CHINA HARZONE(SZ:300527)2024-04-21 07:58Financial Performance - The company reported a loss for the fiscal year 2023, primarily due to delays in international business contracts and significant tender projects not starting on time, leading to a year-on-year decline in revenue [4]. - The company's total revenue decreased, with a significant portion coming from the engineering market, which has a lower gross margin, resulting in decreased profits despite stable fixed costs compared to the previous year [4]. - The company's operating revenue for 2023 was ¥603,113,601.59, a decrease of 63.63% compared to ¥1,658,124,428.85 in 2022 [25]. - The net profit attributable to shareholders of the listed company was ¥217,481,620.94, a significant decline of 3,996.77% from ¥67,480,753.6 in 2021 [25]. - The net cash flow from operating activities was ¥9,974,487.44, down 316.44% from ¥515,579,606.42 in 2021 [25]. - The total assets at the end of 2023 were ¥3,915,307,466.48, representing a decrease of 14.81% from ¥4,594,815,654.4 at the end of 2022 [25]. - The net assets attributable to shareholders of the listed company were ¥2,546,956,691.62, a decrease of 7.79% compared to ¥2,762,069,691.6 at the end of 2022 [25]. - The company reported a basic and diluted earnings per share of -0.226 yuan, a decline of 3,666.67% from 0.07 yuan in 2021 [25]. - The company recorded a total of ¥117,191,805.66 in non-recurring gains and losses for 2023, compared to a loss of ¥65,316,360.71 in 2022 [33]. - The main business revenue for 2023, after deducting other business income, was ¥599,795,809.25, down from ¥1,644,944,822.24 in 2022 [27]. - The company experienced significant losses in each quarter of 2023, with the largest quarterly loss in Q2 amounting to ¥132,601,547.54 [29]. - The company has acknowledged uncertainty regarding its ability to continue as a going concern, as indicated in the audit report for the recent year [27]. Dividend and Capital Management - The company does not plan to distribute cash dividends, issue bonus shares, or increase capital from reserves for the fiscal year 2023 [5]. - The company’s financial report has been confirmed by its management, ensuring its accuracy and completeness [4]. - The company emphasizes that any future plans or performance forecasts do not constitute commitments to investors, highlighting the importance of understanding the risks involved [5]. - The company has not engaged in any securities or derivative investments during the reporting period [90][91]. - The company has committed to various investment projects, with some projects exceeding their expected benefits [95]. - The company has not changed the use of raised funds during the reporting period [92]. - The company has temporarily supplemented working capital with idle raised funds amounting to CNY 200 million, with a usage period not exceeding 12 months [99]. - The company returned CNY 48 million of idle raised funds to the special account by December 31, 2022, and CNY 20 million by December 31, 2023 [99]. - The company reported a surplus of CNY 108.63 million from the Chibi Industrial Park project, which will be permanently used to supplement working capital [99]. Market Position and Competitive Landscape - The company maintains that there is no overcapacity, continuous decline, or technological substitution in the industry it operates in [4]. - The company maintains a leading position in the emergency transportation engineering equipment sector with a market share of over 30% [39]. - The company has developed a wide range of emergency equipment, including emergency floating bridges and mechanized bridges, which are crucial for rapid disaster response [42]. - The company has successfully supplied emergency equipment to over 50 countries and regions, becoming a qualified supplier for UN rescue agencies [40]. - The government’s emphasis on emergency management has created a favorable environment for the company, with increased demand for emergency equipment and services [38]. - The company’s products are characterized by short construction cycles, high mobility, and strong adaptability, making them more cost-effective compared to similar products from Western countries [39]. - The company is actively expanding its international market presence, particularly in countries along the "Belt and Road" initiative [38]. - The company has established a strong brand influence since its listing, enhancing its market expansion efforts in military, government, and large engineering sectors [49]. Research and Development - The company has invested in key technologies and new materials, proposing 12 research topics and completing 11 high-quality research results in the year [55]. - The company has received over 100 national and provincial-level science and technology progress awards, including 1 National Science and Technology Progress First Prize and 5 military-level First Prizes [53]. - The company has successfully delivered 81-meter super-large