Sales Volume and Revenue - Sales volume of cold-rolled steel products increased to approximately 886,949 tons in 2023, up 44.2% from 614,740 tons in 2022[5] - Sales volume of galvanized steel products increased to approximately 583,438 tons in 2023, up 69.9% from 343,386 tons in 2022[5] - Total sales volume of cold-rolled and galvanized steel products reached approximately 1,470,387 tons in 2023, up 53.5% from 958,126 tons in 2022[5] - Revenue from cold-rolled steel products sales increased to RMB 3,573,976 thousand in 2023, up from RMB 2,655,077 thousand in 2022[62] - Revenue from galvanized steel products sales rose to RMB 2,498,571 thousand in 2023, compared to RMB 1,553,571 thousand in 2022[62] - Total revenue for 2023 reached RMB 6,589,901 thousand, up from RMB 4,663,563 thousand in 2022[62] - Revenue in 2023 increased by RMB 1,926.3 million or 41.3% to RMB 6,589.9 million compared to RMB 4,663.6 million in 2022[101] - Revenue from sales of cold-rolled steel products and galvanized steel products increased by RMB 1,926.3 million or 41.3% to RMB 6,589.9 million in 2023 from RMB 4,663.6 million in 2022[116] - Revenue from sales increased to RMB 6,589.9 million in 2023 from RMB 4,663.6 million in 2022[191] Average Selling Prices - Average selling price of cold-rolled steel products decreased to RMB 4,174 per ton in 2023 from RMB 4,644 per ton in 2022[17] - Average selling price of galvanized steel products decreased to RMB 4,282 per ton in 2023 from RMB 4,524 per ton in 2022[17] Cost of Sales and Gross Profit - Direct materials accounted for over 92% of the cost of sales in 2023, up from 90% in 2022[30] - Gross profit margin was approximately 4.5% in 2023, compared to a gross loss margin of 0.4% in 2022[32] - Direct material costs accounted for 92.2% of total cost of sales in 2023 (2022: 90.4%), with utilities expenses increasing by RMB 53.1 million or 28.6% to RMB 238.6 million[137][138] - The company recorded a gross profit of approximately RMB 296.6 million in 2023, compared to a gross loss of RMB 20.1 million in 2022, driven by increased sales volume, higher average processing fees, and lower unit sales costs[140] - Gross profit improved to RMB 296.6 million in 2023 from a loss of RMB 20.1 million in 2022[191] Capital Expenditures and Investments - Capital commitments for the acquisition of property, plant, and equipment were approximately RMB 257.4 million as of December 31, 2023, up from RMB 90.9 million as of December 31, 2022[4] - The company invested approximately RMB 389.2 million in property, plant, and equipment and construction costs in 2023[3] - Capital expenditures for property, plant, and equipment increased from RMB 90,895 thousand in 2022 to RMB 257,440 thousand in 2023[99] - The company had committed capital expenditures of RMB 257,440,000 as of December 31, 2023, with RMB 199,099,000 to be paid within the next 12 months[193] Financial Costs and Borrowings - Financial costs increased to approximately RMB 80.6 million in 2023, up 1.5% from RMB 79.4 million in 2022[23] - The company's capital borrowing costs for the year ended December 31, 2023, were capitalized at an annual rate of 5.87%[43] - Financial costs for borrowing interest expenses rose to RMB 80,423 thousand in 2023, compared to RMB 79,272 thousand in 2022[83] - The company's total borrowings as of December 31, 2023, amounted to approximately RMB 2,277.9 million, compared to RMB 1,516.1 million as of December 31, 2022[198] Taxation and Subsidies - The company's two major subsidiaries in China have been recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of 15% from 2022 to 2024[34] - The company's Hong Kong profits tax is calculated at 16.5% of the estimated taxable profits for the two years mentioned[45] - The company's deferred income includes a subsidy of RMB 33,000,000, with RMB 3,300,000 recognized in the income statement for the year ended December 31, 2023[41] - Income tax expense for the year was RMB 15,681 thousand in 