Nanning Baling Technology (SZ:002592)2024-03-29 16:00Company Overview - The company's registered address was changed to No. 21, East Section of Gaoxin Avenue, Nanning High-tech Zone on January 19, 2021 [18] - The company's stock is listed on the Shenzhen Stock Exchange with the stock code 002592 [18] - The company's legal representative is Gu Yu [18] - The company's website is www.baling.com.cn and the email address is nnblkj@baling.com.cn [18] - The company's annual report is disclosed on the Shenzhen Stock Exchange website (www.szse.cn) and other media platforms such as Securities Times, Securities Daily, China Securities Journal, Shanghai Securities News, and cninfo.com.cn [20] - The company's annual report is available at the company's securities department [20] - The company's unified social credit code is 91450000729752557W [21] - The company's main business has not changed since its listing [21] - The company's controlling shareholders have not changed since its listing [21] Financial Performance - Revenue for 2023 was RMB 542.68 million, a decrease of 1.77% compared to RMB 552.44 million in 2022 [22] - Net profit attributable to shareholders in 2023 was RMB 105.50 million, a significant increase of 680.46% compared to RMB 13.52 million in 2022 [22] - Net profit attributable to shareholders after deducting non-recurring gains and losses in 2023 was RMB 32.65 million, a substantial increase of 1,671.59% compared to RMB 1.84 million in 2022 [22] - Total assets at the end of 2023 were RMB 1.12 billion, a decrease of 5.84% compared to RMB 1.19 billion at the end of 2022 [22] - Net cash flow from operating activities in 2023 was RMB 22.65 million, a decrease of 63.98% compared to RMB 62.89 million in 2022 [22] - Basic earnings per share in 2023 were RMB 0.40, an increase of 700% compared to RMB 0.05 in 2022 [22] - Weighted average return on equity in 2023 was 13.29%, an increase of 11.41 percentage points compared to 1.88% in 2022 [22] - Total operating income in 2023 was 542.682 million yuan, a year-on-year decrease of 1.77%, with the automotive industry accounting for 92.55% of total revenue [71] - Heat exchanger revenue increased by 4.91% to 361.4184 million yuan, while exterior parts revenue decreased by 9.70% to 140.8419 million yuan [73] - Domestic sales accounted for 99.64% of total revenue, with a slight decrease of 1.38% to 540.7161 million yuan, while overseas sales decreased by 52.67% to 1.9658 million yuan [71] - The company's gross profit margin for the automotive industry increased by 3.39 percentage points to 20.65%, driven by a 3.76% decrease in operating costs [73] - Main business cost in the car industry decreased by 3.76% to 398.534 million yuan in 2023 compared to 414.098 million yuan in 2022 [76] - Heat exchanger main business cost increased by 2.44% to 294.7618 million yuan in 2023 compared to 287.7325 million yuan in 2022 [78] - Exterior parts main business cost decreased by 17.88% to 103.7722 million yuan in 2023 compared to 126.3655 million yuan in 2022 [78] - Total assets decreased by 5.84% to 1.1185 billion yuan, while net assets attributable to shareholders increased by 6.22% to 813.4799 million yuan, with a debt-to-asset ratio of 27.27%, down 12.98 percentage points [64] - Net cash flow from operating activities decreased by 63.98% to RMB 22,651,622.47 in 2023 [85] - Net cash flow from investing activities increased by 105.13% to RMB 8,515,709.46 in 2023 [85] - Investment income accounted for 111.64% of total profit, mainly from equity method investment income and financial asset transactions [87] - Cash and cash equivalents decreased by 1.05% to 150,716,621.34 yuan, accounting for 13.47% of total assets [88] - Accounts receivable increased by 2.75% to 84,085,065.82 yuan, accounting for 7.52% of total assets, mainly due to an increase in receivables not yet due [88] - Inventory increased by 2.09% to 115,653,523.41 yuan, accounting for 10.34% of total assets [88] - Long-term equity investments increased by 3.68% to 139,498,498.94 yuan, accounting for 12.47% of total assets, mainly due to investment income from Chongqing Baling [88] - Short-term borrowings decreased by 5.60% to 41,057,222.23 yuan, accounting for 3.67% of total assets, mainly due to a reduction in bank loans [88] - Receivables financing increased by 1.90% to 73,743,795.41 yuan, accounting for 6.59% of total assets, mainly due to a shift to bill-based settlements with customers [90] - Other equity instrument investments decreased by 7.02% to 131,112,000.00 yuan, accounting for 11.72% of total assets, mainly due to a fair value change of -91.5 million yuan from the investment in Gaia Interactive [90] - Deferred tax assets increased by 1.04% to 34,908,856.05 yuan, accounting for 3.12% of total assets, mainly due to an increase in deductible losses and share-based payment [90] - Other comprehensive income decreased by 8.52% to -156,795,265.22 yuan, accounting for -14.02% of total assets, mainly due to the fair value change of -91.5 million yuan from the investment in Gaia Interactive [90] - Total restricted assets amounted to 358,310,897.60 yuan, including 57,152,000.00 yuan of other equity instrument investments