FORTUNE(603173)2024-04-19 08:31Financial Performance - The company's operating revenue for 2023 reached ¥2,155,788,850.03, representing a year-on-year increase of 14.30% compared to ¥1,886,006,135.87 in 2022[28]. - Net profit attributable to shareholders for 2023 was ¥191,146,813.80, a 34.67% increase from ¥141,938,546.17 in 2022[28]. - The net profit after deducting non-recurring gains and losses was ¥171,780,431.18, up 30.03% from ¥132,105,026.30 in the previous year[28]. - The weighted average return on equity decreased to 14.58% in 2023, down 10.94 percentage points from 25.52% in 2022[28]. - The company's net assets attributable to shareholders increased by 133.30% to ¥1,453,554,800.99 at the end of 2023, compared to ¥623,029,997.08 at the end of 2022[28]. - Total assets rose by 51.19% to ¥4,397,161,854.59 in 2023, up from ¥2,908,276,712.48 in 2022[28]. - The company's net cash flow from operating activities was CNY 514.07 million, an increase of CNY 493.09 million year-on-year[58]. - The comprehensive gross profit margin for the main business was 22.55%, an increase of 2.33 percentage points year-on-year[58]. - The company's financial expenses showed a significant decrease, with a change of -3,580.51% due to foreign exchange gains[82]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 0.37 RMB per share to all shareholders, totaling 59,200,000 RMB based on a total share capital of 160,000,000 shares as of December 31, 2023[4]. - The company’s stock is listed on the Shanghai Stock Exchange under the ticker 603173[11]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants, ensuring the authenticity and completeness of the financial report[4]. - The board of directors has confirmed that all members can guarantee the authenticity and completeness of the annual report[4]. - The company has not violated decision-making procedures for providing guarantees[4]. - There are no non-operational fund occupations by controlling shareholders or related parties reported[4]. - The company has implemented various internal control systems to enhance governance and compliance with legal regulations[149]. Research and Development - Research and development expenses for the year amounted to ¥98,060,000, reflecting an 8.75% increase year-on-year[38]. - The number of R&D personnel is 188, accounting for 25.75% of the total workforce[108]. - The total R&D investment amounted to 98.06 million RMB, representing 4.55% of operating revenue[128]. - The company completed several R&D achievements, including a 100,000-level air separation unit and hydrogen liquefaction technology, enhancing its product structure and profitability[62]. - The company emphasizes the importance of innovation through its "Three New Projects" initiative, focusing on new breakthroughs, new products, and new operations to enhance competitiveness[162]. Market and Sales Performance - Domestic sales revenue decreased by 22.03%, while overseas sales revenue surged by 212.19% due to increased project deliveries[86]. - The company achieved significant growth in overseas revenue, contributing to an overall increase in gross margin compared to the previous year[36]. - The company successfully expanded its overseas market presence, signing multiple new product projects, including a large-scale LNG heat exchanger and a 500,000 m³/day LNG project[61]. - The company's main product, air separation equipment, saw a revenue increase of 13.47% year-on-year[85]. - The company has established a stable customer base, with a mix of new and returning clients contributing to its order growth during the reporting period[79]. Strategic Initiatives and Future Plans - The company plans to continue expanding its overseas market presence, which is expected to enhance operational results[99]. - The company plans to invest in the "10 sets of large modular cryogenic chemical equipment green intelligent manufacturing construction project" to enhance production capacity[111]. - The company is positioned to benefit from the ongoing structural adjustments in the petrochemical industry, which will drive demand for large-scale cryogenic equipment[70]. - The company plans to strengthen its overseas strategy and invest in new market development as part of its future growth strategy[140]. Governance and Board Activities - The company appointed Liu Haining as an independent director during the first extraordinary general meeting of 2023[184]. - The board of directors held 7 meetings in the year, with all members present at least 6 times[187]. - The company’s strategic decision-making committee convened once during the reporting period[192]. - The remuneration for directors and senior management is approved by the board and submitted to the shareholders' meeting for approval[183]. - The company reported no objections from the supervisory board regarding oversight matters during the reporting period[193]. Risks and Challenges - The company faces significant competition in the deep cooling technology industry, with risks of market share erosion if it fails to innovate and maintain competitive advantages[144]. - The company is exposed to risks from international policy changes and geopolitical tensions, which could impact its overseas operations and compliance with economic sanctions[147]. - The company faces risks in expanding overseas markets due to potential political and economic instability, trade policies, and regulatory measures, particularly in the context of rising trade protectionism[167].