DEEJ(SZ:000423)2024-03-21 16:00Financial Performance - The company's operating revenue for 2023 was CNY 4,715,265,729.50, representing a 16.66% increase from CNY 4,041,818,347.54 in 2022[15]. - The net profit attributable to shareholders for 2023 was CNY 1,150,878,550.46, a 47.55% increase compared to CNY 779,998,116.10 in 2022[15]. - The net profit after deducting non-recurring gains and losses was CNY 1,082,628,480.93, up 54.70% from CNY 699,829,938.05 in the previous year[15]. - The basic earnings per share for 2023 was CNY 1.79, an increase of 47.93% from CNY 1.21 in 2022[15]. - The total assets at the end of 2023 were CNY 13,306,306,533.41, a 5.34% increase from CNY 12,631,382,359.34 at the end of 2022[15]. - The net assets attributable to shareholders at the end of 2023 were CNY 10,719,014,633.60, reflecting a 3.77% increase from CNY 10,329,243,246.41 in 2022[15]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year, representing a 15% year-over-year growth[73]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[73]. Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY 1,953,438,009.50, which is an 8.93% decrease from CNY 2,144,878,185.39 in 2022[15]. - The net cash flow from operating activities decreased by 8.93% to ¥1,953,438,009.50[45]. - Investment activities generated a net cash outflow of ¥718,144,353.72, a decline of 221.82% compared to the previous year[46]. - The company reported a decrease in investment cash flow, with a net cash outflow of CNY 718,144,353.72 in 2023, compared to a net inflow of CNY 589,507,998.15 in 2022[176]. Research and Development - The company is focusing on male health supplements with products like "Brain and Kidney Nourishing Oral Liquid" and "Turtle and Deer Immortal Oral Liquid" to capture new customer segments[5]. - Research and development expenses increased by 25.77% to ¥173,187,854.30 in 2023, compared to ¥137,705,813.17 in 2022[40]. - The company is developing 15 new "Ejiao+" health products and has completed research on the fastest project of traditional Chinese medicine[42]. - The company has established a unique R&D platform, including a national engineering technology research center, to address key challenges in the gelatin industry[27]. Product Development and Market Expansion - The company is expanding its product line with new offerings such as the "Peach Blossom Princess Ejiao Cake" and "Ejiao Instant Powder" targeting beauty and health markets[5]. - The introduction of new products, such as the "Royal Enclosure 1619" targeting men's health, indicates a strategic expansion into new market segments[23]. - The company aims to enhance its brand presence in the health supplement market, leveraging its historical reputation and product quality[22]. - Market expansion plans include entering three new provinces, targeting a 5% market share increase in these regions[73]. Governance and Management - The company has established a governance structure that complies with legal requirements, ensuring independent operations and decision-making[57]. - The management team is structured with clear responsibilities, ensuring effective governance and protection of shareholder interests[61]. - The company has experienced changes in its management team, with several executives leaving their positions during the reporting period[62]. - The current board includes experienced professionals with backgrounds in finance, management, and pharmaceuticals, which may enhance the company's strategic capabilities[66]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 17.80 per 10 shares, based on a total share capital of 643,976,824 shares[6]. - The company declared a cash dividend of 17.80 CNY per 10 shares, totaling 1,146,278,746.71 CNY, which represents 99.6% of the net profit attributable to shareholders for 2023[90][91]. - The total distributable profit for the year was 9,208,565,999.56 CNY, with the cash dividend amounting to 100% of the profit distribution[90][91]. Environmental and Social Responsibility - The company invested CNY 7.76 million in environmental governance and protection in 2023, with water resource tax expenditure amounting to CNY 2.52 million[105]. - The rooftop photovoltaic power generation in 2023 reached 3.84 million kWh, accounting for 13.21% of the total electricity consumption in the industrial park, reducing carbon emissions by 3,866 tons[105]. - The company has been recognized as a national-level green supply chain management enterprise in November 2023[106]. - The company emphasizes social responsibility and aims to balance the interests of shareholders, employees, and the community[61]. Compliance and Audit - The audit opinion issued by KPMG was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position[152]. - The internal control system has been maintained effectively, ensuring compliance and the integrity of financial reporting[94]. - The company has complied with the regulatory requirements regarding the change of auditors, ensuring the audit process remains timely and effective[116]. Risks and Challenges - The company faces long-term risks due to the decreasing number of free-range donkeys and the need for time-consuming research in breeding and disease prevention[53]. - Short-term risks include the need to enhance organizational capabilities and the increasing competition in the health supplement industry[53]. - The company plans to optimize its raw material supply mechanism to ensure sustainable sourcing[54].