YCXN(SZ:300080)2024-04-12 16:00Corporate Independence and Governance - The company maintains complete independence in business, personnel, assets, organization, and finance from its controlling shareholder, ensuring autonomous operation and decision-making[1] - The company’s board of directors, supervisors, and senior management operate independently without interference from the controlling shareholder[1] - The company’s governance structure complies with relevant laws and regulations, ensuring no significant deviations from regulatory requirements[1] - The company has an independent financial department with a complete financial accounting system, separate bank accounts, and independent tax registration[2] - The company’s financial decisions are made independently, with no shared bank accounts with the controlling shareholder or related entities[2] - The company’s subsidiaries maintain independent accounting and financial management systems[2] - The company has a strict employee recruitment, evaluation, and promotion system, with all employees under independent labor and salary management[2] Shareholding Changes - Chairman Wang Anle increased his shareholding by 30,000 shares, bringing his total holdings to 30,000 shares[3] - Director Wang Shaofeng increased his shareholding by 39,000 shares, bringing his total holdings to 39,000 shares[3] - Vice President Lan Xiaolong increased his shareholding by 20,000 shares, bringing his total holdings to 20,000 shares[3] Investor Participation - The participation rate of investors in the 2023 First Extraordinary General Meeting was 69.64%[9] - The participation rate of investors in the 2022 Annual General Meeting was 70.36%[9] - The participation rate of investors in the 2023 Second Extraordinary General Meeting was 70.23%[9] - The participation rate of investors in the 2023 Third Extraordinary General Meeting was 70.62%[9] - The participation rate of investors in the 2023 Fourth Extraordinary General Meeting was 70.63%[9] - The participation rate of investors in the 2023 Fifth Extraordinary General Meeting was 70.61%[9] - The participation rate of investors in the 2023 Sixth Extraordinary General Meeting was 70.60%[9] Employee Management and Training - The company's total number of employees at the end of the reporting period was 5,508, with 106 at the parent company and 5,402 at major subsidiaries[24] - The company completed 482 training sessions for employees in 2023, focusing on new employee onboarding, technical skills, and management training[25] - The company implemented a salary reform mechanism, optimizing incentive schemes to align with performance and contribution, and established a competitive compensation system[24] Internal Control and Financial Management - The company's internal control system was deemed effective, with no significant deficiencies in financial or non-financial reporting as of the evaluation date[26] - The company's board of directors and audit committee reviewed and approved various financing and leasing-related proposals, including providing guarantees for subsidiaries' financing activities[22][23] - The company's internal control evaluation report was fully disclosed on April 13, 2024[48] - The company's internal control evaluation report can be accessed at www.cninfo.com.cn[48] Environmental Compliance and Pollution Control - The annual emission limits for pollutants are: sulfur dioxide 8.3912 tons/year, particulate matter 3.7709 tons/year, and nitrogen oxides 19.8418 tons/year[35] - The wastewater treatment capacity is 6200 m³/day, with two sets of physicochemical treatment facilities, each with a capacity of 3600 m³/day[36] - The company is classified as an encouraged enterprise under the "Industrial Structure Adjustment Guidance Catalog (2019 Edition)" due to its single-crystal silicon photovoltaic battery conversion efficiency exceeding 22.5%[38] - The company's pollution control facilities and production equipment operated stably during the reporting period[57] - The company has achieved a closed water cycle system, with zero wastewater discharge[63] - The company obtained a new pollutant discharge permit (No. 91410000MA3X88BP27001W) from the Kaifeng Ecological Environment Bureau on November 8, 2023[70] Financial Performance and Cash Flow - The company's cash flow from financing activities decreased by 17.38% compared to the previous period, with no significant changes[66] - The company reported a significant asset impairment of -157,393,808.60, accounting for 909,960.17% of total profit, primarily due to bad debt and inventory write-downs[67] - The company's investment income was 