Hangzhou EZVIZ Network (SH:688475)2023-04-14 16:00Financial Performance - The company achieved operating revenue of CNY 4,306,313,778.13 in 2022, a year-on-year increase of 1.61%[20]. - Net profit attributable to shareholders was CNY 333,072,577.56, representing a decrease of 26.10% compared to the previous year[20]. - The net cash flow from operating activities increased by 154.48% to CNY 735,558,043.45, primarily due to improved inventory management[20]. - Total assets grew by 92.47% year-on-year, reaching CNY 7,181,712,908.64, while net assets attributable to shareholders increased by 244.83% to CNY 4,859,174,354.61[20]. - Basic earnings per share decreased to CNY 0.74, down 26.00% from the previous year[19]. - The company reported a significant increase of 154.48% in net cash flow from operating activities, amounting to CNY 735,558,043.45[79]. - The company reported a gross margin of 40%, which is an improvement from 35% in the previous year[118]. Dividend Policy - The company plans to distribute a cash dividend of 3 CNY per 10 shares, totaling 168,750,000 CNY, which accounts for 50.66% of the net profit attributable to shareholders for 2022[5]. - The company’s cash dividend policy emphasizes a minimum distribution of 10% of the annual distributable profit, with a cumulative distribution of at least 30% over three years[141]. - The company’s profit distribution policy is designed to ensure reasonable returns to public shareholders while maintaining sustainability and compliance with legal regulations[141]. - Total dividend amount (including tax) is 168,750,000.00, accounting for 50.66% of the net profit attributable to ordinary shareholders of the listed company[147]. Research and Development - The company increased its R&D investment as a percentage of operating revenue to 14.00%, up 2.43 percentage points from 2021[19]. - The company employed 1,232 R&D personnel, accounting for 30.87% of total employees, with R&D expenses of 602.97 million RMB, representing 14% of revenue[60]. - R&D investment increased by 22.93% year-on-year, driven by higher personnel costs and increased R&D activities[60]. - The company obtained 76 new invention patents and 6 software copyrights during the reporting period, with a total of 129 invention patents and 80 software copyrights held as of December 31, 2022[59]. Market Expansion and Product Development - The company is focusing on expanding both domestic and international channels to drive future growth[20]. - The company launched several competitive smart home products, including battery-powered 4G smart cameras and facial recognition video locks, enhancing product competitiveness[28]. - The company introduced an elderly care service package, addressing the growing demand for home care solutions for the elderly population exceeding 280 million in China[30]. - The company is enhancing its global compliance and reliable video visual IoT cloud platform, developing richer value-added services for end-users, and providing competitive platform service solutions for third-party developers[104]. Corporate Governance - Deloitte Huayong Certified Public Accountants issued a standard unqualified audit report for the company[4]. - The company has confirmed that all board members attended the board meeting[4]. - The company has established a comprehensive security compliance system, achieving six new certifications in 2022, including ISO/IEC 22301:2012 for business continuity management[35]. - The company has been actively revising its governance documents, including the articles of association and various internal management systems, during board meetings in 2022[127]. Environmental Responsibility - The company invested 15.34 million yuan in environmental protection during the reporting period[152]. - Total greenhouse gas emissions amounted to 8,084.35 tons of CO2 equivalent, with a density of 0.02 tons of CO2 equivalent per ten thousand yuan of revenue[155]. - The company strictly adheres to environmental laws and regulations, ensuring proper handling of waste and minimizing environmental impact[157]. - The company’s two production bases received ISO 14001 environmental management certification, enhancing internal management and environmental responsibility[165]. Employee Engagement and Social Responsibility - The company organized 31 safety education training sessions, covering 707 participants, and conducted 17 emergency drills involving 2,726 individuals[175]. - The company actively participated in community welfare activities, including the "Elderly Care Plan" to support elderly individuals in need[169]. - The company implemented a psychological support program, providing a 24-hour hotline for employee mental health[176]. - The company provided support for the "Free Lunch" initiative, showcasing the lunch preparation process via live streaming technology, contributing to rural revitalization efforts[172]. Risk Management - The company has not reported any significant risks that could materially affect its operations during the reporting period[3]. - The company faces risks related to product development, including potential misjudgment of market trends and competition from faster technology adoption by rivals[71]. - The company is at risk of losing its core competitiveness due to challenges in protecting intellectual property and retaining skilled professionals in the rapidly evolving smart home and IoT industry[72]. - The company faces risks related to supply chain disruptions in the semiconductor industry, which could impact operational performance[73].