Financial Performance - For the year ended December 31, 2023, the group's revenue was approximately RMB 3,217.7 million, a decrease of about RMB 161.0 million or 4.8% compared to the same period in 2022[4] - The group's gross profit for the year was approximately RMB 337.0 million, down by approximately RMB 320.9 million or 48.8% year-on-year[4] - The net profit for the year was approximately RMB 2.7 million, a significant decrease of about RMB 271.9 million or 99.0% compared to 2022[4] - Basic earnings per share for the year were approximately RMB 0.003, a decrease of about RMB 0.272 or 98.9% compared to the previous year[4] - Total comprehensive income for the year was RMB 1,818 thousand, compared to RMB 263,912 thousand in 2022[18] - The company's net profit attributable to owners for the year ended December 31, 2023, was approximately RMB 2.7 million, a significant decrease from RMB 274.6 million in 2022[83] - The decline in profitability was primarily due to a reduction in gross profit from approximately RMB 657.9 million in 2022 to about RMB 337.0 million in 2023[83] Revenue Breakdown - Total revenue for 2023 was RMB 3,217,669,000, a decrease of 4.76% from RMB 3,378,707,000 in 2022[38] - Revenue from animal nutrition products was RMB 1,059,706,000, down 10.21% from RMB 1,180,366,000 in 2022[38] - Revenue from pharmaceuticals was RMB 734,352,000, a decrease of 2.92% from RMB 754,048,000 in 2022[38] - Revenue from fine chemicals was RMB 720,607,000, down 1.85% from RMB 732,114,000 in 2022[38] - Revenue from polyurethane materials was RMB 689,579,000, a decrease of 1.77% from RMB 698,839,000 in 2022[38] - Revenue from mainland China was RMB 2,524,520,000, down 9.26% from RMB 2,782,741,000 in 2022[42] - Revenue from self-manufactured chemicals was RMB 2,189.8 million, accounting for 68.1% of total revenue, while third-party produced chemicals generated RMB 1,014.4 million, accounting for 31.5%[91] Expenses and Costs - Sales cost increased from approximately RMB 2,720.8 million for the year ended December 31, 2022, to approximately RMB 2,880.7 million for the year ended December 31, 2023, primarily due to high global iodine prices and increased raw material costs for new product methylamine[106] - Administrative expenses increased from approximately RMB 104.5 million in 2022 to approximately RMB 123.5 million in 2023, driven by feasibility studies for potential expansion plans and increased environmental and safety production costs[116] - Financial costs for 2023 totaled RMB 39,207,000, an increase of 5.88% from RMB 36,988,000 in 2022[49] - Sales and distribution expenses decreased from approximately RMB 151.8 million in 2022 to approximately RMB 132.8 million in 2023, mainly due to reduced logistics costs[119] Assets and Liabilities - The group's total assets less current liabilities amounted to RMB 857,882 thousand, a decrease from RMB 898,307 thousand in the previous year[26] - Non-current liabilities totaled RMB 276,465 thousand, down from RMB 295,687 thousand in 2022[26] - The group's cash and cash equivalents were RMB 77,393 thousand, a decrease from RMB 103,183 thousand in the previous year[25] - Total assets as of December 31, 2023, reached approximately RMB 1,742.4 million, an increase from RMB 1,678.6 million in 2022[132] - Total borrowings as of December 31, 2023, amounted to approximately RMB 711.7 million, an increase from RMB 655.9 million in 2022, resulting in a debt-to-equity ratio of 122.4%[132] Taxation - The company's current tax for 2023 is RMB 1,831,000, a decrease of 77% from RMB 7,947,000 in 2022[55] - The total deferred tax for 2023 is RMB (11,368,000), compared to RMB 25,315,000 in 2022, indicating a significant change in tax liabilities[55] - Income tax expenses decreased from approximately RMB 33.4 million in 2022 to a tax credit of approximately RMB 9.5 million in 2023, consistent with the decline in pre-tax profits[124] Dividends - The board has resolved not to recommend the payment of any final dividend for the year ended December 31, 2023[4] - The company has not declared or paid any dividends for both 2022 and 2023[57] - The group did not recommend any final dividend for the year ending December 31, 2023, similar to 2022[156] Market and Operational Challenges - The company faced challenges due to oversupply in the market for its main products, leading to decreased prices and profitability[79] - The company is vigilant regarding the impact of international events, such as the Russia-Ukraine war, on its operations and will take appropriate measures as necessary[129] - The company has not implemented foreign currency hedging policies but monitors foreign exchange risks and will consider hedging when necessary[136] Future Plans and Investments - The company plans to expand its product range and has conducted feasibility studies for potential expansion plans in regions such as Malaysia[83] - The new production facility in Taian is expected to start producing Moxifloxacin side chains in 2024, enhancing the company's competitive advantage in production scale and technology[127] - The company acquired land use rights in Binh Duong Province for approximately VND 33.88 billion (around RMB 10 million) to expand production of choline chloride and iodine derivatives for export to Western countries, with production expected to commence in 2024[127] - An agreement was signed for the acquisition of land in Mukim Gebeng, Malaysia for MYR 37.03 million (approximately RMB 55.54 million) to diversify production systems in Southeast Asia, aiming to increase market share and reduce geopolitical risks[128] Corporate Governance - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing audit, internal control, and risk management matters for the year ending December 31, 2023[176] - The company has adopted the corporate governance code and has complied with all provisions except for the separation of the roles of chairman and CEO, which are held by the same individual[183] - The company emphasizes the importance of clear and timely communication with shareholders and investors, maintaining high transparency through various reports and announcements[188] Employee and Operational Metrics - The total employee cost for the year, including director remuneration, was approximately RMB 135.8 million, compared to RMB 118.0 million in 2022, with a total of 1,098 employees as of December 31, 2023[157] - The group maintained a cautious treasury policy, ensuring a good liquidity position throughout the year[148]
GHW INTL(09933) - 2023 - 年度业绩