Linglong Tyre(601966)2023-04-28 16:00Financial Performance - In 2022, the company achieved operating revenue of CNY 1,700,588.57 million and a total profit of CNY 15,663.32 million, with a net profit attributable to shareholders of CNY 29,161.68 million[4]. - The company's operating revenue for 2022 was CNY 17,005,885,671, a decrease of 8.47% compared to CNY 18,579,219,822 in 2021[19]. - Net profit attributable to shareholders for 2022 was CNY 291,616,822, down 63.03% from CNY 788,711,788 in 2021[19]. - The net cash flow from operating activities in 2022 was CNY 146,246,651, a decline of 70.15% compared to CNY 489,984,059 in 2021[19]. - Basic earnings per share for 2022 were CNY 0.20, a decrease of 65.52% from CNY 0.58 in 2021[20]. - The company's total assets increased by 9.50% to CNY 37,382,207,095 at the end of 2022, compared to CNY 34,138,869,267 at the end of 2021[19]. - The weighted average return on net assets for 2022 was 1.58%, down 3.21 percentage points from 4.79% in 2021[21]. - The gross margin for tire products was 13.18%, a decrease of 3.73 percentage points compared to the previous year[62]. - The company's tire production volume decreased by 6.48% to 65.71 million units, while sales volume fell by 4.42% to 61.85 million units[63]. Dividend and Share Repurchase - The company repurchased 6,779,688 shares from the secondary market, with a total repurchase amount of CNY 12,999.08 million, which is considered as cash dividends[4]. - The cash dividend distribution plan includes a cash dividend of CNY 0.6 per 10 shares, totaling CNY 8,807.59 million, which accounts for 30.2% of the net profit attributable to shareholders[4]. - The total cash dividends distributed in 2022 amounted to CNY 21,806.67 million, representing 74.78% of the net profit attributable to shareholders[4]. - The company plans to continue its stock repurchase strategy as part of its long-term development considerations[4]. - The cash dividend distribution plan states that the company will distribute no less than 20% of the available profit to shareholders annually, provided there are no major investment plans[152]. Risk Management - The company has not identified any significant risks that would adversely affect its future development strategy or ongoing operations[7]. - The company has implemented measures to actively respond to operational risks encountered during its development[7]. - The company faces risks from macroeconomic fluctuations, which could impact product market demand and operational performance due to uncertainties in domestic and global economies[113]. - Major raw materials such as natural rubber and synthetic rubber account for 34% of product costs, making the company vulnerable to supply and price fluctuations[114]. - The company has established overseas production bases to mitigate the impact of international trade barriers, but ongoing trade tensions may still pose risks to its export business[115]. Innovation and Technology - The company achieved a technological breakthrough in 2022, launching self-repairing, silent foam, and integrated products, enhancing vehicle safety and comfort, and won the 2022 Lingxuan Award for "Outstanding Award in Chassis Category"[31]. - The company’s new energy passenger car tire series, SPORT MASTER e, improved mileage by 8% through low rolling resistance design technology, also winning the 2022 Lingxuan Award for "Mass Production in Chassis Category"[31]. - The company has established a global R&D innovation system with research institutes in 7 locations across 3 countries, achieving world-class performance in low rolling resistance and high durability tire products[49]. - The company has built the world's first 100-ton dandelion rubber production line and developed the first automated production line for self-repairing tires in China, showcasing its strong innovation capabilities[49]. - The company is focusing on digital transformation and technological innovation to enhance product and service quality[58]. Market Position and Strategy - The company has established a "7+5" global layout strategy, with 7 production bases in China and 5 overseas, including ongoing projects in Serbia and Thailand[32]. - The company has a market share exceeding 22% in the new energy tire supply sector, making it the largest tire supplier for SAIC-GM-Wuling and BYD[46]. - The company ranks first in China for tire supply to the top 10 global automotive manufacturers, with a total supply exceeding 22 million tires in 2022, accumulating over 200 million tires supplied historically[80]. - The company aims to achieve a tire production and sales volume of 160 million units and sales revenue exceeding 80 billion yuan by 2030, positioning itself among the top five in global capacity[105]. - The company plans to increase total tire sales by 26% year-on-year in 2023, leveraging opportunities in both domestic and international markets[106]. Environmental and Social Responsibility - The company is committed to achieving carbon peak by 2030 and carbon neutrality by 2050, establishing a low-carbon management team to oversee these initiatives[179]. - The company has invested 2.49 million yuan in social responsibility projects, benefiting an unspecified number of individuals[186]. - The company has implemented VOCs treatment equipment in the rubber mixing and vulcanization processes, achieving emissions of 1.19 - 2.75 mg/m³[166]. - The company has established emergency response plans for environmental incidents, which have been filed with local environmental authorities[170]. - The company has reported no administrative penalties for environmental issues during the reporting period[172]. Corporate Governance - The company has received the highest rating (A grade) for its information disclosure practices for three consecutive years, reflecting its commitment to corporate governance and investor relations[120]. - The company has made significant changes to its corporate governance structure, including revisions to its articles of association and management systems[125]. - The board of directors has been re-elected, ensuring continuity in leadership and strategic direction[125]. - The company has committed to transparency and compliance in all dealings with Linglong Tire to protect shareholder interests[190]. - The company has not faced any penalties from securities regulatory agencies in the past three years[137].