Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 186,071,000, a decrease of 27.6% from RMB 257,183,000 in 2022[4]. - The gross profit for the same period was RMB 48,696,000, down from RMB 53,879,000, reflecting a gross margin of approximately 26.1%[4]. - The operating profit decreased slightly to RMB 25,205,000 from RMB 26,205,000, indicating a decline of 3.8%[4]. - Net profit for the year was RMB 21,121,000, which is a significant increase of 84.5% compared to RMB 11,458,000 in 2022[4][6]. - Basic and diluted earnings per share rose to RMB 4.40, compared to RMB 2.39 in the previous year, marking an increase of 83.3%[4]. - Revenue from mainland China decreased to RMB 185,959,000 in 2023, down 21.7% from RMB 237,562,000 in 2022[17]. - Total revenue from external customers was RMB 186,071,000 in 2023, a decline of 27.6% compared to RMB 257,183,000 in 2022[17]. - Pre-tax profit was RMB 25,192,000 in 2023, a decrease of 3.9% from RMB 26,205,000 in 2022[28]. - Basic earnings per share rose to RMB 21,121,000 in 2023, compared to RMB 11,458,000 in 2022[30]. - Despite the revenue decline, the company's net profit for 2023 was approximately RMB 21.1 million, representing a year-on-year increase of about 84.3%[49]. Assets and Liabilities - The company's total assets decreased to RMB 216,749,000 from RMB 305,939,000, a decline of 29.1%[7]. - Current liabilities also decreased to RMB 31,006,000 from RMB 33,632,000, reflecting a reduction of 7.8%[7]. - Trade receivables (net of impairment) decreased to RMB 62,313,000 in 2023 from RMB 107,521,000 in 2022, indicating a decline of about 42%[33]. - The company reported a total of RMB 24,469,000 in trade and other payables for 2023, down from RMB 28,172,000 in 2022, reflecting a decrease of approximately 13%[35]. - The company's cash and cash equivalents decreased from RMB 146.5 million in 2022 to RMB 95.2 million in 2023, contributing to a total current assets decline from RMB 305.9 million to RMB 216.7 million[78]. - Trade and other receivables decreased from RMB 119.5 million in 2022 to RMB 82.9 million in 2023, primarily due to a reduction in trade receivables[80]. - The company's current liabilities decreased from RMB 33.6 million in 2022 to RMB 31.0 million in 2023, mainly due to a decrease in trade and other payables[78]. Income and Expenses - The company reported a significant increase in other income to RMB 9,312,000 from RMB 4,411,000, representing a growth of 110.5%[4]. - Other income increased to RMB 9,312,000 in 2023, up 111.5% from RMB 4,411,000 in 2022[20]. - Research and development expenses were RMB 5,177,000 in 2023, down 14.4% from RMB 6,046,000 in 2022[25]. - Sales and marketing expenses decreased from RMB 11.8 million in 2022 to RMB 9.2 million in 2023, primarily due to lower freight and bidding service costs[70]. - General and administrative expenses increased from RMB 11.8 million in 2022 to RMB 13.7 million in 2023, mainly due to higher travel, consulting, and greening costs[71]. - The company’s employee costs increased to RMB 8,424,000 in 2023, up 11.6% from RMB 7,548,000 in 2022[21]. - The company reported a net foreign exchange gain of RMB 1,974,000 in 2023, compared to RMB 1,049,000 in 2022[20]. - Deferred tax expenses decreased significantly to RMB 1,350,000 in 2023 from RMB 11,193,000 in 2022[28]. - Net profit rose by 84.3% from RMB 11.5 million in 2022 to RMB 21.1 million in 2023, mainly due to a reduction in income tax expenses[74]. Capital Expenditure and Investments - The capital expenditure for the year ended December 31, 2023, was RMB 7.3 million, an increase from RMB 3.4 million in 2022, aimed at expanding production capacity[88]. - The net proceeds from the share issuance amounted to approximately HKD 110.7 million, with a remaining balance of about HKD 52.5 million as of December 31, 2023[97][99]. - Approximately HKD 42.8 million (39%) of the proceeds is allocated for purchasing new machinery and equipment, while HKD 53.9 million (49%) is designated for building production facilities[99]. - The company plans to utilize the remaining proceeds within 24 months starting from December 31, 2023[99]. - No significant investments, acquisitions, or disposals were made during the year ending December 31, 2023, and no major plans are anticipated in the short term[96]. Corporate Governance and Compliance - The company has adopted a share option scheme to incentivize participants and retain key contributors, effective for ten years from March 11, 2018[100][101]. - The company has complied with the corporate governance code, except for the combined role of the chairman and CEO, which the board believes is in the best interest of the group[103]. - The audit committee has reviewed and confirmed the company's annual performance, with no objections to the accounting treatments adopted[111]. - The annual report for the year ending December 31, 2023, will be published in April 2024, in compliance with listing rules[112]. - The company will suspend share transfer registration from May 20 to May 23, 2024, to determine eligible shareholders for the annual general meeting[110]. - Share transfer registration will also be suspended from May 30 to June 4, 2024, for shareholders entitled to receive the proposed final dividend[110]. Operational Developments - The company was awarded 3 new patents in 2023, with 2 invention patents expected to be granted in January and February 2024[49]. - The company’s Yixing factory was recognized as a "Specialized and Innovative Small and Medium Enterprise" by the provincial government, which will provide more government support in future developments[50]. - The Yixing factory achieved a Level 2 safety production standardization rating in March 2023, indicating higher recognition of safety compliance and management[52]. - The company received the ISO 50001 energy management system certification in June 2023, reflecting improvements in energy management and sustainability efforts[52]. - The company plans to enhance production reliability and efficiency through the implementation of a Distributed Control System (DCS) automation control upgrade[58]. - The company aims to optimize inventory management and reduce raw material costs in response to market competition[58]. - The company will continue to develop new products in response to the refining industry's trend of "reducing oil and increasing chemicals" and explore opportunities in non-refining chemical businesses[58]. - The company intends to strengthen collaboration with international and domestic traders to diversify its customer base and expand market reach[58]. Market Trends and Industry Insights - The total number of million-ton level refining enterprises in China reached 36 by the end of 2023, with nearly 70% becoming integrated refining and chemical enterprises[46]. - China's refining capacity is projected to increase to 936 million tons in 2023, maintaining its position as the world's largest refining country[46]. - The actual crude oil processing volume in China reached a historical high of 738 million tons in 2023, with domestic oil consumption estimated at 756 million tons[46]. - Sales in mainland China dropped from RMB 237.6 million in 2022 to RMB 186.0 million in 2023, primarily due to reduced demand for refinery additives and the absence of large orders for oil additives[62]. - Revenue decreased by 27.7% from RMB 257.2 million in 2022 to RMB 186.1 million in 2023, with refinery additives and oil additives contributing RMB 111.6 million and RMB 74.5 million respectively[60]. Ratios and Margins - The return on equity increased from 3.9% in 2022 to 8.0% in 2023, driven by an increase in profit during the year[92]. - The return on assets rose from 3.5% in 2022 to 7.0% in 2023, reflecting improved profitability[93]. - The current ratio decreased from 9.1 in 2022 to 7.0 in 2023, indicating a reduction in current assets[91]. - The gross profit margin improved from 20.9% in 2022 to 26.2% in 2023, suggesting better cost management[91]. - The net profit margin increased from 4.5% in 2022 to 11.4% in 2023, indicating enhanced profitability[91].
江苏创新(02116) - 2023 - 年度业绩