ZHONGSHENG GAOKE(002778)2023-04-24 16:00Financial Performance - The company’s operating revenue for 2022 was ¥721,636,502.98, a decrease of 30.05% compared to ¥1,031,666,930.00 in 2021[22]. - The net profit attributable to shareholders for 2022 was -¥35,385,714.12, representing a decline of 141.43% from ¥85,418,009.76 in 2021[22]. - The net cash flow from operating activities was ¥53,217,807.08, down 41.19% from ¥90,489,319.40 in the previous year[22]. - The basic and diluted earnings per share for 2022 were both -¥0.28, a decrease of 141.18% from ¥0.68 in 2021[22]. - Total assets at the end of 2022 were ¥1,469,826,415.06, a reduction of 10.52% from ¥1,642,658,712.93 at the end of 2021[22]. - The net assets attributable to shareholders increased by 1.96% to ¥577,722,121.34 at the end of 2022, compared to ¥566,593,619.99 at the end of 2021[22]. - The company reported a quarterly revenue of ¥276,281,643.87 in Q4 2022, which was the highest among the four quarters[26]. - The company experienced a significant decline in net profit in Q4 2022, reporting -¥18,918,000.06 attributable to shareholders[26]. - The total operating revenue for 2022 was ¥721,636,502.98, representing a decrease of 30.05% compared to ¥1,031,666,930.00 in 2021[65]. - The petrochemical industry contributed ¥323,968,124.81 (44.89% of total revenue), down 9.51% from ¥358,013,289.53 in 2021[65]. - The environmental protection industry saw a significant decline in revenue to ¥346,354,393.80 (48.00% of total revenue), a drop of 38.39% from ¥562,166,977.28 in 2021[65]. - The revenue from wastewater treatment facility entrusted operation business was ¥246,791,738.20, accounting for 34.20% of total revenue, with an 18.96% decrease from ¥304,520,306.00 in 2021[68]. - The revenue from transformer oil increased by 33.48% to ¥129,642,739.98, representing 17.97% of total revenue[68]. - The revenue from solvent oil surged by 152.02% to ¥17,932,769.38, which is 2.49% of total revenue[65]. - The revenue from environmental consulting services increased by 10.96% to ¥14,905,569.81, accounting for 2.07% of total revenue[65]. - The total accounts receivable in 2022 amounted to ¥70,905.71 million, with potential risks related to slow recovery impacting operational performance[114]. - The company reported an investment loss of ¥3,759,933.34, accounting for 11.55% of total profit, due to debt restructuring losses[79]. - The company recognized an asset impairment loss of ¥16,924,376.97, representing 51.99% of total profit, related to goodwill impairment[79]. Market and Industry Trends - The lubricating oil market in China is projected to reach ¥142.57 billion by 2027, with a compound annual growth rate of 4.69% from 2022 to 2027[32]. - The company faces intense competition in the lubricating oil industry, with a strong demand from downstream customers and relatively weak bargaining power from suppliers[33]. - The demand for automotive lubricants is expected to maintain stable growth, with an increasing proportion of total lubricant demand[34]. - The industrial lubricant demand growth is expected to slow down due to structural adjustments in industries like steel and coal, while automotive lubricant demand remains stable[34]. - The environmental protection industry is transitioning from rapid expansion to a more stable operational model, indicating a shift in market dynamics[36]. - The overall scale of the environmental protection market has been increasing, with revenue from the industry maintaining a GDP share of around 2% since 2020[38]. Environmental Commitment - The company reported a focus on the research, production, and sales of various lubricating oil products, adhering to environmental standards which may impact rapid development in the chemical sector[5]. - The company emphasizes its commitment to environmental engineering and consulting services, which are essential in the current regulatory landscape[5]. - The company is actively developing eco-friendly products, such as environmentally friendly synthetic oils, to meet both operational efficiency and environmental standards[35]. - The company has implemented measures to manage and treat hazardous waste effectively, minimizing environmental impact[175]. - The company’s environmental management practices align with national regulations, reflecting its commitment to sustainability[172]. - The company has established a hazardous waste disposal ledger and a hazardous waste storage facility, ensuring compliance with regulations through third-party disposal[184]. - The company has implemented a self-monitoring plan for wastewater and air emissions, with specific monitoring frequencies for various pollutants[183]. - The company has not experienced any environmental accidents during the reporting period, demonstrating effective environmental