HES(SZ:002963)2023-04-21 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥407 million, a decrease of 48.34% compared to ¥788 million in 2021[23]. - The net profit attributable to shareholders was a loss of approximately ¥156 million, representing a decline of 1,274.14% from a profit of ¥13 million in the previous year[23]. - The net cash flow from operating activities was negative at approximately ¥165 million, a decrease of 348.28% compared to a positive cash flow of ¥66 million in 2021[23]. - The basic earnings per share were reported at -¥1.04, down 1,255.56% from ¥0.09 in 2021[23]. - Total assets at the end of 2022 were approximately ¥2.116 billion, an 8.42% decrease from ¥2.311 billion at the end of 2021[23]. - The net assets attributable to shareholders decreased by 9.37% to approximately ¥1.509 billion from ¥1.665 billion in 2021[23]. - The company reported a weighted average return on equity of -9.83%, a decline of 10.63% from 0.80% in the previous year[23]. - The net profit after deducting non-recurring gains and losses was a loss of approximately ¥169 million, compared to a loss of ¥9 million in 2021, marking an increase of 1,688.72% in losses[23]. - The company acknowledged uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[23]. Revenue and Market Segments - The company is focusing on three main business segments: "Smart Light Art," "Smart Cultural Tourism," and "Smart City Domain," leveraging digital technology to build the "HAO Digital Twin Integration Network Platform"[40]. - The company aims to achieve a 20% market share for new energy vehicles by 2025, in line with national policies promoting electric vehicle adoption[37]. - The company is positioned to benefit from the growing market for smart city construction, driven by government policies and technological advancements in IoT, AI, and big data[36]. - The revenue from lighting engineering construction business was ¥403,994,925.48, down 48.51% from ¥784,571,363.88 in the previous year[79]. - The revenue from lighting engineering design business increased by 85.63% to ¥1,766,372.09 in 2022 from ¥951,571.68 in 2021[85]. Research and Development - The company has a research and design team of 135 people, accounting for 27.33% of the total number of employees[45]. - The company added 4 authorized invention patents, 25 utility model patents, and 38 design patents during the reporting period, bringing the total to 10 invention patents and 89 utility model patents[77]. - The company is investing 200 million RMB in R&D for new technologies in smart lighting systems over the next two years[145]. - The company's R&D investment decreased by 13.55% to ¥42,913,257.94 in 2022, while the R&D investment as a percentage of operating revenue increased to 10.54% from 6.30%[90]. Strategic Initiatives - The company is committed to enhancing its operational capabilities across regions, establishing a nationwide market network to support its growth strategy[39]. - The company is actively expanding its market presence through new project contracts, including significant projects in major cities[49]. - The company aims to leverage new technologies and models to drive industry development and innovation[76]. - The company is exploring new business growth points by integrating smart technology with cultural tourism, aiming to enhance user experience through immersive technologies[120]. Corporate Governance - The company maintains a complete and independent financial management system, ensuring compliance with accounting standards and independent financial decision-making[133]. - The company emphasizes the importance of investor relations, ensuring timely and accurate information disclosure to all shareholders[131]. - The company has established a transparent performance evaluation and incentive mechanism for senior management, linking compensation to performance[130]. - The company has plans for future growth, including potential mergers and acquisitions to strengthen its market position[139]. Environmental and Social Responsibility - The company is committed to promoting low-carbon technologies and supporting carbon neutrality initiatives in urban construction[48]. - The company is committed to green and low-carbon transformation, developing a comprehensive management service system that includes battery banks and integrated energy solutions[121]. - The company has established an environmental management and protection system in compliance with national laws and regulations, achieving certification[177]. Challenges and Risks - The company has faced challenges due to a slowdown in domestic economic growth and increased raw material costs, impacting project execution and cash flow[46]. - The company faces risks related to economic fluctuations and market competition, which could impact its operational performance and market share[124]. - The company faces risks from rising raw material and labor costs, which could significantly impact operational performance if prices increase substantially[125]. - The overall quality of accounts receivable is good, but there is a risk of delayed payments from some clients, which could adversely affect cash flow and operational performance[125]. Future Outlook - The company provided a positive outlook for 2023, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[184]. - The company has set a revenue guidance of 1.8 billion RMB for the fiscal year 2023, projecting a growth of 20% compared to 2022[143]. - The company plans to enhance its supply chain efficiency, targeting a reduction in operational costs by 15% by the end of 2023[149]. - The company aims to achieve carbon neutrality in its operations by 2025, aligning with global sustainability trends[150].