Financial Performance - CPMC achieved a revenue of RMB 10,265,310, representing a slight increase of 0.1% compared to RMB 10,255,225 in 2022[2] - The profit attributable to equity holders of the Company was RMB 474,760, a decrease of 2.4% from RMB 486,512 in the previous year[2] - Earnings per share decreased by 2.5% to RMB 0.426 from RMB 0.437 in 2022[2] - The Group's total revenue for the year ended 31 December 2023 was approximately RMB10,265 million, which was basically flat from 2022, with a gross profit margin of 15.6%[41] - The net profit for the year ended 31 December 2023 remained flat at approximately RMB485 million[42] - The Group's profit before income tax increased by approximately 5.1% to RMB626 million in 2023[43] - Finance costs increased to approximately RMB238 million in 2023, up by RMB151 million or 171.9% compared to 2022[44] - Income tax expenses were approximately RMB141 million in 2023, with an effective income tax rate of approximately 22.5%[44] Sales and Revenue Breakdown - The Group's sales revenue from aluminium packaging was approximately RMB5,346 million in 2023, accounting for approximately 52.1% of overall sales, with a gross profit margin of 14.6%[31] - The sales revenue from the tinplate packaging business amounted to approximately RMB4,210 million in 2023, representing approximately 41.0% of overall sales, with a gross profit margin of 17.1%[31] - The sales revenue from the milk powder can business was approximately RMB774 million in 2023, reflecting a year-on-year decrease of approximately 4.0%[32] - The sales revenue from the aerosol cans business increased by approximately 8.6% to RMB568 million in 2023[33] - The Group's plastic packaging business recorded sales revenue of approximately RMB709 million in 2023, representing a year-on-year increase of approximately 5.2%[36] Operational Developments - The Group's sales volume exceeded RMB 10 billion, marking a record net profit for the year[13] - CPMC focused on high-quality development and innovation, enhancing its core competitiveness in the packaging industry[14] - The newly-built two-piece can production lines in Kunming and Shenyang achieved profitability in their first year of operation[14] - CPMC launched new products, including 1L fresh beer cans and Heineken 5L abnormal-shaped beer cans, which are now in mass production[14] - The Group emphasized the establishment of a "3+N" technology innovation platform to enhance digital development and product quality[15] - CPMC plans to continue its focus on risk prevention and control while promoting green carbon reduction in manufacturing upgrades[16] - The Group aims to optimize production processes and improve gross profit margins through enhanced R&D and efficiency measures[19] Investment and Capital Expenditure - Capital expenditure for the year ended December 31, 2023, was approximately RMB571 million, with the two-piece cans project accounting for 67.1%[50] - Contracted capital commitments for property, plant, and equipment amounted to RMB225.67 million as of December 31, 2023, down from RMB463.02 million in 2022[51] Human Resources - The Group's total staff cost increased to approximately RMB877 million in 2023, compared to RMB799 million in the previous year[54] - The Group had 6,252 full-time employees as of December 31, 2023, an increase from 5,945 in 2022[54] Risk Management and Governance - The Group's management identified major risks including operational risks from macroeconomic control and fluctuations in raw material prices[55] - The Board conducted a review of the effectiveness of the Group's risk management and internal control systems during the financial year ended December 31, 2023[131] - The Group implemented the SAP system to enhance operational efficiency and improve internal control systems[134] - The Risk Management Committee held 1 meeting during the year ended December 31, 2023, to review major risks and the effectiveness of the risk management function[121] Corporate Governance - The Board held 7 meetings during the year ended December 31, 2023, with all Directors attending either in person or by telephone[80] - The Audit Committee conducted 3 meetings in 2023, with full attendance from its members[97] - The Company Secretary provided support for Board meetings, ensuring that all substantive agenda items were sent to Directors at least 3 days prior[83] - The Nomination Committee reviewed the Board's structure and made recommendations for re-election at the 2023 AGM[106] - The Company has arranged directors' and officers' liability insurance for all Directors and senior management for the year 2023/2024[88] - The Company Secretary has complied with professional training requirements as per the Listing Rules[92] - The Board is responsible for corporate governance duties and reviewed its governance policy during the year[93] - All Directors participated in continuous professional development, including reading regulatory updates and attending seminars[96] - The Company has a policy for assessing the suitability of proposed candidates for the Board, considering factors such as skills, experience, and diversity[107] Diversity and Inclusion - As of December 31, 2023, male employees accounted for 65.9% and female employees accounted for 34.1% of all employees, with a commitment to increase the proportion of female employees in senior management positions[112] - The Company aims to appoint at least 1 female director by 2024 to improve board diversity[111] - The Company is committed to creating favorable conditions to attract more women to join the Group, aiming for a gender-balanced workforce[112] ESG Initiatives - The Company has established an ESG governance structure with three levels: the Board, the Audit Committee, and the ESG task force[165][166] - In 2023, the Company identified product responsibility, employment, emissions, and environmental resources as highly material issues[170] - The Company aims to enhance ESG management and continuously communicate with stakeholders to promote sustainable development[163] - The Board assesses and manages material ESG issues annually, incorporating them into the risk management system[160] - The Company has set environmental targets related to business operations, reviewed by the Board and Audit Committee[161] - The ESG task force is responsible for formulating specific annual work plans and managing daily ESG risks[166] - The Company emphasizes communication with stakeholders, addressing their expectations and demands through various channels[167] Integrity and Compliance - CPMC conducted 62 integrity education trainings covering 3,217 employees, totaling 21.5 training hours in 2023[179] - CPMC's integrity risk prevention and control system was continuously improved, proactively identifying integrity risk points and reducing violations[175] - The company implemented a whistle-blowing system with multiple channels, ensuring confidentiality and protection for whistle-blowers[182] - CPMC's integrity awareness training included 390 participants in warning education briefings and 1,075 participants in integrity meetings and trainings[178] - The company maintained a 100% passing rate in food safety inspections conducted by government authorities, with no food safety incidents reported during the year[193] Quality Management - In 2023, CPMC's quality management system achieved a 100% passing rate in 394 batches of product sampling, involving 1,749 indicators[193] - The two-piece can conductivity online detection technology was successfully implemented in several branches, enhancing product quality and traceability[194] - CPMC developed an intelligent vision detection system for milk powder cans, achieving higher defect detection precision and obtaining 1 utility model patent and 1 software copyright[196] - The Wuxi company received the AA-Grade Integration of Informatisation and Industrialisation Management System Certificate, promoting intelligent and digital transformation[200]
中粮包装(00906) - 2023 - 年度财报