[年报]巨星科技(002444):2022年年度报告（英文版）
原标题:巨星科技:2022年年度报告（英文版） 2022 Annual Report 2023-013 April 2023 Section I Important Notes, Contents and Definitions The Board of Directors, the Board of Supervisors, and the Directors, Supervisors, and senior management of the Company guarantee the truthfulness, accuracy, and completeness of the contents in this annual report, and that there are no false records, misleading statements, or material omissions, and assume individual and joint legal responsibilities. Qiu Jianping, the person in charge of the Company, and Ni Shuyi, the chief accountant and the head of accounting department, declare that they guarantee the truthfulness, accuracy, and completeness of the financial information in this annual report. All the Directors have attended the Board Meeting at which this report was deliberated. This annual report involves forward-looking statements such as future plans, which do not constitute a material commitment of the Company to investors. Investors and related parties shall maintain adequate risk awareness and understand the differences among plans, forecasts and commitments. This report details the potential risks that the Company will face in the future in “Section III Management Discussion and Analysis, (XI) Prospects for the Company’s Future Development: Potential Risks”. Investors shall be aware of the investment risks. The profit distribution plan deliberated and approved by the Company at the Board Meeting is as follows: Based on the amount of CNY 1,194,478,182.00, the Company will distribute a cash dividend of CNY 1.66 (tax included) for every 10 shares to all the shareholders and issue 0 bonus shares (tax included), without carrying out conversion of capital reserve into share capital. Contents Section I Important Notes, Contents and Definitions ........................................................................................... 3 Section II Company Profile and Key Financial Results ....................................................................................... 7 Section III Management Discussion and Analysis ...............................................................................................11 Section IV Corporate Governance ....................................................................................................................... 50 Section V Environmental and Social Responsibility ........................................................................................... 72 Section VI Important Matters .............................................................................................................................. 74 Section VII Changes in Shares and Information about Shareholders ............................................................ 103 Section VIII Preferred Shares .............................................................................................................................113 Section IX Information about Bond ....................................................................................................................114 Section X Financial Statements ...........................................................................................................................115 Documents Available for Reference I. Financial statements signed and sealed by the person in charge of the Company, the chief accountant and the head of accounting department. II. Original audit reports signed and sealed by the accounting firm and certified public accountant. III. Original copies of all the Company’s documents and announcements publicly disclosed in newspapers and periodicals designated by China Securities Regulatory Commission (CSRC) during the reporting period. Definitions
Section II Company Profile and Key Financial Results I. Company information
Accounting firms engaged by the Company
□ Applicable ? N/A Financial advisors engaged by the Company to perform continuous supervision duties during the reporting period □ Applicable ? N/A VI. Principal accounting data and financial indicators Whether the Company needs to retroactively adjust or restate the accounting data of prior years □Yes ?No
years, and the audit report of the latest fiscal year shows that there is uncertainty in the Company's sustainable operation ability □Yes ?No The lower of the net profits before and after deducting non-recurring gains and losses is negative □Yes ?No VII. Differences in accounting data by domestic and overseas accounting standards 1. Differences in the net profits and net assets disclosed in the financial reports prepared under the international accounting standards and Chinese accounting standards □ Applicable ? N/A 2. Difference in the net profits and net assets disclosed in the financial reports prepared under the overseas accounting standards and Chinese accounting standards □ Applicable ? N/A VIII. Quarterly principal financial indicators Unit: CNY
in the quarterly and semi-annual reports □Yes ?No IX. Items and amounts of non-recurring gains and losses ?Applicable □ N/A Unit: CNY
