SDICZL(600962)2024-03-29 16:00Overseas Subsidiary Performance - Overseas assets: Zhonglu America reported revenue of 514.12 million yuan and net profit of 10.35 million yuan, while Zhonglu Europe reported revenue of 258.28 million yuan and net profit of 5.87 million yuan[1] - Subsidiary performance: Zhonglu America generated 51.41 million yuan in operating income, while Zhonglu Europe reported 587.23 thousand yuan in net profit[6] Cost Structure and Raw Material Risks - Cost structure: Raw material costs accounted for 56.06% of total costs at 788.88 million yuan, while labor costs decreased by 7.90% to 18.74 million yuan[5] - Raw material price risk: Apple price fluctuations due to seasonal and climate factors pose challenges to cost control and production planning[10] - Raw material costs for beverage manufacturing increased by 51.22% to 788,881,457.92 RMB, accounting for 56.06% of total costs[133] Product Diversification and Market Strategy - Product diversification: The company is transitioning from single-flavor to multi-flavor composite juices to meet market demands[7] - The company aims to become a globally renowned and leading beverage enterprise in specific segments, focusing on "safe, healthy, and natural" products[175] - The company primarily employs a direct sales model, with indirect sales as a supplement, focusing on B2B sales[187] Operational Optimization and Efficiency - Operational optimization: The company plans to optimize production processes and enhance market competitiveness to increase revenue and profitability[8] - The company is upgrading its lean management system from version 1.0 to 2.0 to enhance operational efficiency and quality[177] - The company emphasized strategic leadership, management reforms, and technological innovation to improve operational efficiency and management quality[127] Exchange Rate and Financial Risk Management - Exchange rate risk: With 84% of revenue from exports, the company will use hedging tools to mitigate risks from RMB exchange rate fluctuations[11] - The company conducted forward exchange settlement and sale business to hedge against exchange rate risks, in compliance with relevant accounting standards[189] - Exchange rate fluctuations had a negative impact of 2,856,500.33 RMB on cash in 2023[138] Environmental Protection and Sustainability - Environmental investment: The company invested 10.57 million yuan in environmental protection during the reporting period[18] - The company's subsidiaries, including Hebei Zhonglu, Shanxi Zhonglu, Wanrong Zhonglu, Rushan Zhongcheng, and Yunnan Zhonglu, were listed as key environmental supervision units by local environmental protection departments in 2023[22] - The company implemented real-time monitoring systems for wastewater discharge, including COD, PH, and flow rate, at its subsidiaries' production sites[24] - The company's wastewater discharge standards include COD limits of 500mg/L for Rushan Zhongcheng and 100mg/L for Yunnan Zhonglu[19][23] - The company established an ESG management framework in 2023, including a board of directors, a strategy and investment committee, and an ESG working group[21] - The company's subsidiaries have developed emergency response plans for environmental incidents, with clear warning levels and response measures[20] - The company's subsidiaries conduct annual environmental monitoring, including wastewater, exhaust gas, and noise, through qualified environmental monitoring units[24] - The company's wastewater discharge complies with national standards, including the "Standards for Water Pollutants Discharged into Urban Sewers" (GB/T31962-2015) and the "Integrated Wastewater Discharge Standard" (GB8978-1996)[19][23] Financial Performance and Cash Flow - The company's total revenue from consumer assistance purchases was 38,000 RMB[43] - Net cash flow from operating activities was -166,177,318.47 RMB, a significant drop from 262,649,267.12 RMB in the previous year[56] - Net cash flow from investing activities was -25,634,699.67 RMB, an improvement from -46,366,412.91 RMB[56] - Revenue from sales of goods and services was 1,070,679,337.50 RMB, down from 1,365,631,016.56 RMB[57] - Tax refunds received decreased to 78,248,659.40 RMB from 86,496,550.26 RMB[57] - Other cash receipts related to operating activities increased to 871,785,431.40 RMB from 662,506,937.56 RMB[57] - Total operating cash inflows were 2,020,713,428.30 RMB, down from 2,114,634,504.38 RMB[57] - Total assets increased to 2,414,723,296.01 in 2023 from 2,274,049,378.47 in 2022, reflecting growth in both current and non-current assets[70][71] - Current assets rose to 1,635,375,309.81 in 2023, up from 1,483,477,467.14 in 2022, driven by increases in inventory and other current assets[70] - Inventory surged to 1,143,352,823.52 in 2023, a significant jump from 888,307,891.51 in 