SHENGDA FORESTRY(SZ:002259)2024-06-05 09:52Group 1: Financial Performance - In 2023, the company's main business revenue declined, resulting in a net profit of -1.1 million yuan due to high raw material costs and a significant drop in LNG prices [3][4]. - The company recorded a provision for litigation liabilities amounting to 32.8818 million yuan related to historical issues [4]. - The operational model shift led to a decrease in revenue, but it enhanced the profitability of the main business [4]. Group 2: Business Strategy and Operations - The company adapted to market changes by optimizing production processes and focusing on efficiency, following the "four have" principle: having orders, marginal output, profitable income, and cash profits [4]. - The company has two LNG plants with a capacity of 1 million cubic meters per day each, located in Yulin and Mizhi, and operates three LNG refueling stations [6]. - The company is exploring contract processing services to improve profit margins and has increased production efficiency [4]. Group 3: Market Conditions and Risks - The European energy supply crisis has eased, leading to a decline in global natural gas prices, which affected the company's revenue [4]. - The company is actively managing risks associated with market fluctuations and is focused on maintaining operational stability [5][6]. - There are concerns regarding the potential for delisting if losses continue for three consecutive years, as per the Shenzhen Stock Exchange regulations [5][6]. Group 4: Future Plans and Governance - The company plans to apply for the removal of risk warnings in accordance with new regulations and is currently reviewing compliance [5][6]. - The management team is committed to enhancing shareholder value and is exploring restructuring opportunities [5][6]. - The company is focused on sustainable development and improving its internal value amidst market challenges [5][6].