Financial Performance - Revenue for 2023 reached RMB 133,623,632,000, a year-on-year increase of approximately 1.5%[3] - Gross profit for 2023 was RMB 20,954,597,000, up 14.9% compared to the previous year[3] - Net profit attributable to shareholders increased by 31.7% to RMB 11,460,678,000 in 2023[3] - Basic earnings per share for 2023 were RMB 1.2095, up from RMB 0.9358 in 2022[3] - Revenue for the year reached approximately RMB 133.62 billion, a year-on-year increase of 1.5%, driven by increased sales of aluminum alloy and alumina products[15] - Net profit attributable to shareholders increased by 31.7% to approximately RMB 11.46 billion, primarily due to higher overall product gross profit, reduced administrative expenses, and increased share of profits from associates[15] - Revenue increased from RMB 84,179,288 thousand in 2019 to RMB 133,623,632 thousand in 2023, representing a growth of approximately 58.7% over five years[54] - Gross profit rose from RMB 16,464,253 thousand in 2019 to RMB 20,954,597 thousand in 2023, with a significant increase in 2021 to RMB 30,453,096 thousand[54] - Net profit for 2023 was RMB 12,497,752 thousand, showing a recovery from the previous year's RMB 9,808,975 thousand[54] - Revenue for 2023 increased to RMB 133,623.63 million, up from RMB 131,699.43 million in 2022[160] - Gross profit for 2023 rose to RMB 20,954.60 million, compared to RMB 18,239.30 million in 2022[160] - Net profit attributable to the company's owners for 2023 was RMB 11,460.68 million, up from RMB 8,701.95 million in 2022[160] - Total comprehensive income for 2023 was RMB 12,488.00 million, compared to RMB 10,476.52 million in 2022[160] - Basic earnings per share for 2023 increased to RMB 1.2095, up from RMB 0.9358 in 2022[160] - Net profit for the year was RMB 11,460,678 thousand in 2023, up from RMB 8,701,953 thousand in 2022[163][165] - Total comprehensive income for the year was RMB 12,488,002 thousand in 2023, compared to RMB 10,476,523 thousand in 2022[163][165] - Profit before tax for 2023 was RMB 15,890,464 thousand, up from RMB 12,606,558 thousand in 2022, showing strong profitability growth[166] Assets and Liabilities - Total assets grew to RMB 200,320,085,000 in 2023, compared to RMB 185,741,791,000 in 2022[4] - The company's equity increased to RMB 106,256,445,000 in 2023, up from RMB 96,305,777,000 in 2022[4] - Total assets grew from RMB 179,604,445 thousand in 2019 to RMB 200,320,085 thousand in 2023, indicating a steady expansion of the company's asset base[55] - Total liabilities decreased from RMB 113,588,469 thousand in 2019 to RMB 94,063,640 thousand in 2023, reflecting improved financial health[55] - Property, plant, and equipment increased to RMB 70,200.24 million in 2023 from RMB 68,060.30 million in 2022[161] - Cash and cash equivalents rose to RMB 31,721.12 million in 2023, up from RMB 27,384.54 million in 2022[161] - Total assets less current liabilities increased to RMB 126,290.96 million in 2023 from RMB 114,368.67 million in 2022[161] - Non-current liabilities increased to RMB 20,034,514 thousand in 2023, up from RMB 18,062,890 thousand in 2022, driven by higher bank loans and other financial liabilities[162] - Bank loans due after one year rose significantly to RMB 8,621,908 thousand in 2023, compared to RMB 4,993,909 thousand in 2022[162] - Other financial liabilities were recorded at RMB 2,965,195 thousand in 2023, a new addition compared to zero in 2022[162] - Lease liabilities surged to RMB 916,706 thousand in 2023 from RMB 51,755 thousand in 2022[162] - Net assets grew to RMB 106,256,445 thousand in 2023, up from RMB 96,305,777 thousand in 2022[162] - Retained earnings increased to RMB 47,871,717 thousand in 2023, compared to RMB 42,713,714 thousand in 2022[163] - Non-controlling interests increased to RMB 14,011,767 thousand in 2023, up from RMB 11,806,924 thousand in 2022[162] - Equity attributable to owners of the company rose to RMB 92,244,678 thousand in 2023, compared to RMB 84,498,853 thousand in 2022[162] Dividends and Shareholder Returns - The company proposed a final dividend of 29 HK cents per share for 2023, with a total annual dividend of 63 HK cents per share[8] - The company proposed a final dividend of 29 HK cents per share for the year ended December 31, 2023, bringing the total dividend for the year to 63 HK cents per share (2022: 51 HK cents per share)[50] Product Sales and Market Performance - Aluminum alloy product sales volume reached approximately 5.748 million tons, up 5.0% year-on-year, with an average selling price decrease of 6.4% to RMB 16,464 per ton[15] - Alumina product sales volume increased by 25.0% to approximately 10.374 million tons, with an average selling price decrease of 0.8% to RMB 2,560 per ton[15] - Aluminum alloy processing product sales volume decreased by 4.8% to approximately 580,000 tons, with an average selling price decrease of 9.2% to RMB 19,834 per ton[15] - Global primary aluminum production reached approximately 70.46 million tons, a year-on-year increase of 2.2%, with China accounting for 59.1% of global production[13] - Global primary aluminum consumption reached approximately 70.14 million tons, a year-on-year increase of 0.9%, with China accounting for 