2023, compared to a tax credit of RMB 32,119 thousand in 2022[84] - Income tax expenses were RMB 15.7 million in 2023, compared to an income tax credit of RMB 32.1 million in 2022[177] Trade Receivables and Payables - Trade receivables and notes amounted to RMB 233,499 thousand in 2023, up from RMB 113,174 thousand in 2022[72] - Trade receivables from customer contracts increased to RMB 82,279 thousand in 2023, up from RMB 50,260 thousand in 2022, with a credit loss provision of RMB 3,385 thousand[76] - Notes receivable surged to RMB 234,474 thousand in 2023, compared to RMB 116,802 thousand in 2022[76] - Trade receivables increased to RMB 78,894 thousand in 2023 from RMB 49,038 thousand in 2022, with the majority (RMB 70,339 thousand) within 30 days[118] - Notes receivable increased significantly to RMB 234,474 thousand in 2023 from RMB 116,802 thousand in 2022, with the largest portion (RMB 61,337 thousand) in the 61-90 days category[118] - Trade payables decreased from RMB 135,557 thousand in 2022 to RMB 106,104 thousand in 2023[93] - Total trade payables, notes payable, and other payables increased from RMB 382,845 thousand in 2022 to RMB 386,288 thousand in 2023[108] - Overdue trade receivables over 90 days increased slightly from RMB 2,078 thousand in 2022 to RMB 2,293 thousand in 2023[105] Employee and Administrative Expenses - Employee benefits expenses increased to RMB 123,007 thousand in 2023, up from RMB 116,654 thousand in 2022[88] - Total employee costs, including director remuneration, amounted to RMB 123.0 million in 2023, up from RMB 116.7 million in 2022[161] - Administrative expenses decreased to RMB 58.6 million in 2023, down by RMB 6.2 million or 9.6% compared to RMB 64.8 million in 2022, mainly due to reduced share-based payments and business-related expenses[153] Net Profit and Loss - Net profit attributable to owners in 2023 was RMB 85.7 million, compared to a net loss of RMB 165.3 million in 2022[101] - The company's attributable profit in 2023 was RMB 85.7 million, compared to an attributable loss of RMB 165.3 million in 2022[155] - Net profit for the year was RMB 85.5 million in 2023, compared to a loss of RMB 165.3 million in 2022[191] Cash Flow and Bank Balances - Bank balances and cash increased by RMB 82.3 million or 511.2% to RMB 98.4 million as of December 31, 2023, compared to RMB 16.1 million in 2022[145] - Restricted bank deposits increased by RMB 58.3 million or 30.8% to RMB 247.7 million as of December 31, 2023, compared to RMB 189.4 million in 2022[145] - The company generated a net cash outflow of RMB 82,265,000 and a net operating cash outflow of RMB 371,976,000 for the year ended December 31, 2023[193] - The company's bank balances and cash increased to RMB 98,386,000 as of December 31, 2023, from RMB 16,093,000 as of December 31, 2022[200] Inventory and Consumables - Cost of inventories recognized as expenses rose to RMB 6,295,708 thousand in 2023, compared to RMB 4,681,334 thousand in 2022[88] - Consumables increased to RMB 82.4 million in 2023, up by RMB 3.3 million or 4.2% compared to RMB 79.1 million in 2022, driven by increased production activities of cold-rolled and galvanized steel products[169] Other Income and Gains - Other income, primarily from sales of hot-rolled steel products and processing services, accounted for 5.9% of total revenue in 2023 (2022: 5.5%)[135] - Other income, other gains, and losses increased to RMB 8.8 million, a 95.6% increase from RMB 4.5 million in 2022[170] - The company recognized investment gains of RMB 0.2 million from commodity futures contracts in 2023, compared to a loss of RMB 0.7 million in 2022[176] Financial Position and Ratios - The company's reserves increased to RMB 507,826 thousand in 2023 from RMB 420,339 thousand in 2022[65] - Net current liabilities decreased to RMB 266.7 million as of December 31, 2023, from RMB 452.1 million as of December 31, 2022[125] - The group's net current liabilities decreased to RMB 266.7 