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江苏创新(02116) - 2023 - 年度财报
JS INNOVJS INNOV(HK:02116)2024-04-22 08:36

Financial Performance - The total revenue for the fiscal year 2023 was approximately RMB 186.1 million, despite a decline compared to 2022, but still higher than other fiscal years since the company's listing[12]. - The net profit for fiscal year 2023 was approximately RMB 21.1 million, showing significant growth compared to the previous year due to reduced tax expenses and increased gross margin[12]. - In 2023, the company's total revenue was approximately RMB 186.1 million, a decrease of about 27.7% compared to the previous year[24]. - The company's net profit for 2023 was approximately RMB 21.1 million, an increase of about 84.3% year-on-year due to reduced tax expenses and an increase in gross margin[24]. - Revenue decreased by 27.7% from RMB 257.2 million in 2022 to RMB 186.1 million in 2023[36]. - Revenue from refining additives dropped from RMB 151.1 million in 2022 to RMB 111.6 million in 2023, primarily due to a decrease in new refining installations in China[36]. - Revenue from oil additives decreased from RMB 106.1 million in 2022 to RMB 74.5 million in 2023, attributed to the completion of a large order in 2022[36]. - Other income increased from RMB 4.4 million for the year ended December 31, 2022, to RMB 9.3 million for the year ended December 31, 2023, due to increased interest income from financial assets and more government grants received[47]. - Profit for the year increased by 84.3% from RMB 11.5 million for the year ended December 31, 2022, to RMB 21.1 million for the year ended December 31, 2023, primarily due to a reduction in income tax expenses[54]. Operational Developments - The company completed DCS upgrades and built a central control room to enhance production efficiency and reduce safety and environmental risks[12]. - The company aims to enhance production efficiency and product quality through the implementation of a Distributed Control System (DCS) automation control upgrade[34]. - The company plans to optimize inventory management and reduce raw material costs while leveraging its new DCS system to achieve a 100% first-pass yield[34]. - The company’s production entity will continue to deepen its green development efforts, aiming for higher production and management efficiency[15]. - The company plans to continue developing new products in response to customer needs in refining agents and oil additives, while also exploring the production of high-end fine chemicals and new materials[15]. - The company is exploring the development of new products in response to the refining industry's trend towards "reducing oil and increasing chemicals" and "reducing oil and increasing specialties"[34]. Environmental and Sustainability Initiatives - The company was recognized as a high-tech enterprise and obtained multiple new patents, including two invention patents[13]. - The company’s factory became the first in Yixing to receive the provincial "Green Factory" title, reflecting its commitment to environmental standards[13]. - The company aims to enhance its green development path by promoting clean production technologies and optimizing resource utilization to reduce waste and greenhouse gas emissions[15]. - The company has obtained the title of "Green Factory" and is committed to promoting advanced clean production technologies for sustainable development[34]. Shareholder Returns and Dividends - The board of directors will propose a higher final dividend for the fiscal year 2023 compared to previous years, reflecting a commitment to returning value to shareholders[16]. - The company proposed a final dividend of HKD 0.02 per share for the year ended December 31, 2023, compared to HKD 0.01 per share for the previous year[189]. - The total distributable reserves available for shareholders as of December 31, 2023, amounted to RMB 89,062,000[141]. Market and Customer Base - The company has expanded its customer base by acquiring new domestic private enterprise clients and international customers despite market challenges[12]. - Total sales to Sinopec, PetroChina, and CNOOC accounted for approximately 71% of total revenue for the year ended December 31, 2023, up from 54% in the previous year[178]. - The company is diversifying its customer base to reduce reliance on state-owned enterprises, which has shown significant results in decreasing customer concentration[178]. Management and Governance - The company has a strong management team with over 25 years of experience in finance and international trade[112][109]. - The board includes independent directors with extensive experience in finance and corporate governance[104][107]. - The company has established a compensation committee to provide recommendations on the overall compensation policy and structure for all directors and senior management[149]. - The company has adhered to the Corporate Governance Code, except for the deviation regarding the roles of the Chairman and CEO, which are held by the same individual[197]. - The company maintains a high level of corporate governance to protect shareholder interests and enhance corporate value and accountability[197]. Financial Position and Ratios - Current assets decreased from RMB 305.9 million as of December 31, 2022, to RMB 216.7 million as of December 31, 2023, mainly due to a reduction in cash and cash equivalents and trade and other receivables[58]. - Trade and other receivables decreased from RMB 119.5 million as of December 31, 2022, to RMB 82.9 million as of December 31, 2023, primarily due to a decrease in trade receivables[61]. - The company maintained a zero debt ratio as of December 31, 2022, and December 31, 2023, as there were no borrowings[70]. - Return on equity increased to 8.0% for the year ended December 31, 2023, up from 3.9% in 2022, primarily due to increased profit[81]. - Return on assets rose to 7.0% for the year ended December 31, 2023, compared to 3.5% in 2022, driven by higher profits[84]. - Current ratio decreased to 7.0 as of December 31, 2023, down from 9.1 in 2022, reflecting a reduction in current assets[85]. - Quick ratio fell to 5.8 as of December 31, 2023, from 8.1 in 2022, also due to a decrease in current assets[86]. Risks and Challenges - Global inflation and regional conflicts continue to pose risks, impacting raw material prices and potentially affecting financial performance[183]. - The company has established a credit policy to monitor credit risks associated with various counterparties, ensuring ongoing assessment of customer situations[180]. - The board has confirmed that there are no significant legal, arbitration, or administrative proceedings that could adversely affect the company's operations or financial condition[178]. Compliance and Reporting - The consolidated financial statements for the year ending December 31, 2023, have been audited by KPMG, which has served as the company's auditor since its listing[200]. - The audit committee has reviewed and confirmed the accounting principles and practices adopted by the company, with no objections raised regarding the accounting treatments[194]. - The company reported its financial performance for the year ending December 31, 2023, with a comprehensive income statement included in the annual report[120].