BOMESC(603727)2024-03-29 16:00Financial Performance - The company achieved a consolidated net profit of RMB -75.4767 million in 2023, with a net profit attributable to shareholders of RMB -75.4770 million[5] - Revenue in 2023 decreased by 44.08% to RMB 1.798 billion compared to RMB 3.217 billion in 2022[24] - Net profit attributable to shareholders in 2023 was a loss of RMB 75.48 million, a decrease of 216.81% from a profit of RMB 64.62 million in 2022[24] - Basic earnings per share in 2023 were -RMB 0.27, a decrease of 217.39% from RMB 0.23 in 2022[25] - Weighted average return on equity in 2023 was -2.31%, a decrease of 4.33 percentage points from 2.02% in 2022[25] - Revenue in Q4 2023 was RMB 458.93 million, with a net profit attributable to shareholders of RMB 10.61 million[28] - Non-recurring gains and losses in 2023 amounted to a loss of RMB 3.57 million, compared to a gain of RMB 48.48 million in 2022[30] - Revenue in 2023 decreased by 44.08% year-on-year to RMB 1,798.99 million, primarily due to reduced orders and workload[61][73] - Net profit attributable to shareholders in 2023 was RMB -75.48 million, a decrease of 216.81% compared to 2022[61] - Total assets at the end of 2023 were RMB 4,800.18 million, with shareholders' equity of RMB 3,210.94 million[61] - R&D expenses decreased by 36.22% year-on-year to RMB 105.09 million, mainly due to reduced R&D investment[72] - The company's 2023 net profit was -75.477 million RMB, with a cumulative distributable profit of 707.8416 million RMB as of December 31, 2023[171] Dividend and Profit Distribution - The cumulative distributable profit as of December 31, 2023, was RMB 707.8416 million on a consolidated basis and RMB 253.4173 million on a parent company basis[5] - The company plans to distribute a cash dividend of RMB 1.50 per 10 shares (tax included) to all shareholders, with no stock dividends or capital reserve transfers[5] - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares (tax included) for 2023[171] Business Operations and Contracts - The company's main business includes offshore engineering, particularly in the construction of FPSO (Floating Production Storage & Offloading) and FLNG (Floating Liquefied Natural Gas) modules[14] - The company has a long-standing partnership with MODEC Inc., a major global offshore engineering contractor, dating back to 2007[14] - The company successfully signed multiple large contracts, supporting its operating performance[34] - Successfully delivered key products for a large LNG project, enhancing market and customer confidence[37] - Secured a 220 million contract for offshore platform living quarters modules, boosting workload and expanding into the Middle East market[39] - Secured a 27.15 billion, a 9.7% year-on-year increase[47] - Total global exploration and development investment in 2023 reached $121 billion, a 23% year-on-year increase[47] - Offshore oil and gas production by major oil companies grew by 1.9% in 2023, reaching a historical high[47] - China imported a record 107 million tons of crude oil from Russia in 2023, a 25% increase from the previous year[108] Revenue and Costs by Segment - Revenue from the natural gas liquefaction module was RMB 808.69 million, a decrease of 29.41% year-on-year, with a gross margin of 18.16%, up 5.50 percentage points[76] - Revenue from the offshore oil and gas development module was RMB 969.55 million, a decrease of 52.40% year-on-year, with a gross margin of 0.83%, down 10.95 percentage points[76] - Domestic project revenue increased by 2.49% to 8.3792 million yuan, with operating costs rising by 60.12% to 6.6948 million yuan, resulting in a gross margin of 20.10%, a decrease of 28.76 percentage points[78] - Overseas project revenue decreased by 44.24% to 1.7699 billion yuan, with operating costs decreasing by 42.12% to 1.6166 billion yuan, resulting in a gross margin of 8.66%, a decrease of 3.34 percentage points[78] - Sales to the top five customers accounted for 96.80% of total annual sales, amounting to 1.7413 billion yuan[82] - Procurement from the top five suppliers accounted for 16.05% of total annual procurement, amounting to 217.1427 million yuan[83] R&D and Innovation - The company has 254 authorized patents, including 57 invention patents and 197 utility model patents, as well as 27 software copyrights[56] - R&D expenses decreased by 59.6681 million yuan to 105.0925 million yuan, accounting for 5.84% of total revenue[83][85] - The company has 327 R&D personnel, accounting for 27.14% of the total workforce, with 223 holding bachelor's degrees[86] - The company applied for 59 patents (21 invention patents and 38 utility model patents) and obtained 61 patent authorizations (15 invention patents and 46 utility model patents) in 2023[88] - The company obtained AWS-CWF certification and completed ISO9001, ISO14001, and ISO45001 audits in 2023[36] Cash Flow and Investments - Operating cash flow increased by 27.27% to RMB 514.56 million in 2023 from RMB 404.31 million in 2022[24] - Operating cash flow increased by 110.2439 million yuan to 514.5579 million yuan, while investment cash flow decreased by 148.8167 