2022[70] - Total liabilities grew to 1,436,706,152.83 in 2023, compared to 1,374,868,165.04 in 2022, with a notable increase in short-term borrowings[71][72] - Short-term borrowings climbed to 1,235,007,890.26 in 2023, up from 1,108,749,212.84 in 2022[71] - Owner's equity increased to 978,017,143.18 in 2023 from 899,181,213.43 in 2022, indicating improved financial health[72] - Cash and cash equivalents decreased to 172,947,256.20 in 2023 from 219,620,196.95 in 2022[70] - Accounts receivable dropped to 258,207,093.35 in 2023 from 324,813,214.23 in 2022, suggesting better receivables management[70] - Fixed assets slightly increased to 622,127,803.98 in 2023 from 614,366,660.75 in 2022[70] - Long-term loans rose to 49,213,648.89 in 2023, up from 23,947,916.31 in 2022[72] - Total operating revenue for 2023 was 1,486,772,095.82, a decrease from 1,726,531,019.75 in 2022[77] - Operating costs for 2023 were 1,407,333,215.49, down from 1,596,899,067.58 in 2022[77] - R&D expenses increased to 8,199,899.19 in 2023 from 5,896,578.71 in 2022[77] - Accounts receivable decreased to 340,401,839.48 in 2023 from 415,218,005.48 in 2022[74] - Inventory increased to 82,539,307.50 in 2023 from 64,133,761.62 in 2022[74] - Total current assets were 1,138,164,553.15 in 2023, slightly down from 1,170,235,152.20 in 2022[74] - Short-term borrowings increased to 810,728,555.54 in 2023 from 740,819,805.56 in 2022[74] - Total liabilities for 2023 were 1,170,567,868.09, compared to 1,213,148,868.21 in 2022[75] - Net profit attributable to shareholders was -243,866,697.70 in 2023, worsening from -253,766,226.63 in 2022[75] - Total assets for 2023 were 1,753,686,322.83, a slight decrease from 1,786,367,794.02 in 2022[74] - Net profit attributable to parent company shareholders decreased to RMB 58.22 million in 2023 from RMB 92.11 million in 2022, a decline of 36.8%[78] - Total comprehensive income for 2023 was RMB 88.67 million, down from RMB 100.20 million in 2022, reflecting a decrease of 11.5%[79] - Basic earnings per share dropped to RMB 0.2220 in 2023 from RMB 0.3513 in 2022, a 36.8% decrease[79] - Operating income for 2023 was RMB 950.94 million, a 6.3% decrease compared to RMB 1,014.41 million in 2022[81] - Research and development expenses decreased to RMB 6.11 million in 2023 from RMB 8.26 million in 2022, a reduction of 26.1%[81] - Financial expenses showed a significant improvement, with a net income of RMB 10.05 million in 2023 compared to a net expense of RMB 24.66 million in 2022[81] - Asset impairment losses increased to RMB 194.99 million in 2023 from RMB 16.15 million in 2022, a substantial rise of 1,107.3%[78] - Other comprehensive income after tax decreased sharply to RMB 21.40 million in 2023 from RMB 159.28 million in 2022, a drop of 86.6%[78] - Profit from asset disposal increased to RMB 394,010 in 2023 from RMB 82,888 in 2022, a growth of 375.4%[78] - Foreign currency translation differences contributed RMB 21.36 million to other comprehensive income in 2023, compared to RMB 159,276 in 2022[78] - Net cash flow from financing activities was RMB 147.33 million, compared to a negative RMB 156.69 million in the previous period[84] - Net cash flow from operating activities decreased to RMB 119.60 million from RMB 324.80 million in the previous period[85] - Net cash flow from investing activities was negative RMB 11.62 million, compared to negative RMB 4.64 million in the previous period[85] - Total cash and cash equivalents at the end of the period were RMB 150.60 million, down from RMB 197.94 million at the beginning of the period[84] - Total cash inflow from financing activities was RMB 1.24 billion, slightly higher than the previous period's RMB 1.21 billion[84] - Total cash outflow from financing activities decreased to RMB 1.09 billion from RMB 1.36 billion in the previous period[84] - The company received RMB 810.00 million from borrowings, down from RMB 837.04 million in the previous period[85] - The company repaid RMB 931.78 million in debt, compared to RMB 1.10 billion in the previous period[85] - Total comprehensive income for the period was RMB 92.26 million, with a net profit of RMB 92.10 million[89] - Dividends paid to minority shareholders amounted to RMB 8.80 million, down from RMB 9.83 million in the previous period[84] - Total owner's equity at the end of 2023 was RMB 583,118,454.74, an increase from RMB 486,677,839.88 at the end of 2022[92][93] - Comprehensive income for 2023 was RMB 9,899,528.93, contributing to the increase in owner's equity[92] - Cash inflows from operating activities in 2023 were RMB 1,703,433,326.07, a decrease from RMB 2,129,389,844.14 in 2022[94] - Cash received from sales of goods and services in 2023 was RMB 1,582,471,664.02, down from RMB 1,974,474,034.59 in 2022[94] - Tax refunds received in 2023 amounted to RMB 102,727,160.19, compared to