On April 19, Anhui Linghu Paint Co., Ltd. (831719. OC) released its 2023 Annual Report. During the reporting period, the company achieved operating income of 282 million yuan, a year-on-year increase of 6.33%, operating cost of 231 million yuan, a year-on-year increase of 1.03%, net profit of 14.8116 million yuan, a year-on-year increase of 427.83%, and net profit attributable to shareholders of the parent company of 14.8722 million yuan, a year-on-year increase of 474.44%.
Linghu said that in 2023, with the full return to normal operation of the economy and society, the effect of stabilizing the economy policy will continue to appear, the market will gradually recover, and the paint industry will begin to pick up, but it is still facing the difficult challenges of insufficient domestic and foreign demand and complex and severe external environment.
The revenue of coatings exceeded 200 million, and the main business drove the overall profit growth
Linghu Co., Ltd. specializes in the research and development, production and sales of industrial protective coatings and zinc oxide. The company's industrial protective coatings are widely used in the fields of metal steel structure anti-corrosion, power industry anti-corrosion, vehicle decoration anti-corrosion, petroleum and chemical equipment anti-corrosion. The company's zinc oxide products are widely used in medicine, electronics, rubber, chemical and other fields.
Paint sales are the company's main source of sales revenue and a major part of the profits. During the reporting period, the operating income of coatings was 231 million yuan, an increase of 2.97% year-on-year, and the gross profit margin increased by 4.43% year-on-year, and the operating income of zinc oxide was 45.6029 million yuan, a year-on-year decrease of 8.91%, and the gross profit margin increased by 0.31% year-on-year. Linghu said that in the future, with the further expansion of the company's product market, the company's main business scale will be further improved.
The annual report of Linghu shares pointed out that the operating profit increased by 459.10% over the same period last year, the profit increased by 489.19% over the same period last year, and the net profit increased by 427.83% over the same period last year, mainly due to the growth of the company's operating income in the current period and the increase in gross profit margin due to the decline in raw material prices. The income from other businesses for the year increased by 153.80% over the same period last year, mainly due to the increase in the company's OEM business and leasing income in the current period.
At the same time, the company summarized the following four aspects of its work in the past year in the annual report:
In 2023, through breakthroughs in key projects and major product coating systems, we will realize the iterative update of products and the systematization of coating applications, focus on promoting the technology research and development of water-based paints, special vehicle paints, heavy anti-corrosion paints, container paints, floor paints, and characteristic alkyd resin synthesis, and continuously optimize and improve the performance of advantageous products. In 2023, the company will apply for 2 invention patents and obtain 1 invention patent authorization.
In 2023, the marketing work will keep an eye on the annual goal, actively respond to changes in market demand, firmly establish the concept of "big market, big marketing", pay close attention to the dynamics of large projects and key customers, continuously improve the depth and breadth of services, set up a marketing center, set up a key account department, give full play to the market expansion function of the "trinity" team, actively respond to customer demands, maintain good service and stabilize old customers, fully promote the development of "three new" work, and continuously improve the sales contribution value of new products and new customers.
In 2023, the quality management work will continue to thoroughly implement the quality management policy of "full participation in quality management, make every effort to improve process quality, continuously improve product quality, and meet market demand expectations", and strengthen the construction of quality responsibility system with the post responsibility system as the center.
In 2023, the safety work will always adhere to the work policy of "safety first, prevention first, and comprehensive management", conscientiously implement the main responsibility of enterprise safety, complete the construction of a dual prevention mechanism for hierarchical control of safety risks and hidden danger investigation and management, and form the "five haves" standard for the construction of a dual prevention system combining online and offline, complete the completion and acceptance of safety facilities in the new plant area, and obtain a safety production license, and successfully achieve the goal of "no environmental pollution accidents" and "three wastes discharge up to standard".
Increase R&D investment and formulate the "eight major strategic plans" for the next five years
During the reporting period, the company mainly focused on the R&D project plan formulated at the beginning of the year, focusing on promoting the technical research and development of water-based paint, special vehicle paint, heavy anticorrosive paint, container paint, floor paint, and characteristic alkyd resin synthesis. In 2023, the company's self-developed water-based paint will be used in batches in BYD Co., Ltd. and Ressa Co., Ltd.
According to the annual report, Linghu's R&D expenditure in 2023 will be 9.5963 million yuan, accounting for 3.41% of operating income, an increase of 0.34% year-on-year. The company's independent research and development of "a copper door water-based protective topcoat and its preparation method" has been authorized by the national invention patent, and 2 invention patents have been declared. As of the end of the reporting period, the company had 38 R&D personnel, accounting for 20.43% of the total number of employees, which effectively guaranteed the continuous innovation of the company's new products and maintained the market competitiveness of the company's products.
Linghu said that in the future, the company will continue to increase investment in R&D and innovation, strengthen cooperation with universities and research institutes, actively promote the responsibility system of project engineers, efficiently promote technological innovation, and continuously improve the competitiveness and market share of the company's products.
In order to ensure the long-term and steady development of the company, according to the objective existence and future expectations of various internal resources, capabilities, risks and other factors, and following the principle of "positive and steady" development, the company has formulated "eight" strategic plans for the next five years (2021-2025): technological innovation strategic planning, product strategic planning, quality strategic planning, brand strategic planning, human resources strategic planning, management improvement strategic planning, market strategic planning, and capital operation strategic planning.
Linghu Co., Ltd. said that it will consolidate and build a solid technological innovation platform through an innovative technology research and development mechanism, realize the project + special fund + independent allocation mechanism, and introduce external innovation investors. The company should focus on optimizing the automotive coatings and power coatings sector, expanding the petroleum and petrochemical and steel structure coatings sectors, and strengthening the water-based coatings sector. Promote the three brand building activities of "famous products", "famous enterprises" and "famous brands", and become the most competitive paint supplier in China.
At the same time, it is also mentioned that giving full play to the advantages of services and channels, channel sales and end-user development, two-way drive, the provincial market, the domestic market, industrial users, and the construction market are four rounds of force. Strengthen the financing ability, and promote the promotion and transfer of the company's new third board through the restructuring of enterprises in the industry that meet the three requirements of "complementarity, growth and suitability".