Financial Performance - For the year ended December 31, 2023, the Group's revenue amounted to RMB253.5 million, representing a decrease of 27.4% compared to the previous year[17]. - The Group recorded a gross profit of RMB60.7 million for the year ended December 31, 2023, with a gross profit margin of 24.0%, an increase of 5.6 percentage points from 18.4% in 2022[17]. - The net loss for the year ended December 31, 2023, was RMB1.3 million, with a net loss margin of 0.5%, significantly improved from a net loss of RMB78.0 million and a margin of 22.4% in 2022[18]. - Profit attributable to owners of the Company was RMB1.8 million for the year ended December 31, 2023, compared to a loss of RMB72.3 million in the previous year[18]. - Basic earnings per share attributable to owners of the Company amounted to RMB0.001 for the year ended December 31, 2023, a recovery from a basic loss per share of RMB0.054 in 2022[19]. - For the year ended December 31, 2023, the Group's revenue decreased to RMB 253,450,000, down 27.4% from RMB 348,928,000 in 2022[21]. - Gross profit for 2023 was RMB 60,726,000, a decline of 5.8% compared to RMB 64,198,000 in 2022[21]. - The Group reported a profit before income tax of RMB 680,000, a significant improvement from a loss of RMB 75,163,000 in 2022[21]. - The total assets of the Group increased to RMB 843,157,000 in 2023, up 13.3% from RMB 743,982,000 in 2022[21]. - Total liabilities rose to RMB 315,337,000, an increase of 25.7% from RMB 250,736,000 in 2022[21]. Project Development - As of December 31, 2023, the Group completed 43 hazardous waste incineration projects with a total designed disposal capacity of 1,043,500 tonnes per annum[4]. - The Group has 13 ongoing hazardous waste incineration projects with an aggregate designed disposal capacity of 310,000 tonnes per annum[4]. - The Group completed 5 hazardous waste incineration projects in 2023, adding a designed disposal capacity of approximately 140,000 tonnes per annum[32]. - The hazardous waste incineration project in North Bay has a designed disposal capacity of 16,500 tonnes per annum, part of the ongoing projects as of December 31, 2023[39]. - The Group's project in Qingchuan County, Sichuan Province, for domestic waste treatment using pyrolysis technology has a designed disposal capacity of 30,000 tonnes per year, with trial operation planned for April 2024[47]. - The Maoming cement plant parallel co-treatment project has a designed disposal capacity of 88,900 tonnes per year and is expected to begin trial operation in March 2024[46]. - The oil sludge thermal desorption treatment project near Karamay Oilfield has a designed treatment capacity of 200,000 tonnes per year and commenced trial operation in March 2024[44]. - The cement plant parallel kiln co-treatment project in Yunfu has a designed disposal capacity of 83,600 tonnes per year and generated revenue of RMB 14.3 million in 2023[45]. Revenue Streams - Revenue from oilfield auxiliary services amounted to RMB 125.8 million in 2023, up from RMB 64.5 million in 2022, representing a growth of approximately 95%[41]. - Revenue from hazardous waste incineration solutions decreased by 61.4% from RMB265.9 million for the year ended 31 December 2022 to RMB102.7 million for the year ended 31 December 2023[53]. - Revenue from cement plant parallel kiln co-treatment services increased by 45.9% from RMB9.8 million for the year ended 31 December 2022 to RMB14.3 million for the year ended 31 December 2023[58]. - Gross profit from hazardous waste incineration solutions decreased by 29.1% from RMB45.5 million for the year ended December 31, 2022 to RMB32.2 million for the year ended December 31, 2023[73]. - Gross profit from oilfield auxiliary services increased by 95% to RMB20.8 million for the year ended December 31, 2023[79]. Cost Management - Cost of services decreased by 32.3% from RMB284.7 million for the year ended December 31, 2022 to RMB192.7 million for the year ended December 31, 2023[60]. - Administrative expenses decreased by 5.5% from RMB58.7 million for the year ended December 31, 2022, to RMB55.4 million for the year ended December 31, 2023[81]. - Research and development costs decreased by 49.7% from RMB22.3 million for the year ended December 31, 2022, to RMB11.2 million for the year ended December 31, 2023[84]. - Finance costs decreased by 8.2% from RMB2.8 million for the year ended December 31, 2022, to RMB2.6 million for the year ended December 31, 2023[87]. Strategic Focus - The Group plans to focus on technology innovation to maintain its advanced technology and strong R&D capability, aiming to expand into new areas of solid waste treatment[6]. - The Company aims to become a leading solid waste treatment solutions provider in China by leveraging its technology advantages[6]. - The Group aims to capitalize on opportunities in the environmental protection industry and expand its business scope through technology innovation in 2024[25]. - The Group's commitment is to become a leading solid waste treatment solutions provider in China, maximizing shareholder returns[25]. - The Group intends to leverage its capital strength to enter the solid waste treatment sector through technology cooperation, investment, and mergers and acquisitions[139]. Market Outlook - The demand for solid waste treatment is expected to grow due to supportive national policies, positioning the Group as a leading provider of solid waste treatment solutions in China[131]. - National policies supporting the solid waste treatment industry are anticipated to drive continued demand growth, positioning the Group to capitalize on these opportunities[134]. - The Chinese economy is expected to experience strong growth post-pandemic, driven by pent-up domestic savings and demand, which will benefit the solid waste treatment industry[132]. Corporate Governance and Management - The company has adopted a dividend policy that does not specify a predetermined payout ratio, focusing on the interests of the company and its shareholders[154]. - The board has the discretion to recommend or not recommend dividends based on various factors including financial position and capital requirements[155]. - The company emphasizes the importance of operational management and internal control in its strategic planning[171]. - The management team has extensive experience in solid waste treatment solutions, with key executives having over 25 years of industry experience[162][165]. - The company aims to enhance its corporate governance and investor relations through experienced board members and management[179]. Employee and Resource Management - The Group employed 368 employees as of December 31, 2023, an increase from 362 employees in 2022, with over 250 personnel focused on R&D and project management[146]. - The management team has a diverse educational background, with degrees from prestigious institutions such as Tsinghua University and the Royal Melbourne Institute of Technology[176][182]. - The Group's financial strategies are supported by experienced professionals in investment and corporate finance, ensuring robust financial health and growth potential[179].
维港环保科技(01845) - 2023 - 年度财报