span emergency mechanized bridges and other products, achieving customer recognition [54]. - The company is actively involved in national key research projects, including the "High-Performance Rescue Boat R&D and Demonstration Application" project, which has received approval for development [54]. - The company has a strong technical research and development team, including experts with special government allowances and senior engineers, focusing on key technologies in military logistics and emergency rescue equipment [51]. - The company has ongoing R&D projects aimed at enhancing military logistics capabilities and improving product performance, with varying progress percentages across projects [80]. - The company’s R&D investment amounted to ¥145,651,158.23 in 2023, representing 24.15% of total revenue, a significant increase from 7.29% in 2022 [80]. - The number of R&D personnel increased to 230 in 2023, up by 1.32% from 227 in 2022, with a higher proportion of master's degree holders [80]. Governance and Management - The company held a board meeting on April 25, 2023, to discuss changes in the use of raised funds for various projects [97]. - The company has a governance structure with a clear distinction of roles among its board members and supervisors [153]. - The current management team includes experienced professionals with tenures extending to 2024 [153]. - The company is focused on maintaining stability in its leadership amidst recent changes [155]. - The company has outlined a strategy for succession planning in its governance practices [154]. - The board of directors consists of 7 members, including 3 independent directors, and held 5 meetings during the reporting period to provide professional opinions for decision-making [139]. - The supervisory board has 3 members and also held 5 meetings, effectively supervising major matters and ensuring compliance with legal requirements [140]. - The company emphasizes transparency and timely information disclosure, designating "Securities Times" for announcements and utilizing multiple channels for investor communication [141]. Risk Management - The company is actively monitoring potential risks that may affect its future development, as detailed in the report [5]. - The company faces risks related to the concentration of major clients, with significant reliance on government and military procurement plans, which are closely tied to national defense strategies [128]. - The company is experiencing increased procurement costs due to rising prices of raw materials, particularly in the steel industry, which significantly affects profit margins [125]. - The company is implementing measures to address potential risks from upstream product price fluctuations and supply chain disruptions, particularly in the steel and heavy truck industries [125]. - The company acknowledges its current gaps in technology, market presence, talent, and refined management compared to top domestic enterprises [110]. Environmental and Social Responsibility - The company has not faced any administrative penalties related to environmental issues during the reporting period [193]. - There were no major environmental protection issues reported, and the company is not classified as a key pollutant discharge unit [193]. - The company has implemented measures to comply with national environmental laws and regulations, ensuring "three wastes" emissions meet relevant standards [193]. - The company actively respects and protects the rights of stakeholders, balancing interests among shareholders, employees, and society [142]. Employee and Training Initiatives - The total number of employees at the end of the reporting period is 1,254, with 1,180 from the parent company and 74 from major subsidiaries [177]. - The professional composition includes 637 production personnel, 80 sales personnel, 265 technical personnel, 35 financial personnel, and 237 administrative personnel [177]. - The company conducted 103 internal training sessions with 3,837 participants, achieving a satisfaction rate of over 90% [180]. - The educational background of employees includes 2 with doctoral degrees, 163 with master's degrees, 419 with bachelor's degrees, 345 with associate degrees, and 325 with below associate degree [178]. Changes in Leadership - The company reported a resignation of Chairman Tang Yong due to health reasons, effective October 25, 2023 [154]. - Director Zhou Ping will resign on March 27, 2024, upon reaching the legal retirement age [154]. - Supervisor and Chairman of the Supervisory Board Tian Mingshan resigned on February 28, 2023, due to reaching the legal retirement age [155]. - Deputy General Manager Ge Jian will resign on January 11, 2024, due to job relocation [155]. - Wang Xiaofeng was elected as the new Chairman of the Board on October 25, 2023 [154]. - Wu Qixiong was elected as a supervisor on February 28, 2023, and later as the Chairman of the Supervisory Board on April 25, 2023 [155].