Bohai Ferry (SH:603167)2023-04-17 16:00Financial Performance - The company's operating revenue for 2022 was RMB 1,306,961,774.82, a decrease of 6.70% compared to RMB 1,400,817,023.76 in 2021[23] - The net profit attributable to shareholders for 2022 was RMB 162,148,481.54, down 19.54% from RMB 201,538,737.93 in the previous year[23] - Basic earnings per share for 2022 were RMB 0.35, down 18.60% from RMB 0.43 in 2021[25] - The total profit for 2022 was CNY 263.48 million, down 16.91% compared to the previous year[33] - The company reported a significant decrease in net profit after deducting non-recurring gains and losses, which was -RMB 78,938,282.59 compared to RMB 139,620,186.20 in 2021, a drop of 156.54%[23] - The weighted average return on equity decreased to 4.52% from 5.81% in the previous year, a decline of 1.29 percentage points[25] - The total operating cost for 2022 was CNY 1,223.56 million, an increase of 17.08% year-on-year[33] - The company achieved total operating revenue of CNY 1,306.96 million, a decrease of 6.70% compared to the previous year[45] - The net profit attributable to shareholders was CNY 162.15 million, down 19.54% year-on-year[45] Cash Flow and Assets - The net cash flow from operating activities increased by 49.36% to RMB 449,613,453.55 from RMB 301,034,192.03 in 2021[23] - The total assets at the end of 2022 were RMB 5,122,275,370.24, a slight increase of 0.42% from RMB 5,100,598,728.70 at the end of 2021[24] - The net assets attributable to shareholders increased by 2.20% to RMB 3,636,161,901.74 from RMB 3,557,910,427.26 in 2021[24] - The company reported a net cash flow from operating activities of CNY 239.71 million in Q4 2022[26] - The net cash flow from operating activities improved due to the recovery of last year's receivables from transportation and ship rental income[59] Operational Challenges and Strategies - The company faced significant challenges in 2022 due to increased competition and rising costs, impacting overall performance[33] - The company implemented strategies to enhance operational efficiency and market presence, focusing on customer-centric approaches[34] - The company actively managed fuel procurement in response to price increases, ensuring oil quality and establishing partnerships with major state-owned fuel oil enterprises to mitigate adverse impacts from rising fuel prices[36] - The company plans to optimize its fuel supply chain to lower fuel costs and enhance its ability to withstand fluctuations in crude oil prices[80] Market Position and Growth - The company operates the largest roll-on/roll-off (RoRo) transportation business in the Bohai Bay area, with a fleet of 9 large RoRo vessels totaling 275,900 tons and 15,700 passenger capacity[40] - The acquisition of Weihai Haida Passenger Transport Co., Ltd. has enabled the company to cover the entire Jiaodong Peninsula with RoRo routes, enhancing market competitiveness[41] - The company has established a strong presence in international RoRo transportation, particularly with increasing trade and cultural exchanges between China and South Korea[39] - The company is positioned to benefit from national strategies supporting the development of the Shandong Peninsula Blue Economic Zone, which will enhance the maritime transportation logistics industry[76] Governance and Compliance - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company funds, ensuring no incidents of fund occupation have occurred[89] - The board of directors and supervisory board operate independently, adhering to legal and regulatory requirements[90] - The company has implemented a transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with relevant laws and regulations[90] - The company has established clear procedures for external investment transactions and guarantees, ensuring proper approval and disclosure processes[92] Employee Welfare and Corporate Responsibility - The company is committed to enhancing employee welfare and creating a harmonious corporate environment[79] - The company has a performance-based salary system, linking rewards directly to employee performance and safety management[120] - The company has established a new safety management mechanism that emphasizes risk-sharing and benefit-sharing among employees[120] - The company has made a total donation of 200,000 yuan for the construction of a beautiful countryside project in Xingcun Village, Haiyang City[142] Future Outlook - The company aims to achieve a sales revenue of 1.445 billion yuan in 2023, which does not constitute a performance commitment to investors[83] - By 2035, China's cruise market is projected to become one of the most vibrant globally, with an annual passenger transport volume reaching 14 million[79] - The company plans to expand its international passenger roll-on/roll-off transport market, including new routes from Shandong Peninsula to Incheon, South Korea, and from Fangchenggang, Guangxi to Vietnam[79] Audit and Financial Reporting - The audit report indicates that the financial statements fairly reflect the company's financial position as of December 31, 2022, in accordance with accounting standards[188] - Key audit matters included the assessment of revenue recognition, which is critical for evaluating the company's operational performance[191] - The audit concluded that the management's revenue recognition practices are reasonable and in line with applicable standards[191] - The financial statements were prepared under the assumption of going concern, with no significant uncertainties identified that would impact the company's ability to continue operations[194]