QSY Tech(300437)2025-02-28 10:14Financial Performance - In 2023, the company achieved operating revenue of 1.135 billion RMB, a decrease of 37.13% compared to the same period last year[6]. - The net profit attributable to shareholders was -56 million RMB, down 31.48% year-on-year, primarily due to a decline in product sales prices and significant losses from the revaluation of a 45% stake in Anhui Zhongxu Environmental Construction Co., Ltd[6]. - The company reported a loss of 32.54 million RMB from the fair value remeasurement of its stake in Anhui Zhongxu Environmental Construction Co., Ltd[6]. - The decline in revenue and profit is attributed to multiple factors, including market environment impacts and a significant drop in sales volume and gross margin of water treatment agent derivatives[6]. - The company's operating revenue for 2023 was ¥1,134,545,865.66, a decrease of 37.13% compared to ¥1,804,723,664.35 in 2022[23]. - The net profit attributable to shareholders for 2023 was -¥55,826,716.33, representing a decline of 31.48% from -¥42,459,924.94 in 2022[23]. - The cash flow from operating activities for 2023 was ¥67,623,479.43, down 61.94% from ¥177,653,539.15 in 2022[23]. - The basic earnings per share for 2023 was -¥0.2155, a decrease of 31.48% compared to -¥0.1639 in 2022[23]. - The total assets at the end of 2023 were ¥2,757,868,330.39, a decrease of 10.11% from ¥3,067,920,221.11 at the end of 2022[23]. - The net assets attributable to shareholders at the end of 2023 were ¥1,497,027,484.83, down 2.11% from ¥1,529,345,551.93 at the end of 2022[23]. Operational Strategy - The company continues to operate without major risks to its ongoing viability and has outlined potential risks and countermeasures in its management discussion[7]. - The company emphasizes that its future plans and strategic developments do not constitute a commitment to investors, highlighting the importance of investment risk awareness[7]. - The company is focused on the production and sales of water treatment agents and related services, which are critical in addressing environmental challenges[23]. - The company is navigating a challenging market environment influenced by national policies aimed at improving wastewater discharge standards and promoting green development[35]. - The company aims to reduce the water consumption per unit of industrial added value to below 40 cubic meters by 2030, aligning with national goals[36]. - The company plans to increase the variety and application range of water treatment agents, focusing on developing green and environmentally friendly products[40]. - The company is committed to enhancing its R&D capabilities by building a team of experts and increasing investment in innovation[41]. - The company will explore high-margin fine chemical products to find new profit growth points[40]. - The company is focused on maintaining a competitive edge through technological and product innovation[40]. Market Position and Industry Trends - The company maintains that there is no significant overcapacity or continuous decline in its industry, indicating a stable market position[6]. - The market for the environmental protection industry is expected to continue expanding, driven by ongoing national policies and regulations[36]. - The company is positioned to benefit from the increasing demand for water treatment agents due to stricter environmental regulations and water resource shortages[37]. - The industry is expected to see further consolidation, with leading companies like the company stabilizing the competitive landscape[38]. - The company has evolved from a single water treatment agent manufacturer to a diversified environmental group, covering water treatment agents, municipal and industrial water treatment, and comprehensive water environment governance[45]. Supply Chain and Production - The company operates through a model of "sales-driven production," ensuring timely supply based on customer orders and production plans[48]. - The company has established a stable supply chain with qualified suppliers, ensuring consistent procurement of raw materials[48]. - The main raw materials for production include yellow phosphorus (61.40% of total procurement), methanol (6.26%), maleic anhydride (6.00%), liquid chlorine (1.31%), and dimethyl phosphite (5.18%)[54]. - The average procurement price of yellow phosphorus decreased by 24.40% from 31,034.00 yuan/ton in 2022 to 23,460.28 yuan/ton in 2023, significantly impacting operating costs[55]. - The average price of liquid chlorine dropped by 76.21% from 612.00 yuan/ton to 145.6 yuan/ton due to a significant supply-demand imbalance[55]. - The cost of raw materials for water treatment agents and derivatives accounts for 78.78% of production costs, making procurement prices a key factor affecting operating costs[55]. Research and Development - The company has a strong focus on R&D, with a team consisting of postdoctoral and doctoral experts, and has established partnerships with renowned universities and research institutions, enhancing its technological capabilities[59]. - The company has been recognized as a provincial-level enterprise technology center and has received multiple accolades for its R&D capabilities and innovation[59]. - The company is in the trial production phase for modified polycarboxylic acid textile additives, aiming to promote environmentally friendly products in the textile industry[82]. - The company has completed the small-scale testing of a green chelating agent, which meets industry standards and enhances product competitiveness[83]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective decision-making and risk management[117]. - The company actively respects and protects the rights of stakeholders, promoting balanced interests among shareholders, employees, and society[123]. - The company has a dedicated secretary for investor relations, ensuring compliance with information disclosure requirements[124]. - The company has implemented strict governance practices, ensuring timely and efficient decision-making to protect the interests of all shareholders[157]. - The board of directors consists of 9 members, including 3 independent directors, complying with relevant regulations[119]. Employee Management and Development - The company emphasizes the importance of talent development and has established a multi-level, multi-disciplinary training system to enhance employee capabilities[108]. - The company employs a performance-based compensation strategy, linking bonuses for R&D personnel to new product sales and for sales personnel to actual cash collection from product sales[166]. - The company has a structured training program that includes various forms of training, such as on-the-job training and management training, to support strategic goals[167]. - The total number of employees at the end of the reporting period was 874, with 56 in the parent company and 818 in major subsidiaries[164]. Cash Dividend Policy - The company has a cash dividend policy that stipulates at least 20% of the distributable profit should be distributed in cash if there are no major investments or expenditures exceeding 10% of the latest audited net assets[169]. - Due to a loss in 2023, the company plans not to distribute cash dividends for the year, focusing on improving operational management to achieve better performance in the future[169]. - The company reported a cash dividend of 0.00 yuan, indicating no distribution due to a loss in 2023[170]. - The company did not propose any cash dividend distribution plan despite having positive distributable profits for shareholders[171]. Risk Management - The company has implemented a comprehensive risk assessment strategy, identifying both internal and external risks, and has established measures to mitigate these risks, particularly in safety production and financial management[182]. - The company faces risks related to project construction delays due to lengthy approval processes and potential technological challenges, which could affect future performance[110]. - The company is committed to enhancing safety and environmental management to mitigate risks associated with stricter regulations and potential safety incidents[111]. Financial Management - The company has a robust financial management team, with Wang Lin serving as the financial director since 2008[147]. - The company has established a comprehensive internal audit system to ensure effective supervision and control over its operations and financial reporting[195]. - The internal audit department reports directly to the audit committee, ensuring independence in auditing processes[178].