Delian Group(002666)2024-04-17 12:18Automotive Fine Chemicals Business - The company's automotive fine chemicals business covers over 50 OEMs, including luxury, joint venture, and domestic brands, with a focus on upgrading and expanding product categories for the new energy vehicle trend[18] - The company's products include a wide range of automotive fine chemicals, such as coolants, brake fluids, and adhesives, used in both OEM and aftermarket applications[18] - The company has expanded its product applications to new scenarios such as wind power cooling, energy storage cooling, and new energy adhesives[18] - The company's automotive fine chemicals business has seen steady growth, with increasing customer and product coverage[18] - The company has a strong presence in the new energy vehicle market, covering over 20 traditional OEMs and emerging new energy vehicle manufacturers[18] - The company's products are categorized into consumable and non-consumable chemicals, with consumables like coolants and brake fluids requiring periodic replacement based on mileage or time[18] - The company's automotive fine chemicals business has a stable and high-quality sales channel, ensuring good profitability[18] - Operating cost for automotive fine chemicals was 3,673,619,790.43 yuan, accounting for 71.58% of total operating costs[63] - Direct material cost for automotive fine chemicals increased by 18.91% to 3,502,380,439.65 yuan[63] - Manufacturing expenses for automotive fine chemicals rose by 38.25% to 66,229,115.04 yuan[63] - The company's cooling fluid has found new applications in energy storage, wind energy, and nuclear energy sectors, creating new growth opportunities[69] - The company secured supply contracts with major domestic automotive brands such as BYD, FAW, and Geely for various products including brake fluid and coolants[76] - In 2023, the operating cost for automotive fine chemicals was RMB 3.67 billion, accounting for 71.58% of the total operating cost, a year-on-year increase of 19.29%[86] Automotive Sales and Service Business - The company's automotive sales service business focuses on new car sales and after-sales services, leveraging new car sales to expand into auto parts and maintenance[18] - The company's sales model includes a focus on building a national automotive service network through the "Delian 2S Automotive Service Flagship Store" standard system[19] - Revenue from vehicle sales and after-sales services was 1,582,547,376.66 yuan, representing 27.79% of total revenue[61] - The operating cost for automotive sales and maintenance was RMB 1.34 billion, accounting for 26.16%, a year-on-year increase of 16.06%[86] Procurement and Supply Chain Management - The company's procurement model includes an AM market strategy, utilizing an MB2B2C model to integrate OEM parts resources and establish a nationwide automotive service network[19] - The company uses an ERP system to integrate supply chain management, linking suppliers and customers effectively[43] - The company's top five suppliers accounted for 52.24% of total annual procurement, with the top supplier contributing 26.86%[120] Production and Sales Performance - Oil and lubricant production increased by 13.22% to 142,771.81 tons compared to the same period last year[20] - Adhesive production surged by 72.37% to 21,339.29 tons year-over-year[20] - Oil and lubricant sales in the aftermarket grew by 37.55% to 62,250.08 tons[20] - Domestic sales increased by 18.51% to 164,111.10 tons, while overseas sales dropped by 32.73% to 2,111.34 tons[20] - Oil and lubricant sales revenue reached 145,191,625.39 RMB with a production of 10,023.08 tons and sales of 11,957.43 tons[47] - Revenue from OEM/OES sales mode reached 4,032,001,996.25 yuan, accounting for 70.81% of total revenue[61] - Total operating revenue for 2023 reached 5,693,800,704.61 RMB, a significant increase from 4,881,908,623.12 RMB in 2022[153] - Operating costs for 2023 were 5,132,163,818.23 RMB, up from 4,338,702,077.76 RMB in 2022[153] - Cash received from sales and services increased 22% to 5,933,938,059.63 RMB from 4,862,353,055.17 RMB[161] R&D and Innovation - The company expanded its production capacity for new material adhesives, achieving localization of products like glass adhesive and structural adhesive[58] - The company plans to enhance R&D capabilities for new material adhesives, improving product quality