EBEM(SH:603002)2024-04-24 11:18Financial Performance - The company's operating revenue for 2023 was CNY 2,240,423,623.58, a decrease of 25.87% compared to CNY 3,022,437,498.74 in 2022[24]. - The net profit attributable to shareholders for 2023 was CNY 86,634,602.19, representing an 84.44% decline from CNY 556,783,676.47 in 2022[24]. - The basic earnings per share for 2023 was CNY 0.09, down 85.48% from CNY 0.62 in 2022[25]. - The weighted average return on equity decreased to 3.59% in 2023, down 21.40 percentage points from 24.99% in 2022[26]. - The total assets at the end of 2023 reached CNY 4,717,091,479.77, a 31.10% increase from CNY 3,598,223,554.05 in 2022[24]. - The net cash flow from operating activities increased significantly to CNY 283,002,491.78, up 470.19% from CNY 49,632,738.20 in 2022[24]. - The company reported a total revenue of CNY 2,240,423,623.58, a decrease of 25.87% year-on-year[33]. - The net profit attributable to shareholders was CNY 86,634,602.19, down 84.44% compared to the previous year, primarily due to a significant land reserve gain of CNY 411,935,676.00 in the prior period[33]. Dividend Distribution - The proposed profit distribution plan for 2023 is to distribute a cash dividend of RMB 0.50 per 10 shares, totaling RMB 56,703,925.45, which accounts for 65.45% of the net profit attributable to shareholders of RMB 86,634,602.19[5]. - The total share capital as of December 31, 2023, is 1,134,078,509 shares, which will be used as the basis for the dividend distribution[5]. Corporate Governance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The board of directors guarantees the authenticity and completeness of the annual report, with no false records or misleading statements[9]. - The company has not violated decision-making procedures for providing guarantees, indicating compliance with regulations[8]. - There are no non-operating fund occupations by controlling shareholders or related parties, ensuring financial integrity[7]. - The financial report indicates a strong commitment to corporate governance and risk management practices[10]. - The company emphasizes refined management and product quality control, which has led to a strong reputation and customer loyalty in the market[93]. - The company held 3 shareholder meetings during the reporting period, ensuring compliance with relevant laws and regulations, and allowing all shareholders to exercise their voting rights[179]. - The board of directors convened 10 times, with independent directors actively participating and providing valuable opinions on significant matters such as related transactions and profit distribution[181]. Market and Industry Trends - The epoxy resin market is experiencing weak demand and profit compression due to factors such as geopolitical conflicts, global inflation, and economic tensions between China and the U.S.[73]. - The PCB market is facing a significant decline in orders, with factory utilization rates averaging around 60% due to weak demand in consumer electronics like PCs and smartphones[75]. - In 2023, the global smartphone shipment volume is approximately 1.17 billion units, representing a year-on-year decrease of 3.2%, while China's smartphone market shipment volume is about 271 million units, down 5.0% year-on-year[76]. - The copper-clad laminate (CCL) industry is stabilizing after intense competition, with significant advancements in capacity and technology, particularly in high-frequency and high-speed materials for 5G applications[74]. Product Development and Innovation - The company is focused on developing new products and technologies, particularly in the field of electronic-grade epoxy resins and advanced packaging materials[14]. - The company has developed a new generation of polyether resin formula that has passed evaluations by end customers, targeting high-temperature and high-humidity applications[59]. - The company has obtained 4 domestic patent authorizations for special resin types in 2023, enhancing its competitive edge in the market[58]. - The company is actively developing halogen-free phosphorus-containing polyether resin, which has received a domestic patent authorization in 2023, addressing the negative impacts of adding flame retardants[59]. - The company has filed for 13 new patents related to high-frequency and high-speed resin technologies, indicating a strong focus on innovation and intellectual property development[62]. - The company is focusing on the development of high-voltage, high CTI, low expansion coefficient, and high thermal resistance copper-clad laminate materials for electric vehicle charging stations, addressing the growing demand in this sector[67]. Strategic Plans and Investments - The company plans to expand its market presence and enhance production capacity through ongoing investment in new projects[14]. - The company plans to raise up to RMB 150,000.00 million through a non-public offering of A-shares, with proceeds allocated to specific projects[44]. - The company is expanding its production capacity with a project to produce 140,000 tons of liquid epoxy resin, with a total investment of RMB 77,925.00 million and planned funding of RMB 50,414.46 million from the raised capital[49]. - The company has signed various agreements and received necessary permits for the construction of its new production facilities, indicating progress in project execution[51]. - The company has a third phase project under construction for an annual production capacity of 80,000 tons of electronic-grade functional epoxy resin[142]. Risk Management - The company faces risks related to fluctuations in raw material prices and competition in the epoxy resin and copper-clad laminate markets[171]. - The company's copper-clad laminate business has a high customer concentration, primarily serving well-known listed companies and large groups, which poses a risk if major customers reduce their cooperation scale[175]. - The global economic environment is facing increased complexity and uncertainty, with potential risks to international trade and global supply chains that could adversely affect the company's operations[176]. Shareholder Relations - The company emphasizes building harmonious investor relations through multiple communication channels and aims to maintain a stable interaction with investors[186]. - The company plans to implement a three-year shareholder dividend return plan from 2022 to 2024[190]. - The company plans to hold another shareholders' meeting to address the proposals that were not approved in the previous meeting, ensuring the interests of minority shareholders are protected[190].