pledged for short-term loans [93] - Undistributed profits as of December 31, 2023: Consolidated statement (-RMB 504,259,800), Parent company statement (-RMB 524,939,200) [200] - No cash dividend conditions met for 2023 due to accumulated losses from previous years [200] Production and Sales - The company's heat exchanger production increased by 26.97% to 2.4965 million units in 2023 compared to 1.9662 million units in 2022 [46] - Heat exchanger sales grew by 4.01% to 2.2919 million units in 2023 from 2.2036 million units in 2022 [46] - Exterior parts production decreased by 33.93% to 822,200 units in 2023 from 1.2445 million units in 2022 [46] - Exterior parts sales declined by 32.22% to 823,200 units in 2023 from 1.2146 million units in 2022 [46] - Domestic production increased by 7.30% to 3.3072 million units in 2023 from 3.0822 million units in 2022 [47] - Domestic sales grew by 2.55% to 3.1034 million units in 2023 from 3.0262 million units in 2022 [47] - International production decreased by 50% to 11,500 units in 2023 from 23,000 units in 2022 [47] - International sales declined by 54.30% to 11,700 units in 2023 from 25,600 units in 2022 [47] - Car industry sales volume decreased by 8.87% to 3.1151 million units in 2023 compared to 3.4182 million units in 2022 [74] - Car industry production volume increased by 3.36% to 3.3187 million units in 2023 compared to 3.2107 million units in 2022 [74] - Inventory volume increased by 28.49% to 918,200 units in 2023 compared to 714,600 units in 2022 [74] - Material sales revenue decreased by 33.78% to 13.5159 million yuan in 2023 compared to 2022 [74] - Overseas revenue decreased by 52.67% to 2.1872 million yuan in 2023 compared to 2022 [74] Market and Industry Trends - In 2023, China's automobile production and sales exceeded 30 million units for the first time, reaching 30.161 million and 30.094 million units respectively, an increase of 11.6% and 12% year-on-year [35] - New energy vehicle production and sales in 2023 were 9.587 million and 9.495 million units respectively, an increase of 35.8% and 37.9% year-on-year, with a market share of 31.6% [36] - China's new energy vehicle production and sales reached 9.587 million and 9.495 million units in 2023, with year-on-year growth of 35.8% and 37.9%, respectively, and a market share of 31.6% [111] - Pure electric vehicle production and sales reached 6.704 million and 6.685 million units in 2023, with year-on-year growth of 22.6% and 24.6%, respectively [111] - Plug-in hybrid vehicle production and sales reached 2.877 million and 2.804 million units in 2023, with year-on-year growth of 81.2% and 84.7%, respectively [111] - Fuel cell vehicle production and sales reached 6,000 units in 2023, with year-on-year growth of 55.3% and 72%, respectively [111] - China's total vehicle sales are expected to exceed 31 million units in 2024, with a year-on-year growth of over 3%, including 26.8 million passenger vehicles and 4.2 million commercial vehicles [113] - New energy vehicle sales in China are expected to reach 11.5 million units in 2024, with exports of 5.5 million units [113] R&D and Innovation - The company has established a competitive advantage in integrated thermal management solutions, leveraging over 20 years of experience in the automotive heat exchanger industry [51] - The company has developed advanced R&D capabilities, including a smart design system and a result-oriented parametric design model, significantly improving product design efficiency [52] - R&D expenses in 2023 increased by 10.61% to 19.1054 million yuan, focusing on new energy vehicle thermal management systems and exterior parts [63] - New energy vehicle heat exchanger sales revenue reached 25.0245 million yuan, a year-on-year increase of 81.35%, while exterior parts sales revenue decreased by 22.86% to 63.5622 million yuan [63] - The company developed 1 high-low temperature integrated radiator product for hybrid vehicle power systems, achieving mass production [83] - The company is currently developing 1 air-cooled oil cooler for new energy vehicle motors, aiming for mass production [83] - The company developed and mass-produced 8 front skin assemblies and 4 rear skin assemblies for new energy vehicles [83] - The company completed the development of high-temperature resistant, non-spraying, high-gloss black material for car front grilles, achieving mass production [83] - The company developed 9 new colors for new energy vehicle exterior parts across 7 models, achieving mass production [83] - The number of R&D personnel decreased by 8.33% to 77 in 2023, with a decrease in the proportion of R&D personnel from 8.72% to 8.00% [83] - R&D investment increased by 10.61% to RMB 19,105,422.29 in 2023, accounting for 3.52% of operating revenue [84] Subsidiaries and Investments - The company's main customers include SAIC-GM-Wuling, Chery Automobile, Changan Automobile, Dongfeng Motor, FAW Jiefang, Voyah, and Seres [40] - The company operates in both OEM and AM markets, with a focus on direct sales to automakers [49] - New energy vehicle heat exchanger sales revenue reached 25,024,489.99 USD with a production capacity of 1,500,000 units, producing 