Keshun(SZ:300737)2023-04-26 16:00Financial Performance - The company's gross profit margin decreased due to significant increases in the procurement prices of upstream asphalt and petrochemical-related raw materials, leading to a decline in net profit[6]. - Keshun Waterproof Technologies reported a revenue of RMB 1.2 billion for the fiscal year 2022, representing a year-on-year growth of 15%[28]. - The company achieved a net profit of RMB 150 million in 2022, an increase of 10% compared to the previous year[28]. - The company's operating revenue for 2022 was ¥7,660,640,555.44, a decrease of 1.42% compared to ¥7,770,724,151.68 in 2021[34]. - The net profit attributable to shareholders decreased by 73.51% to ¥178,184,936.19 in 2022 from ¥672,619,138.53 in 2021[34]. - The cash flow from operating activities was ¥235,297,848.23, down 61.50% from ¥611,134,567.34 in the previous year[34]. - The basic earnings per share dropped by 74.83% to ¥0.1500 in 2022 from ¥0.5960 in 2021[34]. - The company reported a significant decline in net profit excluding non-recurring gains and losses, which was ¥43,127,072.13, down 92.46% from ¥572,154,046.95 in 2021[34]. - The company experienced a net loss in the fourth quarter of 2022, with a net profit attributable to shareholders of -¥90,058,764.26[36]. - The company’s operating cash flow net amount was 235 million yuan, a decrease compared to the previous year, primarily due to increased procurement costs from rising raw material prices[85]. Market Trends and Industry Analysis - The construction waterproofing materials industry experienced a decline in production for the first time in over a decade, influenced by high raw material prices and reduced demand from the real estate sector[8]. - The waterproofing industry is expected to see a total production of 3.467 billion square meters in 2022, a decrease of 15.4% year-on-year[42]. - The waterproof materials industry in China has over 3,000 companies, indicating a low market concentration and intense competition[45]. - The number of large-scale waterproof enterprises (with revenue over 20 million yuan) fluctuated from 560 in 2016 to 839 in 2021, reflecting the competitive nature of the industry[45]. - The new national waterproof regulations, effective from April 1, 2023, will increase the usage of waterproof materials by imposing stricter requirements on durability, thickness, and construction methods[47]. - The implementation of the new regulations is expected to enhance market concentration as customers prioritize brand reputation and product quality, benefiting leading companies[48]. - The demand for polymer waterproof membranes is projected to rise due to the integration of photovoltaic systems in roofing, aligning with national strategies for carbon neutrality[50]. - The government is promoting green building materials, which will drive the development of high-quality, low-pollution waterproof products[51]. - The construction of infrastructure projects is a significant growth driver for waterproof companies, with centralized procurement becoming a common practice among large construction firms[48]. - The waterproof industry is transitioning from price competition to competition based on product innovation, quality control, and management innovation[55]. Strategic Initiatives and Future Plans - The company plans to enhance market development and optimize research and innovation strategies to ensure sustainable revenue growth and operational stability[9]. - Keshun plans to launch three new waterproofing products in 2023, aiming to capture an additional 5% market share[28]. - Keshun aims to expand its market presence in Southeast Asia, targeting a revenue increase of 30% from this region by 2024[28]. - The company has completed the acquisition of a local competitor, which is expected to increase its production capacity by 25%[28]. - The company has set a performance guidance of RMB 1.5 billion in revenue for 2023, reflecting a growth target of 25%[28]. - The company plans to strengthen market expansion efforts, targeting non-residential sectors such as high-speed rail and municipal projects[135]. - The company is increasing R&D investment to develop new waterproof materials in collaboration with universities[137]. - The company plans to enhance production capacity and efficiency following the completion of fundraising projects[140]. Risk Factors - The company faces risks related to the real estate sector's demand not meeting expectations, which could adversely affect revenue and profit growth[11]. - The volatility of raw material prices, particularly petroleum-related products, poses a risk to the company's profitability due to its limited bargaining power[12]. - The company has a cautious approach to accounts receivable, considering the creditworthiness and repayment capabilities of its clients, which may impact cash flow if economic conditions worsen[14]. - The company faces risks from raw material price fluctuations and plans to implement strategic reserves and hedging[141]. - The company is addressing risks from the real estate sector's volatility by diversifying its customer base and expanding into infrastructure projects[143]. - The company's accounts receivable are growing in line with revenue, posing a risk of collection issues due to potential financial deterioration of major clients amid economic downturns[144]. Research and Development - The company is investing RMB 100 million in R&D for new technologies to enhance product performance and sustainability[28]. - The company has a research and development team of nearly 500 people and holds 726 patents, demonstrating strong innovation capabilities in the waterproofing industry[76][77]. - Research and development expenses for 2022 amounted to approximately 343.13 million yuan, representing 4.48% of the operating revenue[112]. - The company launched nearly 40 new projects in 2022, with multiple new products achieving mass production[108]. - The company has been recognized as a high-tech enterprise under the National Torch Program, highlighting its commitment to innovation and technology[76]. Corporate Governance and Management - The company appointed Lu Song as the new Vice President and Chief Financial Officer on January 27, 2022, following the resignation of Yuan Hongbo due to personal reasons[168]. - The company’s board of directors and management team have undergone changes, with several appointments and resignations noted during the reporting period[169]. - The company has a total of 12 independent directors, with each receiving a pre-tax remuneration of CNY 12 million[188]. - The company has a structured remuneration decision-making process that considers position, level, service duration, and performance[186]. - The audit committee has conducted meetings to review and approve various financial reports and internal control assessments throughout the year[195]. Social Responsibility and Sustainability - Keshun is committed to enhancing its social responsibility initiatives, with plans to invest RMB 20 million in community development projects in 2023[28]. - The management team emphasized the importance of sustainability, committing to reduce carbon emissions by 20% by 2025[174]. - The company emphasizes a commitment to environmental sustainability by adhering to top international eco-friendly standards in its product offerings[59][64].