六国化工(600470) - 2023 Q4 - 年度财报

Environmental Emissions and Compliance - The total emission of ammonia from the sulfur-ammonium phosphate production system in 2023 was 16.274 tons, with a company-approved total emission limit of 18.67 tons[1] - The emission limit for particulate matter at the DA001 exhaust chimney is 120 mg/m³ under the national standard, with a stricter local standard limit of 30 mg/m³[2] - The company operates 7 sets of pollution source online monitoring systems, which are connected to the provincial online monitoring platform and publicly share real-time data[48] - The company has established 1 set of online monitoring system for pollution sources, used for the DA005 discharge port of the drum granulation workshop, with real-time data uploaded to the provincial online monitoring platform and made public[49] - The company has 4 sets of online monitoring systems for pollution sources, including 1 for wastewater COD, 1 for wastewater ammonia nitrogen, 1 for boiler flue gas (long-term shutdown), and 1 for VOCs in the oxidation tail gas of the hydrogen peroxide unit[52] - The company has 1 set of online monitoring system for pollution sources, used for the exhaust gas treatment system outlet, with 1 exhaust gas discharge port (870 discharge port), and real-time data uploaded to the provincial online monitoring platform[53] - The company has significantly reduced coal consumption, with 13,943.44 tons of bituminous coal used in 2022 and no anthracite consumption in 2023[58] - The company has implemented advanced technology for treating production wastewater, with emission indicators far below national standards, and has effectively improved the atmospheric environment in and around the plant area through tail gas treatment[55] - The company has conducted various environmental protection publicity activities during the World Environment Day and Environmental Protection Week, promoting environmental knowledge to employees and community residents[55] Financial Performance and Position - The total assets of the company as of the end of 2023 were 5,913,786,825.05, with total liabilities of 3,964,664,954.53[11] - Short-term borrowings decreased significantly from 2,462,441,969.72 to 1,065,328,100.27 in 2023[11] - Contract liabilities decreased from 674,928,605.19 to 430,469,568.45 in 2023[11] - Long-term borrowings increased from 366,865,408.73 to 438,620,687.05 in 2023[11] - Deferred income increased from 60,955,084.39 to 92,998,043.52 in 2023[11] - Total assets decreased from 4,810,952,748.31 RMB in 2022 to 3,724,234,620.31 RMB in 2023, a decrease of 22.6%[15][18] - Total liabilities decreased from 3,188,762,630.23 RMB in 2022 to 2,051,990,788.00 RMB in 2023, a decrease of 35.6%[15][18] - Operating revenue decreased from 7,549,891,727.43 RMB in 2022 to 6,932,799,256.80 RMB in 2023, a decrease of 8.2%[20] - Operating costs decreased from 7,317,616,538.45 RMB in 2022 to 6,906,749,234.92 RMB in 2023, a decrease of 5.6%[20] - Net profit attributable to shareholders improved from -298,567,741.85 RMB in 2022 to -244,458,612.00 RMB in 2023, a reduction in loss of 18.1%[18] - Long-term equity investments increased from 377,709,085.55 RMB in 2022 to 584,100,553.32 RMB in 2023, an increase of 54.6%[13] - Short-term borrowings decreased from 1,879,041,074.80 RMB in 2022 to 610,320,375.00 RMB in 2023, a decrease of 67.5%[15] - Accounts receivable decreased from 128,923,621.69 RMB in 2022 to 33,865,613.36 RMB in 2023, a decrease of 73.7%[13] - Inventory decreased from 756,151,388.22 RMB in 2022 to 595,166,616.61 RMB in 2023, a decrease of 21.3%[13] - Fixed assets increased from 1,193,020,621.03 RMB in 2022 to 1,440,981,964.80 RMB in 2023, an increase of 20.8%[15] - Revenue for 2023 was 3,847,026,637.18 RMB, a decrease from 4,369,247,340.09 RMB in 2022[25] - Net profit for 2023 was 52,285,222.91 RMB, compared to 273,680,409.47 RMB in 2022[22] - Operating profit for 2023 was 60,576,414.54 RMB, down from 239,442,400.53 RMB in 2022[22] - R&D expenses for 2023 were 116,472,296.78 RMB, a decrease from 164,789,799.19 RMB in 2022[27] - Sales expenses for 2023 were 16,617,481.92 RMB, up from 13,398,493.80 RMB in 2022[27] - Net profit attributable to parent company shareholders was 22,751,561.56 RMB in 2023, compared to 191,169,534.14 RMB in 2022[22] - Basic earnings per share for 2023 were 0.04 RMB, down from 0.37 RMB in 2022[22] - Asset impairment loss for 2023 was -16,077,302.21 RMB, compared to -26,520,722.99 RMB in 2022[22] - Income tax expense for 2023 was 13,110,230.07 RMB, up from 4,790,440.35 RMB in 2022[22] - Other comprehensive income after tax for 2023 was -3,760.01 RMB[22] - Sales revenue from goods and services received in cash for 2023 was RMB 5,082,268,579.95, a slight decrease from RMB 5,197,861,603.62 in 2022[30] - Net cash flow from operating activities for 2023 was RMB 393,330,126.79, down from RMB 426,451,895.37 in 2022[30] - Cash received from tax refunds in 2023 was RMB 106,394,944.36, significantly lower than RMB 252,430,961.23 in 2022[30] - Cash paid for employee compensation and benefits in 2023 was RMB 405,851,741.46, up from RMB 384,280,514.33 in 2022[30] - Net cash flow from investing activities for 2023 was RMB -476,196,402.08, compared to RMB -287,937,355.98 in 2022[33] - Cash received from borrowing in 2023 was RMB 2,054,695,819.95, down from RMB 3,405,681,934.98 in 2022[33] - Net cash flow from financing activities for 2023 was RMB -10,944,420.49, a significant drop from RMB 303,063,360.50 in 2022[33] - Cash and cash equivalents at the end of 2023 were RMB 745,130,445.01, down from RMB 832,422,240.02 at the end of 2022[33] - Cash received from investment returns in 2023 was RMB 36,177,240.90, a substantial increase from RMB 1,470,344.71 in 2022[30] - Cash paid for construction of fixed assets, intangible assets, and other long-term assets in 2023 was RMB 