WILLING CORP.(SZ:002667)2024-04-25 16:54Financial Performance - The company's operating revenue for 2023 was CNY 1,141,401,058.59, a decrease of 3.76% compared to CNY 1,185,946,800 in 2022[19]. - The net profit attributable to shareholders of the listed company was CNY 223,210,175.92, representing a significant decline of 372.11% from CNY 82,394,146.5 in the previous year[19]. - The net cash flow from operating activities was CNY 11,683,462.09, down 131.26% from CNY 37,379,455.1 in 2022[19]. - The basic earnings per share for 2023 was -0.97 CNY, a decrease of 369.44% compared to 0.36 CNY in 2022[19]. - The company's total assets decreased by 22.64% from the end of 2022 to 2,018,342,440.00 yuan at the end of 2023[20]. - The net profit attributable to shareholders of the listed company was -149,055,249.94 yuan in Q4 2023, marking a significant decline compared to previous quarters[25]. - The company reported a net profit attributable to shareholders, excluding non-recurring gains and losses, of -141,187,829.29 yuan for the year[26]. - The company recognized an asset impairment loss of 153,006,100 yuan in 2023, which reduced the total profit for the year[26]. - The weighted average return on net assets was -60.05% at the end of 2023, reflecting a significant decline in profitability[20]. - The revenue from lithium compounds and derivatives increased by 37.77% to CNY 976.58 million, accounting for 85.56% of total revenue[46]. - The revenue from heavy machinery manufacturing decreased by 46.54% to CNY 84.22 million, representing 7.38% of total revenue[46]. - The average price of lithium compounds dropped by 46% in 2023 compared to 2022, impacting overall profitability[44]. - The gross margin for lithium compounds and derivatives was 14.41%, down 24.66% from the previous year[48]. Business Strategy and Operations - The company has shifted its main business focus to lithium ore selection and lithium salt processing and smelting[18]. - The company has established a lithium carbonate production line through its subsidiary, Lingneng Lithium Industry[18]. - The company has acquired Jin Hui Recycling to expand its lithium mica selection business[18]. - The lithium mining and processing business is the main focus, with increasing demand driven by the growth of the electric vehicle and energy storage sectors[34]. - The company has implemented a vertical integration strategy in the lithium battery materials industry, focusing on mining, processing, and production[34]. - The company's main products in the lithium resource business include lithium mica and lithium carbonate, which are essential raw materials for the lithium battery new energy industry[35]. - The company has established long-term cooperation agreements with local lithium ore suppliers, ensuring an annual supply of no less than 1.3 million tons of lithium ore[41]. - The company plans to build a 30,000-ton lithium carbonate smelting production line in Guixi and a 10,000-ton line in Chenzhou, further expanding its production capacity[42]. - The company is actively collaborating with well-known domestic lithium battery industry chain enterprises to extend its industrial chain and enhance procurement and sales capabilities[42]. - The company has initiated a vertical integration strategy focusing on "mining + selection + basic lithium battery raw material production" to enhance operational efficiency[45]. Research and Development - The company holds a total of 13 invention patents and 55 utility model patents, showcasing its commitment to technological innovation in the lithium resource sector[42]. - The company has developed a new process technology for the efficient recovery of low-grade tantalum-niobium lithium ores, enhancing its competitive edge in the market[42]. - The company is focusing on improving lithium mica resource recovery rates through new processes and equipment due to the current high raw material prices[60]. - Research is being conducted on a flotation method for high-impurity fine-grained lithium mica to enhance recovery rates[60]. - The company has completed the development of a lithium carbonate recovery device, which aims to reduce labor intensity and material waste during the production process[61]. - The research on the closed-loop processing of lithium mica ore has been completed, improving production efficiency and reducing dust pollution[61]. - The company has achieved a dust emission concentration of less than 5 mg/m3 and a NOx emission level below 50 mg/m3, demonstrating significant environmental compliance[61]. - The company has implemented a series of experimental studies to guide the optimization of drying and cooling processes, enhancing production efficiency[61]. - The company is focusing on the sustainable development of solid waste utilization, particularly in the context of lithium mica tailings[61]. - The ongoing development of new technologies and processes is expected to further enhance the company's competitive edge in the lithium production market[61]. Corporate Governance - The company strictly adheres to laws and regulations, ensuring a sound corporate governance structure and compliance with the China Securities Regulatory Commission's requirements[90]. - The company maintains independence from its controlling shareholder in business, personnel, assets, institutions, and finance, ensuring autonomous operational capabilities[94]. - The board of directors and supervisory board comply with legal requirements, with members actively participating in meetings and training[91]. - The company has established a robust investor relations management system, facilitating effective communication with investors through various platforms[93]. - The company has an independent financial department and accounting system, ensuring autonomous financial decision-making and management[95]. - The company has implemented a performance evaluation and incentive mechanism for directors and senior management, aligning with legal and regulatory standards[91]. - The company ensures fair treatment of all shareholders, particularly minority shareholders, during decision-making processes[90]. - The company has a clear organizational structure with defined roles and responsibilities, promoting effective management and control[94]. - The company has not encountered any significant discrepancies in its governance practices compared to regulatory requirements[93]. Environmental and Social Responsibility - The company has established a comprehensive environmental management system, focusing on energy conservation and emission reduction, with a dedicated team monitoring compliance with environmental policies[167]. - The company has actively participated in social responsibility initiatives, including support for impoverished villages and elderly care facilities, aligning with national poverty alleviation efforts[169]. - The company has implemented measures to reduce carbon emissions, including transitioning heavy machinery to electric and utilizing innovative cooling systems in smelting processes, which significantly saves energy consumption[165]. Future Outlook - The company is optimistic about the future of the new energy industry, supported by national policies promoting the sector's development[38]. - The company has set a future outlook with a revenue guidance of 10,000 million for 2024, representing a projected growth of 20%[76]. - The company aims to reduce manufacturing costs by 10% through operational efficiencies in the next fiscal year[76]. - A new partnership with a leading energy provider is expected to drive additional revenue streams, estimated at 510.6 million annually[77]. - The company plans to strengthen its market presence by expanding its sales network and improving after-sales service capabilities[84]. - The company aims to enhance its independent innovation capabilities through new technology research and development, particularly in tantalum and lithium extraction processes[82]. Employee Management - The total number of employees at the end of the reporting period was 480, with 54 in the parent company and 426 in major subsidiaries[135]. - The professional composition includes 275 production personnel, 8 sales personnel, 54 technical personnel, 22 financial personnel, and 121 administrative personnel[136]. - The educational background of employees shows 18 with master's degrees or above, 80 with bachelor's degrees, and 271 with high school or lower education[136]. - The company emphasizes competitive compensation and benefits, alongside career development opportunities for employees[137]. - Training programs are organized around company strategy and business needs, utilizing both online and offline methods[138]. Shareholder Engagement - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[140]. - The board has approved a shareholder return plan, targeting a dividend payout of 1.5 billion in the upcoming fiscal year[77]. - The company held multiple shareholder meetings in 2023, with participation rates of 21.35% to 23.52%[96]. - The company has scheduled multiple shareholder meetings to discuss ongoing and future strategies, ensuring stakeholder engagement[124]. Risk Management - The company is exploring commodity futures hedging business as part of its risk management strategy[101]. - The company has committed to ensuring compliance with regulatory requirements for major asset restructuring and securities issuance[100]. - The company has acknowledged significant internal control deficiencies related to project fund management and construction cost measurement as of December 31, 2023[179].