NBSS(SH:600884)2024-05-07 10:37Financial Performance - The company reported a revenue of ¥19,070,225,164.95 in 2023, a decrease of 12.13% compared to ¥21,701,617,268.32 in 2022[24]. - Net profit attributable to shareholders was ¥765,337,842.07, down 71.56% from ¥2,691,262,599.60 in the previous year[24]. - The basic earnings per share decreased to ¥0.35, a decline of 71.54% from ¥1.23 in 2022[25]. - The company’s operating cash flow turned negative at -¥198,131,598.40, compared to a positive cash flow of ¥506,497,694.79 in 2022[24]. - The weighted average return on equity dropped to 3.35%, a decrease of 9.58 percentage points from 12.93% in 2022[25]. - The gross profit margin for the anode materials segment was 11.77%, down 10.36 percentage points from the previous year[88]. - The revenue from the polarizer segment was CNY 10,296,797,445.93, with a gross profit margin of 19.52%, reflecting a decrease of 7.18 percentage points year-on-year[88]. - The company reported a significant increase in other income, which rose by 188.96% to CNY 502,191,965.25 due to increased government subsidies[82]. - The financial expenses decreased by 32.91% to CNY 466,934,452.30, primarily due to lower loan interest rates and reduced exchange losses[83]. - The company experienced a 60.73% reduction in income tax expenses, attributed to two subsidiaries being recognized as high-tech enterprises with a reduced tax rate of 15%[84]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares, totaling RMB 438,585,378.60 (including tax) based on 2,192,926,893 shares available for distribution[6]. - The company’s cash dividends for the reporting period represent 57.31% of the net profit attributable to ordinary shareholders, amounting to 765,337,842.07 RMB[196]. - The total cash distribution, including share repurchases, is 984,101,512.29 RMB, which is 128.58% of the net profit attributable to ordinary shareholders[196]. - The cash dividend policy stipulates that at least 10% of the annual distributable profit should be distributed as cash dividends, with a minimum of 30% over the last three years[189]. - The cumulative cash dividends distributed over the last three years (2020-2022) amount to 1,772,048,957.70 RMB, which is more than 30% of the average distributable profit for the same period[193]. - The company will retain undistributed profits for future operational needs, as no cash distribution plan was proposed for the current reporting period[195]. Business Strategy and Development - The company has outlined its future development strategies and plans, which are subject to investment risks[8]. - The company is actively pursuing a strategy to divest non-core businesses and low-efficiency assets to improve overall performance[31]. - The company is focusing on a strategy to divest non-core businesses and underperforming assets, which has impacted overall performance[86]. - The company plans to continue focusing on product innovation and enhancing customer relationships to maintain its competitive edge in the market[32]. - The company is expected to benefit from the increasing domestic demand for polarizers as LCD panel production capacity shifts to mainland China, projected to exceed 75% by 2027[65]. - The company aims to enhance its global leadership in large-size polarizers and accelerate R&D in high-end LCD, OLED, and automotive technologies[125]. - The company plans to focus on diverse product matrices in the anode materials sector, targeting high energy density and ultra-fast charging developments[130]. - The company will continue to innovate in new processes and equipment to enhance product performance and cost advantages, including breakthroughs in graphite modification technology[131]. - The company is committed to advancing R&D in polarizers for various applications, including automotive and VR/AR, while also pursuing acquisitions to strengthen its product portfolio[135]. Research and Development - The company has enhanced its R&D capabilities by establishing a global polarizer R&D center and focusing on innovative materials and application technologies[39]. - The total R&D expenditure for the year was CNY 868,297,281.53, accounting for 4.55% of total revenue[97]. - The number of R&D personnel is 402, representing 4.97% of the total workforce[98]. - The company has developed several new anode materials, including high-performance graphite and silicon-based anodes, with some already in mass production[99]. - The company’s silicon-based anode products have achieved significant technological breakthroughs and are recognized by both domestic and international clients, leading to mass supply[56]. Market Position and Competition - The company achieved a 44.55% increase in sales volume for its anode materials in 2023, maintaining a leading market share of 19% in China[32]. - The global production of anode materials reached 1.7621 million tons in 2023, with a year-on-year growth of 20%, and the company's share in China's artificial anode materials production ranked first at 19%[45]. - The company’s market share for large-size polarizers increased from 30% in 2022 to 33% in 2023, maintaining the global leading position[63]. - The company is benefiting from favorable policies promoting the replacement of old equipment and consumer goods, which is expected to boost demand for polarizer materials[49]. - The company maintains a competitive edge through advanced technology and strategic partnerships, ensuring a stable supply chain and high-quality product offerings[53][56]. - The company faces intensified market competition as new entrants and existing players expand capacity in the lithium battery materials sector, potentially leading to structural overcapacity if demand does not meet expectations[141]. Corporate Governance - The company adheres to corporate governance standards, ensuring compliance with relevant laws and regulations, and maintains an independent operational structure from its controlling shareholder[148][150]. - The company has established a transparent performance evaluation and incentive mechanism for its executives, linking compensation to company performance[153]. - The company actively respects and protects the rights of stakeholders, aiming for a balanced approach to interests among shareholders, creditors, employees, and society[154]. - The company has implemented a strict insider information management system to prevent leaks and ensure fair information disclosure[155]. - The company has a robust compensation structure for its directors and senior management, which is reviewed by the remuneration and assessment committee[170]. Leadership and Management Changes - The company reported a significant leadership change with the election of new executives, including Li Zhi Hua as general manager and Li Keqin as CFO[164]. - The company appointed Zheng Ju as the chairman of the board on March 23, 2023, following the passing of the former chairman Zheng Yonggang[164]. - The company has maintained a stable leadership structure with key executives holding their positions since their appointments in 2015 and 2018[167]. - The company has ongoing board elections, with several new appointments including Zhu Zhiyong and Li Kexin as directors, and Li Fengfeng as Vice General Manager[171]. Risk Management - The international trade environment is increasingly unstable due to geopolitical conflicts and trade protectionism, which may hinder the company's overseas market development and customer procurement[144]. - Currency exchange rate fluctuations pose risks to the company's foreign currency assets, necessitating careful monitoring and risk management strategies[145]. - Raw material costs, particularly for petroleum coke and needle coke, significantly impact the cost structure of the lithium battery anode materials, and price fluctuations could adversely affect financial performance[142]. - The company emphasizes the importance of continuous technological innovation to maintain competitiveness amid evolving battery technologies, such as solid-state batteries and new display technologies like OLED and Micro LED[143].