SCAC(600618)2024-04-15 08:46Financial Performance - The company achieved operating revenue of RMB 7,213.87 million in 2023, reflecting a year-on-year increase of 13.48%[177]. - The gross profit margin for the industrial segment was 17.70%, a decrease of 15.25% compared to the previous year[177]. - Domestic sales revenue reached RMB 6,626.69 million, up 19.36% year-on-year, while international sales decreased by 29.98% to RMB 526.35 million[177]. - The company reported a net profit for the year of 760,513,590.88 RMB, with a cash dividend payout ratio of 30.41%[45]. - Net profit for the year was ¥810,082,128.73, a decrease of 39.3% from ¥1,337,375,816.75 in the previous year[196]. - Basic earnings per share decreased to ¥0.6577 from ¥1.1851, reflecting a decline of 44.4%[196]. - The total profit margin decreased to 12.27% from 21.03% year-over-year[195]. Dividend Distribution - The company plans to distribute a cash dividend of 0.2 CNY per share (including tax), totaling approximately 231.28 million CNY based on a total share capital of 1,156,399,976 shares as of December 31, 2023[8]. - The company reported a cash dividend of 231,279,995.20 RMB, which accounts for 30.41% of the net profit attributable to ordinary shareholders in the consolidated financial statements[45]. - The company has proposed no stock dividends or capital increases, maintaining a focus on cash dividends[45]. Environmental Protection - The company emphasizes the importance of environmental protection and compliance with stricter policies to ensure stable production[21]. - The company has invested 10,031.6 million RMB in environmental protection during the reporting period[79]. - The company has achieved a 100% operational rate for its environmental protection facilities in 2023, complying with national and company regulations[107]. - The company’s environmental protection measures include emergency plans to ensure wastewater and exhaust gas meet standards[107]. - The company has implemented a project to cover open wastewater pools to reduce odors and improve the working environment for employees[109]. - The company has maintained a consistent approach to pollution prevention, utilizing advanced technologies for waste gas and wastewater treatment[51]. Corporate Governance - The company has established a complete independent organizational structure, ensuring operational independence from its controlling shareholder[26]. - The company has implemented strict measures to ensure the independence of its business operations, maintaining a complete and independent business system[27]. - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[2]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[10]. - The company has not faced any objections from the supervisory board regarding the matters discussed during the reporting period[40]. - The company has not faced any penalties from securities regulatory authorities in the past three years[64]. - The company has not established an employee stock ownership plan[74]. - The company has established a profit distribution policy that aligns with its articles of association and shareholder resolutions, ensuring the protection of minority shareholders' rights[72]. Management and Organizational Changes - The company appointed Mr. Gu Chunlin as the chairman of the board and strategic committee on June 8, 2023[33]. - The company has established a new management team with Mr. Li Fan appointed as the general manager on January 31, 2024[34]. - The company has successfully expanded its board with new candidates nominated for the upcoming shareholder meeting[61]. - The company has conducted a review of its board candidates, with all candidates deemed qualified by the nomination committee[68]. Research and Development - The company has a total of 160 R&D personnel, indicating a focus on innovation and product development[70]. - Research and development expenses rose to ¥254,858,591.02, an increase of 49.3% compared to ¥170,610,131.85 from the previous year[195]. Market and Industry Insights - The chlor-alkali industry in China is becoming increasingly competitive, with a clear layout emerging across eastern, central, and western regions, each developing unique growth paths and characteristics[141]. - The domestic market for polyvinyl chloride (PVC) is primarily composed of general-purpose grades, with a lack of development in specialized and high-end resin products, indicating a need for further expansion in application fields[142]. - Chlor-alkali enterprises are expected to focus on developing high-value-added products, particularly in specialized PVC resins, to differentiate themselves in the market[142]. - The company aims to increase its production capacity in specialized PVC to capture a larger share of the Southeast Asian market, reducing reliance on imported resins[142]. - The company is focusing on the development of fine chlor-alkali products in the central region, capitalizing on its proximity to key consumer markets[141]. Financial Position and Investments - Total assets increased to ¥9,005,658,556.99 as of December 31, 2023, compared to ¥8,756,390,008.43 in 2022, reflecting a growth of approximately 2.85%[192]. - Current assets totaled ¥4,347,010,018.71, slightly up from ¥4,310,021,245.84 in the previous year, indicating a growth of about 0.86%[192]. - Long-term equity investments rose to ¥2,018,528,292.30, an increase of 10.69% from ¥1,823,690,183.92 in 2022[192]. - The company reported a total loan amount of RMB 150 million with interest rates ranging from 2.90% to 3.52%, maintaining a balance of RMB 40.34 million at the end of the period[146]. - The company has completed the investment of 95,360,000 RMB in the capital increase for Guangxi Chlor-Alkali Company as of December 31, 2023[121]. - The company has completed the civil construction and equipment installation for a 30,000 tons/year HCl recovery project, with plans for completion by June 2024[160]. Cash Flow and Financial Activities - Cash generated from operating activities was ¥6,971,981,168.95, an increase of 24.5% from ¥5,599,296,704.45 in the previous year[199]. - Cash outflow from operating activities was approximately 6.5 billion, compared to 4.5 billion, indicating an increase of around 43% year-over-year[200]. - Net cash generated from operating activities was approximately 638.6 million, down from 1.4 billion, representing a decline of about 55.3% year-over-year[200]. - Investment cash inflow amounted to approximately 226.5 million, significantly higher than 24.7 million, marking an increase of about 817% year-over-year[200]. - Cash outflow for investment activities was approximately 656.0 million, down from 1.9 billion, showing a decrease of about 64.7% year-over-year[200]. - Cash received from financing activities was approximately 63.6 million, down from 287.5 million, reflecting a decrease of about 77.9% year-over-year[200].