Production Capacity and Manufacturing - The Group's total annual production capacity reached 1,800,000 tonnes as of December 31, 2023[6]. - The Group operates five production lines for longitudinal submerged arc-welded (LSAW) pipes and two for spiral submerged arc-welded (SSAW) pipes[6]. - A total of 553,000 tonnes of steel pipes were delivered, with orders received for 601,000 tonnes, including significant projects like the East African Crude Oil Pipeline Project, which accounted for 260,000 tonnes and a sales amount of approximately RMB2,600 million[24]. - The Group delivered approximately 553,000 tonnes of welded steel pipes during 2023[71]. - The strength grade of the newly developed large wall thickness spiral arc-welded pipe is Q355C, with a length of 45m and a weight of 90 tonnes, intended for significant infrastructure projects[29]. Research and Development - The Group holds 120 patents, including 41 invention patents, demonstrating strong research and development capabilities[7]. - The Group is the first and only manufacturer in the PRC to develop deep sea welded steel pipes for use at a water depth of 3,500 meters[7]. - The Group achieved a breakthrough in R&D by producing the world's first large-diameter ultra-thick-walled spiral steel pipe with a diameter of 3,000mm and a wall thickness of 30mm, which is a significant advancement in the manufacturing of spiral steel pipes[29]. - The Group was recognized as a provincial Specialized and New "Little Giant" enterprise, showcasing its advancements in deep sea steel pipe technology for ultra-deep submarine pipelines[32]. Financial Performance - The Group recorded sales of approximately RMB2,651 million in 2023, representing an increase of approximately 12.2% compared to RMB2,362 million in 2022[23]. - The profit for the year was approximately RMB183.8 million, up from RMB163 million in 2022, with earnings per share attributable to ordinary equity holders at approximately RMB0.18, compared to RMB0.16 in 2022[23]. - Revenue from the sales and manufacturing service of LSAW steel pipes amounted to approximately RMB1,496 million, accounting for about 69.2% of total steel pipe revenue for the year ended December 31, 2023[77]. - Revenue from SSAW steel pipes reached approximately RMB612 million, representing about 26.6% of total steel pipe revenue for the year ended December 31, 2023, significantly higher than the previous year[78]. - The gross profit from steel pipe sales for 2023 was approximately RMB513.4 million, an increase of approximately 24.0% compared to RMB413.9 million in 2022[101]. - The revenue of the Group increased from RMB2,362 million in 2022 to approximately RMB2,651 million in 2023, representing an increase of approximately 12.2%[91]. Market Presence and Demand - The Group is a qualified supplier for major companies such as Petrobras and Petronas, indicating strong market presence[7]. - The Group's steel pipes are primarily used in energy transmission, including oil and gas pipelines, deep sea pipelines, and city gas networks[5]. - The East African Crude Oil Pipeline Project is the world's longest heated crude oil transmission pipeline, with a total length of 1,540 kilometers, expected to boost economic development in East Africa[24]. - The global economy is expected to recover in 2024, but uncertainties remain, particularly regarding geopolitical tensions and climate change, which may affect demand growth[33]. - China's "14th Five-Year Plan" aims for a national oil and gas pipeline network of 210,000 kilometers by 2025, indicating ongoing demand for pipeline construction[33]. International Operations and Sales - The Group received new orders of approximately 601,000 tonnes of welded steel pipes in 2023, with significant overseas orders including projects in East Africa and Nigeria[71]. - Overseas sales for 2023 reached approximately RMB1,370.5 million, a significant increase of approximately 107.4% from RMB660.7 million in 2022[102]. - Overseas sales accounted for 57.3% of total revenue in 2023, amounting to RMB1,370.5 million, compared to 36.5% or RMB660.7 million in 2022[107]. Cost and Expenses - Finance costs surged by 111.8% to approximately RMB94.5 million in 2023, up from RMB44.6 million in 2022, due to interest related to the property sector no longer being capitalized[126]. - Selling and distribution expenses increased by approximately 19.0% to RMB65.5 million in 2023, up from RMB55.1 million in 2022, driven by higher overseas sales commissions[119]. - Administrative expenses rose by approximately 9.9% to RMB270.0 million in 2023, compared to RMB245.8 million in 2022, primarily due to increased research and development costs[120]. Employee and Management - Staff costs for the year ended December 31, 2023, were approximately RMB151.4 million, an increase from RMB123.7 million in 2022[167]. - The Group had a total of 875 full-time employees as of December 31, 2023, compared to 824 employees in 2022[173]. - Mr. Chen has over 54 years of experience in the electromechanical industry, focusing on management, strategic planning, and business development[195]. Strategic Goals and Future Outlook - The Group aims to expand its market share in the welded pipe sector overseas, driven by increasing demand for oil and natural gas as global economies recover from the pandemic[190]. - The Group's long-term strategic goal is to become a leading global steel pipe manufacturer by participating in more global oil and gas engineering projects[191]. - The Group will leverage its technical strength to meet the demand for green and low-carbon products as part of China's dual carbon strategy[189].
珠江钢管(01938) - 2023 - 年度财报