532,887,054.49, up from RMB 296,062,030.49 in 2022[30] - The company allocated -14,000,000.00 for profit distribution to owners (or shareholders) in 2023[40] - The company's comprehensive income for 2023 amounted to 54,109,129.85[43] - The company's total owner's equity at the end of the period was 1,672,243,832.31[46] - The company's total guarantee amount (A+B) is 88,893.50 million, with a direct or indirect guarantee amount of 84,393.50 million for debt guarantees to objects with a liability ratio exceeding 70%[77] - The company's total number of ordinary shareholders at the end of the reporting period is 59,948, with 56,167 shareholders at the end of the previous month before the annual report disclosure[80] - The company's largest shareholder, Tongling Chemical Industry Group Co., Ltd., holds 132,971,744 shares, accounting for 25.49% of the total shares[81] - The company's total guarantee amount for subsidiaries during the reporting period is 110,972.50 million, with a balance of 88,893.50 million at the end of the reporting period[77] - The company's domestic accounting firm, Rongcheng Certified Public Accountants, received a remuneration of 120 million for auditing services[70] - The company's internal control audit firm, Rongcheng Certified Public Accountants, received a remuneration of 40 million[70] - The company's top ten shareholders include Tongling Chemical Industry Group Co., Ltd., Dai Wen, and Shi Richao, with holdings of 25.49%, 3.48%, and 1.95% respectively[81] - The company's total guarantee amount (A+B) accounts for a certain percentage of the company's net assets, but the specific percentage is not disclosed[77] - The company's top ten shareholders include individuals and entities such as Wu Aimin, Zhonghang Xingang Guarantee Co., Ltd., and Lin Yunfang, with holdings ranging from 0.79% to 1.25%[81] - The company's top ten shareholders include individuals such as Cui Chunmei, Chen Hui, and Lin Yande, with holdings ranging from 0.52% to 0.61%[81] - The company's financial statements for the year 2023 were prepared in accordance with the Chinese Accounting Standards and fairly reflect the consolidated and parent company's financial position as of December 31, 2023, as well as the operating results and cash flows for the year[95] - The company's revenue recognition methods were deemed appropriate based on the review of sales contracts, discussions with sales personnel, and analytical procedures including revenue trend analysis and gross margin fluctuation analysis[97] - The company's inventory valuation and impairment provisions were reviewed, including the assessment of the net realizable value of inventory and the adequacy of impairment provisions[98] - The company's management is responsible for designing, implementing, and maintaining internal controls to ensure the financial statements are free from material misstatement, whether due to fraud or error[101] - The company's governance structure is in compliance with relevant laws and regulations, and there are no significant differences in corporate governance compared to the requirements of the China Securities Regulatory Commission[109] - The company implemented a "Broadband Position Salary Point System" in 2005, which has effectively improved overall performance by encouraging employees to focus on personal capability and performance enhancement[115] - The company's actual controller situation was updated following a change in equity structure in August 2020, with Anhui Chuanggu remaining the controlling shareholder of Tonghua Group, and the company still has no actual controller[91] - The company's top ten shareholders have changed compared to the previous period, with details provided in the annual report[87] - The company's audit procedures included evaluating the appropriateness of management's accounting policies and the reasonableness of accounting estimates and related disclosures[103] - The company's financial report process is overseen by the governance layer, ensuring the integrity and accuracy of financial reporting[102] - The company's paid-in capital (or share capital) is 521,600,000.00, and the capital reserve is 1,262,452,422.60[119] - The total comprehensive income for the current period is 156,871,732.34[119] - The company owns several subsidiaries, including Hubei Liuguo Chemical Co., Ltd. (51% direct ownership), Anhui Zhongyuan Fertilizer Co., Ltd. (60% direct ownership), and Tongling Guoxing Chemical Co., Ltd. (70% direct ownership)[122] - The company's normal operating cycle is one year[127] - The company follows the enterprise accounting standards to ensure the financial statements reflect the true and complete financial status, operating results, and cash flows[125] - The company determines the scope of consolidated financial statements based on control, including subsidiaries and structured entities[130] - The company handles the addition of subsidiaries or businesses through either business combinations under common control or business combinations not under common control[130] - The company adjusts the consolidated balance sheet, income statement, and cash flow statement when adding subsidiaries under common control[130] - The company includes the income, expenses, and cash flows of subsidiaries added through non-common control business combinations from the acquisition date to the reporting period end[130] - The company consolidates the income, expenses, and profits of subsidiaries from the beginning of the period to the disposal date in the consolidated income statement[131] - Subsidiaries' long-term equity investments in the company are treated as treasury stock and deducted from owners' equity in the consolidated balance sheet[131] - Unrealized internal transaction profits from the company selling assets to subsidiaries are fully offset against "net profit attributable