WEIXING NBM(002372)2024-04-08 16:00Financial Performance - Revenue for 2023 was 6.378 billion yuan, a decrease of 8.27% compared to 2022 [12] - Net profit attributable to shareholders in 2023 was 1.432 billion yuan, an increase of 10.40% compared to 2022 [12] - Net cash flow from operating activities in 2023 was 1.374 billion yuan, a decrease of 10.26% compared to 2022 [12] - Total assets at the end of 2023 were 7.292 billion yuan, an increase of 5.09% compared to 2022 [13] - Shareholders' equity at the end of 2023 was 5.594 billion yuan, an increase of 5.01% compared to 2022 [13] - Basic earnings per share in 2023 was 0.90 yuan, an increase of 9.76% compared to 2022 [13] - Weighted average return on equity in 2023 was 26.15%, an increase of 0.31% compared to 2022 [13] - Revenue in Q4 2023 was 2.632 billion yuan, the highest among all quarters [16] - Net profit attributable to shareholders in Q4 2023 was 558.093 million yuan, the highest among all quarters [16] - Non-recurring gains and losses in 2023 amounted to 157.426 million yuan, a significant increase compared to 2022 [18] - Total revenue for 2023 was 6,378,284,320.69 yuan, a decrease of 8.27% compared to 2022 [41] - Manufacturing revenue accounted for 99.29% of total revenue, with a decrease of 7.41% year-over-year [41] - PPR series products contributed 46.88% of total revenue, with a decrease of 8.97% year-over-year [41] - PE series products contributed 23.96% of total revenue, with a decrease of 14.17% year-over-year [41] - PVC series products contributed 14.12% of total revenue, with a decrease of 18.07% year-over-year [41] - Other products revenue increased by 35.33% year-over-year, driven by market expansion and acquisitions [42] - Sales volume in the manufacturing sector increased by 1.08% to 398,428 tons [45] - Production volume in the manufacturing sector increased by 8.52% to 409,362 tons [45] - Inventory volume in the manufacturing sector increased by 24.63% to 55,322 tons [45] - Direct material costs decreased by 15.49% to 2,110,190,294.71 yuan, accounting for 59.41% of operating costs [46] - Manufacturing expenses decreased by 23.35% to 267,413,931.30 yuan, accounting for 7.53% of operating costs [46] - Other business material costs decreased by 61.06% to 41,576,271.68 yuan, mainly due to reduced raw material sales [47] - R&D expenses increased by 7.01% to 202,469,746.08 yuan [54] - The net cash flow from operating activities in 2023 was RMB 1,373,833,592.06, a decrease of 10.26% compared to 2022 [59] - The net cash flow from investing activities in 2023 was RMB -1,135,469,709.00, a significant decrease of 994.09% compared to 2022, mainly due to increased investment in industrial park construction and no maturity of financial products [61] - The net cash flow from financing activities in 2023 was RMB -1,225,645,625.85, a decrease of 40.28% compared to 2022, primarily due to the repurchase of company shares [61] - The net increase in cash and cash equivalents in 2023 was RMB -985,447,332.83, a decrease of 276.26% compared to 2022, mainly due to the reduction in net cash flow from both investing and financing activities [61] - The company's monetary funds at the end of 2023 were RMB 3,174,467,037.65, accounting for 43.54% of total assets, a decrease of 2.25% compared to the beginning of the year [63] - Accounts receivable at the end of 2023 were RMB 550,595,082.38, accounting for 7.55% of total assets, an increase of 1.15% compared to the beginning of the year [63] - Inventory at the end of 2023 was RMB 1,015,472,937.09, accounting for 13.93% of total assets, an increase of 1.08% compared to the beginning of the year [63] - Fixed assets at the end of 2023 were RMB 1,296,276,531.14, accounting for 17.78% of total assets, a decrease of 0.80% compared to the beginning of the year [63] - The company's investment income in 2023 was RMB 187,264,812.57, accounting for 10.81% of total profit, mainly due to an increase in fair value change income from Dongpeng Heli [62] - Construction in progress increased to 139,954,167.39 RMB, up 1.92% due to increased investment in Tianjin and Chongqing industrial parks [64] - Short-term borrowings decreased to 1,350,000.00 RMB, down 0.18% due to the absence of supply chain financing tools received from customers in the previous period [64] - Contract liabilities increased to 445,149,084.71 RMB, up 6.10% compared to the previous period [64] - Investment amount for the reporting period was 101,304,103.71 RMB, a decrease of 72.67% compared to the same period last year, mainly due to reduced purchases of bank financial products [68] - The company acquired 60% equity in Zhejiang Kerui Building Technology Co., Ltd. for 80,800,000.00 RMB, which has been included in the consolidated financial statements [69] - Shanghai New Materials' net assets decreased by 59.03% due to the distribution of 464 million RMB in profits to the parent company [74] - Total operating revenue for 2023 was 6,378,284,320.69 yuan, a decrease of 8.27% compared to 6,953,640,738.88 yuan in 2022 [198] - Net profit attributable to parent company shareholders in 2023 was 1,432,407,923.84 yuan, an