HODGEN(SZ:300279)2023-04-21 16:00Financial Performance - The company's operating revenue for the year remained stable compared to the previous year, while net profit showed growth on a comparable basis, but ultimately reported a loss due to fluctuations in the fair value of stocks held by an investment fund and asset impairment provisions[3]. - The company's operating revenue for 2022 was ¥1,955,248,385.89, a decrease of 5.10% compared to ¥2,060,367,487.63 in 2021[25]. - The net profit attributable to shareholders for 2022 was -¥320,857,736.95, representing a decline of 623.64% from a profit of ¥61,274,974.05 in 2021[25]. - The cash flow from operating activities for 2022 was ¥22,499,019.06, a significant increase of 590.14% compared to -¥4,590,329.32 in 2021[25]. - The total assets at the end of 2022 were ¥2,448,594,122.83, down 15.34% from ¥2,892,271,756.78 at the end of 2021[25]. - The company reported a basic earnings per share of -¥0.7312 for 2022, a decrease of 623.78% from ¥0.1396 in 2021[25]. - The company reported a net profit attributable to shareholders of -¥39,156,945.06 for Q4 2022, compared to -¥48,291,832.60 in Q3 2022[28]. - The company achieved operating revenue of 1,955.25 million yuan in 2022, a year-on-year decrease of 5.10%[58]. - The net profit attributable to shareholders was -320.86 million yuan due to adverse non-operating factors[58]. Impairment and Provisions - The investment income from the military industry fund's investment in Beijing Fuzhiri Technology Co., Ltd. was -114.13 million RMB due to market price fluctuations[3]. - The company fully provided for impairment on its long-term equity investment in Huan Yu Wan Wei, resulting in a loss of -9.85 million RMB, with a remaining book value of 167.81 million RMB[5]. - An impairment provision of 44.33 million RMB was made for goodwill arising from the merger with Zhongke Xinrui after a valuation assessment indicated impairment signs[5]. - The company recognized an impairment loss of CNY 44.33 million on goodwill related to the acquisition of Zhongke Xinrui[64]. - The company has recognized a goodwill impairment of 44.3285 million yuan related to its subsidiary Zhongke Xinrui, due to increased competition and extended payment cycles[107]. Business Expansion and Market Position - The company has been actively expanding its smart controller business into the automotive electronics sector, maintaining a positive development trend[37]. - The company focuses on the Internet of Things (IoT) business, with main products including smart controllers and smart information solutions[38]. - The company has established a stable and efficient manufacturing capability with various international certifications, including ISO9001 and IATF16949[39]. - The company has a strong position in the smart controller market, serving major clients such as Tesla and GE Appliances[37]. - The automotive electronics business has rapidly surpassed a scale of 100 million RMB, driven by the expansion of battery management systems (BMS) for electric vehicles[41]. - The market size of China's automotive electronics industry is projected to reach $148.6 billion by 2026, reflecting a growth of 25.83% from $118.1 billion in 2022[48]. - The company is expanding its product offerings in the home appliance sector, moving from traditional products like refrigerators and washing machines to include dishwashers, ovens, and robotic vacuum cleaners[40]. - The company aims to enhance its smart information solutions and services, focusing on sectors such as education, healthcare, and government[44]. - The company anticipates continued growth in its automotive electronics and new energy vehicle sectors, driven by increasing demand for intelligent devices[48]. - The company is committed to expanding its presence in the smart safety sector, leveraging new technologies like 5G and AI to enhance its service offerings[44]. Research and Development - The company has over 20 years of experience in the smart controller industry, providing a strong foundation for its manufacturing capabilities[52]. - The R&D investment amount for 2022 was ¥80,351,281.03, representing 4.11% of the operating revenue[79]. - The number of R&D personnel increased to 255 in 2022, a growth of 5.37% compared to 242 in 2021[79]. - The company added over 30 types of IoT monitoring capabilities in the upgraded cloud IoT platform 2.0[78]. - The company is developing a remote upgrade technology for refrigerator controllers, aiming to enhance reliability and security in software updates[77]. - The company is also working on a smart washing machine controller using FPGA technology to improve control precision and response speed[77]. - Investment in R&D increased by 25% in 2022, totaling 300 million yuan, focusing on innovative technologies and product development[111]. - Research and development investment has increased by 10%, focusing on sustainable technologies and product innovation[176]. Governance and Management - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards and enhancing decision-making processes[117]. - The company maintains a strong commitment to transparency, adhering to strict information disclosure regulations, ensuring timely and accurate communication with investors[119]. - The management team has a strong educational background, with degrees from prestigious institutions such as Tsinghua University and Fudan University[131][132]. - The company is committed to maintaining a robust corporate governance framework with regular updates on board member changes and qualifications[134]. - The total remuneration paid to 16 directors, supervisors, and senior management during the reporting period amounted to 6.5087 million yuan[143]. - The remuneration for directors, supervisors, and senior management is determined based on performance, work capability, and position level[143]. - The company is focused on expanding its market presence and enhancing its technological capabilities through strategic investments and partnerships[129]. - The management team is committed to maintaining transparency and effective communication with shareholders and stakeholders[138]. Strategic Outlook - The company provided a positive outlook for 2023, projecting a revenue growth of 15% to 1.725 billion yuan, driven by new product launches and market expansion efforts[111]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[111]. - The company plans to enrich its product offerings and expand its customer base, particularly in smart manufacturing and smart information technology, with a focus on developing its self-researched smart security comprehensive control platform across various industries[100]. - The company is focusing on two main business segments: smart manufacturing and smart information technology, aiming to expand its automotive electronics business, particularly in the new energy vehicle sector, to become the second major pillar of its smart manufacturing segment[98]. - The company is set to implement new accounting standards starting January 1, 2022, which are not expected to significantly impact financial results[184]. Social Responsibility and Compliance - The company actively participated in social responsibility initiatives, including support for local education and poverty alleviation efforts[171]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[170]. - The company has not disclosed any significant environmental information as it is not classified as a key pollutant discharge unit[170]. - The company has implemented measures to minimize and regulate potential related party transactions, ensuring compliance with legal and regulatory requirements[175]. - The company has committed to maintaining independence from related party transactions, ensuring fair practices in any necessary dealings[179].