Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 1.24 billion, a decrease of about RMB 295 million or 19.2% compared to the previous year[10]. - Gross profit for the same period was approximately RMB 57.9 million, down about RMB 15 million or 20.6% year-on-year[10]. - The total revenue for the year ended December 31, 2023, was approximately RMB 1,239,515,000, a decrease from RMB 1,534,524,000 in 2022, representing a decline of about 19.2%[12]. - The total sales cost for 2023 was approximately RMB 1,181,619,000, down from RMB 1,461,613,000 in 2022, reflecting a decrease of about 19.2%[13]. - Gross profit for the year 2023 was RMB 57,896,000, compared to RMB 72,911,000 in 2022, resulting in a gross margin decrease from 4.8% to 4.7%[15]. - The company reported a net loss of approximately RMB 1,509,000 for the year ended December 31, 2023, compared to a profit of RMB 31,745,000 in 2022[22]. - Adjusted profit for the year 2023 was RMB 20,333,000, down from RMB 35,029,000 in 2022, indicating a decline in operational performance[23]. Sales and Market Dynamics - The sales volume for the year was approximately 364,000 tons, with the product breakdown being 37.0% naphtha, 27.8% other chemical products, 23.6% gasoline, 11.3% fuel oil, and 0.3% diesel[6]. - The company adjusted and optimized its sales product structure in response to market changes, focusing on expanding sales channels for naphtha and industrial raw materials[6]. - The domestic refined oil and other chemical product demand market is expected to grow in 2024, despite ongoing competition in the refined oil industry[7]. - The average price of finished oil decreased from RMB 7,803 per ton in 2022 to RMB 6,847 per ton in 2023, reflecting market price fluctuations[12]. - The company’s total sales volume for finished oil in 2023 was 130,591 tons, compared to 75,726 tons in 2022, indicating an increase in sales volume despite revenue decline[12]. Operational Expenses - Distribution expenses increased by approximately RMB 1,931,000 or 13.5% to RMB 16,200,000 in 2023, primarily due to increased short-term operating lease costs for oil storage facilities[17]. - Administrative expenses rose by approximately RMB 9,993,000 or 73.4% to RMB 23,615,000 in 2023, mainly due to increased professional and other fees related to the application for transfer from GEM to the main board[18]. - Other net losses turned from a gain of RMB 3,095,000 in 2022 to a loss of RMB 13,243,000 in 2023, primarily due to litigation losses of RMB 13,267,000[16]. Cash Flow and Financial Position - For the year ended December 31, 2023, the net cash generated from operating activities was approximately RMB 82,541,000, a decrease from RMB 98,086,000 in 2022[24]. - The net cash generated from investing activities for the year was approximately RMB 929,000, primarily due to interest income from bank deposits[24]. - The net cash used in financing activities was approximately RMB 360,000, mainly due to lease payments[25]. - As of December 31, 2023, the group's cash and cash equivalents amounted to approximately RMB 189,706,000, compared to RMB 106,445,000 as of December 31, 2022[25]. - The net current assets as of December 31, 2023, were approximately RMB 431,072,000, an increase of approximately RMB 14,448,000 from RMB 416,624,000 in 2022[26]. - The group had no borrowings as of December 31, 2023, maintaining a cash surplus[27]. Corporate Governance - The company has complied with the GEM Listing Rules and the Corporate Governance Code during the financial year ending December 31, 2023[55]. - The board consists of seven members, including four executive directors and three independent non-executive directors[59]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined responsibilities[64]. - The chairman and CEO roles are clearly separated to ensure effective governance[60]. - The company has a robust internal control system to manage risks and ensure accountability[55]. - The board is responsible for setting strategic goals and overseeing the company's development[57]. Risk Management - The company has established a risk management and internal control system to ensure effective governance and compliance with relevant laws and regulations[84]. - The board is responsible for overall risk management, with management authorized to identify and monitor risks[86]. - The company has identified market risk, foreign exchange risk, liquidity risk, and operational risk as key risks[88][89][90]. - The company maintains sufficient cash and cash equivalents to manage liquidity risk effectively[89]. Environmental and Social Responsibility - The company is developing a green low-carbon strategy aligned with China's carbon neutrality goals, prioritizing suppliers with a low carbon footprint[106]. - The company is enhancing its sustainable development performance by monitoring global and Chinese environmental policies and regulatory trends[107]. - The company has not faced any significant fines or non-monetary sanctions for environmental law violations during the reporting period[120]. - The company prioritizes energy-efficient equipment and facilities to improve energy performance and reduce its carbon footprint[120]. - The company has implemented measures to mitigate acute and chronic physical risks associated with climate change, including monitoring weather-related impacts on storage environments[145]. Employee Management - The total number of employees as of December 31, 2023, is 23, with a decrease of 28.57% from 32 employees in 2022[151]. - The overall employee turnover rate for 2023 is approximately 32.73%, an increase from 31.25% in 2022[160]. - The company emphasizes the importance of employee welfare and mental health, implementing various measures to reduce turnover[160]. - The overall percentage of trained employees remained at 100% from 2022 to 2023[166]. - The average training hours per employee increased from 10.00 hours in 2022 to 13.91 hours in 2023, a rise of 39.10%[167]. Community Engagement - The company is committed to investing resources to support local communities, especially in health and safety due to COVID-19[181]. - The company has established policies to prevent child labor and forced labor, ensuring compliance with relevant laws[187]. - The company is committed to community engagement and considers community interests in its business activities[188].
金泰丰国际控股(09689) - 2023 - 年度财报