and production efficiency[58] - R&D expenses in 2023 totaled RMB 116.64 million, a year-on-year increase of 3.19%. The company successfully developed products such as coolant, brake fluid, gear oil, structural adhesive, and low-density sealant, which have received customer certifications. Four new engine oil products under the DeLian brand were also developed[78] - R&D expenses grew by 3.19% to 116,639,205.73 yuan, but the proportion of R&D investment to operating income decreased by 0.27% to 2.05%[122] Strategic Partnerships and Certifications - The company has strategic partnerships with international chemical giants like BASF and DuPont, securing long-term supply and technological collaboration[49] - The company's subsidiaries have obtained high-tech enterprise certifications and ISO/IEC17025 laboratory accreditations, ensuring quality and technical leadership[49] Financial Performance - Investment income was 26,128,374.95 yuan, accounting for 65.90% of total profit[68] - Net cash flow from operating activities increased significantly to 182,115,501.47 yuan, compared to 2,865,741.36 yuan in the previous period[114] - Total cash inflow from operating activities reached 5,992,023,338.10 yuan, up from 5,046,054,995.33 yuan[114] - Cash outflow from operating activities was 5,809,907,836.63 yuan, slightly higher than the previous 5,043,189,253.97 yuan[114] - Net cash flow from investing activities was -139,799,141.62 yuan, an improvement from -258,080,418.84 yuan[114] - Total cash inflow from financing activities increased to 2,468,416,277.32 yuan from 2,087,360,177.16 yuan[114] - Investment activities' cash outflow decreased by 40.01% year-on-year, mainly due to reduced investments in joint ventures or associated enterprises. The net cash flow from investment activities increased by 45.83% year-on-year[92] - Cash and cash equivalents increased by 139.82% year-on-year, primarily due to increased cash inflows from sales and services as a result of higher orders[92] - The company's monetary funds amounted to RMB 140.87 million, with restricted funds including deposits, frozen funds, and electricity deposits. Inventory totaled RMB 123.52 million, with vehicle certificates used as collateral for loans[97] - Operating cash inflow increased by 18.75% to 5,992,023,338.10 yuan in 2023 compared to 2022[123] - Operating cash outflow increased by 15.20% to 5,809,907,836.63 yuan in 2023 compared to 2022[123] - Net cash flow from operating activities surged by 6,254.92% to 182,115,501.47 yuan in 2023[123] - Net cash flow from investing activities improved by 45.83% to -139,799,141.62 yuan in 2023[123] - Net cash flow from financing activities decreased by 89.28% to 30,495,105.38 yuan in 2023[123] - Net increase in cash and cash equivalents rose by 139.82% to 75,476,665.98 yuan in 2023[123] - Other non-current financial assets increased to 195,325,045.45 yuan in 2023, up from 145,008,350.35 yuan in 2022[126] - Interest expenses increased to 42,636,638.11 RMB, up 55.3% from 27,448,332.62 RMB in the previous year[156] - Interest income rose slightly to 9,384,312.78 RMB, a 5.1% increase from 8,933,264.17 RMB[156] - Investment income surged to 26,128,374.95 RMB, a massive 1971.5% jump from 1,261,487.90 RMB[156] - Fair value change income turned positive at 20,526,356.27 RMB, compared to a loss of 221,721.81 RMB[156] - Net profit attributable to parent company shareholders reached 44,068,460.32 RMB, up 6.4% from 41,435,600.55 RMB[156] - Parent company revenue grew 17.8% to 1,967,666,690.24 RMB from 1,670,101,548.09 RMB[158] - Parent company operating costs increased 22.2% to 1,945,835,664.92 RMB from 1,591,562,135.93 RMB[158] - Parent company investment income rose 27.3% to 56,650,405.27 RMB from 44,504,590.39 RMB[158] - Total assets increased to 5,243,255,498.39 from 5,090,703,036.82, reflecting a growth of approximately 3%[187][188] - Intangible assets decreased to 285,744,730.80 from 299,400,625.71, a decline of about 4.6%[187] - Goodwill decreased to 44,230,940.75 from 48,267,146.80, a reduction of approximately 8.4%[187] - Total current liabilities increased to 1,672,641,807.51 from 1,536,577,222.78, a rise of about 8.9%[187] - Short-term borrowings increased to 909,194,370.54 from 770,248,193.84, a growth of approximately 18%[187] - Deferred tax assets increased to 112,028,177.80 from 75,079,647.35, a significant rise of about 49.2%[187] - Total non-current