YMCC(SH:600691)2024-04-19 08:31Financial Performance - The company's operating revenue for 2023 was CNY 13,620,796,086, a decrease of 20.05% compared to CNY 17,035,658,292.95 in 2022[23]. - The net profit attributable to shareholders for 2023 was a loss of CNY 1,365,575,028.13, compared to a profit of CNY 70,070,315.19 in 2022, marking a significant decline[23]. - The net cash flow from operating activities decreased by 15.45% to CNY 1,452,618,456.86 in 2023 from CNY 1,718,150,491.65 in 2022[23]. - The total assets of the company at the end of 2023 were CNY 22,520,638,810.24, down 8.97% from CNY 24,739,222,394.17 at the end of 2022[23]. - The net assets attributable to shareholders decreased by 22.65% to CNY 4,646,292,824.72 at the end of 2023 from CNY 6,006,842,087.32 at the end of 2022[23]. - The company reported a significant drop in net profit after deducting non-recurring gains and losses, with a loss of CNY 1,000,996,619.14 in 2023 compared to a profit of CNY 5,164,854.58 in 2022[23]. - The basic and diluted earnings per share for 2023 were -0.5747 RMB, representing a decrease of 2,054.76% compared to 2022[24]. - The weighted average return on equity was -25.6492%, down 26.8169 percentage points from the previous year[24]. - The company achieved an annual revenue of 13.62 billion RMB, a decrease of 3.415 billion RMB compared to the previous year, representing a decline of 20.05%[41]. - The net profit attributable to shareholders was -1.366 billion RMB, down 1.436 billion RMB from the previous year's profit of 0.07 billion RMB[41]. Production and Operations - The company achieved a total production of 3.7371 million tons, exceeding the planned target by 8.32%[33]. - The production volume of urea was 2.1145 million tons, while the production of polyvinyl chloride (PVC) was 240,900 tons[41]. - The average production capacity utilization for urea was 91.14%, with a design capacity of 2.32 million tons[78]. - The company plans to shut down the fixed bed gasification furnace, which will directly reduce urea production capacity by 1 million tons in 2024, leading to a corresponding decrease in revenue[66]. - The company’s subsidiary, Hengtong Chemical, has a PVC production capacity of 300,000 tons/year, with a production volume of 240,900 tons in 2023[70]. Market and Industry Conditions - The company faced significant challenges due to a cyclical downturn in the chemical industry and a decline in product prices[33]. - The domestic urea market price fluctuated throughout 2023, with the first quarter price range at 2740-2880 RMB/ton, the second quarter at 2180-2710 RMB/ton, the third quarter at 2340-2700 RMB/ton, and the fourth quarter at 2390-2640 RMB/ton[68]. - The nitrogen fertilizer industry is supported by long-term agricultural demand, with increasing reliance due to environmental requirements in construction, automotive, and thermal power sectors[67]. - The domestic fertilizer market has seen an increase in production capacity and output, with a recovery in imports and exports, leading to a balanced supply and demand situation[67]. Compliance and Governance - The company has received a standard unqualified audit opinion from its accounting firm, indicating the financial report's reliability[5]. - The company has established a three-tier compliance internal control system, ensuring no significant defects in integrity, rationality, and effectiveness were found[103]. - The company emphasizes transparent performance evaluation and incentive mechanisms for senior management, aligning with legal regulations[104]. - The company actively engages with investors through various communication channels to enhance understanding of its governance and development strategies[104]. - The company has implemented strict insider information management to ensure fair and transparent information disclosure[104]. Environmental and Safety Measures - The company has implemented pollution control measures, achieving a reduction of 64,528.05 tons in carbon equivalent emissions through the use of carbon reduction technologies during production[160]. - All subsidiaries have maintained normal operation of pollution control facilities, ensuring that all pollutants are discharged within the legal standards without any environmental pollution incidents reported[153]. - The company emphasizes the importance of transparent and accurate financial reporting to protect the interests of all stakeholders[161]. - The company is committed to providing a safe and healthy work environment for employees, recognizing them as the most important asset[161]. Research and Development - The company applied for 99 patents during the reporting period, including 25 invention patents[40]. - Research and development expenses totaled 245,569,055.11 CNY, representing 1.80% of total operating revenue[54]. - The number of R&D personnel was 659, accounting for 9.67% of the total workforce[55]. - The company received 20 innovation honors in 2023, including 8 national-level awards, indicating a strong focus on R&D and innovation[74]. Related Party Transactions - The company reported a significant related party transaction with Huayang New Materials Technology Group, purchasing chemical products amounting to 2.17 billion yuan, representing 17.17% of similar transaction amounts[185]. - Another related party transaction involved purchasing chemical products from Luan Chemical Group for approximately 1.08 billion yuan, accounting for 8.51% of similar transaction amounts[185]. - The total revenue from related party transactions amounted to CNY 5,626,100,577.84[186]. Employee and Management Changes - The total number of employees in the company and its main subsidiaries is 6,815, with 6,685 in major subsidiaries[134]. - The company held 11 board meetings during the year, with 2 in-person and 9 via communication methods[127]. - The company has undergone changes in its board members, with several resignations and elections during the reporting period[126]. - The total remuneration for directors, supervisors, and senior management amounted to 6.8055 million yuan for the reporting period[123].