DONGFENG GROUP(00489)2024-03-28 04:21Financial Performance - Dongfeng Motor Group reported a revenue of RMB 99,315 million for the year ended December 31, 2023, representing an increase of 7.1% compared to RMB 92,663 million in 2022[4]. - The gross profit for the year was RMB 9,466 million, up from RMB 8,827 million in the previous year, indicating a gross margin improvement[4]. - The net loss for the year was RMB 6,813 million, a significant decline from a profit of RMB 9,313 million in 2022, reflecting a year-over-year decrease of 173%[4]. - The company reported a net loss of RMB 3,996 million for the year 2023, compared to a profit of RMB 10,265 million in 2022, indicating a significant shift in financial performance[10]. - The total comprehensive income for the year 2023 was RMB 448 million, a stark contrast to the total comprehensive income of RMB 8,391 million in 2022, reflecting a decrease of approximately 94.7%[10]. - The company’s basic and diluted loss per share for the year was RMB (46.94) compared to earnings of RMB 119.14 per share in 2022[4]. - The group reported a total segment loss of RMB 7,343 million, with commercial vehicles and passenger vehicles incurring losses of RMB 4,107 million and RMB 6,565 million respectively[37]. - The group recorded a pre-tax loss of RMB 6,385 million for the year, with a net loss of RMB 6,813 million after tax expenses of RMB 428 million[37]. - The net loss attributable to shareholders was approximately RMB 3.996 billion, a decrease of about RMB 14.26 billion from a profit of RMB 10.265 billion in the previous year, resulting in a net profit margin of -4.0%[100]. Assets and Liabilities - The company's total assets as of December 31, 2023, were RMB 330,678 million, slightly up from RMB 330,036 million in 2022[9]. - The total liabilities increased to RMB 171,069 million from RMB 164,500 million, with interest-bearing borrowings rising to RMB 30,977 million[9]. - The company’s total assets as of December 31, 2023, were RMB 159,609 million, down from RMB 165,536 million in 2022, indicating a decrease of about 3.6%[10]. - The company’s cash and bank deposits rose to RMB 79,297 million, compared to RMB 68,046 million in the previous year, indicating improved liquidity[7]. - The group’s total assets at the end of 2023 were approximately RMB 330.68 billion, an increase of about RMB 642 million from RMB 330.04 billion at the end of the previous year[101]. - Total liabilities increased to approximately RMB 171.07 billion, up by about RMB 6.57 billion from RMB 164.50 billion at the end of the previous year, representing a growth of 4.0%[103]. Equity and Dividends - For the year ended December 31, 2023, the total equity attributable to equity holders of the parent was RMB 152,787 million, a decrease from RMB 155,852 million in 2022, representing a decline of approximately 2.0%[10]. - The company declared and paid a final dividend of RMB 2,560 million for the year 2023, compared to RMB 2,585 million in 2022, reflecting a slight decrease in dividend distribution[10]. - The group did not recommend a final dividend for the year ending December 31, 2023[108]. - The company did not declare any final dividend for 2023, contrasting with a dividend of RMB 2,577 million in 2022[51]. Operational Highlights - In 2023, the company sold approximately 2.0882 million vehicles, a year-on-year decrease of 15.3%[61]. - The sales of self-owned brand passenger vehicles reached 347,400 units, down 30.2% year-on-year, while commercial vehicle sales increased by 10.3% to approximately 343,400 units[61]. - The sales volume of new energy vehicles reached approximately 348,000 units, with a year-on-year increase, and the proportion of new energy vehicles in total sales increased by 2.7 percentage points[79]. - The high-end brand, Lantu, sold over 50,000 units, marking a year-on-year growth of 159.1%[61]. - The company achieved a historical high in export sales, reaching 169,100 units, a year-on-year increase of 14.3%[61]. - The company has established a complete brand layout, including luxury electric off-road brand Dongfeng Mengshi, which has sold over 1,000 units since its launch[62]. - The company expects to sell 2.7 million vehicles in 2024, representing a growth of approximately 29% compared to 2023[73]. - The company has 6,027 sales outlets covering all 31 provinces as of December 31, 2023[70]. Investment and Expenditures - Capital expenditures for the year totaled RMB 9,699 million, with RMB 5,963 million allocated to property, plant, and equipment[38]. - In 2023, Dongfeng Motor Group achieved actual capital expenditures of RMB 12.487 billion, a year-on-year increase of RMB 2.995 billion, or 32%[72]. - The company’s capital expenditures totaled RMB 4,168 million in 2023, with RMB 2,144 million allocated to passenger vehicles and RMB 839 million to commercial vehicles[41]. - The company’s research and development costs increased to RMB 4,571 million in 2023 from RMB 4,393 million in 2022, reflecting ongoing investment in innovation[44]. Market and Competitive Position - The company plans to focus on new product development and market expansion strategies to improve future performance[3]. - The company plans to strengthen its mid-term business goals and enhance its competitive position in the new energy vehicle market[64]. - The market share of new energy vehicles reached 31.6%, an increase of 5.9 percentage points compared to the previous year[76]. Accounting Standards and Compliance - The group has adopted new and revised standards effective from January 1, 2023, including IFRS 17 on insurance contracts and amendments to IAS 1, IAS 8, and IAS 12, which have no significant impact on the financial statements[2][20][22]. - The amendments to IAS 12 clarify the treatment of deferred tax assets and liabilities related to temporary differences arising from specific transactions, with no significant impact on the group's consolidated financial statements[22][23]. - The group has not yet applied the newly issued but not yet effective revised IFRS standards, intending to adopt them when they become applicable[25][29]. - The revisions to IFRS 10 and IAS 28 address inconsistencies in the treatment of asset transfers between investors and their associates or joint ventures, requiring full recognition of gains or losses when the transaction constitutes a business[29][30]. - The amendments to IFRS 16 clarify the requirements for measuring lease liabilities in sale and leaseback transactions, effective from January 1, 2024, with no significant expected impact on the group's financial statements[29][30].