liabilities decreased to 142,325,988.22 from 176,638,574.20, a decline of approximately 19.4%[188] - Total equity increased to 3,428,287,702.66 from 3,377,487,239.84, a growth of about 1.5%[188] - Cash and cash equivalents increased to 180,934,122.79 from 167,328,069.08, a rise of approximately 8.1%[189] - Long-term loans decreased to 80,000,000.00 from 100,000,000.00, a reduction of 20%[192] Subsidiaries and Expansion - The company established five "factory-adjacent bases" in major automotive clusters across China, enhancing service and cost competitiveness[23] - The company is expanding the localization of high-end products, improving cost advantages and competitiveness[24] - The company established five "factory-adjacent bases" in Changchun, Shanghai, Foshan, Chengdu, and Qingdao, covering major automotive industry clusters in China. These bases provide comprehensive services, including R&D, procurement, production, and logistics, ensuring 24-hour response to core customers and reducing transportation costs[83] - The company established several new subsidiaries, including Shenyang DeLian Qijun Automotive Sales and Service Co., Ltd., and Changchun DeLian Huijun Automotive Sales and Service Co., Ltd., as part of its strategic expansion[104] - The company established two new subsidiaries, Shenyang Delian Qijun Automobile Sales Service Co., Ltd. and Shenyang Delian Lianzhong Automobile Sales Service Co., Ltd., both with 100% ownership[118] - The company disposed of its 81% stake in Foshan Junyao Automobile Sales Service Co., Ltd. for 7,220,000 yuan, resulting in a gain of 7,564,082.93 yuan[118] - Shanghai Delian subsidiary reported a net profit of 9,692.71 thousand yuan in 2023[133] - Changchun Delian subsidiary reported a net profit of 1,594.33 thousand yuan in 2023[133] - Delian Chehu subsidiary reported a net profit of 1,119.37 thousand yuan in 2023[133] Intellectual Property and Patents - The company and its subsidiaries held 24 authorized invention patents by the end of 2023, with 2 new patents added during the reporting period. Additionally, there were 135 authorized utility model patents (12 new), 1 authorized design patent, and 27 authorized computer software copyrights. The number of successfully registered trademarks reached 73, with 2 new trademarks added[78] Corporate Governance and Leadership Changes - Xu Xian Da resigned as Chairman due to personal health reasons on October 9, 2023[148] - Xu Tuan Hua was elected as the new Chairman on October 9, 2023, following Xu Xian Da's resignation[148] - Kuang Tong Chun resigned as an independent director on September 15, 2023, citing personal workload and regulatory changes[148] - Li Ai Ju was appointed as an independent director on September 15, 2023, bringing extensive academic and industry expertise[150] - Cao Hua, Vice President, reduced his shareholding by 137,800 shares in 2023[147] - The company held 6 shareholder meetings during the reporting period, strictly following regulations[164] - The company held five extraordinary general meetings in 2023 with investor participation rates ranging from 51.64% to 54.47%[170] - The company's chairman and an independent director resigned in 2023 due to new regulations and personal reasons[173] - The company's organizational structure and personnel appointments strictly follow legal and regulatory requirements[168] Asset and Liability Management - The company's monetary funds increased from 481,976,301.31 yuan to 580,509,883.29 yuan by the end of 2023[184] - Accounts receivable decreased slightly from 1,298,175,938.94 yuan to 1,288,530,530.28 yuan[184] - Inventory decreased from 1,028,141,016.62 yuan to 955,342,779.84 yuan[184] - Total current assets increased from 3,366,603,268.56 yuan to 3,430,303,661.91 yuan[184] - Long-term equity investments increased from 197,739,836.89 yuan to 201,417,090.73 yuan[184] - Fixed assets increased from 687,056,156.53 yuan to 720,727,729.97 yuan[184] - Construction in progress more than doubled from 43,284,251.28 yuan to 106,131,266.90 yuan[184] Sales and Marketing Expenses - Sales expenses rose by 17.67% to 123,036,974.31 yuan, while management expenses increased by 8.02% to 184,469,372.29 yuan[121] - Sales expenses increased to 123,036,974.31 RMB in 2023, compared to 104,562,302.95 RMB in 2022[153] - Financial expenses increased to 48,379,093.50 RMB in 2023, compared to 40,947,126.07 RMB in 2022[153]