million yuan to -40.306 million yuan, and financing cash flow decreased by 681.5769 million yuan to -419.557 million yuan[90] - Investment income decreased by 50.7887 million yuan to 91,500 yuan, mainly due to losses from foreign exchange derivative investments[91] - Credit impairment losses increased by 13.3314 million yuan to -12.1268 million yuan, and asset impairment losses increased by 6.978 million yuan to -5.8105 million yuan[92] - The company's subsidiary invested 39.16 million yuan in a hydrogen energy private equity fund, with an additional 4.84 million yuan yet to be paid[104][105] Assets and Liabilities - Accounts receivable increased by 221.13 million yuan (230.85%) compared to the end of the previous period, mainly due to increased project settlements[96] - Contract liabilities increased by 232.05 million yuan (1,577.25%) compared to the end of the previous period, mainly due to increased project settlements not yet completed[100] - Short-term borrowings decreased by 620.13 million yuan (68.89%) compared to the end of the previous period, mainly due to reduced bank financing[100] - Contract assets decreased by 323.10 million yuan (48.50%) compared to the end of the previous period, mainly due to reduced completed but unsettled projects[100] - Inventory decreased by 135.39 million yuan (44.38%) compared to the end of the previous period, mainly due to reduced raw materials[100] - Prepayments decreased by 37.44 million yuan (51.82%) compared to the end of the previous period, mainly due to reduced prepayments for subcontracting projects[97] - Deferred tax assets increased by 26.46 million yuan (74.18%) compared to the end of the previous period, mainly due to increased deductible temporary differences[100] - The company's overseas assets amounted to 13.73 million yuan, accounting for 0.29% of total assets[99] Subsidiaries and Investments - Total assets of Tianjin BOMESC Offshore Engineering Company reached 3.848 billion RMB, with a net loss of 110.24 million RMB[107] - BOMESC Offshore Engineering Management Hong Kong Company reported total assets of 13.73 million RMB and a net loss of 120,290.71 RMB[107] - Tianjin BOMESC Asset Management Company recorded total assets of 95.71 million RMB and a net loss of 454,493.76 RMB[107] - Shengwei Jusi (Tianjin) Investment Management Company achieved a net profit of 5,810.39 RMB with total assets of 3.02 million RMB[107] - The company has four subsidiaries: Tianjin Bomesc (100% owned), Hong Kong Bomesc (100% owned), Bomesc Asset Management (100% owned), and Shengwei Jusi (95% indirectly owned)[175] Corporate Governance and Management - The company's registered and office address is located at No. 14, Fourth Avenue, Tianjin Economic-Technological Development Area[18] - The company's stock is listed on the Shanghai Stock Exchange under the ticker symbol 603727[20] - The company's annual report is disclosed through media such as the "Shanghai Securities News" and "China Securities News," and is also available on the Shanghai Stock Exchange website[19] - The company's financial report for 2023 was audited by Rongcheng Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit report[4] - The company has no non-operational fund occupation by controlling shareholders or related parties, and no violations in decision-making procedures for external guarantees[7][8] - The company held 4 board meetings in March, April, July, and October, reviewing 47 proposals including the 2022 annual report, financial report, and profit distribution plan[129] - The company held 3 supervisory board meetings in April, July, and October, reviewing 22 proposals including the 2022 annual supervisory board report and 2023 quarterly reports[132] - The company has 3 independent directors, accounting for one-third of the board, including one accounting professional[133] - The company completed the preparation and disclosure of the 2022 annual report, 2023 Q1, H1, and Q3 reports, along with 39 temporary announcements[135] - The controlling shareholder, Bomesc Holdings, and actual controller, Peng Wencheng, have issued commitments to avoid competition with the company[137] - The 2023 first extraordinary general meeting was held on April 10, approving the proposal to elect non-independent directors[139] - The 2022 annual general meeting was held on April 12, approving the 2022 annual report, financial report, profit distribution plan, and other proposals[139] - The 2023 second extraordinary general meeting was held on November 13, approving revisions to the articles of association, shareholder meeting rules, and other governance documents[139] - The total pre-tax remuneration for directors, supervisors, and senior management in 2023 amounted to 1,527.52 million yuan[141] - The company's chairman and president, Peng Wencheng, received a pre-tax remuneration of 1.56 million yuan in 2023[141] - The company's vice chairman and vice president, Peng Wenge, received a pre-tax remuneration of 1.38 million yuan in 2023[141] - The company's former director and vice president, Wu Zhanghua, received a pre-tax remuneration of 1.01 million yuan before his departure