HONGDA CO.,LTD(SH:600331)2024-04-29 15:24Financial Performance - The company reported a net profit attributable to the parent company of -95,841,599.13 RMB for 2023, with a cumulative undistributed profit of -5,612,887,832.44 RMB as of the end of the year[16]. - The net profit attributable to shareholders for 2023 was approximately -¥95.84 million, a decrease of 259.32% from ¥60.16 million in 2022[44]. - The basic earnings per share for 2023 was -¥0.0472, a decrease of 259.46% from ¥0.0296 in 2022[44]. - The weighted average return on net assets for 2023 was -26.16%, a decrease of 41.98 percentage points from 15.82% in 2022[44]. - The company's net assets attributable to shareholders at the end of 2023 were approximately ¥319.67 million, a decrease of 22.63% from ¥413.15 million at the end of 2022[44]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 8,218,315.72, a significant decrease compared to the previous quarter's loss of CNY 78,814,604.02[47]. - The net profit attributable to shareholders decreased in the fourth quarter compared to the third quarter primarily due to the accrual of year-end bonus salaries[49]. - The company achieved operating revenue for 2023 of approximately ¥3.03 billion, an increase of 2.90% compared to ¥2.94 billion in 2022[41]. - The company reported a decrease in revenue from main business activities, with the adjusted operating revenue for 2023 at approximately ¥3.02 billion, up 2.91% from ¥2.94 billion in 2022[41]. - The company achieved operating revenue of CNY 3,025,658,319.37 in 2023, an increase of 2.90% compared to CNY 2,940,253,841.64 in the previous year[140]. Production and Sales - The production volume of zinc ingots (including zinc alloys) was 56,263.18 tons, representing a year-on-year increase of 58.99% in production volume and 41.01% in sales volume[4]. - The sales volume of compound fertilizers increased by 15.00% year-on-year, totaling 201,567.55 tons[4]. - The production of phosphate series products was 337,163.40 tons, showing a year-on-year decrease of 5.15%[4]. - The company has a production capacity of 420,000 tons/year for phosphate products and 300,000 tons/year for compound fertilizers, with strong competitiveness in the Northwest and Southwest markets[103]. - The company produced 33.72 million tons of phosphate products in 2023, with a production capacity of 420,000 tons per year[148]. - The company’s industrial-grade monoammonium phosphate sales accounted for approximately 20% of the Northwest market share[146]. Market Conditions - In 2023, the average market price of zinc ingots was 21,633.43 RMB/ton, a decrease of 3,564.75 RMB/ton from the previous year's average of 25,198.18 RMB/ton[1]. - The average market price of 0 zinc dropped from CNY 23,946.88 per ton at the beginning of the year to CNY 20,112.00 per ton by June, impacting revenue and leading to losses[56]. - The average market price of 0 zinc for the year was CNY 21,633.43 per ton, down 14.15% from CNY 25,198.18 per ton the previous year[67]. - The fertilizer market experienced significant fluctuations, with the price of phosphate products declining sharply due to rapid price drops in both international and domestic markets, leading to reduced demand from end customers[87]. - The phosphate fertilizer market showed signs of recovery in the second half of 2023, with improved pricing conditions[110]. Cash Flow and Financial Health - The company’s cash flow from operating activities decreased due to increased cash payments for raw material purchases compared to the previous year[3]. - The net cash flow from operating activities for 2023 was approximately -¥35.29 million, a decline of 110.39% compared to ¥339.61 million in 2022[44]. - The company faced significant challenges in cash flow, with a net cash flow from operating activities showing a substantial decline compared to the previous year[44]. - The company’s cash flow from operating activities showed a net outflow of ¥35,286,873.26, a decrease of 110.39% compared to a net inflow of ¥339,605,768.51 in the previous year[149]. - The company’s cash flow from investing activities showed a net outflow of ¥2,414,824.39, primarily due to reduced cash payments for fixed asset purchases compared to the previous year[149]. Operational Strategies - The company has taken measures to ensure stable operations and maintain liquidity to meet daily operational needs amid ongoing uncertainties[7]. - The company optimized production organization and improved extraction rates, which helped reduce some production costs despite market challenges[1]. - The company aims to enhance production capacity while ensuring safety and stable long-term production[64]. - The company is focusing on market-oriented strategies to stabilize market share and prioritize production of key products[64]. - The company has implemented measures to optimize production organization and enhance production efficiency, including technical innovations and equipment upgrades[88]. - The company is committed to enhancing product quality and has been working on certifications to ensure its zinc products meet international market standards[92]. - The company is focusing on strategic partnerships for raw material procurement to stabilize supply channels and ensure reasonable pricing[176]. Research and Development - The company’s R&D expenses totaled ¥1,829,005.95, accounting for 0.06% of total revenue[159]. - R&D expenses fell by 31.55% to ¥1,829,005.95 from ¥2,671,920.31, mainly due to a decrease in R&D projects and investments[183]. - The company has over 20 national invention patents related to phosphate chemical production technology, enhancing its competitive edge in the market[112]. - The company has established strategic partnerships with multiple research institutions to enhance product structure and sustainable development[145]. Environmental and Regulatory Compliance - The company actively promotes environmentally friendly fertilizers, aligning with national policies for sustainable agricultural development[117]. - The company’s operations are affected by environmental protection policies, necessitating ongoing improvements in the utilization of phosphogypsum, a byproduct of phosphate production[134]. - The company’s environmental management capabilities exceed industry averages, particularly in waste disposal and heavy metal pollution control[147].