million in 2023 from RMB 452.1 million in 2022, while net asset value increased to RMB 514.7 million from RMB 425.3 million[181] - The current ratio improved to 88.1% in 2023 from 76.5% in 2022[181] - The company's equity value as of December 31, 2023, was approximately RMB 514.7 million, up from RMB 425.3 million as of December 31, 2022[198] - The company's asset-liability ratio, calculated as total borrowings divided by total equity, was approximately 4.43x as of December 31, 2023, compared to 3.56x as of December 31, 2022[198] - The company's current liabilities exceeded current assets by RMB 266,735,000 as of December 31, 2023[193] - The company's total assets less current liabilities amounted to RMB 1,543,660,000 as of December 31, 2023, compared to RMB 874,623,000 as of December 31, 2022[200] - The company's inventory, trade receivables, and other receivables increased to RMB 1,311,308,000 as of December 31, 2023, from RMB 1,145,641,000 as of December 31, 2022[200] Customer and Geographic Revenue - Customer A contributed RMB 1,084,556 thousand, accounting for over 10% of the total revenue in 2023[63] - Revenue from China (including Hong Kong) accounted for RMB 6,557,538 thousand in 2023, compared to RMB 4,642,217 thousand in 2022[75] - Revenue from Southeast Asia increased to RMB 32,363 thousand in 2023, up from RMB 21,346 thousand in 2022[75] - Domestic sales in the Chinese market (including Hong Kong) contributed over 99.5% of revenue in 2023, with the remaining portion from sales to Southeast Asian customers[129] Product Warranty and Customer Returns - The company's product warranty allows customers to return defective products within 15 days for free repair or replacement[38] Financial Reporting and Accounting Policies - The company's financial statements are prepared on a going concern basis, with sufficient financial resources to meet obligations[48] - The company's application of new and revised Hong Kong Financial Reporting Standards had no significant impact on its financial position or performance[49] - The company's deferred tax assets and liabilities related to lease arrangements were recognized as of January 1, 2022[50] - The company's accounting policy disclosures have been clarified to ensure significant policies are not obscured by non-significant ones[52] Dividends - No dividends were declared or paid in either 2023 or 2022[90] Sales Expenses - Sales expenses increased to RMB 69.0 million in 2023, up by RMB 29.6 million or 75.1% compared to RMB 39.4 million in 2022, primarily due to higher delivery costs from increased product sales[142] Depreciation - Depreciation of property, plant, and equipment decreased to RMB 76,851 thousand in 2023 from RMB 91,326 thousand in 2022[88] Prepayments and Government Grants - Prepayments to suppliers decreased to RMB 811,352 thousand in 2023 from RMB 857,483 thousand in 2022[76] - Government grants increased significantly to RMB 8,203 thousand in 2023, up from RMB 4,165 thousand in 2022[81] Contract Liabilities - Contract liabilities increased from RMB 454,141 thousand in 2022 to RMB 586,844 thousand in 2023[94] Credit Period - The company's credit period for long-term customers with good credit quality remains at 90 days, unchanged from 2022[103] Product Revenue Breakdown - Sales of cold-rolled steel products accounted for 56.2% of total revenue in 2023 (2022: 61.2%), while galvanized steel products increased to 37.9% of revenue (2022: 33.3%)[136] - Cold-rolled steel products revenue increased to RMB 375 million, up from RMB 379 million in the previous year[170] - Galvanized steel products revenue decreased to RMB 483 million, down from RMB 259 million in the previous year[170] Net Profit Margin - Net profit margin in 2023 was 1.3%, compared to a net loss margin of 3.5% in 2022[145] Sales Cost - Sales cost increased to RMB 6,293.3 million in 2023, up by RMB 1,609.6 million or 34.4% compared to RMB 4,683.7 million in 2022[168]
华津国际控股(02738) - 2023 - 年度业绩