6,716,297.90, representing -38,829.76% of total profit, mainly from equity method accounting for long-term investments[67] - The company's operating cash flow turned positive, with a net cash flow from operating activities of 148.39 million yuan, a 150.90% increase from -291.53 million yuan in 2022[93] - Net cash flow from investing activities decreased by 167.75% to -1,129.43 million yuan, primarily due to increased project investments[93] - Net cash flow from financing activities decreased by 17.38% to 937.96 million yuan, despite a 17.85% increase in financing cash inflows to 3,633.24 million yuan[93] Research and Development - The company completed the development of a distributed new energy centralized control big data intelligent diagnosis system, achieving cost reduction and efficiency improvement goals[84] - The company developed an optimized solution for industrial park photovoltaic integration, aiming to increase annual power generation by at least 10% and reduce the levelized cost of electricity by 7-10%[84] - The company completed the development of a high-performance lithium-ion battery negative electrode material coating/doping research and industrialization application project[85] - The company developed a new silicon-carbon negative electrode material preparation and industrialization research project[85] - The company completed the research and application of sodium-ion battery hard carbon negative electrode materials[85] - The company completed the research on recycling and utilization of waste lithium-ion battery negative electrode materials[85] - The company developed a high-performance negative electrode material using carbon nanotubes and graphite composite[85] - The company developed a long-cycle life artificial graphite process with a cycle life of over 6,000 cycles[85] - R&D personnel increased by 56.45% to 643 in 2023, with the proportion of R&D personnel rising to 11.67% from 7.92% in 2022[88] - The number of R&D personnel with a bachelor's degree increased by 44.00% to 216, while those with a master's degree increased by 23.68% to 47[88] - R&D personnel under 30 years old surged by 282.50% to 154, and those over 40 years old increased by 122.22% to 200[88] - R&D investment in 2023 was RMB 361.26 million, accounting for 3.65% of operating revenue, with no capitalised R&D expenditure[96] Market and Industry Trends - The company's main business and core competitiveness remained stable in 2023, consistent with industry trends[118] - Domestic manufacturers have significant cost advantages, and domestic substitution has become a trend in the lithium-ion battery market[119] - Policy-driven growth: The government's emphasis on new energy and renewable energy will drive industry development, with a target of achieving over 30GW of new energy storage capacity by 2025 and full marketization by 2030[120] - Technological advancements: Kaifeng Times possesses next-generation vanadium battery technology and internationally leading stack welding and sealing technology, improving reliability and automation[120] - Raw material price impact: Silicon wafer price fluctuations in 2023 caused significant volatility in product gross margins and unstable profitability[121] - PERC technology leadership: Pingmei Longji's monocrystalline silicon cells achieve a conversion efficiency close to the theoretical limit of 24.18%, with 53 related patents[121] - Graphite electrode market position: Kaifeng Carbon ranks among the top three in China's domestic market share for Φ600mm and Φ700mm ultra-high power graphite electrodes[122] - Distributed PV strategy: Zhongyuan Jintaiyang plans to build 3GW of clean energy power stations during the 14th Five-Year Plan period[124] - Lithium battery production: Yicheng Sunshine operates two production lines (18650 and 21700) with self-developed product formulations and a sales model combining direct sales and agency[125] - Graphite electrode demand: Steel industry downturn in 2023 reduced demand, but government equipment renewal policies may stimulate recovery in 2024[126] - Negative electrode material outlook: GGII forecasts China's lithium battery material shipments to grow over 20% in 2024, with negative electrode material shipments exceeding 2 million tons[127] - Industry consolidation: Negative electrode material industry faces overcapacity with average utilization below 50%, but market growth potential remains[127] - Lithium battery product prices continued to decline in 2023, severely compressing profit margins, with a significant reduction in export orders and a severe underutilization of production capacity[139] - China's new photovoltaic