JIANGSU FENGSHAN GROUP CO.(SH:603810)2024-04-25 13:47Financial Performance - The net profit attributable to shareholders for 2023 is -39,159,426.56 RMB, indicating a loss for the year [5]. - Operating revenue for 2023 is 1,196,373,565.89 RMB, a decrease of 30.00% compared to 2022 [22]. - The revenue from main business activities is 1,193,769,238.28 RMB, reflecting a decline of 30.12% year-over-year [22]. - The net profit attributable to shareholders of the listed company for 2023 was -39,159,426.56 RMB, a decrease of 139.46% compared to 2022 [23]. - The basic earnings per share for 2023 was -0.24 RMB, down 138.71% from 0.62 RMB in 2022 [24]. - The operating cash flow for 2023 was 69,767,520.07 RMB, a decrease of 62.38% compared to 185,450,042.47 RMB in 2022 [23]. - The net profit after deducting non-recurring gains and losses was -42,868,656.48 RMB, a decrease of 144.12% compared to 97,157,650.60 RMB in 2022 [23]. - The company achieved a significant decrease in the weighted average return on net assets, which was -2.48% in 2023, down 9.08 percentage points from 6.60% in 2022 [24]. Dividend Policy - The company will not distribute profits or conduct capital reserve transfers due to the negative net profit for the year [5]. - The company has a three-year dividend return plan, but cash dividends are contingent on achieving positive distributable profits [5]. - The company has established a three-year shareholder dividend return plan (2021-2023) to enhance the transparency and planning of cash dividends [174]. - The company did not meet the conditions for cash dividends in 2023 due to the negative net profit, leading to a decision not to distribute profits or increase capital reserves [174]. Risk Management - The company has provided a detailed risk statement regarding potential future risks in the report [8]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements [6]. - The company faces risks related to raw material supply and price fluctuations, which could impact production and operations [133]. - The company has established a comprehensive risk management system in place to enhance financial data analysis and fund usage supervision [180]. Construction and Development Projects - The company completed the construction of the first phase of the Fengshan Quanno new energy electrolyte project in 2023 [31]. - The company has completed the main construction of the Hubei Fengshan project and is currently in the equipment installation phase [31]. - The company has completed the technical transformation projects for the production lines of 1,700 tons of active ingredient and 1,083 tons of by-product potassium chloride, and 500 tons of active ingredient production line [31]. - The company has completed the construction and commenced operations of a 50,000-ton battery electrolyte project at Jiangsu Fengshan Quannuo New Energy Technology Co., Ltd., with plans to enhance market development capabilities through technological innovation and product research [32]. - The company has completed the main construction of the Hubei Fengshan Phase I chloromethyl project and is currently in the equipment procurement and installation phase, with plans for Phase II construction in 2024 [32]. - The company has upgraded production lines for the production of 1,700 tons of active ingredient and 1,083 tons of by-product potassium chloride, enhancing its market position in the pesticide industry [32]. Environmental Protection - The company has invested 10,993.06 million RMB in environmental protection during the reporting period [182]. - The company has installed online monitoring systems for wastewater, tracking COD, total phosphorus, ammonia nitrogen, and total nitrogen in real-time [190]. - The company has five RTO incinerators in operation, ensuring effective treatment of waste gas [185]. - The company has implemented carbon reduction measures, including the use of energy-efficient motors and real-time energy consumption monitoring, contributing to energy savings and reduced emissions [194]. - The company has not faced any administrative penalties related to environmental issues during the reporting period [191]. Market Trends and Industry Outlook - The pesticide industry is expected to see a reduction in the number of production enterprises from 1,705 in 2020 to below 600 by 2025, with an increase in revenue from CNY 228 billion to over CNY 250 billion [39]. - In 2023, the global lithium-ion battery electrolyte shipment reached 1.312 million tons, a year-on-year increase of 25.8%, with China's shipment at 1.138 million tons, growing by 27.7% and accounting for 86.7% of the global total [42]. - The average market price of lithium hexafluorophosphate dropped from 100,000-120,000 RMB/ton at the beginning of the year to 80,000 RMB/ton by the end of December 2023, driven by significant capacity release and a sharp decline in downstream product prices [42]. - The demand for chlorobenzene is expected to continue growing, driven by the agricultural and pharmaceutical industries, which will directly expand the market [44]. Corporate Governance - The company has established a governance structure in compliance with relevant laws and regulations, ensuring effective management [139]. - The company has established a governance structure that ensures clear responsibilities and coordination among power, decision-making, supervision, and management bodies [140]. - The board of directors consists of 8 members, including 3 independent directors, complying with legal and regulatory requirements [141]. - The audit committee consists entirely of independent directors, providing scientific and professional opinions for board decisions [141]. - The company has strengthened its internal management and control systems to improve governance levels and information disclosure practices [140]. Research and Development - The company has been recognized as a high-tech enterprise and has established several R&D platforms to enhance its technological innovation capabilities [52]. - The company holds 3 authorized invention patents and has developed a strong R&D and technical advantage in the industry [52]. - The company is focusing on technological innovation to improve product competitiveness and expand its market presence [84]. - The company is actively engaged in the development of new technologies and products to strengthen its market position [89]. Employee Management - The company has a total of 1,127 employees, with 273 in the parent company and 854 in major subsidiaries [170]. - The employee composition includes 803 production personnel, 107 sales personnel, 127 technical personnel, 23 financial personnel, and 67 administrative personnel [170]. - The company has implemented a performance-based salary model, signing job responsibility agreements with all employees during the reporting period [171]. - Employee training programs are organized and assessed, focusing on enhancing skills related to automation and information management [172].