海天国际(01882) - 2022 - 年度业绩

Summary & Performance Overview Annual Performance Summary Haitian International Holdings Limited announced a significant decline in revenue, gross profit, operating profit, and profit attributable to shareholders for the year ended December 31, 2022 Annual Results Summary | Metric | 2022 (RMB Million) | 2021 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,308.2 | 16,018.3 | -23.2 | | Gross Profit | 3,917.5 | 5,151.1 | -23.9 | | Operating Profit | 2,632.4 | 3,596.7 | -26.8 | | Profit Attributable to Company Shareholders | 2,264.7 | 3,052.0 | -25.8 | | Basic Earnings Per Share (RMB) | 1.42 | 1.91 | -25.8 | | Full Year Dividend (HKD) | 0.55 | 0.95 | -42.1 | Key Financial Highlights In 2022, weakened demand in downstream industries led to a 23.2% revenue decrease, while the gross profit margin slightly fell to 31.8% and net profit declined by 25.8% - Revenue in 2022 reached RMB 12,308.2 million, a decrease of 23.2% from 2021, mainly due to multiple unexpected domestic and international factors weakening downstream demand and tightening capital expenditures[3] - The annual gross profit margin was 31.8% (2021: 32.2%), as lower raw material prices in the second half of the year partially offset the impact of insufficient capacity utilization[3] - Profit attributable to the company's shareholders was RMB 2,264.7 million, a 25.8% decrease from 2021, with earnings per share at RMB 1.42, also down 25.8% year-on-year[3] - The Board of Directors declared a second interim dividend of HKD 0.55 per share, bringing the total dividend for 2022 to HKD 0.55 per share (2021: HKD 0.95)[3] Consolidated Financial Statements Consolidated Statement of Profit or Loss In 2022, revenue decreased by 23.2% to RMB 12,308,186 thousand, leading to a 23.9% drop in gross profit and significant declines in both operating and annual profit Consolidated Statement of Profit or Loss | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 12,308,186 | 16,018,272 | | Cost of Sales | (8,390,657) | (10,867,200) | | Gross Profit | 3,917,529 | 5,151,072 | | Operating Profit | 2,632,358 | 3,596,659 | | Profit for the Year | 2,265,017 | 3,050,099 | | Profit Attributable to Company Shareholders | 2,264,668 | 3,051,968 | Consolidated Statement of Comprehensive Income For 2022, profit for the year was RMB 2,265,017 thousand, and a positive currency translation difference resulted in a total comprehensive income of RMB 2,310,431 thousand Consolidated Statement of Comprehensive Income | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the Year | 2,265,017 | 3,050,099 | | Currency Translation Differences | 45,414 | (19,468) | | Total Comprehensive Income for the Year | 2,310,431 | 3,030,631 | | Total Comprehensive Income Attributable to Company Shareholders | 2,310,032 | 3,032,587 | Consolidated Balance Sheet As of December 31, 2022, total assets slightly decreased to RMB 25,791,201 thousand, with an increase in non-current assets offset by a reduction in current assets and total liabilities Consolidated Balance Sheet Summary | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 9,098,603 | 8,402,276 | | Total Current Assets | 16,692,598 | 17,751,039 | | Total Assets | 25,791,201 | 26,153,315 | | Equity and Liabilities | | | | Total Equity | 17,040,000 | 15,935,010 | | Total Non-current Liabilities | 516,408 | 875,859 | | Total Current Liabilities | 8,234,793 | 9,342,446 | | Total Liabilities | 8,751,201 | 10,218,305 | | Total Equity and Liabilities | 25,791,201 | 26,153,315 | - Property, plant and equipment increased from RMB 4,366,451 thousand in 2021 to RMB 5,461,755 thousand in 2022[7] - Financial assets at fair value through profit or loss decreased from RMB 5,893,364 thousand in 2021 to RMB 3,664,622 thousand in 2022[7] - Bank borrowings decreased from RMB 2,160,970 thousand in 2021 to RMB 1,435,255 thousand in 2022 (non-current 112,389 + current 1,322,866)[8] Consolidated Statement of Changes in Equity Total equity attributable to shareholders increased from RMB 15,934,377 thousand in 2021 to RMB 17,011,117 thousand in 2022, driven by annual profit and positive currency translation differences Changes in Equity Attributable to Company Shareholders | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Balance at Beginning of Year | 15,934,377 | 14,777,234 | | Profit for the Year | 2,264,668 | 3,051,968 | | Other Comprehensive Income | 45,364 | (19,381) | | Dividends Paid | (1,233,292) | (1,875,444) | | Balance at End of Year | 17,011,117 | 15,934,377 | Condensed Consolidated Statement of Cash Flows In 2022, net cash from operating activities decreased significantly, while net cash from investing activities turned positive, resulting in a much smaller net decrease in cash and cash equivalents Cash Flow Summary | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,780,608 | 3,124,082 | | Net Cash from/(used in) Investing Activities | 171,307 | (2,265,777) | | Net Cash used in Financing Activities | (1,953,691) | (1,012,113) | | Net Decrease in Cash and Cash Equivalents | (1,776) | (153,808) | | Cash and Cash Equivalents at End of Year | 3,590,846 | 3,592,622 | Notes to the Financial Statements General Information and Basis of Preparation The company, primarily engaged in manufacturing and distributing injection molding machines, prepares its financial statements in RMB under HKFRS and the Hong Kong Companies Ordinance - The Group is principally engaged in the manufacturing and distribution of injection molding machines[11] - The financial statements are prepared in accordance with all applicable HKFRS and the disclosure requirements of the Hong Kong Companies Ordinance Cap 622, mainly on a historical cost basis with certain financial assets measured at fair value[12] Changes in Accounting Policies The adoption of new and amended standards during the period did not materially impact the Group's accounting policies or financial statements, and upcoming standards are not expected to have a significant effect - The adoption of new and amended standards (such as amendments to HKAS 16, 37, and HKFRS 3) had no impact on amounts recognized in prior periods and is not expected to have a significant impact on the current or future periods[13][14] - Certain new accounting standards and interpretations that have been issued but are not yet effective have not been early adopted and are not expected to have a material impact on the Group's transactions in the current or future reporting periods[15][16] Revenue and Segment Information All revenue is derived from the sale of injection molding machines, with 64.3% from Mainland China, and no separate segment information is presented as management reviews the business as a single segment Revenue from Sale of Injection Molding Machines and Related Products | Revenue Source | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Sale of injection molding machines and related products | 12,308,186 | 16,018,272 | - The Group has not presented segment information as the vast majority of its sales and operating profits are derived from the sale of injection molding machines, and management reviews business performance by business type rather than geographical location[17] Geographical Sales Information | Sales Region | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 7,916,193 | 11,088,162 | | Hong Kong and overseas countries | 4,391,993 | 4,930,110 | | Total | 12,308,186 | 16,018,272 | Other Income and Operating Profit In 2022, other net income increased to RMB 185,030 thousand, mainly influenced by fair value changes in financial assets and foreign exchange gains Other Net Income | Other Income Item | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Net fair value and disposal gains on financial assets | 188,730 | 228,119 | | Net fair value changes on derivative financial instruments | (34,050) | – | | Net foreign exchange gains/losses | 38,685 | (118,409) | | Total Other Income - Net | 185,030 | 134,470 | - Employee costs related to R&D activities increased from RMB 209,727 thousand in 2021 to RMB 231,531 thousand in 2022[19] Factors Affecting Operating Profit | Operating Profit Impact Factors | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Depreciation and amortization | 360,878 | 325,754 | | Raw materials and consumables used | 7,541,067 | 9,837,444 | | Employee costs | 1,360,013 | 1,384,366 | Net Finance Income and Income Tax Net finance income decreased to RMB 130,655 thousand in 2022 due to higher interest expenses, while income tax expense fell by 28.4% with an effective tax rate of 18.5% Net Finance Income Composition | Net Finance Income Component | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Finance costs | (60,315) | (55,390) | | Finance income | 190,970 | 194,392 | | Net finance income | 130,655 | 139,002 | Income Tax Expense | Income Tax Expense | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Current income tax | 680,779 | 622,249 | | Deferred tax | (166,328) | 96,622 | | Total income tax expense | 514,451 | 718,871 | - Several subsidiaries (Haitian Plastics Machinery, Wuxi Haitian, Ningbo Zhafir, Zhejiang Keqiang, Haitian Software) qualified as High and New Technology Enterprises, enjoying a preferential income tax rate of 15%[25] Earnings Per Share and Dividends Basic earnings per share for 2022 decreased to RMB 1.42, and the Board declared a second interim dividend of HKD 0.55 per share, totaling HKD 0.55 for the year Earnings Per Share | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Profit attributable to Company shareholders | 2,264,668 | 3,051,968 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,596,000 | 1,596,000 | | Basic earnings per share (RMB per share) | 1.42 | 1.91 | Dividends | Dividend | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Second interim dividend (HKD per share) | 0.55 | 0.95 | | Total dividends | 768,277 | 1,233,292 | Capital Expenditure Total capital expenditure in 2022 significantly increased to RMB 1,455,773 thousand, primarily for the acquisition of property, plant, equipment, and land use rights Capital Expenditure Breakdown | Capital Expenditure Item | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Property, plant and equipment (excluding freehold land) | 1,151,994 | 847,998 | | Freehold land | 275,049 | – | | Land use rights | 28,730 | – | | Total | 1,455,773 | 847,998 | Trade and Bills Receivables As of year-end 2022, total trade and bills receivables decreased to RMB 3,397,755 thousand, with receivables within one year constituting the largest portion Aging Analysis of Trade and Bills Receivables | Aging | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 3,052,421 | 3,522,779 | | 1 to 2 years | 284,580 | 143,641 | | 2 to 3 years | 24,586 | 43,013 | | Over 3 years | 36,168 | 33,155 | | Total | 3,397,755 | 3,742,588 | | Less: Impairment provision | (110,488) | (102,011) | | Net amount | 3,287,267 | 3,640,577 | Financial Assets at Fair Value Through Profit or Loss The company's holdings of financial assets at fair value through profit or loss decreased to RMB 4,655,428 thousand by the end of 2022, with expected annual returns between 1.14% and 7.50% - As of December 31, 2022, the Group held financial assets at fair value through profit or loss of approximately RMB 4,655,428 thousand (2021: RMB 6,153,364 thousand)[32] - These financial assets, including bank structured deposits and wealth management products, have expected annual returns ranging from 1.14% to 7.50% (2021: 1.14% to 5.95%) with maturities from 0 to 974 days[32] Share Capital As of December 31, 2022, the company's authorized share capital was 5,000,000 thousand shares, with 1,596,000 thousand shares issued and fully paid, consistent with the previous year Share Capital Structure | Share Capital Type | Number of Shares (Thousand) | Amount (HKD Thousand) | Amount (RMB Thousand) | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 5,000,000 | 500,000 | 502,350 | | Issued and Fully Paid Share Capital | 1,596,000 | 159,600 | 160,510 | Trade and Bills Payables and Capital Commitments At the end of 2022, total trade and bills payables decreased to RMB 3,573,553 thousand, while capital commitments for property, plant, and equipment also saw a significant reduction Aging Analysis of Trade and Bills Payables | Aging | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 3,562,532 | 4,210,477 | | 1 to 2 years | 5,444 | 2,674 | | Over 2 years | 5,577 | 9,138 | | Total | 3,573,553 | 4,222,289 | Capital Commitments | Capital Commitment | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment - contracted but not provided for | 453,510 | 819,344 | Post-Reporting Period Events After the reporting period, Haitian Plastics Machinery Group and other investors increased the capital of Ningbo Free Trade Zone Haitian Zhisheng Metal Forming Equipment Co, Ltd - Haitian Plastics Machinery contributed RMB 99,800,000 to Haitian Zhisheng, with RMB 23,971,273 recorded as new registered capital and RMB 75,828,727 as capital reserve[36] - Other investors contributed a total of RMB 243,200,000 to Haitian Zhisheng, with RMB 58,414,967 recorded as new registered capital and RMB 184,785,033 as capital reserve[36] - After the capital increase, Haitian Zhisheng's registered capital increased to RMB 480,386,240, with Haitian Plastics Machinery, other investors, and existing shareholders holding approximately 4.99%, 12.16%, and 82.85% equity, respectively[36] Management Discussion and Analysis Business Review In 2022, global geopolitical conflicts, high inflation, and domestic pandemic resurgence led to a 23.2% decline in sales revenue, with net profit also falling significantly - In 2022, a global economic slowdown and deviations in China's economy weakened downstream demand and tightened capital expenditures, impacting orders for injection molding machines[38] - Sales revenue was RMB 12,308.2 million, a year-on-year decrease of 23.2%[38] - The annual gross profit margin was 31.8% (2021: 32.2%), benefiting from lower raw material prices in the second half of the year[38] - Net profit attributable to the company's shareholders reached RMB 2,264.7 million, a year-on-year decrease of 25.8%, with a net profit margin of 18.4% (2021: 19.1%)[38] Domestic and Overseas Sales Domestic sales fell 28.6% to RMB 7,916.2 million due to pandemic impacts and shrinking demand, while overseas sales decreased 10.9% to RMB 4,392.0 million amid geopolitical and inflationary pressures Sales by Region | Sales Region | 2022 (RMB Million) | Share (%) | 2021 (RMB Million) | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 7,916.2 | 64.3 | 11,088.2 | 69.2 | -28.6 | | Overseas Sales | 4,392.0 | 35.7 | 4,930.1 | 30.8 | -10.9 | | Total | 12,308.2 | 100 | 16,018.3 | 100 | -23.2 | - The decline in domestic sales was primarily due to repeated pandemic outbreaks and shrinking downstream demand in China[40] - The decrease in overseas sales was mainly attributed to geopolitical conflicts and high global inflation, despite growth in the North American region[40] Product Line Sales Analysis In 2022, Mars series sales dropped 33.4% due to weak domestic demand, while the Jupiter series grew 20.9%, driven by the automotive sector, particularly new energy vehicles Sales by Product Line | Product Line | 2022 (RMB Million) | Share (%) | 2021 (RMB Million) | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mars Series (Energy-saving) | 7,288.3 | 59.2 | 10,944.0 | 68.3 | -33.4 | | Jupiter Series (Two-platen) | 2,438.8 | 19.8 | 2,017.3 | 12.6 | 20.9 | | Zhafir Electric Series | 1,961.4 | 15.9 | 2,077.5 | 13.0 | -5.6 | | Other Series | 81.7 | 0.7 | 478.0 | 3.0 | -82.9 | | Parts and Services | 538.0 | 4.4 | 501.5 | 3.1 | 7.3 | | Total | 12,308.2 | 100 | 16,018.3 | 100 | -23.2 | - The decline in Mars series sales was mainly due to weak demand from downstream industries such as home appliances, daily necessities, and building materials, affected by the domestic pandemic, a downturn in the real estate market, and slowing export growth[41] - The sales growth of the Jupiter two-platen series benefited from the high prosperity of the global automotive industry, especially the new energy vehicle market[41] Outlook The company anticipates a challenging global economic recovery in 2023 but sees long-term resilience and new opportunities from supply chain localization, while focusing on management rejuvenation, strategic optimization, and technological innovation - The global economic recovery is expected to face phased pressure in 2023, but long-term resilience and supply chain localization will bring new machinery equipment demand and development opportunities[42] - The domestic market shows signs of recovery in domestic demand, and manufacturing investment is expected to grow[43] - The company will accelerate the rejuvenation of its management team, implement reforms in marketing, supply chain, and technology, and optimize regional development and product strategies[43] - The company will consolidate its domestic market, accelerate overseas expansion with a "Five-Five" strategy, and build manufacturing bases in Serbia and Malaysia[43] - Through the IPD management model, the company will accelerate product technology innovation, launching the new fifth-generation models this year with comprehensive performance upgrades, including at least 20% energy savings and intelligent features using AI algorithms[44] - The company continues to advance in sustainability and corporate social responsibility, launching energy-efficient models, promoting rooftop solar power, and achieving an upgraded MSCI ESG rating of BB and an EcoVadis Bronze medal[45] Financial Review The company's 2022 financial performance was impacted by the macroeconomic environment, resulting in decreased revenue, gross profit, and net profit, though it maintained a solid liquidity position - In 2022, sales revenue was RMB 12,308.2 million, a year-on-year decrease of 23.2%, with domestic sales down 28.6% and overseas sales down 10.9%[46] - Gross profit was approximately RMB 3,917.5 million, a year-on-year decrease of 23.9%, with an annual gross profit margin of 31.8% (2021: 32.2%)[47] - Selling and administrative expenses decreased by 2.7% to RMB 1,798.8 million, mainly due to lower sales commissions, labor costs, and other administrative costs[48] - Other income increased by 106.8% to RMB 328.6 million, primarily from government subsidies[49] - Net finance income was RMB 130.7 million, a decrease from 2021, mainly due to increased interest expenses and foreign exchange losses[50] - Income tax expense decreased by 28.4% to RMB 514.5 million, with the effective tax rate maintained at 18.5% (2021: 19.1%)[51] - Net profit attributable to the company's shareholders was RMB 2,264.7 million, a year-on-year decrease of 25.8%[51] - As of December 31, 2022, the Group's net cash position was RMB 5,291.2 million (2021: RMB 4,532.0 million), indicating a sound financial position[52] - Capital expenditure reached RMB 1,455.8 million (2021: RMB 848.0 million), mainly for the acquisition of property, plant, equipment, and land use rights[53] Pledge of Group's Assets As of December 31, 2022, the Group had not pledged any of its assets, which is consistent with the situation in 2021 - As at 31 December 2022, the Group did not pledge any of its assets[54] Foreign Exchange Risk Management As of year-end 2022, approximately 35.7% of the Group's products were exported, with sales denominated in foreign currencies, while foreign currency purchases were less than 10% of the total - As at 31 December 2022, approximately 35.7% of the Group's products were exported to international markets, with