NSWRC(SH:600165)2024-04-26 16:05Financial Performance - The company reported a net profit of -632,343,541.87 RMB for the year 2023, resulting in a cumulative distributable profit of -839,052,659.21 RMB by the end of the year, leading to no profit distribution or capital increase from reserves[5]. - The company has faced continuous net losses for three consecutive years (2021-2023), with the audited net profit being negative when excluding non-recurring gains and losses[9]. - The net profit attributable to shareholders of the listed company was CNY -465,506,096.06, compared to CNY -141,484,322.30 in 2022[25]. - The company reported a significant decrease in net profit for Huahui Environmental Protection, amounting to CNY -1,384.89 million, attributed to efforts in customer acquisition and cost reduction[93]. - The company reported a net loss attributable to shareholders of 465.51 million yuan for the year 2023, compared to losses of 166.09 million yuan in 2021 and 141.48 million yuan in 2022[199]. Operational Challenges - The company's important subsidiary, Zhongke New Materials, is currently in a temporary shutdown and is not expected to resume normal operations within one month, which has led to additional risk warnings for the company's stock[9]. - The company will face additional risk warnings starting April 8, 2024, due to the audit report's disclaimer of opinion and ongoing operational uncertainties[9]. - The company is currently in a temporary production halt due to a breach of agreement related to a capital increase of 300 million yuan[81]. - The company’s main subsidiary has been unable to operate since February 2024 due to insufficient working capital, leading to a production halt[199]. - Zhongke New Materials faced temporary production suspension due to insufficient working capital but has since resumed production with the help of special relief funds[177]. Financial Risks - The company is at risk of being delisted if it fails to meet certain financial criteria in 2024, including a net profit below 0 and revenue below 100 million RMB[10]. - The company is under scrutiny for potential delisting risks, as it has not met certain financial reporting obligations[105]. - The audited net profit for 2024 is projected to be negative, with operating revenue expected to be below 100 million yuan[105]. - The company is facing a restructuring application due to inability to repay debts, with a request for pre-restructuring procedures initiated by creditors[160]. - The total amount of guarantees provided by the company, including those to subsidiaries, is 94,628.77 million RMB, which accounts for 274.43% of the company's net assets[174]. Revenue and Sales Performance - In 2023, the company's operating revenue was CNY 285,688,730.55, a decrease of 58.06% compared to CNY 681,133,614.97 in 2022[25]. - The company achieved operating revenue of 285.69 million RMB, a decrease of 58.06% compared to the previous year[44]. - The actual sales volume of long-chain dicarboxylic acid in 2023 was 2,112.98 tons, significantly below the planned 7,000 tons due to insufficient working capital[99]. - The actual sales volume of activated carbon in 2023 was 17,200 tons, falling short of the planned 22,000 tons due to weak downstream demand influenced by the domestic market environment[99]. - The company’s domestic revenue decreased by 66.65%, while foreign revenue increased by 22.64%[51]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability[109]. - The board of directors and supervisory board are functioning independently and effectively, adhering to legal requirements for governance[110]. - The company has implemented a robust information disclosure system to ensure all shareholders have equal access to information[111]. - The company has held multiple shareholder meetings throughout 2023, ensuring compliance with legal and procedural requirements[112]. - The company has not faced any objections from directors regarding company matters during the year[129]. Environmental and Social Responsibility - The company invested approximately 400 million yuan in environmental protection facilities during the reporting period[142]. - The company reported a total pollutant discharge of 1.933 tons of particulate matter and 0.9564 tons of sulfur dioxide for the year 2023[143]. - The company has established a comprehensive emergency response system to handle environmental incidents[142]. - The company has implemented advanced technologies for waste treatment, including high-temperature oxidation and secondary evaporation concentration[142]. - The company has taken measures to reduce carbon emissions, including improving production efficiency and eliminating the use of powdered activated carbon and organic solvents[149]. Research and Development - The company completed the development of a new fermentation process for long-chain dicarboxylic acid, aimed at enhancing acid production capacity and reducing costs[63]. - The company is currently developing a new activated carbon product for effective CO2 adsorption, which is still in progress[63]. - The company has established innovation platforms, including the Ningxia Biomanufacturing Materials Engineering Research Center, to enhance R&D capabilities[74]. - The total number of R&D personnel is 52, accounting for 7.11% of the company's total workforce[61]. - Research and development expenses decreased by 45.61% to 13.87 million RMB, indicating a reduction in investment in innovation[47]. Market Strategy and Future Outlook - The company aims to expand market share and enhance profitability while gradually moving towards industry leadership[76]. - The company plans to enhance its technological innovation and expand both domestic and international markets, focusing on high-end, large-scale, and specialized production[94]. - The company aims to achieve an annual revenue of CNY 415 million in 2024, with CNY 175 million from the sale of 7,000 tons of long-chain dicarboxylic acid and CNY 240 million from the sale of 20,000 tons of activated carbon[99]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 100 million allocated for potential deals[119]. - The company is actively seeking partnerships with state-owned enterprises to enhance operational capabilities and industry experience[160].