□ Applicable ? N/A The Company has no other items of gains and losses that fall into the category of non-recurring gains and losses. Remarks on the situation that non-recurring profit and loss items listed in the Explanatory Announcement No. 1 of Information Disclosure of Companies Offering Securities to the Public – Non-recurring Profit and Loss are defined as recurring profit and loss items □ Applicable ? N/A There is no situation that non-recurring profit and loss items listed in the Explanatory Announcement No. 1 of Information Disclosure of Companies Offering Securities to the Public – Non-recurring Profit and Loss are defined as recurring profit and loss items. Section III Management Discussion and Analysis I. Situation of the industry in which the Company is operating during the reporting period The Company is operating in the tools & storage industry. Its main products include hand tools & storage as well as power tools & laser measurement & power stations, which are primarily used for family housing maintenance, construction engineering, vehicle maintenance, surveying and mapping, home energy management, etc. Family housing and related maintenance are the most important sector where tool products are most widely applied. In most parts of North America and Europe, due to the extensive use of freestanding buildings and the large floor area per capita, the maintenance of residential houses is costly and time-consuming. On account of the relatively high labor cost, residents in Europe and North America are more willing to carry out the maintenance work of their houses and attached buildings by themselves, thus giving rise to the famous European and American DIY culture. Meanwhile, European and American families have a large number of cars, and the daily maintenance of cars, covering the inspection and replacement of parts, is an important part of the European and American DIY culture. There are heavy professional and DIY-related demands for various tools which are one of the necessities for maintenance in North America and Europe. Therefore, North America and Europe have become the most important markets for the global tool industry, with the highest proportion of potential customers. With the longest history, the tool industry can be said to have evolved with the birth and development of human beings. In recent centuries, with the ever-increasing global population, the tool industry has been scaling up at a stable growth rate due to the rigid demand for and short replacement cycle of tool products. Besides, it still showed a sustained positive growth trend after a short-lived fluctuation caused by the financial crisis in 2008. According to the reports released by Frost & Sullivan, the global tool market grew steadily from 2018 to 2022, with the market size increasing from USD 82 billion to USD 103 billion, representing a compound annual growth rate of 5.9%. From 2020 to 2021, the global tool market experienced temporary fluctuations in raw material prices and supply chains. Due to the lockdown of professional maintenance shops, customers, especially local residents in North America and Europe, were in greater and greater demand for professional tools and warehouses used in daily household maintenance. The problem that global tool manufacturing capabilities were lagging in 2020 got solved in 2021, which contributed to strong growth in the size of the global tool market in 2021. Due to customers’ overspending on tool products in 2021, the market demand for such products slowed down significantly in 2022. The surge in tool shipments led to inventory accumulation in 2021, so local tool dealers paid more attention to inventory optimization. The growth rate of the global tool market decreased temporarily from 10.8% in 2021 to 3.2% in 2022. In Europe and America, the main markets for tool products, the actual expenditures on tools and hardware fell by 11.7% without regard to inflation, with the lowest year-on-year growth rate over the past 30 years. In the future, with the recovery of real estate and manufacturing industries as well as the economic growth, the demand for tools and warehousing products is expected to increase continuously, and the size of the global tool market is expected to reach USD 131 billion by 2027 at a CAGR of 4.7% compared to 2023. II. Main business carried out by the Company during the reporting period During the reporting period, the Company continued to develop its main business in the global consumer market of tools. The hand tools & storage business expanded steadily, and important breakthroughs were made in channels and new categories for the power tools business. Moreover, non-tool consumer goods became the highlight of the Company's performance. At present, the Company's main products include hand tools & storage as well as power tools & laser measurement & power stations, which are primarily used for family housing maintenance, construction engineering, vehicle maintenance, surveying and mapping, home energy management, etc. During the reporting period, the Company continued to maintain its dominant position in the hand tools & storage industry, promoting its sales through product innovation and accelerating category expansion to further gain market share. The power tools business continued to grow at a high rate, becoming an important growth point for the Company’s performance. A breakthrough was achieved in the home energy storage business, which proved the Company's ability to develop and expand new categories. Furthermore, the Company obtained important orders for consumer goods other than tools, which is expected to become a new growth point in the future. The cross-border e-commerce business continued to grow rapidly, and the Company's overall market share increased steadily. During the reporting period, the Company achieved operating proceeds of CNY 12,610,189,600.00, up 15.48% year-on-year. In 2022, the Company's net profits attributable to shareholders of the Public Company were CNY 1,419,559,500.00, and the net profits attributable to shareholders of the Public Company after deducting non-recurring gains and losses were CNY 1,454,643,800.00, achieving a year-on-year growth rate of 35.50%. III. Analysis of core competitiveness 1. Innovation advantage Innovation has always been the soul of the Company's development. The Company has an experienced R&D team for professional tool products and non-tool consumer goods, which is always committed to development and innovation of new products and upholds the concept that details determine success or failure to improve product functionality and added value, as well as to ensure the Company's long-term core competitiveness. During the reporting period, the Company invested CNY 319 million in R&D, designing 