increase of 10.4% compared to 1,297,482,018.24 yuan in 2022 [199] - R&D expenses in 2023 were 202,469,746.08 yuan, an increase of 7.01% compared to 189,203,995.89 yuan in 2022 [198] - Investment income in 2023 was 187,264,812.57 yuan, a significant improvement from a loss of 17,410,069.99 yuan in 2022 [198] - Basic earnings per share in 2023 were 0.9 yuan, an increase of 9.76% compared to 0.82 yuan in 2022 [199] - Total comprehensive income in 2023 was 1,464,132,821.93 yuan, an increase of 11.85% compared to 1,309,049,137.93 yuan in 2022 [199] - Parent company's operating income in 2023 was 1,857,132,712.07 yuan, a decrease of 12.74% compared to 2,127,876,106.08 yuan in 2022 [200] - Parent company's net profit in 2023 was 1,631,172,130.48 yuan, an increase of 67.75% compared to 972,272,642.86 yuan in 2022 [200] - Sales expenses in 2023 were 831,135,470.37 yuan, an increase of 10.88% compared to 749,622,827.55 yuan in 2022 [198] - Financial expenses in 2023 were -71,656,376.95 yuan, an increase of 18.49% compared to -60,474,945.72 yuan in 2022 [198] Dividend and Shareholder Information - The company plans to distribute a cash dividend of 8 yuan per 10 shares, based on 1,571,867,988 shares (total shares of 1,592,037,988 minus 20,170,000 shares held in the repurchase account) [2] - The company's total share capital is 1,592,037,988 shares, with 20,170,000 shares held in the repurchase account [2] - The company implemented a cash dividend policy of 6 yuan per 10 shares for the 2022 fiscal year, totaling 955,208,292.80 yuan, which was completed on May 31, 2023 [119] - For the 2023 fiscal year, the company plans to distribute a cash dividend of 8 yuan per 10 shares, totaling 1,257,494,390.40 yuan [121] - The company's net profit attributable to the parent company in 2023 was 1,432,407,923.84 yuan, with a total distributable profit of 1,676,351,367.47 yuan [121] - The company's cash dividend payout ratio for 2023 is 100% of the total profit distribution [121] - The company's total equity at the end of 2023 was 1,571,867,988 shares, after deducting 20,170,000 shares held in the repurchase account [121] - The company completed the third phase of its equity incentive plan, unlocking 7.54 million restricted shares for 139 incentive recipients on December 28, 2023 [122] - A total of 2.58 million restricted shares were unlocked for 8 senior executives, completing the third phase of the equity incentive plan [125] - The company's equity incentive plan granted 1.9 million restricted shares at a price of 7.00 yuan per share to 143 incentive recipients in 2020 [122] - The company's senior executives, including the Chairman and General Manager, held a total of 2.58 million restricted shares, all of which were unlocked by the end of the reporting period [125] - The company's Chairman and CEO, Jin Hongyang, holds 16,563,013 shares as of the end of 2023 [97] - Vice President Shi Guojun holds 10,331,194 shares as of the end of 2023 [97] - Director Zhang Kapeng holds 82,538,434 shares as of the end of 2023 [97] - Director Zhang Sanyun holds 31,269,218 shares as of the end of 2023 [97] - Board Secretary Tan Mei holds 8,597,416 shares as of the end of 2023 [97] - Vice President Li Bin reduced his shareholding by 225,000 shares due to personal reasons, leaving him with 300,000 shares at the end of 2023 [98] - The total number of shares held by directors, supervisors, and senior management at the end of 2023 was 173,577,783 [98] - The company repurchased and canceled 35,000 restricted shares from a departing incentive recipient, reducing the registered capital from 1,592,112,988 yuan to 1,592,077,988 yuan [156] - The company's total shares decreased by 35,000 due to the repurchase and cancellation of restricted shares, with the total number of shares changing from 1,592,112,988 to 1,592,077,988 [160] - The company completed the release of 7,540,000 restricted shares from the third phase of its equity incentive plan, with 2,505,000 shares remaining as restricted and 5,035,000 shares becoming unrestricted [161] - The company's controlling shareholders, Zhang Kapeng and Zhang Sanyun, signed a supplementary agreement to their concerted action agreement in August 2023 [157] - The company's limited-sale shares decreased by 14,823,457 shares, while the unrestricted shares increased by 14,788,457 shares during the reporting period [160] - Total shares decreased from 1,592,112,988 to 1,592,077,988 due to restricted stock repurchase and other adjustments [166] - Restricted shares decreased from 135,293,336 to 120,469,879, while unrestricted shares increased from 1,456,819,652 to 1,471,608,109 [166] - Total number of ordinary shareholders at the end of the reporting period was 50,910, up from 44,585 at the end of the previous month [167] - Weixing Group holds 37.90% of shares, totaling 603,359,564 shares, with 227,132,400 shares pledged [168] - Linhai Huixing Group holds 14.68% of shares, totaling 233,660,000 shares, with 98,500,000 shares pledged [168] - Hong Kong Central Clearing Limited holds 7.78% of shares, totaling 123,838,323 shares [168] - Zhang Kapeng holds 5.18% of shares, totaling 