LEO(SZ:002131)2023-07-05 16:00Financial Performance - The company's total assets at the end of the reporting period amounted to 19.437 billion yuan, with net assets attributable to shareholders of 11.617 billion yuan, and a debt-to-asset ratio of 40.02%[33]. - The company's cash and cash equivalents decreased by 21.65% year-on-year to 1.350 billion yuan, primarily due to the investment of idle funds in financial products[33]. - The net profit for Liou Pump Industry was a loss of CNY 434.64 million, primarily due to fair value losses on shares of Ideal Automotive, impacting net profit by approximately CNY 547 million[61]. - The company reported a total revenue of 1,596,136.83 million with a net profit of 4,687.61 million for its digital marketing subsidiary[145]. - The company's pump and accessories subsidiary reported a total revenue of 430,651.48 million but incurred a net loss of 43,463.62 million[145]. - The net profit for the year 2022 was reported at -583,350,517.29 RMB, a significant decrease compared to the previous year's profit of 451,075,617.38 RMB[186]. - The company received government subsidies amounting to 54,956,450.06 RMB in 2022, an increase from 50,674,951.54 RMB in 2021[186]. - The company reported a loss of -927,975,750.90 RMB from fair value changes in financial assets, primarily due to the valuation changes of its investment in Li Auto[186]. Market Position and Strategy - The company has established a comprehensive digital marketing service chain, ranking third in the 2022 annual digital marketing company rankings by Internet Weekly[21]. - The global garden machinery market was approximately 34.67 billion USD in 2021, expected to exceed 45 billion USD by 2025, with a compound annual growth rate of nearly 7.0%[19]. - The company has expanded its production bases globally, including locations in Zhejiang, Hunan, Liaoning, Indonesia, and Hungary, with a worldwide sales network[24]. - The company aims to leverage its diverse product lines to optimize resource utilization and reduce operational costs, maximizing profitability while mitigating risks associated with single product operations[28]. - The company is focusing on the new energy industry chain, particularly in energy storage and photovoltaic sectors, to align with carbon neutrality goals[71]. - The company is facing market volatility risks due to slow global economic recovery and trade protection measures, which may impact export revenue stability[150]. - The company has established a robust internal audit system to ensure effective internal control and financial oversight[157]. Research and Development - The company has a strong R&D team responsible for the technical development of pumps, garden machinery, and motors, maintaining a leading position in the industry[26]. - R&D investment increased by 18.76% in 2022, totaling ¥196,176,463.08, representing 0.97% of operating revenue[106]. - The company has filed 56 new patents in 2022, further solidifying its leading position in the industry[66]. - The company has been recognized for its technological achievements, including awards and the establishment of a national-level research center[198]. - The company is actively developing AI-related products to capitalize on the market opportunities presented by advancements in artificial intelligence[195]. Digital Marketing and Technology - The company plans to continue investing in new technologies such as big data, artificial intelligence, and blockchain to enhance its digital marketing capabilities[22]. - Liou Digital has established a comprehensive marketing service chain, positioning itself among the leading players in China's digital marketing industry[53]. - The company plans to enhance its digital marketing segment by integrating media agency and marketing management models to improve market competitiveness[126]. - The company is focusing on technological infrastructure as a strategic service platform, validating next-generation internet technology applications[80]. - The company aims to provide comprehensive digital transformation solutions, integrating digital strategy, media, and e-commerce[197]. Sales and Revenue - The company's domestic sales reached approximately ¥18.7 billion, accounting for 92.27% of total sales, while international sales were about ¥1.57 billion, representing 7.73%[100]. - Direct sales amounted to approximately ¥1.89 billion, which is 9.32% of total sales, showing a growth of 10.71% year-on-year[100]. - The overall internet advertising market in China was estimated at CNY 508.8 billion in 2022, a decline of 6.38% from 2021, indicating a challenging market environment[62]. - The company's media agency business reported a revenue of ¥15,655,363,035.20, with a slight decline of 0.24% year-on-year[101]. - The digital marketing services revenue decreased by 44.14%, amounting to ¥275,754,537.17[101]. Governance and Compliance - The company has established a stable governance structure with a supervisory board that meets regularly to oversee management actions and ensure compliance with regulations[135]. - The company emphasizes transparency in information disclosure, ensuring that all stakeholders are informed of its financial and operational status[137]. - The company has maintained independence from its controlling shareholders in terms of operations and financial management[158]. Challenges and Risks - The company has identified market volatility and human resource risks as potential challenges for its operations in the upcoming year[127]. - The export tax rebate rate for the company's products is primarily 9% and 13%, which directly affects sales gross margin and competitiveness[151].