WILLING CORP.(SZ:002667)2023-07-12 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥1.186 billion, representing a 417.95% increase compared to ¥229 million in 2021[18]. - The net profit attributable to shareholders for 2022 was approximately ¥82.39 million, a significant turnaround from a loss of ¥95.92 million in 2021, marking a 185.90% improvement[18]. - The net cash flow from operating activities was approximately ¥37.38 million, compared to a negative cash flow of ¥146.09 million in the previous year, reflecting a 125.59% increase[18]. - The basic earnings per share for 2022 was ¥0.36, a recovery from a loss of ¥0.42 per share in 2021, indicating a 185.71% increase[18]. - Total assets increased by 174.60% to CNY 2,608,047,731.43 at the end of 2022 compared to CNY 949,761,792.09 at the end of 2021[20]. - Net assets attributable to shareholders rose by 15.01% to CNY 783,743,105.25 at the end of 2022 from CNY 681,453,252.31 at the end of 2021[20]. - The company reported a net profit attributable to shareholders of CNY -1,934,237.26 in Q4 2022, following profits of CNY 29,047,046.49 in Q1, CNY 19,627,830.60 in Q2, and CNY 35,653,506.73 in Q3[23]. - Cash flow from operating activities showed a net outflow of CNY -47,474,795.16 in Q4 2022, after inflows of CNY -23,804,469.78 in Q1, CNY 34,912,488.64 in Q2, and CNY 73,746,231.44 in Q3[23]. - The company’s strategic focus is on a vertically integrated supply chain in the lithium battery materials industry, driven by increasing demand in the new energy market[31]. - The lithium materials industry is experiencing rapid growth, with lithium being referred to as a "strategic metal" due to its increasing applications in various sectors[32]. Business Strategy and Focus - The company has shifted its main business focus to lithium mining and processing, with lithium-related revenue exceeding 50% of total revenue as of December 31, 2022[18]. - The company has initiated the establishment of a lithium carbonate production line through its subsidiary, aiming to expand its presence in the lithium resource sector[18]. - The company has acquired Jin Hui Recycling to enhance its capabilities in lithium mica mining[18]. - The company aims to enhance its market share and core competitiveness in the new energy sector through strategic partnerships and resource utilization[42]. - The company is actively pursuing strategic transformation by investing in lithium resource projects, including the establishment of a lithium mica mining business and a lithium carbonate production line[39]. - The company has secured a long-term supply agreement for no less than 1.3 million tons of lithium ore annually, ensuring resource supply for current and future development[43]. - The company signed an investment cooperation agreement to jointly invest in lithium-containing polymetallic mining and lithium carbonate projects, targeting an annual production capacity of 80,000 tons of lithium carbonate[43]. - The company is focused on deep processing of lithium resources to meet the growing market demand driven by the new energy vehicle industry[58]. Research and Development - The company has developed proprietary efficient mining technology to produce lithium mica with a lithium content of over 2.5%, which is used in the production of lithium salts[39]. - The company has successfully completed several R&D projects aimed at improving lithium recovery rates and resource utilization[70]. - The company has implemented a comprehensive information management system to enhance operational efficiency and data analysis capabilities[50]. - R&D investment increased significantly by 218.46% to ¥48,172,541.01 in 2022 from ¥15,126,873.68 in 2021[73]. - The number of R&D personnel rose by 59.70% to 107 in 2022, accounting for 14.00% of the total workforce[73]. - The company aims to establish a technology innovation system and increase R&D investment to support long-term business development over the next three years[109]. - The product development plan includes accelerating R&D and technology innovation, focusing on improving product quality and expanding the product range[110]. Market Trends and Demand - In 2022, China's new energy vehicle sales surged to 6.883 million units, a nearly 21-fold increase from 2015, accounting for approximately 25.6% of total vehicle sales[33]. - The global lithium battery shipment volume reached 957.7 GWh in 2022, representing a year-on-year growth of 70.3%, with automotive power batteries growing by 84.4%[33]. - The lithium carbonate market has seen a rapid price increase due to high demand, with the company benefiting from this trend[39]. - The demand for lithium products is expected to continue growing due to the rapid development of new energy vehicles and energy storage markets, leading to a prolonged supply tightness in lithium resources[38]. Operational Efficiency and Management - The company has implemented a robust internal control system, with independent auditing and evaluation processes to ensure the effectiveness of its internal controls[188]. - The company has established a comprehensive management system covering procurement, production, sales, safety, and quality, ensuring all operations are conducted according to strict procedures and standards[185]. - The company has developed a series of financial management and accounting systems to ensure timely and accurate financial reporting[187]. - The company has a complete and effective information system for collecting and communicating internal and external information[186]. - The company has conducted a self-assessment of its internal controls, revealing no issues requiring rectification[193]. Corporate Governance and Compliance - The company has established a governance structure with a board of directors and specialized committees to enhance decision-making and internal controls[183]. - The company has committed to ethical business practices, avoiding illegal activities and ensuring compliance with social and commercial ethics[198]. - The company received a warning letter from the Liaoning Regulatory Bureau of the China Securities Regulatory Commission on September 30, 2022, regarding compliance issues[149]. - The company emphasizes the importance of investor relations management to address market concerns and stabilize investor confidence amid a challenging capital market[200]. Future Outlook and Expansion Plans - The company plans to invest in a lithium carbonate smelting production line with an annual capacity of 50,000 tons in Guixi City[46]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational footprint[87]. - The company plans to roll over the remaining undistributed profits from 2022 to the next year to support sustainable development and reduce financial costs[172]. - The company aims to solidify its strategic layout in the new energy sector and improve its market share and core competitiveness[105]. - The company plans to enhance market development efforts and strengthen brand influence by building a nationwide sales network and improving after-sales service capabilities[108].