311,167 units and selling 280,615 units [50] - New energy vehicle exterior parts sales revenue reached 63,562,161.69 USD with a production capacity of 1,050,000 units, producing 324,997 units and selling 305,777 units [50] - The company achieved a net profit attributable to shareholders of 10,549,770 USD in 2023, a year-on-year increase of 680.46%, driven by a one-time gain from the sale of a subsidiary [59] - Automotive parts business revenue accounted for 92.55% of total revenue, with thermal management business revenue increasing by 4.91% to 36,141,840 USD [60] - Exterior parts business revenue decreased by 9.70% to 14,084,190 USD due to a decline in customer vehicle production and sales [60] - Parent company revenue grew by 3.48% to 38,141,760 USD, contributing 70.28% to consolidated revenue, while subsidiary Liuzhou Baling's revenue declined by 12.85% [61] - The company operates production bases in Nanning, Liuzhou, and Indonesia, equipped with flexible manufacturing capabilities and advanced automation systems [55] - The company maintains long-term stable partnerships with major automakers such as SAIC-GM-Wuling, Chery, and Changan, ensuring a solid customer base [58] - The company's subsidiary, Liuzhou Baling Technology Co., Ltd., generated a net profit of RMB 15,898,567.24, contributing significantly to the company's overall profitability [103] - The company's subsidiary, Qingdao Baling Technology Co., Ltd., reported a net profit of RMB 273,794.83, primarily from non-residential real estate leasing [103] - The company's subsidiary, Nanning Shengda Supply Chain Management Co., Ltd., achieved a net profit of RMB 2,617,291.13, mainly from supply chain management services and new metal functional material sales [103] - Revenue from the subsidiary Impression Dinosaur Culture and Art Co., Ltd. was 324.96 million yuan, with a net loss of 26.0065 million yuan due to suspended operations and asset impairment [106] - The subsidiary PT.BALING TECHNOLOGY INDONESIA reported a revenue of 1.9658 million USD, a 57.24% year-on-year decrease, with a net loss of 358,955.39 USD [107] - The subsidiary Chongqing Baling Auto Parts Co., Ltd. achieved a revenue of 769.8228 million yuan, a 4.9% year-on-year increase, with a net profit of 77.9859 million yuan, up 20.95% [107] - The subsidiary Nanning Quanshitai Auto Parts Co., Ltd. reported a revenue of 45.2588 million yuan, a 5.07% year-on-year increase, with a net profit of 3.0116 million yuan, up 116.49% [108] - The subsidiary Shenzhen Wangbo Smart Toilet Innovation Technology Co., Ltd. had no revenue and reported a net loss of 504,090.08 yuan as it has not yet started production [108] - The subsidiary Beijing Hongrun Tianyuan Gene Biotechnology Co., Ltd. had no revenue and reported a net loss of 2.8944 million yuan, continuing its suspension of operations since 2020 [108] - The subsidiary Nanning Baling Investment Fund Partnership (Limited Partnership) reported no revenue and a net loss of 28.7751 million yuan due to bad debt provisions [106] - The subsidiary Liuzhou Baling Technology Co., Ltd. achieved a revenue of 155.3736 million yuan with a net profit of 15.8986 million yuan [105] - The subsidiary Nanning Shengda Supply Chain Management Co., Ltd. reported a revenue of 17.463 million yuan with a net profit of 2.6173 million yuan [105] - The company invested 38 million yuan in Dayaoma Wang, holding 22% of its shares, but has not recovered any funds due to legal disputes [128] - The dinosaur project has been suspended since 2019 due to the Beijing Winter Olympics, and its future remains uncertain [129] - The company acquired 51% of Beijing Hongtian for 907.75 million yuan, but Beijing Hongtian's cumulative operating profit from 2019 to 2021 was -648.82 million yuan, missing the promised 600 million yuan target [131] - The company transferred 15% of its equity in Beijing Hongtian for 10 million yuan, with potential additional income if the disposal and dividend income exceed 12 million yuan [70] - The company invested RMB 13,518,490.74 in the relocation and renovation project of the 100 production base during the reporting period, with a cumulative investment of RMB 43,934,097.29, achieving a progress rate of 20.06% [95] - The relocation of the 100 production base was completed by the end of December 2021, and the intelligent factory renovation of the 200 base is currently underway, with the project extended to June 2025 [95] - The company sold 15% of its equity in Beijing Hongtianyuan Biotechnology Co., Ltd. for RMB 10 million, resulting in an investment income of approximately RMB 6,901.87 million, which was recorded as non-recurring profit and loss [101] - The company increased its investment in Indonesia Baling Technology Co., Ltd. [187] Corporate Governance and Management - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital [5] - The company's future development will focus on the trends of electrification, connectivity, and intelligence in the automotive industry [110] - The company plans to increase R&D investment in 2024, focusing on new energy vehicle battery thermal management systems, motor and electronic control thermal management systems,