ENC(SH:603869)2024-04-29 12:18Financial Performance - The company's total revenue for 2023 was approximately ¥945.87 million, a decrease of 1.77% compared to ¥962.93 million in 2022[24]. - The net profit attributable to shareholders for 2023 was a loss of ¥70.87 million, compared to a profit of ¥17.87 million in 2022[24]. - The company reported a net profit excluding non-recurring gains and losses of -¥113.58 million for 2023, compared to -¥12.08 million in 2022[24]. - The company reported a basic earnings per share of -0.14 CNY for 2023, a decrease from 0.04 CNY in 2022[25]. - The weighted average return on equity decreased to -1.81% in 2023, down 2.26 percentage points from 0.45% in 2022[25]. - The net loss for 2023 was CNY 67.95 million, a significant decline from the net profit of CNY 20.14 million in the previous year[75]. - The gross margin for the main business decreased to 30.69%, down 2.73 percentage points from 33.42% in the previous year[75]. - Revenue from traditional police security business dropped by 40.93%, while gas safety and general safety business revenue increased by 42.06%[80]. Cash Flow and Assets - The net cash flow from operating activities increased by 84.47% to ¥66.36 million in 2023, up from ¥35.97 million in 2022[24]. - The total assets as of the end of 2023 were approximately ¥5.03 billion, reflecting a 3.35% increase from ¥4.87 billion at the end of 2022[24]. - The company's net assets attributable to shareholders decreased by 2.99% to ¥3.85 billion at the end of 2023, down from ¥3.97 billion at the end of 2022[24]. - The company's cash and cash equivalents increased significantly, with trading financial assets rising by 191.40% to 385,802,295.60 CNY[93]. - The company's inventory increased by 74.60% to 248,963,134.01 CNY, driven by new contracts and expected orders[93]. - The long-term receivables rose by 65.69% to 151,042,618.99 CNY, reflecting business transformation and increased operational projects[93]. - The company’s total liabilities increased by 112.27% in other payables, amounting to 207,318,056.43 CNY, due to increased procurement activities[94]. Strategic Initiatives and Development - The company is focusing on future development strategies, although specific details were not disclosed in the report[7]. - The company is actively expanding its safety solutions in multiple cities, focusing on gas safety and general safety[36]. - The company has developed over 60 intelligent capabilities, including smart operation centers and emergency products, to enhance urban safety solutions[36]. - The company is transitioning to an intelligent platform operator by integrating IoT technology, intelligent applications, and platform services in its gas safety strategy[47]. - The company aims to enhance the commercialization of its security platform and products, increasing customer retention and expanding its market scale[113]. - The company plans to develop intelligent product capabilities across various industries, including tea, glass, pharmaceuticals, and pre-prepared dishes, through self-research and collaboration with clients[114]. - The company is committed to promoting digital economy policies to facilitate high-quality development and deep integration with the real economy[108]. Governance and Management - The company emphasizes independent operations from its controlling shareholders, ensuring a complete and autonomous business system[128]. - The company has a dedicated focus on governance, adhering strictly to the Company Law and its Articles of Association[128]. - The company has implemented measures to ensure the independence of its assets, personnel, and operations from its controlling shareholders[128]. - The company has undergone significant changes in its board of directors, with new appointments including a new chairman and vice chairman[142]. - The company has been actively expanding its board with new independent directors and management personnel to enhance governance[142]. - The company has established a performance assessment system for senior management remuneration based on operational performance and market salary levels[140]. - The company has a strong emphasis on building a digital product system and advancing smart technology development[138]. Internal Controls and Compliance - The internal control system is established in accordance with relevant regulations, with a focus on the effectiveness of financial reporting controls[173]. - The company has identified significant internal control deficiencies related to timely inventory accounting[174]. - New Intelligence Company identified significant internal control deficiencies related to inventory and accounts payable, affecting the completeness and accuracy of financial statements[175]. - The company has implemented a systematic internal control system to enhance management effectiveness and risk prevention[177]. - The board of directors is responsible for the establishment and implementation of internal controls, ensuring the accuracy and completeness of financial reports[172]. Research and Development - In 2023, the company increased R&D investment and focused on technological innovation, launching new products and enhancing existing ones[69]. - Research and development expenses rose by 10.01% to CNY 132.35 million, reflecting increased investment in product competitiveness[79]. - The capitalized R&D expenses were 18,471,167.56 CNY, representing 12.25% of total R&D expenditures[87]. - The company registered 17 intellectual properties and 9 invention patents during the reporting period, enhancing its industry position[70]. Risks and Challenges - The company faced a significant audit opinion from KPMG, indicating concerns regarding the financial statements[5]. - The company has outlined various risks and countermeasures in its management discussion section[9]. - The company faced increased impairment losses of CNY 17.18 million due to lower-than-expected project collections[77]. Shareholder Relations - The company will not distribute profits for 2023 and will not conduct capital reserve transfers to increase share capital[6]. - The company has established a cash dividend policy that balances reasonable returns for investors with sustainable development, but has proposed no profit distribution for 2023[166]. - The company plans to conduct share repurchases through centralized bidding, as approved in the recent board meeting[145]. - The total amount spent on share repurchase in 2023 was 49,389,579.05 yuan, which represents 69.69% of the absolute value of the net profit attributable to shareholders[166].