ECHOM(SZ:002420)2023-04-26 16:00Financial Performance - The company's operating revenue for 2022 was ¥2,710,971,460.67, a decrease of 27.60% compared to ¥3,744,353,273.28 in 2021[23]. - The net profit attributable to shareholders for 2022 was ¥42,493,779.28, down 42.86% from ¥74,369,645.78 in the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥11,462,750.63, a decline of 75.70% compared to ¥47,181,133.48 in 2021[23]. - Basic and diluted earnings per share decreased by 42.11% to CNY 0.11 from CNY 0.19 in 2021[24]. - The weighted average return on equity was 6.41%, down from 12.29% in the previous year, indicating a decline of 5.88%[24]. - Total assets increased by 5.49% to CNY 2,088,601,058.90 at the end of 2022, compared to CNY 1,979,894,264.31 at the end of 2021[24]. - Net assets attributable to shareholders rose by 6.62% to CNY 684,584,433.09 from CNY 642,090,653.81 in 2021[24]. - The company reported a quarterly revenue of CNY 644,149,020.44 in Q1, CNY 703,909,726.18 in Q2, CNY 682,988,175.91 in Q3, and CNY 679,924,538.14 in Q4 of 2022[28]. - The net profit attributable to shareholders for Q4 was only CNY 191,642.05, a significant drop from CNY 17,398,344.77 in Q3[28]. - Non-recurring gains and losses totaled CNY 31,031,028.65 in 2022, compared to CNY 27,188,512.30 in 2021[30]. Business Operations - The company has undergone changes in its business scope, including the addition of new manufacturing and technology services[22]. - The company has maintained its major business operations without changes in controlling shareholders as of the end of the reporting period[22]. - The company is committed to ongoing technological development and market expansion strategies[22]. - The company completed the construction of a GMP workshop for medical products, enhancing its production capacity and quality assurance[47]. - The company has established five major R&D and production bases across China, enhancing its operational capabilities[43]. - The company holds over a hundred patents across various sectors, including home appliances, automotive, and healthcare, showcasing its technological leadership[39]. - The company has implemented advanced production processes to effectively control costs and maintain high profitability[42]. - The company is focusing on expanding its market presence in the new energy and automotive sectors, which are expected to drive future growth[46]. - The company has developed a one-stop solution for clients in the home appliance sector, enhancing its competitive advantage[43]. Revenue Breakdown - The home appliance sector generated ¥1,155,815,950.96, accounting for 42.63% of total revenue, down 49.09% year-on-year[52]. - The automotive sector saw revenue increase by 10.43% to ¥572,861,596.97, representing 21.13% of total revenue[52]. - Revenue from the new energy sector surged by 197.44% to ¥425,474,835.33, making up 15.69% of total revenue[52]. - Domestic sales accounted for 97.25% of total revenue at ¥2,636,491,496.67, while international sales dropped by 74.53% to ¥74,479,964.00[52]. - The gross margin for the new energy sector was 24.66%, with a significant increase in both sales volume (193.77%) and production volume (215.99%) due to business transformation[56][59]. Strategic Initiatives - The company is focusing on new energy vehicle projects, including the development of lithium-ion battery thermal management components[69]. - The company is in the trial production phase for the all-plastic tailgate design, aiming to enhance competitiveness in the automotive sector[69]. - The company has implemented automatic defect identification technology in its production processes, improving product quality and efficiency[68]. - The company aims to achieve steady development in its appliance structural components business and focus on automotive structural components, as well as breakthrough growth in new energy and healthcare sectors in 2023[89]. - In the healthcare sector, the company plans to complete the development of new medical consumables and establish a quality control system for production processes in 2023[90]. - The company intends to actively expand its customer base in the new energy sector and enhance market share, with a focus on improving production efficiency and quality control[91]. - The company will promote the application of IML technology in the new energy vehicle sector and strengthen cooperation with existing major clients[91]. - The company plans to deepen cooperation with existing major clients in the home appliance sector and optimize processes to reduce costs[95]. Risk Management - The company emphasizes the importance of risk awareness among investors regarding future operational plans and targets[4]. - The company faces risks from macroeconomic fluctuations and changes in downstream industry cycles, which could impact product demand and operational performance[96]. - The company is also exposed to risks related to technological innovation and the volatility of raw material prices, which could adversely affect its operations[97][98]. Corporate Governance - The company adheres to relevant laws and regulations, ensuring a well-structured corporate governance system that enhances transparency and accountability[102]. - There are no significant discrepancies between the company's actual governance status and the regulations set by the China Securities Regulatory Commission[103]. - The company maintains complete independence from its controlling shareholders in terms of assets, personnel, finance, organization, and business operations[104]. - The