to owners of the parent company"[131] - When the company purchases minority equity in a subsidiary, the difference between the new long-term equity investment and the increased share of the subsidiary's net assets is adjusted to capital surplus[131] - In step-by-step acquisitions of subsidiary control, the company re-measures the previously held equity at fair value, with any difference recognized in current investment income[132] - When the company disposes of a subsidiary's equity without losing control, the difference between the disposal price and the corresponding share of the subsidiary's net assets is adjusted to capital surplus[132] - If the company loses control of a subsidiary, the remaining equity is re-measured at fair value, and the difference is recognized in current investment income[132] - The company classifies joint arrangements as either joint operations or joint ventures, recognizing assets and liabilities based on its share in joint operations[133] - Financial assets classified as measured at fair value through other comprehensive income (FVOCI) are managed with a business model aimed at both collecting contractual cash flows and selling the assets. Their fair value changes are recognized in other comprehensive income until derecognition, when cumulative gains or losses are reclassified to profit or loss[138] - Non-trading equity investments can be irrevocably designated as FVOCI, with only dividend income recognized in profit or loss, and fair value changes recognized in other comprehensive income until derecognition, when cumulative gains or losses are transferred to retained earnings[138] - Financial liabilities classified as measured at fair value through profit or loss (FVTPL) include trading financial liabilities and those designated as FVTPL. Fair value changes are recognized in profit or loss, except for changes due to the company's own credit risk, which are recognized in other comprehensive income[138] - Loan commitments and financial guarantee contract liabilities are measured at the higher of the loss allowance determined under the expected credit loss model and the initial recognition amount less cumulative amortization[138] - Other receivables are grouped into portfolios based on historical credit loss experience, current conditions, and future economic forecasts. Expected credit losses are calculated using exposure at default and expected credit loss rates over 12 months or the lifetime[141] - Long-term receivables are grouped into portfolios, with expected credit losses calculated using exposure at default and expected credit loss rates over the lifetime for portfolio 1 and over 12 months or the lifetime for portfolio 2[141] - Debt investments and other debt investments are assessed for expected credit losses based on the nature of the investment, counterparty, and risk exposure, using exposure at default and expected credit loss rates over 12 months or the lifetime[141] - A financial instrument is considered to have low credit risk if the borrower's ability to meet contractual cash flow obligations is strong in the short term, even if adverse changes in economic conditions occur over a longer period[141] - Credit risk is considered to have increased significantly if the probability of default over the expected life of the financial instrument has increased relative to the probability at initial recognition[141] - Financial assets are considered credit-impaired when one or more events have occurred that have a negative impact on the expected future cash flows of the financial asset[141] - The company plans to settle financial assets and liabilities on a net basis or simultaneously realize the financial asset and settle the financial liability[144] - The company uses market prices from the principal market to measure the fair value of related assets or liabilities, or the most advantageous market if no principal market exists[144] - The company employs valuation techniques such as market approach, income approach, and cost approach to determine fair value, prioritizing observable inputs[144] - The company categorizes fair value measurements into three levels, with Level 1 inputs being the highest priority[144] - The company uses the weighted average method for inventory costing and perpetual inventory system for inventory management[149] - Inventory is measured at the lower of cost or net realizable value, with provisions for inventory write-downs recognized when necessary[149] - The company applies the straight-line method for depreciation of fixed assets, with useful lives ranging from 3-40 years depending on the asset category[161] - The company estimates the recoverable amount of long-lived assets based on the higher of fair value less costs to sell and value in use[168] - Impairment losses for goodwill are recognized if the recoverable amount of the related cash-generating unit is less than its carrying amount[168] - Impairment losses, once recognized, are not reversed in subsequent periods[168] - Employee compensation includes short-term, post-employment, termination, and other long-term benefits, with amounts classified under "Employee Payables" and "Long-term Employee Payables" in the balance sheet based on liquidity[169] - Termination benefits are recognized as a liability when the company cannot unilaterally withdraw the termination plan or when costs related to restructuring involving termination benefits are recognized[172] - Provisions are recognized as liabilities if they meet specific criteria, including being a present obligation, likely to result in economic outflow, and reliably measurable[174] - Modifications to equity-settled share-based payment plans that increase the fair value of equity instruments result in recognition of additional services received[176] - Revenue is recognized over time if certain conditions