New East(603110)2024-03-27 16:00Financial Performance - The company's operating revenue for 2023 was CNY 393,582,500.63, a decrease of 2.63% compared to CNY 404,209,204.39 in 2022[22] - The net profit attributable to shareholders for 2023 was CNY 52,015,732.19, representing a significant increase of 163.84% from CNY 19,715,217.94 in the previous year[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 6,347,542.38, down 8.27% from CNY 6,919,903.75 in 2022[22] - The net cash flow from operating activities for 2023 was CNY 26,851,990.02, a decrease of 27.85% compared to CNY 37,214,794.52 in 2022[22] - As of the end of 2023, the total assets amounted to CNY 857,754,091.77, an increase of 3.54% from CNY 828,464,108.16 at the end of 2022[22] - The net assets attributable to shareholders at the end of 2023 were CNY 688,926,140.65, reflecting a growth of 3.27% from CNY 667,094,418.26 in 2022[22] - The basic earnings per share for 2023 was 0.26 yuan, reflecting a 160.00% increase year-on-year[24] - The weighted average return on equity increased to 7.70% in 2023, up by 4.77 percentage points from 2.93% in 2022[24] - The company's non-recurring net profit for 2023 was 6.35 million yuan, a decrease of 8.27% year-on-year[33] - The company reported a cash flow from operating activities of 2.65 million yuan in Q4 2023[25] - The diluted earnings per share for 2023 was also 0.26 yuan, consistent with the basic earnings per share[24] Business Strategy and Investments - The company plans to reinvest its undistributed profits into its wholly-owned subsidiary, focusing on expanding its computing power business and R&D investments[6] - The company does not plan to distribute cash dividends or implement stock bonuses for the 2023 fiscal year[6] - The company is in a critical phase of rapid development and strategic layout, emphasizing the need for significant capital expenditures[6] - The company established a wholly-owned subsidiary, Dongfang Supercomputing (Shenzhen) Technology Co., Ltd., to advance its strategic transformation towards computing power business, aiming to create new growth points[34] - The company plans to complete the installation and debugging of production line equipment by Q3 2024[33] - The company is investing heavily in its computing power business, which may lead to significant funding pressures if project returns are slower than expected[117] - The company aims to provide convenient supercomputing services to enterprises and institutions, facilitating the rapid application of AI technologies[111] Market and Industry Trends - The ink industry is increasingly competitive, focusing on product quality improvement, performance optimization, and environmental upgrades to gain market recognition[35] - The domestic polyurethane adhesive industry has seen rapid growth, with increasing production scale and a shift towards high-performance, environmentally friendly products[37] - The PCB electronic ink industry is experiencing a shift towards rigid-flexible circuit boards, driven by demand from emerging sectors like AI and cloud computing[39] - China's computing power infrastructure reached 230 EFlops by the end of 2023, ranking second globally, with a growth rate of 26% in basic computing power[41] - The smart computing power segment grew by 72%, accounting for 59% of the total computing power in China, indicating a strong growth driver[41] - By 2025, China's computing power-related industry scale is expected to reach 24 trillion yuan, with the core computing power industry scale projected at 4.4 trillion yuan[41] - The global share of AI computing power spending is expected to increase from 18% in 2022 to 25% by 2025, highlighting the growing importance of this sector[40] Research and Development - The company’s R&D expenses increased by 9.76% to CNY 15.73 million, reflecting a focus on innovation and product development[49] - The company added 8 dedicated R&D personnel for computing power business, focusing on product operation and service development to enhance market competitiveness[67] - The company has established long-term technical cooperation relationships with universities and research institutions, enhancing its innovation capabilities[84] - The company has developed VOCs emission reduction solutions, including eco-friendly inks and adhesives, with products like the Superlift 4011 alcohol-water composite ink recognized as a scientific and technological achievement by the Zhejiang Provincial Science and Technology Department[85] Governance and Compliance - The company held 4 shareholder meetings during the reporting period, ensuring compliance with relevant regulations and enhancing participation from minority shareholders through online voting[120] - The board of directors maintained a responsible attendance record, with all members actively participating in training to improve governance and decision-making processes[121] - The company’s internal control system has been continuously improved, leading to a higher level of governance standardization[120] - There were no significant differences between the company's governance practices and the regulations set by the China Securities Regulatory Commission[121] - The company’s independent directors performed their duties without influence from major shareholders or related parties, ensuring unbiased oversight[121] - The company’s governance structure has been strengthened, with a focus on protecting the rights of all shareholders[120] Environmental Responsibility - The wholly-owned subsidiary New Oriental Ink Co., Ltd. has been listed as a key pollutant discharge unit in Jiaxing City for 2023, covering air and soil pollution monitoring[178] - New Oriental Ink Co., Ltd. has implemented pollution prevention facilities in compliance with environmental regulations, with no administrative penalties reported during the reporting period[179] - The company has received multiple environmental impact assessments and approvals for various projects, including a 10,000 tons/year eco-friendly adhesive project approved in 2009[181] - An emergency response plan for environmental incidents has been established and submitted to the environmental authorities to mitigate pollution accidents[182] Future Outlook - The company has set a future revenue guidance of 480.42 million for the next fiscal year, projecting continued growth[128] - New product development initiatives are underway, with a focus on innovative materials expected to launch in Q2 2024[129] - Market expansion plans include entering three new international markets by the end of 2024, aiming for a 20% increase in market share[129] - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market presence[129] - Research and development expenditures are projected to increase by 15% in 2024, emphasizing innovation[129] - The company aims to reduce operational costs by 10% through efficiency improvements in the supply chain[129]