YUNNEI POWER(SZ:000903)2023-07-25 16:00Business Operations and Strategy - The company reported a significant focus on the research, production, and sales of diesel engines, with a strategic expansion into gasoline engine development in response to regulatory changes in the light truck market [20]. - The company has undergone a change in its main business operations since 2017, following the acquisition of 100% equity in Mingte Technology, now including intelligent products in its portfolio [20]. - The company’s main business remains focused on engine and industrial-grade electronic products, with no significant changes in operations during the reporting period [34]. - The company is focusing on technological innovation and product development, aiming for lightweight and intelligent engine solutions while expanding gasoline engine market presence [39]. - The company is actively expanding its automotive electronics and new retail sectors, leveraging its mechatronics technology advantages for strategic transformation [39]. - The company is developing a National VI diesel engine to meet emission regulations and enhance product competitiveness [63]. - The company is working on an electronic project to improve its industrial-grade electronic product line and aims for large-scale sales of new electronic products [64]. - The company is developing a national five diesel engine project to meet the needs of vehicle manufacturers and enhance product performance [64]. - The company has launched a new energy brand "德润" and has begun market promotion for hybrid products, collaborating with major vehicle manufacturers [49][50]. - The company plans to enhance its market competitiveness by focusing on "smart new energy powertrains and automotive electronics" in 2023 [87]. - The company aims to increase the sales of diesel engines above the industry average growth rate by implementing differentiated marketing strategies [91]. - The company is targeting a significant increase in the market share of non-road pure electric and hybrid products due to rising environmental standards and national policies [86]. Financial Performance - The company’s operating revenue for 2022 was ¥4,790,234,282.12, a decrease of 40.34% compared to ¥8,029,552,833.13 in 2021 [21]. - The net profit attributable to shareholders was -¥1,305,943,769.81, representing a decline of 1,912.96% from a profit of ¥72,033,784.11 in the previous year [21]. - The net cash flow from operating activities was -¥1,925,428,787.67, a significant drop of 336.71% compared to -¥440,898,401.90 in 2021 [21]. - The total assets at the end of 2022 were ¥13,328,009,820.88, down 8.57% from ¥14,577,984,741.48 at the end of 2021 [22]. - The net assets attributable to shareholders decreased by 23.27% to ¥4,375,806,223.84 from ¥5,702,935,295.02 in 2021 [22]. - The company reported a basic and diluted earnings per share of -¥0.680, a decline of 1,937.84% from ¥0.037 in 2021 [21]. - The weighted average return on equity was -25.92%, a decrease of 27.18 percentage points from 1.26% in the previous year [21]. - The total profit amounted to CNY -129,797.08 million, reflecting a decline of 2385.04% compared to the previous year [46]. - The net profit attributable to shareholders was CNY -130,594.38 million, a staggering drop of 1912.96% year-on-year [46]. - The company’s engine industry revenue was CNY 4,388,789.96 million, accounting for 91.62% of total revenue, down 43.13% from the previous year [54]. - Domestic sales accounted for 99.59% of total revenue, with a decrease of 40.53% year-on-year, while international sales increased by 143.08% [54]. Market and Sales Performance - The company sold 331,000 engines in 2022, a decrease of 33.23% year-on-year, reflecting the overall decline in the commercial vehicle market [31]. - The commercial vehicle production and sales in China fell by 31.9% and 31.2% respectively in 2022, impacting the demand for the company's products [31]. - Engine sales volume decreased by 33.23% year-on-year, and production volume decreased by 34.27%, primarily due to a slowdown in demand influenced by environmental policies and economic conditions [41]. - The company’s engine product gross margin turned negative due to high costs of imported core components and increased promotional efforts [46]. - The company’s engine industry revenue was 4,388,789,956.68, a decrease of 43.13% year-over-year, with a gross margin of -11.17% [57]. - The company’s top five customers accounted for 35.58% of total sales, with the largest customer contributing 10.87% [59]. - The company’s top five suppliers accounted for 37.25% of total purchases, with the largest supplier being a related party [60]. Research and Development - The company holds 295 valid patents in the engine field, including 201 utility model patents, 64 design patents, and 30 invention patents as of December 31, 2022 [41]. - The industrial-grade electronic