LONGZHOU GROUP CO.(002682)2023-04-24 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥4.99 billion, representing a slight increase of 0.52% compared to ¥4.97 billion in 2021[15]. - The net profit attributable to shareholders was a loss of approximately ¥79.29 million, a significant decrease of 701.50% from a profit of ¥13.18 million in 2021[15]. - The cash flow from operating activities decreased by 65.25% to approximately ¥295.70 million, down from ¥850.97 million in 2021[15]. - The basic and diluted earnings per share were both -¥0.14, reflecting an 800.00% decline from ¥0.02 in 2021[15]. - Total assets at the end of 2022 were approximately ¥7.39 billion, a decrease of 4.14% from ¥7.71 billion at the end of 2021[15]. - The net assets attributable to shareholders decreased by 4.74% to approximately ¥1.85 billion, down from ¥1.94 billion in 2021[15]. - The company reported a quarterly revenue of ¥1.50 billion in Q4 2022, marking a steady increase from previous quarters[19]. - The company experienced a net loss of approximately ¥40.11 million in Q4 2022, which was part of a trend of losses throughout the year[19]. - The company achieved total operating revenue of CNY 4,993.49 million in 2022, a year-on-year increase of 0.52%[41]. - The asphalt supply chain business generated revenue of CNY 2,835.29 million, accounting for 56.78% of total revenue, with an 8.13% increase compared to the previous year[41]. - The port and logistics services segment reported revenue of CNY 213.41 million, a decline of 14.90% year-on-year[41]. - The automotive manufacturing and sales segment recorded revenue of CNY 730.48 million, down 5.34% from the previous year, with a gross margin of 13.16%[39][41]. - The passenger transport and station service business generated revenue of CNY 306.55 million, a decrease of 4.58% year-on-year, with a gross margin of -8.50%[40][41]. - The finished oil and natural gas sales segment achieved revenue of CNY 406.16 million, an increase of 2.08% compared to the previous year[40][41]. Risk Factors - The company highlighted risks including production safety accidents, fluctuations in oil and gas prices, and management risks associated with business expansion[3]. - The company emphasizes the importance of reading the full annual report, particularly the risk factors section[3]. Corporate Governance - The company’s financial report was confirmed to be true, accurate, and complete by the board of directors and senior management[3]. - The company has established a comprehensive internal control management system for asphalt futures hedging, including clear regulations on hedging limits and internal audit processes[73]. - The company has a comprehensive internal control system that has been effective in safeguarding shareholder rights and maintaining operational integrity[92]. - The company has implemented a robust information disclosure system, ensuring timely and accurate communication with investors through designated media outlets[94]. - The independent directors actively fulfill their roles, providing independent opinions on significant matters to protect the overall interests of the company[93]. - The company has established clear governance structures and procedures to ensure democratic and transparent decision-making processes[92]. Shareholder Information - The company reported a profit distribution plan based on 562,368,594 shares, with a cash dividend of 0 per 10 shares and no bonus shares issued[3]. - The company did not distribute profits for the year 2021, as approved in the board meeting[115]. - The company did not propose any cash dividend distribution for the 2022 fiscal year, despite having a distributable profit of approximately CNY 481.55 million[129]. - The total number of shares held by the employee stock ownership plan decreased from 10,075,932 shares to 9,611,832 shares, a reduction of 464,100 shares, representing a decrease of 0.08%[132]. - The employee stock ownership plan accounted for 1.71% of the total share capital at the end of the reporting period[132]. Subsidiary Performance - The company's subsidiary, Zhaohua Supply Chain, reported a net profit of CNY -24.54 million, a decline of 289.47% year-on-year[38]. - The subsidiary Changfeng Special Vehicle achieved revenue of CNY 30.35 million, a growth of 26.10%, with a net profit increase of 169.34%[39]. - The company’s subsidiary Dongguan Zhongqi Hongyuan reported revenue of CNY 19.37 million, a year-on-year increase of 15.54, but a net loss of CNY -12.50 million[39]. - Anhui Zhongzhuang Logistics achieved revenue of 228.67 million yuan in 2022, a decrease of 12.82% year-over-year, with net profit dropping by 73.98% to 6.86 million yuan due to reduced government subsidies and declining revenue[78]. - Zhao Hua Supply Chain reported revenue of 2.85 billion yuan in 2022, an increase of 8.45% year-over-year, but incurred a net loss of 24.54 million yuan, a decline of 289.47%, primarily due to international economic conditions affecting asphalt prices[78]. - Wuyi Co., Ltd. generated revenue of 246.34 million yuan in 2022, up 2.76% year-over-year, with net profit soaring by 98.07% to 28.75 million yuan, attributed to land acquisition gains