RMB 118,575,488.44 in 2022[94] - Net cash flow from financing activities in 2023 was negative RMB 144,655,115.57, an improvement from negative RMB 288,304,997.13 in 2022[96] - The company's cash and cash equivalents at the end of 2023 were RMB 116,783,284.22, down from RMB 153,701,238.00 at the beginning of the year[96] - Net profit attributable to parent company owners in 2023 was RMB 58,219,917.79[109] - Total comprehensive income for 2023 was RMB 79,620,673.67[98] - Retained earnings available for distribution at the end of 2023 were RMB 10,381,782.81[109] - Total owner's equity at the end of 2023 was RMB 978,017,143.18[99] - Capital reserve at the end of 2023 was RMB 526,503,457.12[99] - Undistributed profit at the parent company level was negative RMB 243,866,697.70[109] - No cash dividend distribution or capital reserve to share capital conversion for 2023[109] - Minority interest at the end of 2023 was RMB 123,756,303.34[99] - Other comprehensive income for 2023 was RMB 21,400,755.88[98] - Total equity at the beginning of 2023 was RMB 899,181,213.43[97] - Revenue for Q1 2023 was RMB 324.35 million, Q2 was RMB 374.11 million, Q3 was RMB 289.75 million, and Q4 was RMB 498.55 million[125] - Net profit attributable to shareholders for Q1 2023 was RMB 6.38 million, Q2 was RMB 17.06 million, Q3 was RMB 13.48 million, and Q4 was RMB 21.31 million[125] - Net cash flow from operating activities for Q1 2023 was RMB 224.94 million, Q2 was RMB 317.33 million, Q3 was -RMB 118.05 million, and Q4 was -RMB 590.39 million[125] - Revenue in 2023 decreased by 13.89% to 1,486,772,095.82 RMB compared to 2022[129] - Net profit attributable to shareholders decreased by 36.79% to 58,219,917.79 RMB in 2023[129] - Operating cash flow turned negative, decreasing by 163.27% to -166,177,318.47 RMB in 2023[129] - Apple juice production increased by 24.07% to 100,500 tons, while sales decreased by 37.16% to 84,400 tons in 2023[132] - Top 5 customers accounted for 25.72% of total sales, with 37,692.37 million RMB in sales[134] - R&D personnel accounted for 1.90% of total employees, with 24 R&D staff in 2023[136] - Cash received from sales of goods and services decreased by 19.85% to 1,582,471,664.02 RMB in 2023[138] - Cash paid for operating activities decreased by 31.90% to 179,778,785.72 RMB in 2023[138] - Cash and cash equivalents decreased by 21.25% to 172.95 million yuan, mainly due to a reduction in bank deposits[139] - Accounts receivable decreased by 20.51% to 258.21 million yuan, driven by intensified collection efforts and reduced credit period receivables[139] - Prepayments increased by 22.91% to 4.10 million yuan, primarily due to increased prepayments for procurement[139] - Other current assets increased by 39.28% to 41.20 million yuan, mainly due to an increase in deductible input tax[139] - Construction in progress decreased by 98.88% to 269,135.33 yuan, as the Zhonglu Europe wastewater treatment plant was transferred to fixed assets[139] - Basic earnings per share decreased by 36.81% to 0.2220 yuan per share[141] - Weighted average return on equity decreased by 5.49 percentage points to 7.15%[141] - The company's market share of concentrated apple juice accounted for 8.2% globally and 25.3% of China's export volume[147] - The company obtained 1 national invention patent authorization and participated in the revision of 2 national standards and the creation of 2 industry standards[144] - The company's concentrated apple juice export volume in 2023 was 268,100 tons, accounting for approximately 26% of global exports[146] - Revenue in 2023 decreased by 13.89% to 1,486,772,095.82 yuan compared to 1,726,531,019.75 yuan in 2022[153][155] - Net profit attributable to shareholders decreased by 36.79% to 58,219,900 yuan from 92,105,100 yuan in 2022[153] - R&D expenses increased by 39.06% to 8,199,899.19 yuan, accounting for 0.55% of total revenue[155][164] - International market revenue decreased by 18.02% to 1,240,033,026.21 yuan, while domestic market revenue increased by 9.45% to 225,286,752.47 yuan[159][160] - Overseas assets accounted for 24.74% of total assets, amounting to 597,300,100 yuan[168] - Operating cash flow decreased by 163.27% to -166,177,318.47 yuan due to reduced sales[155][156] - The company obtained 1 national invention patent and applied for 5 utility model patents in 2023[165] - Gross profit margin for the beverage manufacturing sector increased by 0.55 percentage points to 22.66%[159] - Sales expenses decreased by 25.75% to 101,656,147.73 yuan, primarily due to reduced logistics costs[155][163] - The company participated in revising 2 national standards and creating 2 industry standards in 2023[165] - The company's revenue and cost analysis is conducted in units of 10,000 yuan (RMB)[172] - The company's derivative financial instruments had a fair value change of 14,