ZHONGSHENG GAOKE(002778)2024-04-24 11:58Financial Performance - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[5]. - The company has not reported specific financial metrics or performance indicators in the provided documents[13]. - The company's operating revenue for 2023 was ¥617,029,920.27, a decrease of 14.50% compared to ¥721,636,502.98 in 2022[20]. - The net profit attributable to shareholders for 2023 was -¥154,617,761.86, representing a decline of 336.95% from -¥35,385,714.12 in 2022[20]. - The cash flow from operating activities for 2023 was -¥38,090,027.39, a significant drop of 171.57% compared to ¥53,217,807.08 in 2022[20]. - The basic and diluted earnings per share for 2023 were both -¥1.24, a decrease of 342.86% from -¥0.28 in 2022[20]. - The total assets at the end of 2023 were ¥1,427,388,978.16, down 2.89% from ¥1,469,826,415.06 at the end of 2022[20]. - The net assets attributable to shareholders decreased by 26.76% to ¥423,104,359.48 at the end of 2023 from ¥577,722,121.34 at the end of 2022[20]. - The company reported a quarterly revenue of ¥95,230,572.40 in Q4 2023, with a significant net loss of -¥133,062,517.94 attributable to shareholders[24]. - The company received government subsidies amounting to ¥800,060.91 in 2023, compared to ¥623,237.02 in 2022[26]. - The company is facing uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profits over the last three years[20]. Market and Industry Overview - The company focuses on the research, production, and sales of various lubricating oil products, which are subject to market risks and price fluctuations of raw materials[4]. - The company operates in the chemical industry, which is influenced by various risks including market and policy risks[4]. - The company has experienced a slowdown in the lubricating oil market due to macroeconomic factors and reduced demand in related industries[32]. - In 2022, the market size of China's automotive lubricants reached CNY 57.026 billion, with gasoline engine oils holding approximately 58% market share[34]. - The production of lubricant additives in China was 878,200 tons in 2022, reflecting a growing demand for lubricant products[33]. - The compound annual growth rate (CAGR) of automotive lubricant sales from 2018 to 2022 was 2.2%, increasing from 3.4821 million tons to 3.8031 million tons[33]. - The automotive lubricant market is characterized by strong demand and intense competition, necessitating continuous innovation and quality improvement from companies[34]. Environmental Focus and Initiatives - The company emphasizes the increasing government and corporate investment in environmental protection, which may drive the growth of the environmental industry[4]. - The company aims to align with national goals for carbon peak and carbon neutrality, focusing on green and low-carbon development strategies[36]. - The company is actively pursuing new technologies and business models, focusing on high-end, low-carbon, and digital solutions to enhance productivity in the environmental industry[39]. - The company is committed to sustainability initiatives, aiming to reduce its carbon footprint by 20% over the next five years[117]. - The company is focused on the development of its environmental protection sector, as indicated by inquiries from investors regarding related technologies[105]. - The company has established a hazardous waste disposal ledger and a hazardous waste warehouse, with disposal handled by qualified companies[169]. - The company has implemented a self-monitoring plan for wastewater and air emissions, with specific monitoring frequencies for various pollutants[168]. - The company has conducted 12 safety and environmental training sessions in 2023, significantly improving employee safety awareness[175]. Research and Development - The company is focusing on R&D collaborations with domestic and international research institutions to improve its internal R&D capabilities and develop customized products[35]. - The company has a total of 12 patents related to its products, with ongoing applications for additional patents, indicating a strong focus on R&D and innovation[41]. - R&D investment amounted to ¥21,481,234.68 in 2023, a decrease of 13.93% from ¥24,959,164.44 in 2022[80]. - R&D investment accounted for 3.48% of operating revenue in 2023, slightly up from 3.46% in 2022[80]. - The number of R&D personnel decreased by 14.61% to 76 in 2023 from 89 in 2022[79]. - The company is leveraging research platforms to accelerate technological innovation and new product development, optimizing existing product formulations[99]. Operational Performance - The company has maintained its main business operations without significant changes since its listing[17]. - The company has not reported any abnormal production stoppages during the reporting period, indicating stable operational performance[42]. - The company utilizes advanced automation technologies, including DCS and MES systems, to optimize production processes and improve product quality[46]. - The company has established a brand structure that covers various market needs, contributing to stable development and risk mitigation[48]. - The company has a streamlined organizational structure that allows for rapid response to customer feedback, enhancing its after-sales service capabilities[54]. Governance and Compliance - The company conducted a total of 3 shareholder meetings and 7 board meetings during the reporting period, ensuring compliance with legal and regulatory requirements[110]. - The company maintains an independent business system and has no overlapping business activities with its controlling shareholders[111]. - The company has established a complete and independent financial management system, including independent accounting and tax obligations[112]. - The company is committed to enhancing its governance structure in accordance with the Company Law and relevant regulations, with no significant discrepancies noted[110]. - The company has engaged an external audit firm for the 2023 annual audit, ensuring compliance and accuracy in financial reporting[139]. Customer and Market Engagement - The company has established a diverse customer base across various industries, including power equipment, engineering machinery, and chemicals, with major clients such as Ningbo Rendong and Chery Automobile[49]. - The company is actively expanding its market presence outside its geographical advantages in environmental technology[66]. - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[117]. - User data indicates a steady increase in customer engagement, with a reported growth of 15% in active users year-over-year[117]. Challenges and Risks - The company acknowledges the uncertainty in industry policies and regulations that could impact market volatility and its rapid development[4]. - The company faces risks from fluctuating prices of raw materials, particularly base oils, which are influenced by international crude oil prices, impacting profit margins[104]. - Environmental policy risks are significant, as the company must comply with increasingly stringent regulations in the chemical industry, affecting project implementation and cash flow[104]. Future Outlook - The company has set ambitious growth targets for the next fiscal year, aiming for a revenue increase of approximately 10%[117]. - The company has outlined a clear roadmap for future product launches, with at least three new products expected in the next 12 months[117]. - The company plans to enhance market scale by strengthening its marketing team and optimizing personnel structure, aiming for significant breakthroughs in market expansion[97]. - The company is actively pursuing strategic acquisitions to bolster its competitive position in the industry[117].