in March 2023[141] - The company's director and vice president, Qiu Panfeng, received a pre-tax remuneration of 1.50 million yuan in 2023[141] - The company's director, Shi Lei, received a pre-tax remuneration of 0.91 million yuan in 2023[141] - The company's director, Wei Dongchao, received a pre-tax remuneration of 0.83 million yuan in 2023[141] - The company's independent director, Hou Haojie, received a pre-tax remuneration of 0.12 million yuan in 2023[141] - The company's independent director, Lu Jianzhong, received a pre-tax remuneration of 0.12 million yuan in 2023[141] - The company's independent director, Wang Li, received a pre-tax remuneration of 0.12 million yuan in 2023[141] - [Key Point 1] Lu Jianzhong has served as an independent director of the company since December 2021 and as a certified public accountant at Zhongxinghua Accounting Firm since January 2022[145] - [Key Point 2] Wang Li has been an independent director of the company since December 2018 and is currently a professor at Shanghai University[145] - [Key Point 3] Wang Yongwei has been the assistant to the president of the company since March 2017 and has served as a supervisor since October 2012[145] - [Key Point 4] Li Shuntong has been the deputy chief engineer of the company since November 2020 and has served as a supervisor since January 2017[145] - [Key Point 5] Liu Hongyan has been the deputy manager of the company's business department since 2012 and has served as a supervisor since then[145] - [Key Point 6] Wang Xin has been the vice president and board secretary of the company since July 2017[147] - [Key Point 7] Dai Chunyang has been the chief engineer of the company since 2012[147] - [Key Point 8] Xie Hongjun has been the financial director of the company since December 2018 and has served as the legal representative and executive director of BOMESC Asset Management since March 2023[147] - [Key Point 9] Peng Wencheng has been the executive director and president of Tianjin BOMESC since July 2009 and a director of Hong Kong BOMESC since December 2013[150] - [Key Point 10] Lu Jianzhong serves as an independent director for multiple companies, including COSCO SHIPPING Development Co., Ltd. and Shanghai Xin Nanyang Angli Education Technology Co., Ltd.[150] - Total remuneration for directors, supervisors, and senior management in 2023 amounted to 15.2752 million yuan[152] - The company held 4 board meetings in 2023, with resolutions disclosed on the Shanghai Stock Exchange website[154] - The Audit Committee held 3 meetings in 2023, reviewing financial reports and internal control evaluations[159] - Independent director Wang Li missed two consecutive board meetings due to work reasons, delegating her vote to independent director Lu Jianzhong[156] - The company's remuneration system for directors and senior management is based on operational performance, industry standards, and individual responsibilities[152] - The Strategic Committee underwent personnel changes in March 2023, with Wu Zhanghua leaving and Qiu Panfeng taking over[158] - The company's board members attended an average of 3.5 meetings each in 2023, with no consecutive absences except for Wang Li[155][156] - The company's remuneration policies were approved through separate meetings of the Remuneration and Assessment Committee and the Board of Supervisors in April 2023[152] - The company's financial reports for Q1, Q2, and Q3 2023 were reviewed and approved by the Audit Committee without any objections[159] - The company's directors and supervisors received an average remuneration of approximately 1.27 million yuan each in 2023[152] Human Resources and Training - Total number of employees at the parent company and major subsidiaries is 1,205, with 350 at the parent company and 855 at major subsidiaries[164] - The company has 827 technical personnel, accounting for 68.6% of the total workforce[164] - The company has 49 employees with postgraduate degrees, 610 with bachelor's degrees, and 414 with college degrees[164] - The company's training focus in 2023 includes professional skills improvement, high-potential talent development, and new manager capability enhancement[167] - Total labor outsourcing hours in 2023 were 674,801.78, with total compensation paid of 30,366,079.88 RMB[169] - The company implemented a new compensation system in 2023, including performance-based pay, technical allowances, and piece-rate incentives[165] Environmental and Social Responsibility - The company invested 4.4288 million yuan in environmental protection during the reporting period[180] - The subsidiary Tianjin BOMESC was identified as a key pollutant discharge unit for air and environmental risks in 2023 by the Tianjin Ecological Environment Bureau[181] - Wastewater discharge from Tianjin BOMESC meets the tertiary discharge standards of the Tianjin Integrated Wastewater Discharge Standard (DB12/356-2018)[182] - Air pollutant emissions from Tianjin BOMESC, including particulate matter, VOCs, and others, comply with legal requirements[183] - The highest monitored concentration of particulate matter at emission point FQ-LG066 was 7.