,601.96, representing a 66.82% increase compared to the previous year[64]. - The company aims to enhance the hardness, thermal stability, and chemical inertness of cutting tools through the development of new PVD coating materials[67]. - The company is focusing on improving the high-speed cutting performance of CNC blades to meet the increasing demand for efficient processing from customers[52]. - The company has established a cutting test laboratory equipped with advanced processing and testing equipment to enhance R&D efficiency[77]. Market and Competitive Position - The global cutting tool consumption was approximately $34 billion in 2018, with projections to reach $39 billion by 2022, reflecting a compound annual growth rate of about 2.7%[47]. - The domestic cutting tool market size reached 47.7 billion yuan in 2021, representing a growth of 48.37% compared to 2016[48]. - The market share of hard alloy cutting tools in China is estimated to be around 53%, indicating significant room for growth compared to the global average of 63%[48]. - The company has established a national sales network covering over 20 provinces and actively expanded into overseas markets[44]. - The company is focused on expanding its market presence in the domestic mid-to-high-end market, traditionally dominated by European, American, and Japanese tool manufacturers[78]. Governance and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[5]. - The board of directors and management have confirmed the accuracy and completeness of the annual report[4]. - The company has established a comprehensive internal control system, enhancing operational efficiency and governance standards[187]. - The company emphasizes ESG integration into its governance structure, ensuring alignment with strategic decision-making[190]. - The company actively seeks feedback from shareholders, especially minority shareholders, to inform its profit distribution policies[169]. Risks and Challenges - The company faces risks related to the potential loss of major dealers, which could adversely affect short-term operating performance[85]. - The company's main raw materials, tungsten carbide powder and cobalt powder, are subject to price fluctuations influenced by global economic conditions[85]. - Increased competition from domestic and international manufacturers poses a risk to the company's market share and pricing power[89]. - The company is exposed to macroeconomic risks that could adversely affect its operating performance due to uncertainties in the global economic environment[90]. Employee and Management - The company employed a total of 758 staff, with 458 in production, 100 in sales, and 125 in technical roles[160]. - The company has a competitive salary structure and implements stock incentives to enhance employee motivation and retention[162]. - The total remuneration for all directors, supervisors, and senior management reached 5.0496 million RMB by the end of the reporting period[148]. - The company has established a salary scheme for senior management based on performance and industry benchmarks[186]. Environmental Responsibility - The company invested 1.41 million yuan in environmental protection during the reporting period[194]. - The company has established a recycling system for various waste materials, ensuring compliance with environmental standards[196]. - The company has engaged qualified third-party inspection agencies to monitor emissions and ensure compliance with environmental regulations[200]. - The company has achieved compliance with environmental standards for wastewater, waste gas, noise, and solid waste[196].