Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 10,812.0 million, an increase of 1.6% from RMB 10,645.3 million in 2021[2] - Gross profit margin improved to 21.0%, up by 1.6 percentage points from 19.4% in the previous year[2] - EBITDA increased by 27.6% to RMB 1,521.6 million, compared to RMB 1,192.8 million in 2021[2] - Net profit attributable to shareholders rose by 59.2% to RMB 348.4 million, up from RMB 218.9 million in the prior year[2] - Basic earnings per share increased by 55.9% to RMB 20.99, compared to RMB 13.46 in 2021[5] - Total comprehensive income for the year was RMB 577.4 million, significantly higher than RMB 222.2 million in 2021[4] - Revenue for 2022 increased by 1.6% to RMB 10,812 million, primarily due to higher average selling prices and increased sales volume in overseas markets[39] - Gross profit rose by RMB 208.6 million or 10.1% to RMB 2,273.5 million, with a gross margin increase of 1.6 percentage points to 21.0%[40] - The group's net profit for the year ended December 31, 2022, increased by RMB 251,200,000 or 81.8% to RMB 558,200,000 compared to RMB 307,000,000 in 2021[50] Assets and Liabilities - Non-current assets increased to RMB 9,365.0 million from RMB 7,480.7 million year-on-year[6] - Current liabilities decreased to RMB 11,624.2 million from RMB 11,154.7 million in the previous year[6] - As of December 31, 2022, total equity amounted to RMB 7,923,783, an increase from RMB 7,610,638 in the previous year, representing a growth of approximately 4.1%[7] - The total amount of capital and reserves as of December 31, 2022, was RMB 5,864,514, compared to RMB 5,699,850 in the previous year, showing an increase of approximately 2.9%[7] - The group's current assets decreased by RMB 677,500,000 or 5.5% to RMB 11,644,000,000 as of December 31, 2022, while current liabilities increased by RMB 469,500,000 or 4.2% to RMB 11,624,200,000[52] - The group's asset-liability ratio was 32.8% as of December 31, 2022, compared to 28.0% in 2021[52] Sales and Market Performance - Revenue from sales of radial tire steel cord reached RMB 10,812,028 for the year ended December 31, 2022, compared to RMB 10,645,310 in 2021, indicating a year-over-year increase of about 1.6%[15] - Sales of truck radial tire steel cord decreased to RMB 5,209,375 in 2022 from RMB 5,494,653 in 2021, reflecting a decline of approximately 5.2%[15] - Sales of passenger car radial tire steel cord increased significantly to RMB 4,056,017 in 2022, up from RMB 3,524,852 in 2021, marking a growth of around 15.1%[15] - The sales volume of radial tire steel cord in the domestic market decreased by 5.2% to 575,300 tons, while overseas sales volume increased by approximately 6.2% to 259,500 tons[38] - Total sales volume for the year 2022 was 1,054,700 tons, a decrease of 2.1% year-on-year[35] - The sales volume of truck radial tire steel cord decreased by 6.8% to 470,300 tons, while the sales volume of passenger car radial tire steel cord increased by 5.1% to 364,500 tons[36] Research and Development - Research and development expenses rose to RMB 169.2 million, up from RMB 138.8 million in 2021, indicating a focus on innovation[4] - R&D expenses increased by RMB 30.4 million or 21.9% to RMB 169.2 million, reflecting more new product development projects[47] - The group plans to focus on product quality improvement and R&D innovation to enhance product competitiveness and seize market expansion opportunities[63] Dividends and Shareholder Information - The company maintained a final dividend of HKD 15.0 per share, unchanged from the previous year[2] - The total dividend declared for the year ended December 31, 2022, was RMB 222,752,000, compared to RMB 203,882,000 in 2021, marking an increase of about 9.2%[27] - The board proposed a final dividend of HKD 0.15 per share (approximately RMB 0.134) for the year ended December 31, 2022, subject to shareholder approval[64] - The group will hold its annual general meeting on June 8, 2023, to seek approval for the proposed final dividend[65] Operational Insights - The company operates as a single reportable segment, focusing on the production and sale of radial tire steel cord and other steel wires, with no separate financial data available for individual product performance[18] - The average credit period allowed to trade customers is 120 days, indicating a stable credit policy[30] - Accounts receivable as of February 31, 2022, amounted to RMB 8,147,717, a slight decrease from RMB 8,173,246 in the previous year[31] - The company’s accounts payable as of February 31, 2022, totaled RMB 5,285,936, down from RMB 5,777,411 in the previous year, reflecting improved cash flow management[32] Economic Context - In 2022, China's tire production decreased by approximately 6.7% to about 667 million units, with a notable decline in truck tires by 11.4%[34] - The domestic GDP growth for China in 2022 was recorded at 3.0%, amounting to approximately RMB 121 trillion, which is better than market expectations[34] - The number of vehicles in China increased by 5.6% year-on-year to 320 million, supporting long-term demand in the domestic tire replacement market[34] Corporate Governance - The audit committee reviewed the group's accounting principles and practices, and the consolidated financial statements for the year ended December 31, 2022, were approved by the board on March 31, 2023[70] - The consolidated financial statements for the year ended December 31, 2022, were audited by Deloitte, which issued an unqualified opinion[71] - The company has established an audit committee, remuneration and management development committee, and nomination committee to comply with corporate governance code provisions[68] - The board proposed the appointment of Mr. Luo Tiejun as an independent non-executive director, subject to shareholder approval at the upcoming annual general meeting[72] Employee and Labor Relations - As of December 31, 2022, the group employed approximately 7,400 full-time employees, a decrease from about 7,800 employees as of December 31, 2021[60] - Employee costs, including directors' remuneration, amounted to RMB 905.8 million for the year ended December 31, 2022, compared to RMB 909 million in the previous year[60] - The group contributed RMB 20.3 million to the labor union for employee benefits, an increase from RMB 14.9 million in the previous year[60] Strategic Outlook - The company anticipates that total sales of new energy vehicles in China will reach 9 million units in 2023, representing a year-on-year growth of 35%[63] - The group remains cautiously optimistic about the development of the radial tire steel cord industry amid a recovering economy and increasing domestic demand[63] - The group will continue to leverage its position as an industry leader to meet consumer and market demands effectively in 2023[63]
兴达国际(01899) - 2022 - 年度业绩