KEDE Numerical (688305)2023-04-26 16:00Financial Performance - The company reported a negative net operating cash flow for the year 2022, indicating significant investment plans and cash expenditures anticipated in the next 12 months[5]. - The board of directors proposed not to distribute cash dividends or issue bonus shares for the year 2022, aiming to reinvest retained earnings into sustainable development and operational needs[5]. - The company has not yet achieved profitability since its listing, which is a significant consideration for future financial planning[4]. - The company's operating revenue for 2022 was CNY 315,441,224.14, representing a 24.39% increase compared to CNY 253,588,985.88 in 2021[22]. - The net profit attributable to shareholders for 2022 was CNY 60,453,778.02, a decrease of 17.04% from CNY 72,866,945.75 in 2021[22]. - The net cash flow from operating activities for 2022 was CNY -6,032,568.81, compared to CNY -65,337,263.83 in 2021, indicating an improvement[22]. - The total assets at the end of 2022 were CNY 1,336,344,355.21, a 34.87% increase from CNY 990,807,232.82 at the end of 2021[22]. - The net assets attributable to shareholders at the end of 2022 were CNY 1,031,416,552.53, reflecting a 26.94% increase from CNY 812,519,397.58 at the end of 2021[22]. Operational Developments - The company is in a critical development phase with rapid order growth and capacity expansion, which necessitates the decision to withhold profit distribution[5]. - The company has outlined various operational risks and corresponding mitigation strategies in the management discussion and analysis section of the report[4]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has received a standard unqualified audit report from its accounting firm, ensuring the accuracy and completeness of the financial statements[5]. - The company is focused on strategic planning and investment to support its long-term growth objectives, as indicated in the forward-looking statements section[6]. Research and Development - The company’s R&D investment accounted for 36.26% of operating revenue, an increase of 5.67 percentage points from the previous year[24]. - Total R&D investment for the year reached RMB 114.38 million, accounting for 36.26% of revenue, with the company participating in seven national projects and receiving RMB 41.32 million in central government funding[38]. - The company has developed a comprehensive product layout with a focus on high-end five-axis CNC machine tools, achieving significant technological breakthroughs and maintaining a strong emphasis on independent innovation[40]. - The company has authorized 55 new patents in 2022, including seven international invention patents, bringing the total to 251 authorized patents by the end of the year[38]. - The company’s R&D team was awarded the title of "Outstanding Innovation Team in the Machinery Industry" by the China Machinery Industry Federation in November 2022[109]. Market Position and Competition - The company holds a market share of 13.62% in sales volume and 22.24% in sales value for five-axis vertical machining centers in 2020[88]. - The domestic high-end machine tool localization rate is below 10%, indicating significant potential for import substitution[85]. - The company faces risks from increased competition in the high-end CNC machine market, primarily dominated by foreign firms with extensive experience[129]. - The company aims to enhance its product and technology capabilities to capture a larger market share in the growing demand for high-end CNC machine tools[177]. Product Development and Innovation - The company launched four new products in 2022, including the KTM120 five-axis horizontal boring and milling compound machining center, which has a high sales price and significant market potential in the aerospace sector[37]. - The company has developed multiple first-of-their-kind five-axis CNC machine tools and high-end CNC systems, contributing to breakthroughs in core technologies in China's high-end CNC machine tool sector[85]. - The company is shifting from single product sales to providing integrated smart manufacturing solutions, enhancing customer loyalty[92]. - The company has developed key core technologies in high-end CNC systems, five-axis CNC machine tools, and critical functional components, achieving domestic leadership and international advancement[93]. Financial Management and Governance - The company has established a collaborative innovation model with key industries, enhancing its market responsiveness and innovation capabilities[126]. - The company’s governance structure complies with relevant laws and regulations, ensuring effective management and oversight[195]. - The company plans to issue A-shares through a simplified procedure to specific targets, with risk warnings and compensation measures disclosed[194]. - The independent directors and key management personnel received total remuneration ranging from CNY 10,000 to CNY 648,700 during the reporting period[197]. Future Outlook - Future guidance indicates a positive outlook with expectations of continued growth in user data and market share[199]. - The company aims to enhance its market share in key components for large engines and aircraft structures while expanding its presence in the civilian market, particularly in electric vehicles and automation solutions[184]. - The company plans to independently incubate new products such as special motors and sensors to explore new growth areas[184].