Shenyang Chemical (000698)2024-04-26 18:07Financial Performance - The company's operating revenue for 2023 was ¥5,281,892,618, representing a decrease of 11.10% compared to ¥5,941,346,280 in 2022[23]. - The net profit attributable to shareholders of the listed company was -¥458,244,969, an improvement of 73.32% from -¥1,773,005,130 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥418,277,079, a significant increase of 75.81% compared to ¥1,784,478,780 in 2022[23]. - The company's operating income for 2023 was CNY 5,281,892,618.94, a decrease of 11.1% compared to CNY 5,941,346,283.65 in 2022[25]. - The net profit attributable to shareholders for 2023 was -CNY 418,245,969.30, with a basic and diluted earnings per share of -CNY 0.56, an improvement of 73.33% from -CNY 2.10 in 2022[24]. - The total assets at the end of 2023 were CNY 6,083,200,10, reflecting a decrease of 10.77% from CNY 6,817,506,78 at the end of 2022[24]. - The weighted average return on equity for 2023 was -25.88%, an improvement from -61.45% in 2022[24]. - The net cash flow from operating activities was -CNY 51,631,811.5, a significant decline of 107.69% compared to CNY 671,756,635.82 in 2022[24]. - The company reported a net profit after deducting non-recurring gains and losses of -CNY 418,245,969.30 for 2023, indicating ongoing financial challenges[25]. - The company experienced a significant reduction in net assets attributable to shareholders, which decreased by 22.83% to CNY 1,542,432,31 from CNY 1,998,679,93 in 2022[24]. Dividend and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The report indicates that the company has no significant changes in its major shareholders since its establishment[21]. Audit and Compliance - The financial report was audited by KPMG Huazhen LLP, ensuring the accuracy of the financial data presented[23]. - The company has not reported any significant differences in net profit and net assets between international and Chinese accounting standards during the reporting period[26][27]. - The company adheres to legal and regulatory requirements for corporate governance, with no significant discrepancies noted[96]. Market and Industry Analysis - The overall production capacity of the PVC paste resin industry has slightly decreased compared to the previous year, maintaining a supply-demand imbalance with an operating rate of 60%-70% due to weak downstream demand[37]. - The domestic market for caustic soda has seen an increase in production capacity compared to last year, but export volumes have significantly decreased, leading to increased pressure on domestic sales[37]. - The epoxy propane production capacity has increased by 50%, while the production capacity of polyether has increased by 15%, indicating a competitive market environment as supply outpaces demand[37]. - The average price of calcium carbide decreased from 3,384.77 CNY in the first half to 3,037.30 CNY in the second half, attributed to a sluggish PVC market and reduced operating rates[40]. - The average price of epoxy propane decreased from 9,633.00 CNY to 9,286.00 CNY, reflecting market fluctuations[40]. Production and Capacity - The company has completed the construction of a new 300,000 tons/year high-performance polyether polyol project in January 2023[42]. - The production capacity utilization rates for caustic soda, PVC paste resin, and polyether polyol are 94.61%, 84.65%, and 91.00% respectively[42]. - The production capacity for polyether is being expanded to a scale of one million tons, with projects in Quanzhou and Lianyungang progressing[48]. Research and Development - The company is focusing on digital transformation and innovation to enhance operational efficiency and product differentiation in the PVC paste resin market[38]. - The company aims to improve product quality and expand application scenarios through R&D and customer service initiatives[38]. - The company has established a unique pilot test base for PVC paste resin, enhancing its research and development capabilities[41]. - Research and development investment amounted to ¥194,564,647.35 in 2023, a decrease of 3.79% compared to ¥202,236,214.15 in 2022, while the R&D investment as a percentage of operating revenue increased to 3.68% from 3.40%[65]. - The company completed the development of a new type of paste resin, which is expected to enhance the product line and improve the overall level of the domestic paste resin industry[63]. Employee and Management Structure - The total number of employees at the end of the reporting period is 2,289, with 1,003 in the parent company and 1,289 in major subsidiaries[125]. - The company has a total of 4,664 retired employees for whom it bears costs[125]. - Employee composition includes 1,490 production personnel, 79 sales personnel, 249 technical personnel, 46 financial personnel, 357 administrative personnel, and 68 others[125]. - The company has maintained a stable management team, with most current executives serving until at least December 2024, ensuring continuity in leadership[102]. Environmental Management - The company has established a dedicated environmental management department, with the general manager as the first responsible person for environmental protection[142]. - The company strictly adheres to various environmental protection laws and standards, ensuring compliance during production operations[141]. - The total wastewater discharge was reported at 300 tons, with a COD concentration of 49.63 mg/l, complying with the relevant discharge standards[145]. - The company has implemented a dual focus on environmental management and safety production, ensuring simultaneous planning and scheduling[142]. - The company has successfully completed self-verification for multiple environmental impact assessments for various projects[143]. Strategic Initiatives - The company is focusing on developing customized products to meet market demands, with over 50 new products researched in 2023[63]. - The company plans to enhance its employee training programs to improve overall quality and operational efficiency in 2023[128]. - The company is committed to a development strategy that balances growth with safety and quality improvements[87]. - The company plans to accelerate the Quanzhou joint venture project to lay a solid foundation for future development[87]. Governance and Board Activities - The company held 4 shareholder meetings during the reporting period, with all resolutions passed[92]. - The company has established an independent financial department and maintains independent financial management systems[97]. - The company has conducted 20 training sessions for mid-level and specialized management personnel, with a total of 1,190 participants[128]. - The board of directors diligently performed their duties, ensuring the company's operations remained stable and healthy throughout the reporting period[118]. Future Outlook - The macroeconomic environment and chemical industry market are expected to improve in 2024, although the PVC paste resin market faces oversupply and declining prices[86]. - The company plans to continue expanding its market presence through strategic initiatives and potential acquisitions[123].