Corporate Governance - The Audit Committee held two meetings during the reporting period to review and discuss the interim and final performance of the company and its subsidiaries[6]. - The company has established a Remuneration Committee consisting of five members, which met once during the reporting period to discuss and determine the remuneration policy for executive directors and senior management[8]. - The Nomination Committee, comprising five members, convened once during the reporting period to review the independence of independent non-executive directors and matters related to the board's structure and composition[11]. - The company has complied with the listing rules by appointing at least three independent non-executive directors, constituting at least one-third of the board[13]. - The financial statements for the fiscal year 2023 have been reviewed by the Audit Committee[7]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[1]. - The Remuneration Committee is responsible for proposing remuneration policies and reviewing the performance of executive directors[8]. - The Nomination Committee will consider the company's diversity policy when assessing board composition and recommending candidates[9]. - The company has maintained a transparent process for the appointment and re-election of directors, with specific terms outlined in service agreements[14]. - The Audit Committee's main responsibilities include overseeing internal controls and risk management systems[4]. - The board of directors is responsible for leading and controlling the company, ensuring effective oversight of operations and financial performance[17]. - The company has established a compliance committee to ensure adherence to regulatory requirements and effective compliance systems[26]. - All directors have confirmed compliance with the standard code of conduct for securities trading during the reporting period[28]. - The board has a mechanism in place to obtain independent views and opinions, which is reviewed annually for effectiveness[29]. - The attendance rate for the annual general meeting and board meetings was 100% for all directors[31]. - The board consists of two executive directors and four independent non-executive directors, ensuring a strong independent element in governance[34]. - The chairman and CEO roles are held by the same individual, Mr. Zhao, which the board believes benefits the management of the group[34]. Financial Performance - Total revenue for the fiscal year 2023 was approximately RMB 201.99 million, a decrease of 26.2% compared to RMB 273.60 million in fiscal year 2022[37]. - Gross profit for fiscal year 2023 was approximately RMB 73.66 million, down 45.8% from RMB 135.90 million in fiscal year 2022, with a gross margin of 36.5% compared to 49.7% in the previous year[38]. - Net profit for fiscal year 2023 was approximately RMB 21.32 million, a decline of 73.0% from RMB 78.98 million in fiscal year 2022, resulting in a net profit margin of 10.6% compared to 28.9% in the prior year[37]. - Sales of spherical graphite and its by-products totaled RMB 99.63 million, down 24.1% from RMB 131.33 million in fiscal year 2022[37]. - Sales of flake graphite concentrate were RMB 101.33 million, a decrease of 26.8% from RMB 138.34 million in the previous fiscal year[37]. - The company decided not to declare a final dividend for the fiscal year 2023, compared to a dividend of 1.6 HK cents in fiscal year 2022, to retain reserves for future expansion[38]. - The company experienced intensified competition in the graphite industry, leading to a decline in product prices during fiscal year 2023[38]. - For the fiscal year ending December 31, 2023, the total revenue of the group was approximately RMB 202.0 million, a year-on-year decrease of 26.2% due to increased competition in the natural graphite industry[50]. - The net profit for the fiscal year was approximately RMB 21.3 million, a decrease of about 73.0% compared to RMB 79.0 million in the fiscal year 2022[63]. - In the second half of the fiscal year, total revenue was approximately RMB 154.8 million, a year-on-year decrease of 14.0%, significantly narrowing from a 49.5% decline in the first half[50]. - The group anticipates continued growth in the global new energy vehicle market, driven by technological advancements and increasing consumer demand for environmentally friendly transportation[62]. - The adjusted net profit for the fiscal year 2023 is approximately RMB 18.7 million, a decrease from RMB 83.8 million in fiscal year 2022, reflecting a decline of about 77.7%[136]. - The net cash generated from operating activities is approximately RMB 27.6 million, primarily due to a pre-tax profit of about RMB 24.1 million[141]. - Revenue from the sale of spherical