ZHENHUA(SZ:000733)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was ¥7,266,865,692.18, representing a 28.48% increase from ¥5,655,971,824.78 in 2021[13]. - The net profit attributable to shareholders for 2022 was ¥2,382,459,963.15, a 59.79% increase from ¥1,490,958,519.30 in 2021[13]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥2,304,981,950.35, up 66.85% from ¥1,381,441,067.24 in 2021[13]. - The company's cash flow from operating activities for 2022 was ¥821,286,903.12, a decrease of 38.50% compared to ¥1,335,358,874.60 in 2021[13]. - The total assets at the end of 2022 were ¥13,560,179,608.40, reflecting a 21.91% increase from ¥11,122,768,868.08 at the end of 2021[13]. - The net assets attributable to shareholders at the end of 2022 were ¥9,755,985,555.04, a 31.11% increase from ¥7,441,051,074.48 at the end of 2021[13]. - The company's total R&D expenditure amounted to ¥579,869,276.83 in 2022, an increase of 17.29% compared to ¥494,388,868.73 in 2021[40]. - The company reported a net profit of CNY 361,274,621.34 for the year 2022, with a total distributable profit of CNY 1,177,750,105.88 after accounting for statutory reserves and previous undistributed profits[104]. Dividend Distribution - The company plans to distribute a cash dividend of 11.45 CNY per 10 shares to all shareholders, based on a total of 520,413,168 shares[2]. - A cash dividend of CNY 11.45 per 10 shares (including tax) was proposed, amounting to a total distribution of CNY 595,873,077.36, which represents 100% of the profit distribution[103]. - The company did not propose a cash dividend distribution plan for the reporting period despite having positive distributable profits[102]. Corporate Governance - The company emphasizes the importance of maintaining accurate financial reporting and compliance with regulatory standards[2]. - The board of directors has confirmed the authenticity and completeness of the annual report, ensuring no misleading statements or omissions[2]. - The company is committed to high-quality development and improving corporate governance in accordance with relevant laws and regulations[74]. - The company has established a performance evaluation and incentive mechanism for senior management, linking their performance directly to compensation[76]. - The company has a diverse board with independent directors from various professional backgrounds, enhancing governance and oversight[83]. - The company held 13 board meetings during the reporting period, with all reasonable suggestions from directors being accepted[91][94]. - The company did not report any objections from directors regarding company matters during the reporting period[93]. Market Strategy and Development - The company reported a significant focus on new product development and technological innovation to enhance market competitiveness[3]. - Future outlook includes strategic market expansion and potential mergers and acquisitions to drive growth[3]. - The company is focusing on high-quality development and enhancing its electronic component supply chain capabilities[24]. - The company aims to become a leading specialized supplier and solution provider for electronic components in China, focusing on enhancing core product capacity and reducing supply cycles[70]. - The company plans to enhance its product offerings in the LTCC filter and MOSFET product lines, aiming to strengthen market competitiveness[38]. - The company is actively pursuing new technologies and product developments to enhance environmental compliance and operational efficiency[126]. Environmental Responsibility - The company is committed to environmental and social responsibilities as part of its corporate governance strategy[5]. - The company has established a supervisory board office to support the work of the supervisory board, addressing previous governance issues[116]. - The company has implemented a comprehensive plan to track and guide the rectification of audit issues, demonstrating its commitment to continuous improvement[117]. - The company has adhered to the "three simultaneous" requirements for environmental protection facilities in its construction projects, ensuring compliance with environmental standards[122]. - The company reported a total wastewater discharge of 0.944 tons with a suspended solids concentration of 50 mg/L, well within the permitted limits[123]. - The company achieved a total emission of 80.13 mg/m³ for hydrochloric acid, which is below the regulatory limit[124]. - The company has no instances of exceeding the permitted discharge limits for heavy metals such as lead and nickel in wastewater[123]. - The company has implemented emergency response plans for environmental incidents, with all subsidiaries having their plans filed with local environmental authorities[132]. Research and Development - The company applied for 355 patents in 2022, including 146 invention patents, and received 240 patent authorizations[25]. - New product development has shown rapid growth, with several new products achieving or exceeding benchmark standards, leading to increased market recognition[24]. - The number of R&D personnel increased to 1,022 in 2022, up 18.15% from 865 in 2021[39]. - Research and development expenses increased to ¥516,193,265.27 in 2022, up 39.6% from ¥369,816,415.58 in 2021[194]. Shareholder Engagement - The company held six shareholder meetings during the reporting period, with participation rates ranging from 47.28% to 52.77%[78]. - The company has actively engaged with investors through various communication channels, including phone calls and roadshows[71]. - Chairman Chen Gang increased his shareholding by 45,000 shares, bringing his total to 90,000 shares due to the second phase of the equity incentive plan[79]. - Executive Vice President Pan Wenzhang increased his shareholding by 54,000 shares, totaling 108,000 shares, also due to the second phase of the equity incentive plan[79]. Financial Audit and Compliance - The company has engaged Da Xin Accounting Firm for auditing services, ensuring rigorous financial oversight[11]. - The audit report confirms the financial statements are accurate and comply with regulations[176]. - The company reported a standard unqualified audit opinion from Da Xin Accounting Firm on April 26, 2023[176]. - The company has maintained effective internal controls over financial reporting as of December 31, 2022, according to the internal control audit report[115]. Employee Welfare - The total number of employees at the end of the reporting period was 7,275, with 3,952 in production, 1,679 in technology, and 259 in sales[98]. - The company has a total of 5,204 retired employees who require financial support, indicating a significant commitment to employee welfare[98]. - The company conducted 2,870 training sessions in 2022, with a total of 68,156 participants, focusing on skills development and aligning training content with corporate goals[100]. - The company’s employee compensation policy is based on performance, with different structures for various roles, including annual salaries for management and commission-based pay for sales personnel[99].