installations reached 216.88GW in 2023, a year-on-year increase of 148.1%, accounting for over half of the global new installations, with global new installations reaching approximately 390GW[140] - Conservative estimates predict China's new photovoltaic installations to reach 390GW in 2024, with optimistic estimates reaching 430GW[140] - The global lithium-ion battery market for power tools is expected to reach $21.56 billion by 2029, with a CAGR of 8.1%[175] - China's lithium battery market shipments are projected to exceed 1100GWh in 2024, a year-on-year increase of over 27%, with power battery shipments exceeding 820GWh and energy storage battery shipments exceeding 200GWh[175] - The global photovoltaic installed capacity is expected to increase from 1055GW to 5457GW by 2030, with ongoing policy revisions to promote distributed photovoltaic development[186] Financial and Operational Challenges - The company's operating income for 2023 was 9,884,206,989.03 yuan, a decrease from 11,245,160,966.68 yuan in 2022[159] - The company's net profit attributable to shareholders in the fourth quarter of 2023 was -53,165,671.37 yuan, a significant decline compared to previous quarters[159] - The company's non-recurring profit and loss items for 2023 amounted to 52,096,930.78 yuan, an increase from 33,783,002.89 yuan in 2022[167] - The company's financial report shows that the cumulative impact of the new accounting policy adjustment resulted in a decrease of 24,601.28 yuan in deferred tax assets and an increase of 24,601.28 yuan in income tax expenses[158] - The company's recent three fiscal years have shown negative net profits after deducting non-recurring gains and losses, with the latest audit report indicating uncertainty in the company's ability to continue operations[142] - Revenue in 2023 decreased by 12.10% to RMB 9,884,206,989.03 compared to the adjusted figure of RMB 11,245,160,966.68 in 2022[192] - Net profit attributable to shareholders in 2023 dropped by 90.46% to RMB 46,063,763.19 from RMB 482,819,598.49 in 2022[192] - The decline in net profit in 2023 was primarily due to reduced sales and income from graphite electrode and related products[200] Subsidiaries and Market Share - The company's subsidiary, Pingmei Longji, accounts for 1.83% of the national market share in crystalline silicon solar cell production, with a total national capacity of 545GW in 2023[102] - The company's subsidiary, Zhongyuan Jintaiyang, has an installed capacity of 227.62MWp for photovoltaic power stations, generating 17,351.93 million KWH of electricity in 2023[103] - The company's subsidiary, Yicheng Sunshine, operates a lithium-ion battery project with an annual production capacity of 1.5GWh, producing 18650 and 21700 cylindrical lithium-ion batteries[106] - Yicheng Sunshine's lithium-ion batteries support 2C and 3C high-rate fast charging, with advantages in higher charge-discharge rates, lower discharge temperature rise, higher safety performance, and longer service life[106] Technological Innovations and Product Development - The company successfully developed and applied new technologies for square electrode baking and impregnation processes, enhancing product diversity and market competitiveness[89] - The company achieved automation in toluene insolubles and quinoline insolubles testing, improving environmental protection and reducing labor costs[89] - The company is developing a 21700-4000mAh full-tab battery, currently in the pilot phase, aiming to enhance power density by over 50% and reduce internal resistance to ≤5mΩ[89] - The company achieved a softening point of 105-110℃, toluene insolubles of 26-30%, quinoline insolubles of 7-10%, coking value of ≥56%, and ash content of ≤0.3% for high-quality binder asphalt, ensuring product stability and consistency[94] - High-quality impregnating asphalt production achieved a softening point of 85-95℃, toluene insolubles of 12-15%, quinoline insolubles of ≤0.5%, coking value of ≥47%, ash content of ≤0.3%, volatile content of 66-68%, and moisture content of ≤0.2%[94] - The company is developing high-performance anode materials for lithium-ion batteries, leveraging its existing 60,000 tons of delayed coke and 40,000 tons of needle coke projects[94] - The company successfully implemented a secondary oil-water separation process for production wastewater, improving environmental conditions and stabilizing production indicators[95] - The company aims to produce high-purity anthracene (≥97%) and carbazole (≥98%) using green and low-cost production technologies, with plans to quickly capture market share[95] - The new needle coke secondary particle