company has clear ownership of its assets and does not allow any unauthorized use of assets or funds by controlling shareholders[105]. - The company has established an independent workforce with a complete personnel management system, ensuring that senior management does not hold positions in the controlling shareholder's enterprises[106]. - The company operates an independent financial department, adhering to accounting standards and maintaining its own financial decision-making processes[108]. - The company has a distinct organizational structure, separating its operations from those of its shareholders, with no interference from them in its institutional setup[109]. - The company has a fully independent business operation system, with no competition or dependency on its controlling shareholders for revenue[110]. Shareholder Engagement - The company held multiple shareholder meetings during the reporting period, with participation rates ranging from 30.38% to 31.39%[111][112]. - The company reported a 30.54% attendance at the seventh extraordinary general meeting held on October 25, 2022[113]. - The eighth extraordinary general meeting had a 30.51% attendance on December 12, 2022[113]. - The board of directors and supervisory board's term expired on October 11, 2022, and the election for the new board has been postponed[115]. - The total shares held by the management team at the end of the reporting period amounted to 11,832 shares, with an increase of 20,200 shares during the period[115]. - The company has not reported any resignations or dismissals of directors, supervisors, or senior management during the reporting period[115]. Employee Management - The total number of employees at the end of the reporting period was 2,021, with 402 in the parent company and 1,619 in major subsidiaries[142]. - The workforce includes 1,403 production personnel, 70 sales personnel, 248 technical personnel, 78 financial personnel, and 222 administrative personnel[142]. - The educational background of employees includes 1 PhD, 19 Master's degrees, 354 Bachelor's degrees, 89 Associate degrees, and 1,558 with vocational or lower education[142]. - The company has a competitive salary system, with performance-based bonuses determined by annual performance evaluations[143]. - The company has implemented a comprehensive training plan aimed at enhancing employee skills and quality awareness across all levels[144]. - The company’s strategic planning includes targeted training for middle and senior management to enhance leadership and decision-making skills[147]. Environmental and Social Responsibility - The company adheres to environmental protection laws and promotes green production practices[167]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[167]. - The company is committed to social responsibility, supporting community development and aiding vulnerable groups[168]. - The company has implemented a full labor contract system to ensure compliance with labor laws and protect employee rights[170]. - The company's quality management system includes multiple certifications such as ISO9001 and environmental management certifications, ensuring high product quality and market competitiveness[171]. - The company has made continuous investments in environmental protection facilities and adheres strictly to national environmental laws, minimizing waste during production[171]. Internal Control and Compliance - The internal control system was evaluated, and no significant defects in financial reporting were found during the reporting period[157]. - The company’s internal control design is sound and effective, focusing on high-risk areas such as related party transactions and major investments[157]. - The internal control self-evaluation report was disclosed on April 27, 2023, indicating that the total assets of the evaluated units accounted for 100% of the company's total assets[159]. - The company’s senior management is evaluated based on performance metrics set by the board, ensuring accountability and alignment with shareholder interests[155][156]. - The company did not encounter any major defects in non-financial internal controls during the reporting period[157]. - The company’s governance and operational compliance were maintained in accordance with relevant laws and regulations[156]. - The company reported zero significant defects in financial and non-financial internal controls for the year 2022[165]. - The company maintained effective internal control over financial reporting as of December 31, 2022, according to the auditor's opinion[164]. Future Outlook - The company provided a future outlook with a revenue guidance of 1.5 billion RMB for 2023, indicating a growth target of 25%[120]. - New product development includes the launch of three innovative products in the smart technology sector, expected to contribute an additional 200 million RMB in revenue[120]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[120]. - A strategic acquisition of a local competitor was completed, enhancing the company's production capacity by 30%[120]. - Research and development investment increased by 20% in 2022, totaling 150 million RMB, focusing on advanced manufacturing technologies[120]. - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget allocation of 50 million RMB for 2023[120]. - The gross profit margin improved to 35%, up from 30% in the previous year, reflecting better cost management[120]. - The company aims to reduce operational costs by 15% through efficiency improvements in the supply chain[120].