82,538,434 shares, with 61,903,825 shares restricted [168] - Zhang Sanyun holds 1.96% of shares, totaling 31,269,218 shares, with 23,451,913 shares restricted [168] - Jin Hongyang holds 1.04% of shares, totaling 16,563,013 shares, with 12,422,260 shares restricted [168] - Anbang Life Insurance Co., Ltd. - Dividend Product added 10,962,500 shares, accounting for 0.69% of the total shares [170] - Dacheng Fund Management Co., Ltd. - Social Security Fund 1101 Portfolio exited with 6,364,284 shares, accounting for 0.40% of the total shares [170] - First Sentier Investors (UK) Ltd. - First State China A-Share Fund exited with 5,407,985 shares, accounting for 0.34% of the total shares [171] - Weixing Group holds 25.86% of Weixing Shares as of the end of the reporting period [172] - Zhang Kapeng directly holds 5.67% of Weixing Shares and indirectly holds 4.13%, while Zhang Sanyun directly holds 3.76% and indirectly holds 2.81% [174] Industry and Market Trends - Domestic plastic pipe production in 2023 was 16.19 million tons, a year-on-year decrease of 1.58% [21] - Plastic pipe exports in 2023 reached 1.0376 million tons, a year-on-year increase of 15.91%, with an export value of $4.162 billion, up 2.22% [21] - The export unit price of plastic pipes decreased significantly, reflecting a decline in profit margins [21] - Industry concentration increased as smaller companies struggled to compete, while larger companies improved their quality and brand focus [21] - The industry's intelligent production scale expanded, enhancing cost efficiency and product quality, leading to increased market recognition [21] - Plastic pipes were widely used in major projects such as the Beijing Winter Olympics and Asian Games venues, leveraging their efficiency, energy-saving, and environmental advantages [22] - The plastic pipe industry is highly competitive, with the top 20 companies accounting for over 40% of the total industry sales, indicating further industry consolidation [75] - Plastic pipes are increasingly used in traditional fields like municipal, construction, and water conservancy, as well as emerging areas such as heating, agriculture, and communication [76] Corporate Governance and Management - The company's registered address is in Linhai Economic Development Zone, Zhejiang Province, with no historical changes [7] - The company's office address is at No. 688 Jiangshi West Road, Linhai City, Zhejiang Province [7] - The company's website is www.vasen.com, and the email address is wxxc@vasen.com [7] - The company's annual report is disclosed on the Shenzhen Stock Exchange website and major financial media such as Securities Times, China Securities Journal, Shanghai Securities News, and Securities Daily [9] - The company's annual report is also available on the CNINFO website (www.cninfo.com.cn) [9] - The company's annual report is stored at the company's securities department [9] - The company's unified social credit code is 91330000719525019T, with no changes in main business or controlling shareholders since listing [10] - The company follows a "market-first, factory-later" approach and operates on a "order + appropriate inventory" principle for retail products, while engineering products are produced based on orders [27] - The company's production and sales data for 2023 includes detailed metrics on sales volume, production volume, inventory, and gross margin changes compared to the previous year [27] - The company's market share increased by more than 3 percentage points, and sales of waterproofing and other products grew by over 35% year-on-year [33] - Overseas business sales reached 283 million yuan, with over 70% of sales coming from the company's own brand [34] - The company has 34 ongoing research projects and filed 283 patents, including 34 invention patents [34] - The company successfully acquired Zhejiang Kerui and Guangzhou Hexin Fangyuan to enhance core competitiveness and expand into high-end residential and large public construction markets [36] - The company's raw material costs were lower than the previous year due to a general decline in energy and commodity prices, positively impacting profitability [28] - The company's electricity and water costs decreased in 2023, contributing to overall cost reduction [29] - The company's PPR series products are primarily used for building water supply, PE series for municipal water supply, heating, gas, and drainage, and PVC series for drainage and power protection [30] - The company is a pioneer in the PPR pipeline industry and has received numerous industry awards and recognitions [31] - The company's industrial parks have been recognized as "National Green Factories" and "Zhejiang Service-Oriented Manufacturing Demonstration Enterprises" [35] - The company has established 50+ sales companies and 30,000+ marketing outlets nationwide, with 1,900+ professional marketing and service personnel [38] - The company developed a flexible water supply pipeline system and a "Safety Star" water supply system, both completed and expected to enhance market competitiveness [55] - The number of R&D personnel increased by 33.