61.1% of global consumption[13] - The company's aluminum alloy product output increased by 3.7% to approximately 6.265 million tons, while aluminum alloy processing product output increased by 17.0% to approximately 770,000 tons[14] - Aluminum alloy product revenue decreased by 1.6% to RMB 94,640,869,000 in 2023 compared to RMB 96,226,971,000 in 2022, primarily due to a decline in selling prices despite an increase in sales volume[17] - Alumina product revenue increased by 24.1% to RMB 26,557,457,000 in 2023 compared to RMB 21,404,782,000 in 2022, driven by higher sales volume[17] Profit Margins and Efficiency - The gross profit margin improved to 15.7% in 2023, up from 13.8% in 2022[3] - The net profit margin increased to 9.4% in 2023, compared to 7.4% in the previous year[3] - The company's capital return rate rose to 12.3% in 2023, up from 10.4% in 2022[4] - Overall gross profit margin improved to 15.7% in 2023, up 1.9 percentage points from 13.8% in 2022, with aluminum alloy product gross margin rising 3.9 percentage points to 17.4%[18] Expenses and Costs - Sales and distribution expenses increased by 26.4% to RMB 755,274,000 in 2023, mainly due to higher transportation costs from increased alumina product sales[19] - Administrative expenses decreased by 16.5% to RMB 4,952,875,000 in 2023, primarily due to reduced exchange losses[19] - The company's total employee costs were approximately RMB 5,035,092,000 in 2023, a decrease of 1.8% compared to 2022, accounting for 3.8% of the company's revenue[24] - The company's foreign exchange loss was approximately RMB 223,678,000 in 2023, a significant decrease from RMB 889,485,000 in 2022[25] Cash Flow and Liquidity - Cash and cash equivalents increased by 15.8% to RMB 31,721,122,000 as of December 31, 2023, driven by higher net cash inflows from operating activities[20] - Capital expenditures amounted to RMB 6,046,330,000 in 2023, primarily for the construction of green aluminum innovation industrial park and new energy projects[20] - Trade receivables increased by 19.0% to RMB 5,488,751,000 as of December 31, 2023, due to extended credit terms for certain customers[21] - Operating cash flow from operations increased to RMB 22,402,302 thousand in 2023, up from RMB 7,621,836 thousand in 2022, reflecting a significant improvement in cash generation[166] - Net cash used in investing activities was RMB 17,888,513 thousand in 2023, slightly higher than RMB 16,772,532 thousand in 2022, primarily due to increased investments in property, plant, and equipment[167] - Net cash used in financing activities decreased to RMB 199,576 thousand in 2023 from RMB 12,790,446 thousand in 2022, driven by higher proceeds from bank borrowings and lower repayments[168] - Cash and cash equivalents at the end of 2023 stood at RMB 31,721,122 thousand, compared to RMB 27,384,542 thousand at the end of 2022, indicating improved liquidity[168] - Proceeds from bank borrowings increased significantly to RMB 38,227,341 thousand in 2023 from RMB 23,078,057 thousand in 2022, reflecting higher financing activities[168] - Interest income for 2023 was RMB 1,023,491 thousand, up from RMB 701,021 thousand in 2022, indicating improved returns on financial assets[166] - The company's cash flow from operations before changes in working capital was RMB 25,071,410 thousand in 2023, compared to RMB 22,429,863 thousand in 2022[166] - The company's cash and cash equivalents increased by RMB 4,314,213 thousand in 2023, a significant improvement from a decrease of RMB 21,941,142 thousand in 2022[168] Debt and Financing - Total liabilities stood at RMB 94,063,640,000 as of December 31, 2023, with a debt-to-asset ratio of 47.0%, down from 48.2% in 2022[22] - The company's total bank loans amounted to approximately RMB 39,111,116,000 as of December 31, 2023, with 81.2% at fixed interest rates and 18.8% at floating rates[23] - The company's total debt was primarily denominated in RMB (89.0%) and USD (11.0%), with cash and cash equivalents mainly held in RMB (92.8%) and USD (6.8%)[23] - The company issued USD 500,000,000 in 6.25% senior unsecured notes due in 2024, with net proceeds of approximately USD 493,900,000[61] - Shandong Hongqiao completed the issuance of RMB 500,000,000 in domestic corporate bonds with a 1+1 year term and an annual interest rate of 4.90% in 2021[62] - Shandong Hongqiao also issued RMB 500,000,000 in domestic corporate bonds with a 2+1 year term and an annual interest rate of 5.60% in 2021[62] - The company redeemed the first series of domestic corporate bonds totaling RMB 500,000,000 on June 11, 2023, with the interest rate adjusted to 4.10%[62] - The second series of domestic corporate bonds saw a redemption of RMB 150,000,000 in 2023, with the interest rate adjusted to 4.50%[62] - Shandong Hongqiao completed the issuance of the second phase of its 2021 corporate bonds with a scale of RMB 1 billion, a term of 1+1+1 years, and an annual interest rate of 4.16%. After a buyback and resale, the outstanding principal remained at RMB 1 billion, with the interest rate adjusted to 3.90%[63] - In 2022, Shandong Hongqiao issued three phases of corporate bonds, each with a scale of RMB 1 billion. The first phase had a term of 2+1 years and an annual