2,105 new products. The numbers of new patents applied for and patents granted both exceeded 300. Besides, the Company was approved as a high-tech enterprise, innovatively developing automatic lifting and shifting vice series, 12V and 20V lithium battery products, 360-degree surround measuring and light-emitting torches with handles and many other products which received good market feedback. The project of "Intelligent Robot System for Bulk Handling and Its Application" declared by Ole-Systems, one of the Company’s subsidiaries, jointly with Jinling Institute of Technology in Jiangsu won the Jiangsu Provincial Science and Technology Achievement Award. During the reporting period, the Company continued to carry out large-scale innovation of power tools, especially lithium battery power tools. With a large number of highly cost-effective innovative products, the Company obtained orders of 12V power tools from a large retail company in the United States. Meanwhile, the Company successfully achieved a breakthrough in home energy storage products, relying on its own professional product team. In the face of constant changes in the global tool industry, the Company timely responded to and seized market opportunities with its innovation advantage, continuing to gain market share and maintaining long-term and stable development. 2. Channel advantage The Company has its own sales channels, highly trusted by customers. This is the guarantee for GreatStar’s continuous development. The diversified product mix and sustainable innovation ability of the Company can not only meet the one-stop purchasing needs of channel customers to the greatest extent, but also constantly save their purchasing and management costs and continuously improve channel customer loyalty. The Company has become one of the largest suppliers of tools and storage for many large supermarket chains such as HOME DEPOT, WALMART and LOWES in the United States, Kingfisher in Europe and CTC in Canada, and has been expanding new product categories. In a global context, there are currently more than 20,000 large supermarket chains such as those for hardware, building materials and auto parts, selling a wide range of the Company’s products. These channels effectively ensure the rapid development of various innovative products of the Company. Meanwhile, the Company makes continuous efforts in the new sales channel of cross-border e- commerce. The direct sales model based on cross-border e-commerce has become the most important sales channel for GreatStar, in addition to traditional large supermarket chains. As an effective supplement to traditional channels, this channel not only provides a new market for the Company to develop its own brands, but also gives better play to the Company’s advantage of rapid innovation. Relying on the above channel advantage, the Company can constantly develop and expand new product categories with good market prospects. Historically, it has successfully achieved breakthroughs in such major categories as laser measurement, storage, power tools and home energy storage. 3. Supply chain advantage After decades of development, the Company has established a global supply chain management system with China at its core, and has built good cooperative relationships with thousands of suppliers worldwide, ensuring that the Company will not be restricted by its own production capacity and can quickly respond to market demands and timely complete the delivery of various large orders. Relying on China's global supply chain system with the most complete basic categories and the growing global supplier network, the Company can realize global purchasing and global manufacturing, enabling the Company to maintain a stable supply capacity in the context of short global shipping cycles and laying a foundation for it to continuously increase its market share. Meanwhile, given the high efficiency arising from China's ultra-wide and ultra-fine supply chain network as well as the strong resilience, the Company can also achieve centralized purchasing in China and global distribution, greatly reducing the comprehensive purchasing cost and improving the market competitiveness of the Company's products. At present, the Company has 20 manufacturing bases worldwide, which can fully meet various needs and cope with the complicated external environment. 4. Brand advantage The main products of the Company are durable consumer goods for households and industrial products for professionals. Brand is the most effective guarantee for the Company to provide consumers with products and services for a long time, so the Company is always committed to the creation and development of its own brands. During the reporting period, the Company made great efforts to develop its own brands, enhance the brand influence and strengthen the brand advantage. Its own brands, especially e-commerce brands, continued to grow. The sales revenues of WORKPRO, DURATECH, SWISSTECH, Prexiso and other brands increased significantly year-on-year. Besides, the sales revenues of the Company’s own brands accounted for more than 40% for the first time. The brand advantage not only further enhances the international competitiveness of the Company's products, but also effectively improves the Company's gross profit margin and business stability, providing a guarantee for the long-term healthy development of the Company. 