FREEWON(SH:688678)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was CNY 926,843,555.26, representing a year-on-year increase of 27.58% compared to CNY 726,487,784.03 in 2021[19]. - The net profit attributable to shareholders for 2022 was CNY 161,949,725.11, up 32.59% from CNY 122,139,075.84 in 2021[19]. - The cash flow from operating activities for 2022 was CNY 227,780,066.14, a significant increase of 418.84% compared to CNY 43,901,889.02 in 2021[19]. - The basic earnings per share for 2022 was CNY 0.94, reflecting a growth of 34.29% from CNY 0.70 in 2021[20]. - The company's total assets at the end of 2022 reached CNY 2,298,910,243.03, a 25.19% increase from CNY 1,836,296,063.00 at the end of 2021[19]. - The return on equity (ROE) for 2022 was 11.37%, an increase of 2.28 percentage points from 9.09% in 2021[20]. - The gross profit margin for the company was 32.23%, a decrease of 1.65 percentage points year-on-year[30]. - The company reported a significant increase in management expenses by 62.76% to 58,979,475.73 million RMB, mainly due to increased personnel costs[133]. Research and Development - Research and development expenses accounted for 8.63% of operating revenue in 2022, up from 8.34% in 2021[22]. - The company invested 18.82 million yuan in R&D for brass wire, with several specifications already in small-scale production[38]. - R&D expenses amounted to 79.99 million yuan, an increase of 32.07% year-on-year, with 87 new R&D personnel hired, a growth of 41.63%[44]. - The company has developed 13 core technologies in precision metal component manufacturing, ensuring long-term high-quality development[91]. - The company is focusing on automation in production to reduce labor costs and improve product precision and stability, responding to rising labor costs in the Asia-Pacific region[87]. - The company aims to enhance its R&D capabilities and develop new materials, targeting emerging industries such as consumer electronics, new energy vehicles, and 5G communication[149]. Market and Industry Trends - The automotive market is projected to see a significant increase in demand for precision metal components due to the rapid growth of new energy vehicles, with a forecast of 11.38 million units by 2025[35]. - The precision metal components industry is experiencing rapid growth due to increasing demand for high precision and stability in sectors like consumer electronics and automotive[58]. - The global consumer electronics market grew from $905 billion in 2016 to $1,086 billion in 2021, with a projected recovery in demand post-2022[60]. - The wearable device market is expected to grow, with a projected compound annual growth rate (CAGR) of 5.4% from 2023 to 2027[62]. - The demand for precision metal components is expanding into new applications, including drones, smart equipment, and AR/VR markets, driven by advancements in technology and consumer expectations[89]. Corporate Governance - The company has received a standard unqualified audit report from Zhonghui Certified Public Accountants[6]. - The company has confirmed that all board members attended the board meeting, ensuring the integrity of the annual report[6]. - The company has not reported any significant differences in governance compared to regulations set by the China Securities Regulatory Commission[162]. - The company has a dedicated department for managing investor relations and information disclosure[161]. - The company has not engaged in any related party transactions that would affect its governance structure[165]. Strategic Initiatives - The company plans to distribute a cash dividend of 3.00 CNY per 10 shares (including tax), totaling approximately 51.41 million CNY based on a total share capital of 173,350,000 shares as of December 31, 2022[5]. - The company plans to continue enhancing its product offerings and optimizing cash collection processes to sustain growth[22]. - The company aims to improve operational efficiency by reducing production costs by 5% through automation and process optimization[167]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[167]. - The company plans to invest 1.5 billion CNY in new projects in Nantong, enhancing production capacity for precision metal components and diamond wire products[141]. Social Responsibility - The company generated approximately 1.4281 million kWh of electricity from its photovoltaic rooftop, reducing CO2 emissions by about 1,371 tons[48]. - The company donated 250,400 yuan during the reporting period, actively fulfilling its social responsibility[48]. - The management team emphasized a commitment to sustainability, with plans to invest 100 million RMB in eco-friendly technologies[171].