JJE(SH:688280)2023-06-05 16:00Financial Performance - The company reported a total revenue of 1,020.68 million yuan for the year 2022, with a net loss attributable to shareholders of 388.35 million yuan[4]. - The net profit excluding non-operating gains and losses was a loss of 451.95 million yuan for the same period[4]. - The company has not yet achieved profitability since its listing[4]. - There is no profit distribution plan or capital reserve transfer plan due to the company's ongoing losses[7]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year 2022, representing a year-over-year growth of 25%[36]. - The company's total revenue for 2022 was CNY 1,020,682,920.26, representing a 38.62% increase compared to CNY 736,318,212.03 in 2021[44]. - The net loss attributable to shareholders for 2022 was CNY -388,353,538.44, a 2.94% improvement from CNY -400,128,372.57 in 2021[45]. - The gross margin improved from -3.77% in 2021 to 4.59% in 2022, despite the negative impact of raw material price increases on electric drive products[47]. - The net cash flow from operating activities for 2022 was CNY -454,695,409.70, a decrease of 36.94% compared to 2021[48]. - The company achieved a total asset value of CNY 2,982,070,758.23 at the end of 2022, down 11.73% from 2021[45]. Shareholder Structure and Governance - The controlling shareholder, Heze Beixiang New Energy Technology Co., Ltd., holds 11.81% of the company's shares and 57.24% of the voting rights[12]. - The actual controller, Yu Ping, collectively controls 59.29% of the voting rights through various entities[12]. - The special voting rights mechanism allows the controlling shareholder to have a significant influence over shareholder meetings, potentially limiting the impact of minority shareholders[18]. - The company has set up a special voting rights arrangement that has been operational since October 14, 2019[10]. - The company is subject to specific governance arrangements, including differential voting rights for certain shareholders[8]. - The company has implemented stricter reduction restrictions on special voting rights shares compared to ordinary shares, ensuring that shareholders with special voting rights focus on the company's long-term and stable development[22]. - The company has committed to strict compliance with information disclosure requirements, including the implementation and changes of special voting rights arrangements in regular reports[25]. - The controlling shareholder has issued a commitment letter to exercise special voting rights in accordance with relevant laws and regulations, ensuring no abuse of these rights[26]. - The company has established various management systems to regulate related party transactions and ensure that significant transactions are approved at the shareholder meeting level[24]. - Shareholders holding more than 10% of voting rights can propose temporary board meetings, ensuring greater participation in corporate governance[24]. Research and Development - The company is investing 200 million RMB in research and development for innovative electric drive systems over the next two years[36]. - Research and development expenses increased to CNY 21,347,450, representing a CNY 5,838,640 increase from 2021, as the company focused on enhancing competitiveness and exploring new markets[47]. - The R&D expenditure as a percentage of revenue was 20.91%, slightly down from 21.06% in 2021[46]. - The total R&D investment for 2022 was approximately ¥213.47 million, an increase of 37.65% compared to ¥155.09 million in the previous year[91]. - The company has developed a third-generation silicon carbide (SiC) controller assembly, which enhances power density, efficiency, and reduces cooling system complexity, benefiting electric vehicles with lower battery costs and longer range[107]. - The company has established partnerships with major automotive manufacturers such as Stellantis, GAC Group, and Geely Group for mass production of its oil-cooled electric motor technology[107]. - The company has received 11 new domestic invention patents and 52 utility model patents during the reporting period, increasing its total domestic patents to 39 invention patents and 287 utility model patents[89]. - The company has multiple core technologies that are at the international or domestic advanced level, with several patents and proprietary technologies[83]. Market Expansion and Strategy - The company plans to expand its market presence in Europe, targeting a 10% market share by 2025[36]. - The company plans to continue expanding its North American operations, with strategic investments in human and material resources[47]. - The company is actively expanding its overseas market presence, leveraging its technological advantages and production scale[125]. - The company aims to maintain a competitive edge by planning to add no more than 105,000 sets of new production capacity by the end of 2025, which represents a CAGR of approximately 9.97%[186]. - The company has secured a mass production project for a three-in-one product for a major North American automaker, targeting luxury and electric vehicles in multiple international markets[185]. Production and Sales - The production and sales of new energy vehicles reached 7.06 million units, with a year-on-year growth of 96.9% in production and 93.4% in sales[58]. - The company’s domestic revenue growth was driven by improved external conditions and increased downstream orders[58]. - The company achieved a production capacity of 10,000,000 units for the two-in-one system for pure electric medium trucks, with the C sample mold developed and verified for market launch[99]. - The company completed the production line construction for commercial vehicle bridge drive systems, achieving a production capacity of 3,000,000 units, leading the domestic market[99]. - Cumulative sales of electric drive systems for new energy vehicles reached 164,621 units, a year-on-year increase of 16.33% compared to 141,507 units last year[187]. - Cumulative production of electric drive systems for new energy vehicles was 170,617 units, reflecting a year-on-year growth of 16.40% from 146,584 units last year[187]. Risks and Challenges - The company faces risks related to low capacity utilization due to market fluctuations and competition, which could adversely affect its profitability[122]. - The company is at risk of intensified competition in the electric drive system sector due to the entry of new domestic and international players[125]. - The company is exposed to risks from exchange rate fluctuations, particularly with its sales revenue being partially denominated in USD[131]. - The company anticipates that the demand for electric vehicles may decline if consumer recognition does not improve, potentially impacting its production and operations negatively[124]. - The company faced risks from raw material price fluctuations, as direct material costs constitute a significant portion of production costs[127]. Cost Management - Cost control measures implemented in 2022 included optimizing procurement management and production systems to reduce raw material costs[200]. - The company plans to further enhance cost reduction strategies in 2023 by leveraging procurement scale advantages and optimizing existing product designs[200]. - A comprehensive cost optimization approach is being applied to both existing and in-development products, focusing on material and manufacturing process improvements[200]. - The establishment of a price assessment system and response mechanism to material price fluctuations is part of the company's strategy[200]. - The company is actively developing new suppliers to introduce effective competition and lower procurement costs[200]. Customer Concentration - Sales revenue from the top five customers accounted for 55.86% of the total annual sales, indicating a high customer concentration risk[126]. - The sales revenue from the top domestic customer in 2022 was CNY 11,584.40 million, accounting for 12.82% of the main business income[155]. - The sales revenue from the top foreign customer was CNY 21,342.23 million, which made up 23.61% of the main business income[158].