BHAS(600960)2024-04-25 11:23Financial Performance - Bohai Automotive achieved a revenue of approximately CNY 4.67 billion in 2023, representing a year-on-year increase of 13.85% compared to CNY 4.10 billion in 2022[23]. - The net profit attributable to shareholders was a loss of CNY 198.81 million in 2023, worsening from a loss of CNY 62.26 million in 2022[6][23]. - The basic earnings per share for 2023 was -CNY 0.2092, compared to -CNY 0.0655 in 2022, indicating a significant decline[25]. - The weighted average return on equity was -4.40% in 2023, down from -1.29% in 2022, reflecting deteriorating financial performance[25]. - The company reported a net cash flow from operating activities of CNY 248.44 million, an increase of 6.59% from CNY 233.09 million in 2022[23]. - The company will not distribute profits for 2023 due to the negative net profit, and no capital reserve will be converted into share capital[6]. - Bohai Automotive's net assets attributable to shareholders decreased by 2.28% to CNY 4.46 billion at the end of 2023, down from CNY 4.57 billion at the end of 2022[23]. - Operating costs increased to CNY 4,301,024,533.80, reflecting a year-on-year rise of 15.26%[58]. - The net profit attributable to shareholders was a loss of CNY 19,880,640.00, worsening from the previous year due to various external factors[57]. Sales and Market Performance - The commercial vehicle piston sales revenue increased by 17.8% year-on-year, capitalizing on the recovery of the commercial vehicle market[35]. - The sales of forged steel pistons reached 1.239 million units, a year-on-year growth of 134%[35]. - The passenger vehicle piston sales reached 9.51 million units, growing by 12% year-on-year, driven by major clients such as BYD and Chery[35]. - The lightweight business generated sales revenue of RMB 319 million, an increase of 23% year-on-year[35]. - The wheel business saw sales of 617,500 units in the aftermarket, representing a year-on-year growth of 4.49% despite challenges from US interest rate hikes and trade tensions[36]. - The company is focusing on expanding domestic and international markets, securing key projects with major clients in the commercial vehicle sector, including Weichai and Cummins[37]. Operational Challenges - The company faced increased operational costs due to various factors, including the ongoing Russia-Ukraine conflict and rising inflation in Germany, which significantly impacted its German subsidiary BTAH[25]. - The average exchange rate of the RMB against the Euro depreciated by approximately 8% in 2023 compared to 2022, further affecting profitability[25]. - The company reported a net loss of RMB 92.08 million in the fourth quarter, reflecting ongoing challenges in the supply chain and cost pressures[27]. - Subsidiary BTAH achieved revenue of 1.946 billion RMB in 2023, a year-on-year increase of 11.93%, but faced significant losses due to rising operating costs and the impact of the Russia-Ukraine conflict and inflation in Germany[36]. Research and Development - The company is investing in new technologies and products, including research on low-carbon and zero-carbon fuel pistons, and has obtained 17 new patents, including 13 invention patents[39]. - The company has a strong focus on R&D, with a national-level technology center and advanced capabilities in lightweight product development and aluminum material melting technology[55]. - The total research and development expenses amounted to ¥92,289,206.97, representing 1.98% of total revenue[69]. - The company has allocated a budget of 100 million for research and development in the next fiscal year[115]. Governance and Management - The company has established deep cooperation with major domestic automotive and engine manufacturers, including SAIC Group and BYD, and has a strong international customer base including Ford and Cummins[56]. - The company emphasizes brand image and has received numerous awards, including "Excellent Supplier" and "Quality Excellence Award" from well-known domestic engine companies[56]. - The governance structure and rules of the company comply with legal and regulatory requirements, with no significant discrepancies reported[108]. - The company held 3 performance briefings during the reporting period, maintaining good public relations with the market[108]. - The company has a strong governance structure with independent directors contributing to oversight and strategic direction[118]. Environmental Initiatives - The company is committed to sustainability initiatives, targeting a 30% reduction in carbon emissions by 2025[116]. - The company invested ¥9,608,000 in environmental protection during the reporting period[148]. - The company has installed monitoring devices at wastewater discharge points to ensure compliance with environmental standards[153]. - The company achieved a carbon reduction of 9.29 tons through various measures, including the use of energy-efficient equipment[157]. Legal and Financial Transactions - The company provided guarantees totaling RMB 100 million for Shandong Huaxing Machinery Co., Ltd. and its subsidiaries, with all loans overdue[167]. - The company has a pending lawsuit against Huayi Commercial Co., Ltd. for RMB 10.4 million plus interest, with enforcement proceedings initiated as of March 4, 2024[170]. - The company reported a total of 104,867.5 million RMB in related party transactions, with actual occurrences amounting to 68,667.74 million RMB[174]. - The company has not reported any significant legal violations or penalties affecting its operations during the reporting period[173].