NSWRC(SH:600165)2024-12-27 13:51Financial Performance - The company reported a net profit of -632,343,541.87 CNY for 2023, leading to a cumulative profit available for distribution to shareholders of -839,052,659.21 CNY, resulting in no profit distribution for the year [3]. - Operating revenue decreased by 52.74% to 285,688,730.55 CNY in 2023 from 604,539,544.17 CNY in 2022 [15]. - The net loss attributable to shareholders was -464,709,294.14 CNY, compared to -210,984,106.46 CNY in the previous year [15]. - The net cash flow from operating activities was 23,154,120.04 CNY, down 56.43% from 53,144,180.21 CNY in 2022 [15]. - The company’s net assets attributable to shareholders decreased by 82.29% to 99,156,760.51 CNY at the end of 2023 from 559,810,051.25 CNY at the end of 2022 [15]. - The net profit attributable to shareholders for the entire year was CNY -245,281,273.74, indicating a significant loss compared to previous years [44]. - The company experienced a net cash flow from operating activities of CNY 53,673,948.17 in Q4 2023, a recovery from negative cash flow in earlier quarters [44]. - The company has been issued a risk warning by the Shanghai Stock Exchange due to consecutive years of negative net profit and uncertainty regarding its ability to continue as a going concern [35]. - The company’s financial report for 2023 received a disclaimer of opinion from its auditor, raising concerns about the reliability of its financial statements [35]. - The company incurred financial expenses of 141.86 million RMB, an increase of 58.24% compared to the previous year [67]. Production and Sales - The company reported a total revenue of CNY 117,079,801.29 for Q4 2023, with a year-over-year decrease in sales volume of 83.48% for long-chain dicarboxylic acid [29]. - The company’s total production volume for long-chain dicarboxylic acid was 2,189 tons, reflecting an 80.90% decrease from the previous year [29]. - The active carbon segment saw a sales volume increase of 2.95% year-over-year, with total sales reaching 17,116.45 tons [29]. - Sales in the domestic market dropped by 49.65%, while international sales increased by 2.06% [64]. - The production of long-chain dicarboxylic acid decreased by 80.90%, with sales down by 83.48% [65]. - Revenue from long-chain dicarboxylic acid decreased by 85.82% compared to the previous year, with a corresponding decrease in operating costs by 54.77% [53]. Research and Development - The total R&D investment amounted to 13,873,396.61 CNY, representing 4.86% of total revenue [55]. - The company is currently developing a new fermentation control process to enhance acid production efficiency and reduce costs [57]. - The company has completed the research on a new centrifugal separation technology for long-chain dicarboxylic acid purification [57]. - The company is actively working on multiple R&D projects, including the development of activated carbon products for various applications [57]. - The company has 52 R&D personnel, accounting for 7.11% of the total workforce [76]. - Research and development expenses were reduced by 45.61%, totaling 13.87 million RMB [62]. Market Strategy and Future Plans - The company is focusing on the production of long-chain dicarboxylic acids using a microbial fermentation method, which is expected to dominate the market due to its environmentally friendly production process [22]. - The company plans to increase the localization rate of raw materials and equipment in response to uncertainties from the US-China trade war, which is expected to boost the market share of long-chain dicarboxylic acids [22]. - The company plans to address operational challenges and explore potential restructuring options in response to financial difficulties [35]. - The company plans to implement new strategies for market expansion and product development in the upcoming fiscal year [83]. - The company established a relief plan with local government, with a scale not exceeding 80 million RMB, aimed at restoring production [74]. - The company plans to extend the relief plan until December 31, 2024, to support production recovery [74]. Asset Management and Liabilities - Total current assets as of December 31, 2022, amounted to CNY 250,949,859.47, with cash and cash equivalents at CNY 89,483,876.89 [123]. - Non-current assets totaled CNY 3,026,839,472.43 as of December 31, 2022, with long-term equity investments at CNY 672,169,248.83 [124]. - Total liabilities reached CNY 1,642,829,916.86 in current liabilities, including short-term borrowings of CNY 331,340,167.81 [124]. - The total assets of the company were CNY 3,277,789,331.90 as of December 31, 2022, reflecting a stable asset base [124]. - The company maintained a total of CNY 1,916,141,876.54 in long-term equity investments as of January 1, 2023 [126]. - The total liabilities and equity ratio indicates a balanced financial structure, supporting future growth strategies [124]. Impairment and Provisions - The company recognized an impairment loss of CNY 1,585,164.00 due to asset impairment testing in 2023 [99]. - The total bad debt provision at the end of the period was ¥1,651,462.08, with ¥513,249.56 recognized during the period [140]. - The company recognized an impairment loss of CNY 18.5717 million on its talent apartment assets, reflecting a 12.41% decrease in market value [150]. - The impairment provision for investment properties amounted to CNY 10.7578 million, while the provision for fixed assets was CNY 7.8139 million [150]. - The total amount of fixed assets impairment provisions reached CNY 16,933,676.00, with a book value of CNY 72,789,816.30 [158]. - The impairment provision increased by CNY 64,463,400.99 during the period, bringing the total impairment provision to CNY 66,159,062.08 [183]. Customer and Supplier Concentration - The top five customers contributed 7,520.28 CNY in sales, accounting for 24.14% of total annual sales [54]. - The top five suppliers accounted for 47.77% of total annual purchases, with the largest supplier contributing 14.53% [54]. - The top five accounts receivable contributed to 40.28% of the total accounts receivable and contract assets, with a total of ¥26,046,141.33 [133].