HSSM(SZ:002290)2023-07-17 16:00Financial Performance - The company's operating revenue for 2022 was ¥2,133,261,940.03, a decrease of 5.98% compared to ¥2,268,832,965.66 in 2021[19] - The net profit attributable to shareholders for 2022 was ¥65,931,950.95, down 19.57% from ¥81,975,951.20 in the previous year[19] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 8.64% to ¥81,011,071.63 from ¥74,568,732.88 in 2021[19] - The basic earnings per share decreased by 18.18% to ¥0.27 from ¥0.33 in 2021[19] - The total assets at the end of 2022 were ¥1,529,187,222.50, a decline of 6.46% from ¥1,634,854,623.94 at the end of 2021[20] - The net assets attributable to shareholders increased by 16.38% to ¥614,466,612.83 from ¥527,996,006.87 in 2021[20] - In 2022, the company achieved total revenue of ¥2,133,261,940.03, a decrease of 5.98% compared to the previous year[37] - The company's main product, composite materials for home appliances, accounted for 98.02% of total revenue, with a revenue of ¥2,090,975,276.00, also down 5.98% from the previous year[39] - Domestic business revenue was ¥1,635,309,110.06, representing 76.66% of total revenue, a decrease of 10.64% year-on-year[40] - Export business revenue increased by 15.71% to ¥455,666,165.94, accounting for 21.36% of total revenue[40] Cash Flow and Investments - The net cash flow from operating activities rose significantly by 70.47% to ¥188,992,286.74, compared to ¥110,866,912.67 in 2021[19] - Operating cash inflow increased by 7.34% to ¥1,481,542,675.03 in 2022, while net cash flow from operating activities rose by 70.30% to ¥188,992,286.74[49] - Investment cash inflow surged by 25,316.60% to ¥12,203,526.03, mainly due to the redemption of previously purchased financial assets[49] - Cash and cash equivalents decreased by 333.88% to a net decrease of ¥24,500,929.83, primarily due to loan repayments[49] Market and Competitive Position - The domestic home appliance retail market saw a decline of 9.5% year-on-year in 2022, with total retail sales amounting to CNY 730.72 billion[30] - The company has established long-term stable supply relationships with major brands such as Samsung, LG, and Panasonic, enhancing its market competitiveness[32] - The company is positioned as one of the largest manufacturers of home appliance composite materials in China, with a significant market share in the mid-to-high-end segment[34] - The company aims to expand its market share by focusing on user-centered product development and improving brand advantages[34] Research and Development - The company plans to increase R&D investment to enhance product structure and quality, responding to evolving customer demands[34] - R&D expenses totaled ¥69,070,451.32 in 2022, down 7.65% from ¥74,793,459.17 in 2021, representing 3.24% of operating revenue[47][48] - The number of R&D personnel increased by 1.08% to 187, with R&D personnel constituting 23.64% of the workforce[47] Risks and Challenges - The company may face risks including industry competition, raw material price fluctuations, and exchange rate volatility in 2023[4] - The company recognizes risks associated with industry competition, particularly in the domestic appliance composite materials sector, and plans to adopt a high-quality development approach to mitigate these risks[65] - The company faces potential risks from fluctuations in raw material prices, which constitute a significant portion of production costs, and will implement measures to minimize the impact of these fluctuations[65] - The company is exposed to exchange rate risks due to overseas transactions primarily settled in USD, and it will enhance monitoring and utilize financial tools to manage these risks[67] Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, representing one-third of the total[73] - The supervisory board is composed of 3 members, with one employee representative, also one-third of the total[74] - The company has established an internal audit system to effectively control daily operations and major matters[74] - The company has a clear asset ownership structure, with independent production and operational facilities, and no reliance on the controlling shareholder[76] - The company has independent financial accounting, with a dedicated finance department and independent tax obligations[77] Environmental Responsibility - The company invested significantly in environmental protection facilities, with annual expenditures for the operation of waste gas and wastewater treatment facilities[123] - The company paid environmental protection taxes of 12,000 RMB this year, which is 50% lower than the national emission standards[123] - The company has a complete self-monitoring plan for environmental emissions, with quarterly water and air quality tests conducted[123] - The company has developed emergency response plans for environmental incidents, with the latest version filed with the ecological authorities[123] - The company has no significant environmental pollution issues and complies with all relevant environmental regulations[118] Shareholder and Management Structure - The company held its first extraordinary general meeting in 2022 with a 20.03% investor participation rate[78] - The second extraordinary general meeting in 2022 had a 20.24% investor participation rate[79] - The company reported a total of 1,200,000 shares held by directors and senior management, with no changes during the reporting period[81] - The company experienced a change in board members, with several directors leaving due to term completion on June 1, 2022[81] - The current chairman, Liang Xu, has been in position since June 5, 2019, and has extensive experience in the industry[82] Audit and Compliance - The audit report issued by Rongcheng Accounting Firm confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2022[191] - The audit opinion was a standard unqualified opinion, indicating no significant misstatements were found in the financial statements[191] - Key audit matters included revenue recognition due to inherent risks associated with management's manipulation to meet specific targets[193] - The company has implemented various audit procedures to ensure the accuracy and completeness of revenue recognition, with no anomalies detected[194] Employee Management - The total number of employees at the end of the reporting period was 791, with 97 in the parent company and 694 in major subsidiaries[101] - The professional composition includes 493 production personnel, 93 sales personnel, 121 technical personnel, 25 financial personnel, and 59 administrative personnel[102] - The company implemented a dynamic compensation mechanism based on job roles and performance assessments, adjusting employee salaries and benefits according to national laws and regional living standards[105]