management practices[184]. - The company adheres to multiple environmental laws and standards, ensuring compliance in its operations[172]. Research and Development - The company has established research centers and partnerships with several universities and research institutions to support product development[49]. - The company has a total of 57 authorized patents and 2 software copyrights, with 79 patents pending, indicating a strong focus on innovation[55]. - The company is developing a transformer oil that meets international standards, which is expected to enhance its market position[74]. - The company has completed laboratory phase work on a water body remediation material with significant heavy metal adsorption capabilities[75]. - The company is working on an integrated device for high-concentration organic wastewater treatment, aiming to achieve low-carbon and energy-saving goals[75]. - The company has established a special product R&D department to enhance its product development capabilities, particularly in metalworking fluids[62]. - The company is focusing on technological reforms and innovations to strengthen its core lubricant business while accelerating the development of new products for wind energy, energy storage, and smart grid applications[35]. - Research and development expenses decreased by 6.96% to ¥24,959,164.44 compared to the previous year[74]. - The number of R&D personnel increased by 1.14% to 89, with R&D personnel now making up 13.34% of the total workforce[75]. Corporate Governance - The company has established a complete and independent business system, ensuring no overlap with the controlling shareholder's other business activities[125]. - The company maintains an independent financial management system, with dedicated accounting personnel and separate bank accounts[126]. - The company has conducted 4 shareholder meetings, 9 board meetings, and 7 supervisory board meetings during the reporting period, all in compliance with legal requirements[123]. - The company’s board of directors includes a diverse group of members, with ages ranging from 30 to 52[130]. - The company is focused on enhancing its governance structure through the election of independent directors and supervisors[129]. - The company has established a comprehensive salary management system to provide competitive compensation, which includes basic salary and performance-based pay[162]. - The company has implemented a 100% rectification rate for safety and environmental hazards identified by supervisory units[188]. - The company has established a comprehensive human resource management system, including social security and medical insurance, to support employee welfare[185]. - The company has maintained a strong focus on environmental protection and sustainable development, implementing energy-saving and emission-reduction activities[190]. Future Strategies - The company plans to enhance R&D capabilities and invest in technology innovation to support growth[95]. - Future strategies include adjusting product structure to focus on high-quality lubricants and environmental engineering services[96]. - The company aims to strengthen brand building and market expansion, particularly in high-demand lubricant regions[98]. - The company plans to enhance product innovation and order service capabilities while optimizing sales channels in 2023[103]. - The focus for 2023 includes expanding the market for high-quality lubricants and improving sales channels for automotive oils, metalworking oils, specialty oils, and greases[104]. - The company aims to leverage research platforms to accelerate technological innovation and new product development, targeting high-quality lubricant products for various industries[105]. - A new marketing system will be established to strengthen market development and improve sales efficiency through a high-quality sales team[106]. - The company will expand its environmental market by promoting self-developed wastewater treatment equipment and adapting to diverse treatment needs[107]. - The management will focus on establishing a scientific operational mechanism and enhancing internal controls to improve decision-making and cost management[108]. Social Responsibility - The company actively participated in social welfare activities, including poverty alleviation efforts in Yan'an City, demonstrating its commitment to social responsibility[190]. - The company conducted 12 safety and environmental training sessions in 2022, significantly enhancing employee safety awareness[188]. - The company has coordinated special vehicle shipments to ensure timely delivery of products despite transportation challenges[190]. - The company has installed automatic online monitoring devices to improve automation levels and enhance the working environment[190].