Green Pine(SZ:300132)2024-04-26 17:41Financial Performance - The company reported a net profit of negative value for the year 2023, with measures for improving profitability detailed in the management discussion section[2]. - The company's operating revenue for 2023 was ¥1,969,494,717, a decrease of 32.49% compared to ¥2,917,366,476 in 2022[20]. - The net profit attributable to shareholders was -¥68,341,309.97, showing a significant improvement of 90.79% from -¥742,420,713.32 in the previous year[20]. - The net cash flow from operating activities was ¥156,604,754.71, down 54.03% from ¥340,636,749.11 in 2022[20]. - The total assets at the end of 2023 were ¥2,371,146,800.46, a decrease of 26.41% from ¥3,194,595,271.44 at the end of 2022[20]. - The company reported a basic earnings per share of -¥0.1323, improving by 90.79% from -¥1.4372 in 2022[20]. - The weighted average return on equity was -5.08%, an improvement of 37.17% from -42.25% in the previous year[20]. - The company reported a total of ¥14,001,315.12 in non-recurring losses for 2023, compared to gains of ¥16,623,287.54 in 2022[26]. - The company achieved a revenue of CNY 196,131.42 million, a year-on-year decrease of 5.63%, with a gross margin of 11.74%, an increase of 7.35 percentage points[97]. - The company reported a net profit attributable to shareholders of CNY -5,034.26 million, a year-on-year increase of 78.12%[97]. Corporate Governance - The company held 9 board meetings during the reporting period, ensuring compliance with legal and regulatory requirements[180]. - The company established a performance evaluation system linking senior management's performance to their compensation, ensuring transparency in hiring practices[182]. - The company disclosed information accurately and timely, designating a specific website for investors to access relevant information[184]. - The company maintained independence from its controlling shareholder, with no reliance on their assets for operations[187]. - The company has a complete and independent business system for R&D, production, and sales, ensuring no competition with the controlling shareholder[188]. - The company operates an independent financial department, with no shared bank accounts with major shareholders[192]. - The annual general meeting had a participation rate of 20.84% on May 26, 2023, reflecting shareholder engagement[193]. - The first temporary shareholders' meeting in 2023 had a participation rate of 20.62% on August 10, 2023[193]. - The second temporary shareholders' meeting in 2023 had a participation rate of 20.10% on November 21, 2023[193]. - The company is focused on maintaining compliance with independent director regulations following recent board changes[197]. - The company’s strategic committee will need to address the absence of independent directors after Dong Hao's resignation[197]. - The company continues to prioritize governance and leadership stability amid recent changes in its executive team[198]. Business Operations - The company has a total of six wholly-owned subsidiaries, including Nuo Si Bei Cosmetics Co., Ltd. and Guangdong Nuo Si Bei Health Care Products Co., Ltd.[13]. - The company operates primarily in the cosmetics industry, focusing on the design, research, and manufacturing of facial masks, skincare products, and wet wipes[30]. - The subsidiary, Norsbel, accounted for 99.59% of the company's consolidated revenue during the reporting period[31]. - Norsbel focuses on ODM business for cosmetics, providing comprehensive services from design to manufacturing for downstream brand owners[32]. - The company has established long-term partnerships with global suppliers such as BASF and Ashland, enhancing its supply chain efficiency and product quality[86]. - The company has built stable partnerships with numerous well-known domestic and international cosmetic brands[57]. - The company has a diverse product line, including specialized cosmetics, cleaning wipes, and facial masks[48]. - The company has implemented a customer-driven sales model, producing based on confirmed orders[56]. - The company has received recognition as an excellent supplier from various brand clients, enhancing its market reputation[57]. - The company has established a comprehensive quality management system certified by ISO22716, ISO13485, and ISO9001, ensuring product safety and efficacy[92]. Market Trends and Industry Analysis - In 2023, the global beauty market grew to $625.7 billion, with a projected increase to $646.2 billion in 2024, reflecting a year-on-year growth of 3.28%[61]. - The retail sales of cosmetics in China reached ¥414.2 billion in 2023, marking a 5.1% increase compared to the previous year[63]. - The average disposable income per capita in China was ¥39,218 in 2023, with a nominal growth rate of 6.3% and a real growth rate of 6.1%[62]. - The number of licensed cosmetics manufacturers in China reached 7,114 in 2023, with 4,024 located in Guangdong, accounting for approximately 55%[64]. - The market concentration of the top 10 cosmetics brands in China was 16.1% in 2023, a decrease of 2.2 percentage points from 2022, indicating intensified competition[64]. - The online sales channel accounted for 50.75% of the Chinese cosmetics market in 2023, with a market size of ¥404.59 billion, while offline sales accounted for 49.25% with a size of ¥392.61 billion[69]. - The male skincare market in China was valued at ¥11.824 billion in 2023, with a projected annual growth rate of 2.9% over the next five years[68]. - The demand for OEM/ODM services is increasing due to the emergence of new cosmetic brands that lack production capabilities, creating opportunities for competitive contract manufacturers[67]. - The cosmetics industry in China is experiencing a shift towards rational consumption, with consumers prioritizing product quality and service experience[66]. - The regulatory environment for the cosmetics industry is becoming stricter, which may pose short-term challenges but will benefit long-term industry health[70]. Research and Development - The company has a professional R&D team of over 180 people, continuously developing new products to meet diverse client needs[79]. - The company has received multiple awards, including the 2022 Top 10 Chinese Cosmetics Manufacturers and the 2023 Annual Influential ODM Award[58]. - The company has successfully developed over 1,000 new formulas during the reporting period, showcasing its efficiency in technology research and product innovation[89]. - The company has a total of 134 valid patents, including 36 invention patents, 82 utility model patents, and 16 design patents, which support its differentiated product positioning[91]. - The company is actively collaborating with universities and research institutions to enhance its technological innovation capabilities[79]. - The company is exploring the application of active extracts from Tremella fuciformis in facial mask formulations, aiming to expand its product line and market competitiveness[129]. - The company aims to enhance its product offerings in the "natural, efficient, and healthy" category through ongoing R&D efforts[129]. - The company has initiated several R&D projects, including the development of a natural, gentle makeup remover oil, which is currently in the technical design phase[129]. Strategic Initiatives and Future Outlook - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[3]. - The company aims to enhance its market expansion and product development strategies in the cosmetics sector[31]. - Future outlook includes continued investment in new product development and technology to strengthen market position[31]. - The company is actively pursuing new projects, such as the enzyme production line expansion, with environmental approvals obtained[80]. - The company plans to enhance R&D investment and new product development to strengthen its market position and sustainable profitability[151]. - In 2024, the company aims to focus on cost control and structural adjustments to improve core competitiveness in the cosmetics business[152]. - The company will implement measures to optimize production management, aiming to reduce costs and improve efficiency[155]. - The company intends to strengthen its technological innovation and enhance industry competitiveness through advanced production technologies[159]. - The company is actively exploring diversification in the cosmetics and consumer goods industry through mergers and acquisitions[161]. Risks and Challenges - The company has acknowledged uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profit figures over the past three years[21]. - The company faces risks related to macroeconomic conditions and raw material price fluctuations, which could impact profitability[162]. - The company is at risk of operational performance decline and sustained losses if market conditions do not improve or if it fails to secure new orders[172]. - The cosmetics industry is experiencing increased competition, which may impact the company's sales if it fails to meet customer demands[166]. - The company is focused on enhancing safety and environmental management to reduce operational risks associated with production processes[168].