interest rate of 4.30%, the second phase had a term of 2+1 years and an annual interest rate of 4.50%, and the third phase had a term of 1+1+1+1+1 years with an initial annual interest rate of 4.00%[63] - In 2023, Shandong Hongqiao completed a buyback and resale of its 2022 corporate bonds, with a buyback amount of RMB 1 billion and a resale amount of RMB 620 million. The outstanding principal was adjusted to RMB 620 million, and the interest rate for the second interest period was set at 4.01%[64] - Weiqiao Aluminum completed the issuance of its 2016 corporate bonds with a scale of RMB 7.8 billion, a term of 5+2 years, and an annual interest rate of 4.00%. After buybacks and resales, the outstanding principal was adjusted to RMB 4.06 billion, with the interest rate remaining at 4.80%[65][66] - Weiqiao Aluminum completed the issuance of its 2019 corporate bonds with a scale of RMB 2 billion, a term of 3+2 years, and an annual interest rate of 6.00%. After a buyback and resale, the outstanding principal remained at RMB 2 billion, with the interest rate adjusted to 4.40%[67] - The company issued convertible bonds with an initial principal amount of $300,000,000, and the conversion price was adjusted multiple times due to dividend distributions, from HKD 8.91 to HKD 6.82 per share[68][69] Corporate Governance and Board Structure - The company has complied with the Corporate Governance Code for the year ended December 31, 2023, except for the deviation regarding the Chairman also serving as the CEO, which the Board believes is beneficial for the company's stable development[102] - The Board of Directors consists of 4 executive directors, 4 non-executive directors, and 4 independent non-executive directors as of the date of the annual report[104] - The Board is responsible for leading, controlling, and supervising the company's business strategy decisions and performance, and has established Board committees to delegate responsibilities[106] - The Board has fulfilled its corporate governance duties, including reviewing and monitoring compliance with laws and regulations, and the company's adherence to the Corporate Governance Code[107] - The CEO is responsible for the company's production and operation management, implementing Board resolutions, and organizing the annual business plan and investment proposals[109] - Directors are appointed and re-elected according to the company's articles of association, with a three-year service contract that automatically renews unless terminated with at least one month's written notice[110] - New directors receive induction training to enhance their understanding of the company's culture and operations, and ongoing training is encouraged for all directors[111] - The Board conducted a performance review in 2023 to identify areas for operational improvement[112] - The Board of Directors held a total of 10 meetings in 2023, with attendance rates ranging from 80% to 100% among directors[114] - The Chairman and independent non-executive directors held one meeting without the presence of other directors in 2023[116] - The company has maintained compliance with the requirement to appoint at least three independent non-executive directors since its listing in 2011[117] - Non-executive directors and independent non-executive directors have service contracts with the company for a term of three years[118] - The Chairman and CEO roles are both held by Mr. Zhang Bo, with the Board believing this structure benefits the company's business development and management[119] - The Audit Committee reviewed the company's annual and interim financial reports for 2022 and 2023, as well as the effectiveness of the risk management and internal control systems[123] - The Audit Committee held 2 meetings in 2023, with all members attending both meetings[124] - The Remuneration Committee held 1 meeting in 2023, with all members attending the meeting[129] - The Nomination Committee held 2 meetings in 2023, with all members attending both meetings[132] - The company aims to maintain a female member ratio of 30% or above on the board[135] - The company aims to maintain a ratio of 40% or above for board members aged 50 or below[135] - The board should have at least one member with professional accounting qualifications and one with professional legal qualifications[135] - The board of directors consists of 12 members, including 5 female directors and professionals from legal and accounting backgrounds, achieving diversity in terms of gender, professional background, and skills[136] Risk Management and Internal Controls - The company has implemented a comprehensive risk management system covering financial security, production, and compliance[26] - The company has established a comprehensive risk management and internal control system, with clear responsibilities and authorities for business units, departments, and management personnel[139] - The board of directors and audit committee annually review the effectiveness of the risk management and internal control systems, addressing any significant weaknesses or control failures[139] - The company has procedures and internal control measures
中国宏桥(01378) - 2023 - 年度财报
CHINAHONGQIAO(01378)2024-04-19 08:33