DAYE(SZ:300879)2023-04-17 16:00Financial Performance - The company's operating revenue and net profit both declined during the reporting period, primarily due to adverse changes in the international political and economic environment, with severe inflation in Europe and the US, and extreme high temperatures leading to reduced market demand [5]. - The company's operating revenue for 2022 was ¥1,471,575,032.77, a decrease of 8.43% compared to ¥1,607,004,244.05 in 2021 [28]. - The net profit attributable to shareholders for 2022 was ¥11,251,051.29, representing a significant decline of 79.74% from ¥55,522,875.02 in the previous year [28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥27,416,492.55, down 12.96% from ¥31,499,659.34 in 2021 [28]. - The basic earnings per share for 2022 was ¥0.07, an 80.00% decrease from ¥0.35 in 2021 [28]. - The company reported a weighted average return on equity of 1.18% for 2022, down from 5.92% in 2021, indicating a decline in profitability [28]. - The company experienced a net loss of ¥54,510,657.34 in Q4 2022, highlighting challenges in the latter part of the year [30]. - The company reported a total of 22 product categories and nearly 635 specifications of garden machinery, indicating a comprehensive product system [43]. Research and Development - The company increased its R&D investment in new products such as riding lawn mowers and new energy garden machinery, resulting in a rise in R&D expenses compared to the previous year [5]. - The company achieved a research and development expenditure of CNY 63.27 million in 2022, representing a 28.10% increase compared to 2021 [57]. - Continuous R&D investments have allowed the company to master core technologies in garden machinery, enhancing its competitive position in the industry [51]. - The company is focused on new product development, leveraging advancements in lithium battery and smart control technologies [41]. - The company increased its R&D personnel from 195 in 2021 to 305 in 2022, representing a growth of 56.41% [84]. - The company is developing a 62V zero-turn riding mower, aiming to enhance its riding mower product line and cater to professional-grade equipment [82]. Market Strategy and Expansion - The company is focusing on market expansion and new product development as part of its strategic initiatives [5]. - In 2022, the company's export revenue accounted for 95.99% of total revenue, primarily targeting markets in the US, Germany, France, and other countries [50]. - The company is actively expanding its international marketing network through wholly-owned subsidiaries in Europe and North America [50]. - The company plans to enhance its global marketing network and deepen collaboration with brand clients to expand market share and transition from a "product manufacturing" model to a "service manufacturing" model [116]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025 [164]. Risk Management - The company has outlined the main risks it will face in the future and the measures to address them in the "Future Development Outlook" section of the report [8]. - The company emphasizes the importance of understanding the difference between plans, forecasts, and commitments regarding future performance [6]. - The company is monitoring raw material costs and exchange rate fluctuations as part of its risk management strategy [127]. - The company faces significant trade environment and financial risks due to its high export business ratio, with potential impacts from currency fluctuations, particularly the USD/RMB exchange rate [120]. Governance and Compliance - The report indicates that all directors attended the board meeting to review the annual report, ensuring accountability for its content [5]. - The company has established a governance structure to ensure shareholders' rights and information transparency, enhancing investor relations management [198]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements [138]. - The company strictly adheres to information disclosure regulations, ensuring timely, accurate, and complete information is available to all investors [139]. - The company has not experienced any significant governance issues or violations of shareholder meeting rules [141]. Customer and Market Insights - The global garden machinery market demand is projected to reach $30.9 billion by 2030, with a compound annual growth rate (CAGR) of 2.11% [41]. - Lithium-powered garden machinery is expected to have a CAGR of 6.65%, reflecting a growing market segment [41]. - The company has established stable partnerships with major clients such as Home Depot, Walmart, and Makita, ensuring continuous revenue growth [56]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users [129]. Financial Management - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital [9]. - The company has a remaining balance of RMB 11.39 million in unused fundraising, which will be allocated to ongoing projects [108]. - The company has established a stable and sustainable profit distribution policy, ensuring that cash dividends account for at least 30% of the average distributable profit over the last three years [180]. - The company has committed to enhancing its internal training resources and developing a robust instructor team to support employee development [179]. Future Outlook - The company provided a positive outlook for 2023, projecting a revenue growth of 25% based on new product launches and market expansion strategies [146]. - The company plans to enhance its production capacity and has initiated the construction of an overseas manufacturing base in Mexico [66]. - The company aims to strengthen its customer base and improve service delivery through strategic partnerships [127]. - The company plans to invest in talent development and recruitment to strengthen its technical and management teams, ensuring alignment with its rapid growth needs [119].