5. International advantage During the reporting period, domestic and international economic patterns were complicated. As a company with international development planning, GreatStar made full use of manufacturing capacities and sales markets in different regions worldwide, actively coping with risks and seeking opportunities. During the reporting period, the Company positively promoted the full production of manufacturing bases in Southeast Asia and constantly optimized the division and planning of manufacturing work on a global scale, fully reflecting the advantage of the Company's international layout and flexibility of production capacity. At present, the Company’s factories in Southeast Asia have all been put into use, and the layout of production capacity has preliminarily taken shape in Southeast Asia. Meanwhile, in the face of poor staff mobility on an international scale during the reporting period, the Company actively made use of the advantages of local teams in Europe and America, continuing to provide customers with a well-established nearby service system and guaranteeing the matching between orders and after-sales services. The international advantage effectively ensures that the Company can not only give play to the superiority of China's manufacturing clusters, but also make use of the strengths in manufacturing costs in Southeast Asia and local channel services in the European and American markets when facing other international competitors, so as to build stronger core competitiveness. The Company is accelerating to become a global resource allocation company integrating local services in Europe and America, manufacturing based on industrial chains in Asia and R&D management in China. IV. Analysis of main business 1. Overview During the reporting period, the total demand of the global tool market slowed down and the overall overseas product inventory was high, leading to a sharp decline in the gross sales. Due to inflation, the growth rate of the industry scale still increased, and online channels as well as some best-selling products provided good growth opportunities for the Company. The Company seized the opportunities and effectively guaranteed the unimpeded supply chains and order delivery with its innovation, supply chain integration and channel expansion abilities, achieving substantial growth in some new businesses and products. Online channels continued to grow at a high rate, and the Company’s overall market share increased steadily. Meanwhile, drastic fluctuations in the CNY exchange rate and favorable changes in global logistics costs had a positive impact on the Company's profitability. During the reporting period, the Company achieved operating proceeds of CNY 12,610,189,600.00, up 15.48% year-on-year. In 2022, the Company's net profits attributable to shareholders of the Public Company were CNY 1,419,559,500.00, and the net profits attributable to shareholders of the Public Company after deducting non-recurring gains and losses were CNY 1,454,643,800.00, achieving a year-on-year growth rate of 35.50%. The performance of each business segment is as follows: 1. Hand tools & storage During the reporting period, the influence of the Company’s own brands gradually improved, and the orders of some brands increased more than expected. The sales of the Company’s own brands accounted for more than 40% for the first time. Besides, in the face of market changes, the product strategy was adjusted timely, and substantial growth was realized in some products, especially outdoor tools. The Company reinforced the development of markets in the Belt and Road countries and achieved some results in channel construction. The cross-border e-commerce business maintained a high growth rate while categories and product lines were constantly improved. The self-built stations of the Company’s own brands were put into operation for the first time, and the channel expansion continued to deepen with improvements in online live-streaming channels as the Company, the export department took the initiative to analyze and tap the potential of customers. While ensuring the steady growth of main tool products, it actively sought opportunities for non-tool consumer goods and signed important purchase agreements for non-tool household goods. The storage business achieved rapid growth, with new categories and products launched at an accelerated pace. The production bases in Thailand were fully put into operation, laying a foundation for further increasing the market share. Zhongshan Geelong took the initiative to adjust its own business strategy and achieved growth more than expected all year round. Lista, located in Europe, seized the opportunities of the market demand recovery in Europe and the rising import demand to maintain steady growth. 2. Power tools & laser measurement & power stations During the reporting period, the Company obtained the purchase order confirmation of power tools from a large retail company for the first time after restarting the power tools business, reaching the ceiling for growth in the power tool business. It proactively adjusted the product supply according to market demand and gave priority to providing customers with heating equipment and home energy storage equipment, so as to meet consumers' immediate needs, extend the Company's product lines, and achieve significant breakthroughs especially in the home energy storage products. Moreover, the Company continued to innovate in power tool product lines for online channels, setting up an important channel for the power tool business. For the laser measurement business, the focus is on new products and channel construction. Based on the readjusted brand positioning and business direction, the awareness of the Company’s own brands and products was improved, and the new series of products launched obtained good market feedback. Besides, the Company opened up marketing channels based on short videos and expanded the online sales business scale. The laser radar business maintained rapid growth year on year, with increasing product application scenarios and channels, and the Company completed the iterative design of some products according to the changing needs of the industry and customers. 2. Revenue and costs (1) Composition of operating proceeds Unit: CNY
proceeds or operating profit ?Applicable □ N/A Unit: CNY
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