sales denominated in US dollars or other foreign currencies[55] - The Group's purchases denominated in US dollars or other foreign currencies accounted for less than 10% of total purchases[55] Financial Guarantees At the end of 2022, the Group's guarantees for credit facilities granted to customers significantly decreased to RMB 73.7 million, with no material provisions identified during the period - As at 31 December 2022, the Group provided guarantees to banks for credit facilities granted to customers amounting to RMB 73.7 million (2021: RMB 579.5 million)[56] - The Group reassessed provisions based on customers' credit records and current market conditions, and no material provisions were identified[56] Employees As of the end of 2022, the Group employed a total of 7,159 employees, mostly in China, and maintained a competitive remuneration scheme and a commitment to a learning culture - As at 31 December 2022, the Group employed a total of 7,159 employees, most of whom were located in China[57] - The Group offers competitive remuneration packages to its employees, with discretionary bonuses based on individual and Group performance, and is committed to fostering a learning culture[57] Payment of Dividends The Board declared a second interim dividend of HKD 0.55 per share for the year ended December 31, 2022, with no pre-determined dividend payout ratio for the future - The Board has declared a second interim dividend of HKD 0.55 per share for the year ended 31 December 2022 (2021: HKD 0.95 per share), bringing the total dividend for 2022 to HKD 0.55 per share[58] - The Board has decided to consider declaring a dividend once for each financial year in the future where appropriate and currently has no pre-determined dividend payout ratio[58] Corporate Governance and Other Information Shareholders' Annual General Meeting and Share Transfer Registration The company will hold its Annual General Meeting on May 18, 2023, with share transfer registration suspended on specific dates to determine eligibility for dividends and meeting attendance - The company will hold its Annual General Meeting on May 18, 2023[59] - To qualify for the second interim dividend, the register of members will be closed on April 4, 2023[60] - To be eligible to attend and vote at the Annual General Meeting, the register of members will be closed from May 15, 2023, to May 18, 2023[61] Compliance with Corporate Governance Code The company's Board of Directors is committed to high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code throughout 2022 - The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the year ended 31 December 2022[62] Audit Committee The company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's financial reporting process, internal controls, and the annual financial information - The Audit Committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the Group's financial reporting process and internal controls[63] - The Audit Committee has reviewed the Group's condensed consolidated financial information and the accounting principles adopted for the year ended 31 December 2022, together with management and the external auditor[63] Model Code for Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix 10 of the Listing Rules, and all directors have confirmed compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules, and all directors have confirmed their compliance with the code throughout the reporting period[64] Scope of Work of Auditor The figures in this preliminary announcement have been agreed by the company's auditor, PricewaterhouseCoopers, to the amounts set out in the Group's audited consolidated financial statements - The figures in respect of the Group’s results for the year ended 31 December 2022 as set out in this preliminary announcement have been agreed by the Company’s auditor, PricewaterhouseCoopers, to the amounts set out in the Group’s audited consolidated financial statements for the year[65] - The work performed by PricewaterhouseCoopers in this respect did not constitute an assurance engagement and, consequently, no assurance is expressed on the preliminary announcement[65] Purchase, Sale or Redemption of Shares Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the review period - Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities during the review period[66] Publication of Annual Results and Report This results announcement is available on the websites of the HKEX and the company, and the annual report will be dispatched to shareholders and published online in due course - This results announcement is published on the website of Hong Kong Exchanges and Clearing Limited at www.hkex.com.hk and on the Company’s website at www.haitian.com[67](index=67&type=chunk) - The annual report of the Company will be dispatched to shareholders and published on the websites of the HKEX and the Company in due course[67]