process has been successfully developed, with an average market price of 40,000 yuan/ton and an annual sales volume of 1,000 tons, generating 40 million yuan in revenue[113] - The alkali polishing process for monocrystalline silicon solar cells has reduced corrosion to below 0.19 grams, eliminated the use of HNO3 and H2SO4, and improved efficiency by 0.05%[113] - The fine-line screen printing process has reduced silver paste consumption by 5mg per piece and improved efficiency by 0.05%[113] - The extrusion molding process for block electrodes has been successfully developed, adding a new product and proprietary technology for Henan Fuxing Technology[113] - The 41KN press molding process for ultra-high power graphite electrodes has been successfully developed, solving issues with material infiltration and surface cracks[113] Financial and Operational Strategies - The company initiated a private placement of A shares, raising 2.305 billion yuan for negative electrode materials and photovoltaic power plant projects[183] - The company successfully transferred 19.35% equity of Xinjiang Longhai Silicon Industry Development Co., Ltd. and 25% equity of Henan Shengrun New Energy Technology Co., Ltd., achieving breakthroughs in debt resolution[181] - The company's advanced lean management model has significantly reduced production costs and improved efficiency, with a daily cost and profit management method implemented across all units[180] - The company has established a comprehensive industrial chain from photovoltaic cell and module production to power plant construction and energy storage, as well as from coal tar to high-power graphite/negative electrode materials[179] - The company is actively promoting the establishment of a joint venture with Tsinghua University Shenzhen International Graduate School to build a graphene thermal film project[183] Environmental and Safety Compliance - The company's wastewater discharge of SS was 25mg/L, with an annual emission of 2.055 tons[61] - The company's wastewater discharge of COD was 62.64mg/L, with an annual emission of 112.93 tons[61] - The company's wastewater discharge of ammonia nitrogen was 1.5mg/L, with an annual emission of 5.46761 tons[61] - The company's wastewater discharge of total nitrogen was 26.7mg/L, with an annual emission of 39.77 tons[61] - The company's exhaust gas emission of nitrogen oxides was 18mg/m3, with an annual emission of 11.727 tons[61] - The company's exhaust gas emission of VOCs was 5.34mg/m3, with an annual emission of 9.2351 tons[61] - The company's exhaust gas emission of fluoride was 2.62mg/m3[61] - The company's nitrogen oxide emissions from organized sources in the delayed coking and calcination workshop were 54.73mg/m³[62] - The company's sulfur dioxide emissions from organized sources in the needle coke plant were 14.33mg/m³[62] - Kaifeng Pingmei New Carbon Materials Technology Co., Ltd. reported particulate matter emissions of 2.5mg/m³, with a total emission of 0.076981t, well below the approved annual emission limit of 2.102t[74] - Henan Yicheng Hanbo Energy Technology Co., Ltd. achieved a COD emission concentration of 61mg/L, with a total emission of 0.002016t, significantly lower than the approved annual limit of 0.888t[74] - Qinghai Tianlan New Energy Materials Co., Ltd. implemented a dual-alkali desulfurization process, achieving a treatment efficiency of 99% for sulfur dioxide pollutants[77] - Pingmei Longi New Energy Technology Co., Ltd. reported hydrogen chloride emissions of 2.9mg/m³ and particulate matter emissions of 8.7mg/m³, both within regulatory limits[71] - Henan Fuxing New Materials Technology Co., Ltd. recorded sulfur dioxide emissions of 35mg/m³ and nitrogen oxide emissions of 100mg/m³, with total emissions of 7.1t and 15.2t respectively, within approved limits[71] - Anshan Zhongte New Materials Technology Co., Ltd. reported particulate matter emissions of 12.34mg/m³ and sulfur dioxide emissions of 27.11mg/m³, with total emissions of 1.2t and 3.6t respectively, well below the approved annual limits[71] - The company achieved zero safety accidents in 2023 and continues to focus on sustainable development through technological innovation[198] Financial and Operational Metrics - The company's total pre-tax compensation for executives amounted to 356.94 million yuan[50] - The company's 10,000-ton new negative electrode material carbonization project was approved by the Kaifeng Municipal Ecological Environment Bureau on February 23, 2023[56] - The company's project "10,000-ton lithium-ion battery carbon graphite anode material production project" passed environmental approval