from local government[79]. - Dongguan Zhongqi Hongyuan recorded revenue of 193.69 million yuan in 2022, a growth of 15.54%, but faced a net loss of 125.04 million yuan, down 18.66%, due to high fixed costs and poor market demand for new energy buses[79]. - Changfeng Special Vehicle achieved revenue of 303.53 million yuan in 2022, a rise of 26.10%, with net profit increasing by 169.34% to 29.68 million yuan, driven by revenue growth[80]. Research and Development - The company has completed the development and acceptance of a new 4.5T pure electric logistics vehicle, which is expected to enhance the product line and meet market demand for urban logistics[50]. - The company is conducting ongoing research on hydrogen fuel cell vehicles, aiming to achieve technical breakthroughs and commercial applications in the domestic market[51]. - The company has improved the insulation performance of its heating preservation containers by approximately 10%, contributing to energy conservation and environmental benefits[51]. - The company has focused on diversifying product functions to enhance technological content and market share, with several new products already in the testing phase[52]. - The company is investing 50 million in R&D for new technologies aimed at enhancing operational efficiency[104]. - The company is focusing on research and development to innovate new products that cater to market demands[169]. Strategic Initiatives - The company is focused on expanding its market presence and developing new products and technologies[98]. - The company aims to maintain its leadership in the road transport industry while innovating in modern service sectors, focusing on quality development and enhancing core competitiveness[82]. - The company plans to strengthen strategic execution and enhance operational efficiency to adapt to new development patterns and promote high-quality growth[82]. - The company is actively exploring potential mergers and acquisitions to strengthen its market position[98]. - The company is considering strategic acquisitions to enhance its supply chain capabilities, with a budget of 100 million allocated for potential deals[104]. - The company is exploring new market opportunities, as indicated by its ongoing financial commitments and strategic planning[167]. Financial Management - The total pre-tax remuneration for the board of directors and senior management amounted to CNY 651.67 million in the reporting period[113]. - The company applied for a credit limit of up to CNY 60 million from Shanghai Pudong Development Bank and CNY 200 million from China Postal Savings Bank[115]. - The company plans to provide guarantees for its subsidiaries with an increased limit for the year 2022[115]. - The company has a comprehensive credit application of up to CNY 51.72 million with Agricultural Bank of China[115]. - The company has a total of 4,000 million in guarantees expiring in 2022, which may impact future liquidity and financial planning[167]. - The company has a commitment to maintaining a robust financial structure, as evidenced by its various guarantees and performance deadlines[167]. Market Outlook - The company expects both supply and demand for asphalt to increase year-on-year in 2023, indicating a generally loose supply-demand structure[27]. - The company provided a future outlook with a revenue guidance of 1.8 billion for 2023, reflecting an expected growth of 20%[104]. - The company has set a performance guidance of 15,000 million in revenue for the upcoming fiscal year, aiming for a growth rate of approximately 2%[169]. Employee Information - The total number of employees at the end of the reporting period is 4,039, with 1,052 in the parent company and 2,987 in major subsidiaries[126]. - The employee composition includes 2,750 production personnel, 83 sales personnel, 154 technical personnel, 183 financial personnel, and 869 administrative personnel[126]. - The educational background of employees shows that 2,769 have high school or lower education, 767 have associate degrees, 496 hold bachelor's degrees, and 7 have master's degrees[126]. - The company emphasizes employee training, with annual training plans based on departmental needs and subsequent evaluations of training effectiveness[128]. Environmental and Social Responsibility - The company is committed to sustainability, with plans to reduce carbon emissions by 20% by 2025[170]. - The company emphasizes social responsibility and actively engages with stakeholders to balance interests among shareholders, employees, and the community[94]. - There were no environmental penalties or significant environmental issues reported during the reporting period[140]. Audit and Compliance - The company received a standard unqualified audit opinion for its financial statements as of December 31, 2022, indicating fair representation of its financial position and results[197]. - The audit was conducted by Tianzhi International Accounting Firm, with the report signed on April 24, 2023[197]. - The company has not engaged in any transactions that would compromise the interests of minority shareholders or involve the misuse of company funds by controlling shareholders[92].