products business has a leading market share, with 70 valid patents, including 49 utility model patents and 8 invention patents [44]. - The company’s R&D investment decreased by 30.97% to ¥428,510,694.50 in 2022 from ¥620,759,818.93 in 2021, while the R&D investment as a percentage of operating revenue increased to 8.95% from 7.73% [64]. - The number of R&D personnel increased by 6.90% to 341 in 2022, accounting for 13.10% of the total workforce, up from 12.07% in 2021 [64]. - Research and development expenses decreased by 9.10% to 201,362,388.63, reflecting ongoing investment in new engine models [62]. Corporate Governance and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements and potential adverse factors affecting future development strategies [4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management, ensuring accountability [4]. - The company has improved its internal control system and governance structure in accordance with relevant laws and regulations [99]. - The company has established a complete independent business and operational capability, ensuring independence from the controlling shareholder [109]. - The company has conducted 5 shareholder meetings during the reporting period, ensuring compliance with legal requirements [100]. - The company has actively communicated with investors, responding to over 200 inquiries through various platforms [106]. - The company is committed to maintaining the rights and interests of all stakeholders, promoting balanced development [107]. - The company has established an independent financial department and accounting system, ensuring compliance with tax regulations [110]. - The company has a diverse board with independent directors and various expertise contributing to its strategic direction [129]. - The company has a strong emphasis on technological advancement, with its current general manager, Song Guofu, overseeing comprehensive operational management, including technology and quality [119]. Environmental Responsibility - The company and its subsidiaries strictly comply with various environmental protection laws and regulations, including the Environmental Protection Law of the People's Republic of China [169]. - The total discharge of pollutants was 476.46 tons, with no exceedance of the permitted limits reported [170]. - The company has implemented a series of regulations for environmental pollution prevention and control, including the Environmental Pollution Prevention Responsibility System and Hazardous Waste Management System [169]. - The company reported a nitrogen oxide emission concentration of 33.96 mg/m³, which is compliant with the comprehensive emission standards [170]. - The company has established a comprehensive environmental management system to ensure compliance with local emission requirements in Yunnan and Sichuan provinces [169]. - The company has successfully passed environmental assessments for all construction projects during the reporting period [169]. - The company invested over 1.7 million CNY in hazardous waste disposal and environmental monitoring fees in 2022, and paid over 70,000 CNY in environmental protection taxes [176]. Employee Management and Development - The total number of employees at the end of the reporting period was 2,604, including 1,451 at the parent company and 1,153 at major subsidiaries [148]. - The company established a point-based salary system in 2022, linking individual performance assessments with variable salary points to enhance fairness and motivate employees [150]. - The company has implemented a comprehensive training program to upskill its workforce in response to evolving market demands [148]. - The company has implemented a comprehensive employee training program with 106 training themes focused on key technical skills, management capabilities, and specialized abilities [151]. - The company is focused on improving its internal control systems and audit processes to ensure financial accuracy and compliance [146]. Shareholder Relations and Incentives - The company plans not to distribute cash dividends, issue bonus shares, or increase capital through reserves for the fiscal year [5]. - The company has initiated a restricted stock incentive plan for 2022, with a total of 5,903,920.9 shares granted, including 5,053,920.9 shares at a price of 1.54 CNY per share [154]. - The incentive plan targets 374 individuals, including senior and middle management, as well as core personnel, to align interests between shareholders and management [154]. - The company has established a profit distribution policy to ensure reasonable returns to shareholders, with a three-year dividend plan aimed at protecting the rights of shareholders, especially minority shareholders [178]. - The company has implemented measures to protect creditor interests while maximizing shareholder value, maintaining financial stability and asset security [178].