graphite accounted for approximately 49.3% of total revenue in fiscal year 2023, compared to 48.0% in fiscal year 2022[144]. - Revenue from the sale of flake graphite decreased from approximately RMB 138.3 million in fiscal year 2022 to about RMB 101.3 million in fiscal year 2023, representing a decline of approximately 26.8%[147]. - The gross profit for fiscal year 2023 is approximately RMB 73.7 million, with a gross profit margin of about 36.5%, down from RMB 135.9 million and 49.7% in fiscal year 2022[151]. - The financing cost turned from approximately RMB 0.5 million in fiscal year 2022 to a financial income of about RMB 0.9 million in fiscal year 2023[156]. - The income tax expense decreased from approximately RMB 15.0 million in the fiscal year 2022 to about RMB 2.8 million in the fiscal year 2023, primarily due to a reduction in net profit from subsidiaries[157]. - The net profit after tax dropped from approximately RMB 79.0 million in the fiscal year 2022 to about RMB 21.3 million in the fiscal year 2023[158]. Operational Highlights - The production of flake graphite concentrate increased from 52,000 tons in the fiscal year 2022 to approximately 57,000 tons in the fiscal year 2023, representing a year-on-year growth of about 9.6%[52]. - The sales volume of flake graphite concentrate was 36,348 tons, a slight decrease of 0.1% year-on-year, with a gross margin of 37.8%, down 16.9 percentage points year-on-year[53]. - The group plans to significantly increase the permitted graphite extraction capacity at the Beishan mine, supported by the acquisition of nearby forest land for new processing facilities[56]. - The group aims to enhance its research capabilities and focus on high value-added products in the natural graphite anode sector to strengthen its core competitiveness[58]. - The sales volume of spherical graphite was 6,440 tons, a year-on-year decrease of 10.2%, with a partial gross margin of 35.5%, down 9.9 percentage points[75]. - The company has acquired 1,496,539 square meters of forest land for approximately RMB 86.9 million to facilitate expected increases in mining activities[92]. - The company has completed exploration drilling covering 0.2651 square kilometers at the Beishan mine, with a total expenditure of approximately RMB 4.3 million[119]. - The company has shifted its strategic focus from "production-oriented" to "production cost optimization" in response to recent business environment changes[137]. - The company continues to invest in the development of new processing plants to maintain and strengthen its graphite production capacity[139]. - The company has increased its workforce to 288 employees as of December 31, 2023, up from 196 in the previous fiscal year, aligning with expected production increases[172]. - The company has not made any significant investments or acquisitions other than those disclosed in the report for the fiscal year 2023[177]. Cash Flow and Financial Position - The current ratio decreased from 4.7 in 2022 to 2.9 in 2023, indicating a decline in liquidity[169]. - The company has utilized approximately RMB 71.7 million of the net proceeds for the acquisition of land costing about RMB 86.9 million, with the remaining land cost of approximately RMB 15.2 million funded by operating cash flow and bank loans[164]. - As of December 31, 2023, the company had cash and cash equivalents of approximately RMB 111.9 million, exceeding total borrowings by about RMB 66.4 million, indicating a positive net cash position[171]. - The net cash used in investing activities was approximately RMB 58.2 million, primarily for tailings storage improvement and purchasing property, plant, and equipment[190]. - The net cash generated from financing activities was approximately RMB 30.9 million, mainly from bank borrowings of RMB 56.4 million, offset by dividend payments of RMB 23.0 million[191]. - The gross profit margin for fiscal year 2023 was 36.5%, down from 49.7% in fiscal year 2022[192]. - The net profit margin for fiscal year 2023 was 10.6%, a decrease from 28.9% in fiscal year 2022[192]. - The current ratio decreased due to borrowings increasing from approximately RMB 10.0 million in fiscal year 2022 to RMB 66.4 million in fiscal year 2023[195]. - Capital expenditures for fiscal year 2023 were approximately RMB 58.2 million, compared to RMB 52.9 million in fiscal year 2022[198]. - The company did not have any contingent liabilities or significant lawsuits that could adversely affect its business or financial condition as of December 31, 2023[199]. - The company has adopted a cautious funding and financial policy to manage overall business operations[187]. - The company did not use any financial instruments for hedging in the fiscal year 2023[187].
中国石墨(02237) - 2023 - 年度业绩