ECEC(SZ:002140)2024-03-29 16:00Financial Performance - The company's operating revenue for 2023 was CNY 7,558,215,928.20, representing a 21.24% increase compared to CNY 6,234,035,308.72 in 2022[20]. - The net profit attributable to shareholders for 2023 was CNY 343,926,312.91, up 19.16% from CNY 288,634,429.71 in 2022[20]. - The net profit after deducting non-recurring gains and losses was CNY 294,372,264.01, a 3.14% increase from CNY 285,407,487.08 in 2022[20]. - The company's total assets increased by 22.03% to CNY 14,336,573,892.32 at the end of 2023, compared to CNY 11,747,967,687.96 at the end of 2022[20]. - The net assets attributable to shareholders rose by 8.23% to CNY 4,008,936,912.39 at the end of 2023, compared to CNY 3,704,216,544.70 at the end of 2022[20]. - The company reported a basic earnings per share of CNY 0.4890, a decrease of 5.05% from CNY 0.5150 in 2022[20]. - The total profit for 2023 was 410 million yuan, reflecting an 18.00% year-on-year growth[178]. - The total contract business generated ¥7,163,679,183.34, which is 94.78% of total revenue, showing a 21.54% increase from the previous year[110]. Market Expansion and Strategy - The company is focused on expanding its market presence in new materials, new energy, and new environmental protection sectors[14]. - The company aims to enhance its engineering and industrial business structure, focusing on chemical engineering, environmental governance, and infrastructure projects[29]. - The company operates in over 30 provinces in China and various countries along the "Belt and Road" initiative, indicating a broad market reach[29]. - The company is strategically expanding into new materials, new energy, and new environmental protection sectors during the "14th Five-Year Plan" period[29]. - The company plans to focus on new materials, new energy, and new environmental protection fields to drive innovation and market expansion[37]. - The company aims to achieve a development goal of becoming a comprehensive engineering company with international competitiveness, targeting a revenue of 10 billion yuan by the end of the "14th Five-Year Plan" period[170]. - The company is focusing on diversifying its business into new materials, new energy, and environmental protection sectors[178]. Governance and Management - The company has established a robust governance structure with all board members present for the report's approval[4]. - The company has a dedicated board secretary and securities representative to manage investor relations[17]. - The company has appointed 2 new directors with practical operational management experience and added 1 vice chairman to enhance the board's decision-making capabilities[77]. - The company selected 16 young managers, with nearly 70% of the management team being born in the 1980s and 1990s, to invigorate the leadership team[78]. - The company has implemented a mixed ownership reform and enhancing its incentive mechanisms for talent[174]. - The company is enhancing its capital operation capabilities through mergers, restructuring, and refinancing[176]. Research and Development - The company achieved a 23% increase in the total number of effective invention patents by the end of 2023, with 28 authorized patents, including 15 invention patents[40]. - The company initiated 19 new R&D projects and successfully passed the acceptance of 32 R&D projects during the reporting period[80]. - The company applied for 72 patents and was granted 28 patents, including 15 invention patents, while also compiling 50 various standards[84]. - Research and development expenses increased by 16.18% to ¥264,627,287.30, driven by enhanced R&D investments and process optimization[130]. - The number of R&D personnel rose by 8.57% to 266, with a notable increase in master's degree holders by 11.77%[133]. Environmental and Safety Initiatives - The company is committed to developing biodegradable materials, which are included in national strategic emerging industries[14]. - The company has invested in 13 environmental operation projects, with 8 already completed and generating operational revenue[64]. - The company is focusing on developing a complete biodegradable materials supply chain, including PLA production processes[66]. - The company emphasizes safety and quality management, establishing a comprehensive safety responsibility system across all departments[186]. - The company achieved 35.89 million man-hours of safe production without any major safety or environmental incidents during the year[75]. Financial Management and Investments - The company has established a financial management center, achieving significant improvements in financial control, including a reduction in funding costs by approximately 27 million yuan[103]. - The company has completed a VAT refund of 78 million yuan, enhancing its cash flow management[103]. - The company reported a total long-term debt and current liabilities of RMB 1.19 billion, primarily for various project financing, including the PBAT project[70]. - The company has raised approximately RMB 906 million through a private placement of 163,557,432 shares at a price of RMB 5.54 per share[71]. - The company has established a closed-loop management system for external investments, including pre-investment, during-investment, and post-investment evaluations[199]. Challenges and Risks - The company recognizes macroeconomic risks, particularly the uncertainty in global economic growth and domestic demand, which may impact operations[191]. - The company faces challenges in the domestic chemical engineering sector, which constitutes a significant portion of its revenue, due to structural and cyclical issues[192]. - The company is facing risks related to project delays and potential payment defaults due to owner cash flow issues[196]. Future Outlook - The company plans to sign new contracts worth 20.5 billion yuan and aims for a revenue target of 8.5 billion yuan for 2024[180]. - The company intends to expand into emerging markets with high potential and align with national industrial policies to enhance development capabilities[192]. - The global economic growth is projected to slow from 2.7% in 2023 to approximately 2.4% in 2024, with inflation expected to decrease to 3.9%[163]. - The company is expected to benefit from the implementation of policies aimed at fostering innovation and optimizing industrial supply chains, which will create new opportunities for business development and transformation[165].