Financial Performance - Revenue increased by 7.6% to approximately RMB 162,278,000 (2022: RMB 150,818,000) [5] - Gross profit rose by 18.2% to approximately RMB 65,363,000 (2022: RMB 55,290,000) [5] - Gross margin improved to approximately 40.3% (2022: 36.7%) [5] - Profit before tax surged by 63.9% to approximately RMB 2,638,000 (2022: RMB 1,610,000) [5] - Net profit attributable to equity holders increased by 62.2% to approximately RMB 2,303,000 (2022: RMB 1,420,000) [5] - Basic earnings per share rose by 50.0% to approximately RMB 0.06 (2022: RMB 0.04) [5] - Total revenue for the year ended December 31, 2023, was approximately RMB 162,278,000, an increase of 7.6% compared to RMB 150,818,000 in 2022, primarily driven by increased sales of organic bentonite [103] - The company reported a net profit attributable to shareholders of RMB 2,302,676 for 2023, compared to RMB 1,420,207 in 2022, representing a growth of 62% [79] Assets and Liabilities - Total assets amounted to RMB 292,849,380 as of December 31, 2023, compared to RMB 278,152,459 in 2022 [8] - Total liabilities increased to RMB 175,419,693 from RMB 163,025,448 in the previous year [8] - Cash and cash equivalents decreased to RMB 14,888,159 in 2023 from RMB 19,355,608 in 2022, a decline of 23.5% [89] - Total trade and other payables rose to RMB 58,851,610 in 2023, compared to RMB 40,158,141 in 2022, marking a significant increase of 46.3% [91] - Total borrowings as of December 31, 2023, were approximately RMB 111,401,000, down from RMB 120,016,000 as of December 31, 2022 [136] - The debt-to-equity ratio improved to approximately 82.2% as of December 31, 2023, from 87.4% as of December 31, 2022, primarily due to an increase in bank borrowings [137] Research and Development - Research and development expenses were approximately RMB 11,585,685, up from RMB 10,613,283 in 2022 [6] - The company's R&D expenses for 2023 amounted to RMB 11,586,000, representing a 9.2% increase from RMB 10,613,000 in 2022, attributed to new environmental research projects [114] - Research expenditures are recognized as expenses when incurred, while development costs can be recognized as intangible assets if the project is likely to succeed and costs can be reliably measured [52] - Research and development expenses were supported by additional tax deductions, allowing for 100% deduction of actual R&D costs under applicable tax laws [77] Expenses - The company incurred total expenses of RMB 155,684,169 in 2023, compared to RMB 143,834,528 in 2022, marking an increase of 8.2% [72] - Distribution costs rose by RMB 3,944,000 or 19.4% to RMB 24,249,000 in 2023, mainly due to increased transportation expenses [110] - Administrative expenses increased by RMB 4,140,000 or 24.6% to RMB 20,953,000 in 2023, primarily due to higher professional service fees and employee costs [111] - Financial costs for the year were RMB (6,535,024), slightly higher than RMB (6,448,244) in 2022, indicating a marginal increase in financial burden [74] Inventory and Receivables - As of December 31, 2023, the total inventory cost was RMB 65,889,150, an increase of 8.5% from RMB 60,820,690 in 2022 [10] - Trade receivables increased to RMB 71,469,009 in 2023 from RMB 64,611,918 in 2022, reflecting a growth of 8.5% [82] - The net trade receivables after impairment provisions were RMB 65,023,210 in 2023, up from RMB 60,279,241 in 2022, indicating a 7.5% increase [82] - The impairment provision for trade receivables increased to RMB 6,445,799 in 2023 from RMB 4,332,677 in 2022, reflecting a rise of 48.8% [86] Taxation - Current and deferred tax expenses are adjusted based on applicable tax rates and temporary differences arising from deferred tax assets and liabilities [40] - The effective tax rate for the company was influenced by a preferential tax rate of 15% due to high-tech enterprise certification, which is valid for three years [76] - Income tax expenses rose from approximately RMB 190,000 for the year ended December 31, 2022, to approximately RMB 335,000 for the year ended December 31, 2023, an increase of approximately RMB 145,000 or 76.3% due to an increase in profit before tax [117] - The actual tax rates for the years ended December 31, 2023, and December 31, 2022, were 8.6% and 11.8%, respectively [117] Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the review period, except for deviations from provisions C.2.1 and C.1.8 [161] - The Audit Committee held four meetings during the review period, with all members in attendance [165] - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2023 [169] - At least 25% of the issued share capital is held by public shareholders as of the review period [168] Future Plans and Developments - The company plans to develop a series of montmorillonite products to replace imported products, enhancing domestic industry technology and competitiveness [148] - A production line for special mortar with an annual capacity of 200,000 tons has been established, with a focus on profit-centered and innovation-driven development strategies in 2024 [149] - The company has developed a production line with an annual capacity of 200,000 tons of special mortar putty, located at the headquarters in Zhejiang Changxing [99] Other Information - The company did not recommend any final dividend for the year ended December 31, 2023 (2022: nil) [5] - There are no significant events after the reporting period as of the announcement date [170] - The annual report for the year ended December 31, 2023, will be sent to shareholders and published on the company's website [171]
长安仁恒(08139) - 2023 - 年度业绩