Revenue and Profitability - Revenue increased from RMB 18,289.6 million for the year ended December 31, 2022, to RMB 21,059.3 million for the year ended December 31, 2023, representing a growth of 15.1%[2] - Profit for the year was RMB 1,721.5 million, down 43.1% from RMB 3,028.1 million for the year ended December 31, 2022[2] - Profit attributable to equity holders of the company decreased by 39.4% to RMB 1,051.4 million from RMB 1,735.2 million in the previous year[2] - The company’s pre-tax profit for 2023 was RMB 1,761,514,000, a decrease of 44.6% compared to RMB 3,184,970,000 in 2022[33] - Annual profit dropped from RMB 3,028.1 million to RMB 1,721.5 million, with net profit margin declining from 16.6% to 8.2%[88] Gross Profit and Margins - Gross profit decreased from RMB 4,493.8 million for the year ended December 31, 2022, to RMB 3,382.0 million for the year ended December 31, 2023, a decline of 24.7%, with a gross margin of 16.1% compared to 24.6% in the previous year[2] - The gross profit from trading business fell by 36.7% to RMB 419.8 million, with gross margin declining from 8.0% to 3.6% due to falling market prices and an increased proportion of low-margin nickel-iron sales[80] - Production business gross profit decreased by 22.6% to RMB 2,869.9 million, with gross margin dropping from 40.7% to 32.8% primarily due to lower market prices[80] Assets and Liabilities - Total current assets increased to RMB 10,278.9 million from RMB 8,824.5 million year-on-year[7] - Total current liabilities rose to RMB 9,285.6 million from RMB 4,853.3 million year-on-year[7] - Non-current assets increased to RMB 20,400.9 million from RMB 12,015.9 million year-on-year[8] - Total assets less current liabilities amounted to RMB 21,394.1 million, up from RMB 15,987.1 million year-on-year[10] - Net assets attributable to equity holders of the parent increased to RMB 13,485.4 million from RMB 12,027.8 million year-on-year[11] Revenue Sources - Revenue from mainland China was RMB 20,224,678 thousand, up from RMB 16,028,582 thousand, representing a growth of 26.4%[17] - Nickel product sales accounted for RMB 20,376,803 thousand of total revenue, compared to RMB 17,378,249 thousand in 2022, reflecting a growth of 17.2%[20] - Revenue from services provided over time amounted to RMB 1,139,012 thousand, compared to RMB 1,546,515 thousand in 2022, indicating a decrease of 26.5%[20] - Revenue from nickel product trading rose by 40.7% from RMB 8,259.0 million in 2022 to RMB 11,624.3 million in 2023, mainly due to the commencement of nickel-iron production from the RKEF project[78] - Revenue from production operations decreased by 4.0% from RMB 9,119.2 million in 2022 to RMB 8,752.5 million in 2023, attributed to falling nickel market prices[78] Expenses and Costs - The cost of sold inventory for 2023 amounts to RMB 16,519,466,000, an increase from RMB 12,259,921,000 in 2022, representing a rise of about 34.5%[29] - Employee benefit expenses for 2023 total RMB 889,601,000, compared to RMB 670,697,000 in 2022, reflecting an increase of approximately 32.7%[29] - Administrative expenses increased by 17.3% to RMB 928.0 million, driven by higher on-site management costs and increased employee costs due to business expansion[82] - Financing costs surged from RMB 254.4 million to RMB 534.9 million, attributed to increased bank borrowings and rising interest rates[84] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.20 per share (pre-tax) for the year ended December 31, 2023, subject to approval at the annual general meeting[2] - The proposed final dividend for the year ending December 31, 2023, is RMB 0.20 per share, pending approval at the upcoming annual general meeting[34] Market and Industry Insights - The price of nickel on the Shanghai Futures Exchange dropped from RMB 228,900 at the beginning of the year to RMB 125,200 by year-end, a decline of 45.30%[53] - The London Metal Exchange nickel price fell from USD 29,920 at the beginning of the year to USD 16,620 by year-end, a decrease of 44.45%[53] - In 2023, China's stainless steel crude steel production reached 36.6759 million tons, a year-on-year increase of 12.59%[51] - The sales volume of new energy vehicles in China reached 9.587 million units in 2023, a year-on-year increase of 35.8%[52] - The market penetration rate of new energy vehicles in China reached 31.6%, up 5.9 percentage points from the previous year[52] Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[16] - The company aims to expand upstream resource channels to secure high-quality nickel ore investment opportunities, which are crucial for sustainable development[74] - The company is committed to building a more open and prosperous nickel resource ecosystem by developing independent industrial parks and supporting infrastructure[75] - The company intends to maximize resource utilization by reusing intermediate products generated during production processes in nickel-cobalt compound and nickel-iron production[76] Research and Development - The company incurred research and development expenses of RMB 7,665,000 in 2023, compared to RMB 6,810,000 in 2022, indicating an increase in R&D investment[33] - The company plans to enhance R&D capabilities by increasing investment, upgrading production processes, and establishing new R&D centers[73] - The company has filed nearly 30 patents in 2023, primarily for invention patents, and holds over a hundred patents in total, establishing a solid foundation for future innovation[67] Legal and Compliance - The company is currently involved in a lawsuit with Anhui Pengtai Environmental Equipment Co., Ltd., claiming additional costs of RMB 8,216,000 due to contract violations[93] - The company currently has no foreign currency hedging policy but regularly reviews foreign currency risks[95] - The company has maintained a minimum public float of 15% as required by the Stock Exchange since its listing date[104] Corporate Governance - The Audit Committee, consisting of three members, has reviewed the annual performance and consolidated financial statements for the year ending December 31, 2023[105] - The financial information provided does not constitute audited accounts for the year ending December 31, 2023, but is extracted from the consolidated financial statements audited by Ernst & Young[106] - The Annual General Meeting is expected to be held on May 21, 2024[107]
力勤资源(02245) - 2023 - 年度业绩