Chongqing Three Gorges A announced its 2023 annual report on the evening of April 22. According to the annual report, last year, Chongqing Three Gorges A achieved an operating income of 500 million yuan, a year-on-year increase of 6.69%, and a net profit attributable to the parent company of -34.8132 million yuan, a year-on-year decrease of 166.38%, turning from profit to loss.
According to the disclosure, the main reason for the loss of Chongqing Three Gorges A in 2023 is the sharp year-on-year decline in investment income, and the profit loss of Xinjiang Xinhuixia Clean Energy Co., Ltd. and other shareholding companies, which affects the investment income of Chongqing Three Gorges A to be recognized as a loss of 23.52 million yuan (68.99 million yuan in the same period last year). Second, during the reporting period, Chongqing Three Gorges A returned the performance bond of 10 million yuan to Chengdu Yincheng Investment Management Co., Ltd.
At the same time, the first quarter report of Chongqing Three Gorges A in 2024 was released. According to the first quarterly report, Chongqing Three Gorges A achieved an operating income of 68.6573 million yuan, a year-on-year decrease of 39.31%, and a net profit attributable to the parent company of 11.2089 million yuan, a year-on-year turnaround.
In 2023, the sales volume and revenue of coating products will increase
According to the data, Chongqing Three Gorges A is a comprehensive paint and coating production enterprise with a large production scale and complete varieties among the state-owned holding enterprises in the paint and coating industry in the mainland. The leading products are "Three Gorges" brand paints and coatings, which produce and sell "Three Gorges" brand general paints, industrial paints, anticorrosive paints and other series all year round, which are widely used in bridges, tunnels, steel structures, and other fields and national key projects.
Chongqing Three Gorges A said that in 2023, in the face of the complex and changeable domestic and foreign environment, the company will focus on "value-led, innovation-driven, and digital and intelligent empowerment" as the main line, focus on expanding the market externally to increase efficiency, strengthen internal management to tap potential, promote transformation through scientific and technological innovation, achieve year-on-year growth in sales and sales revenue, and maintain the steady operation of production and operation. During the reporting period, the company achieved sales volume of paint and coating products of 41,104.86 tons, an increase of 6.02% year-on-year.
In terms of products, during the reporting period, the company's main business paint products achieved revenue of 488 million yuan, accounting for 97.65% of revenue, an increase of 5.90% year-on-year, and other products achieved revenue of 11.78 million yuan, accounting for 2.35%, an increase of 154.21% year-on-year.
Chongqing Three Gorges A's 2023 annual report data
In the annual report, Chongqing Three Gorges A reviewed the operation in 2023: in accordance with the company's board of directors at the beginning of the year to continue to focus on the paint and coatings business, accelerate the comprehensive introduction of new products represented by water-based alkyd industrial coatings and graphene coatings to the market, and actively cultivate the application of new chemical materials and related industrial chains.
During the reporting period, in the face of unfavorable business environments such as domestic overcapacity, insufficient market demand, fierce market competition, and the overall decline of the paint and coatings market, the company promoted various key tasks in an orderly manner, promoted market expansion with marketing reform, released transformation momentum with technological innovation, helped improve quality and efficiency with refined management, and empowered enterprise upgrading with digital construction. The company's sales model reform has achieved outstanding results, and the potential for cost reduction has been continuously released, laying a solid foundation for the company to achieve high-quality development. During the reporting period, the following work was mainly done around the annual production and operation targets:
Steady progress in marketing, confidence has been significantly enhanced, technological innovation has been continuously upgraded based on the combination of internal and external products, management efficiency has been significantly enhanced, overall planning has been adhered to, project construction has been promoted in an orderly manner, comprehensive management has been highlighted, safety and environmental protection have been continuously consolidated, and party building has been strengthened by comprehensively and strictly governing the party.
In the face of severe challenges, the company actively promotes product transformation and upgrading, market-oriented, combined with national environmental protection policies and regulations related to volatile organic compounds management, comprehensively promotes the deep integration of technological innovation and marketing, seizes the industry outlet, and develops and promotes waterborne, low-pollution, high-solids and high-performance new products that meet market needs.
In 2024, it plans to achieve revenue of 530 million yuan
Looking forward to the future, Chongqing Three Gorges A said that it will continue to focus on the paint and coating business, accelerate the comprehensive introduction of new products represented by water-based alkyd industrial coatings and graphene coatings to the market, grasp the development trend of new chemical materials, and actively cultivate the application of new chemical materials and related industrial chains, and achieve an operating income of 530 million yuan in 2024.
In order to realize this business plan, the future focus of 2024 Chongqing Three Gorges A is as follows:
1. Expand the marketing field and break through the marketing bottleneck. Comprehensively promote the market expansion of the new energy industry chain, do a good job in professional marketing, increase the transformation of "oil to water", accelerate the application of new environmentally friendly high-performance coatings, formulate the strategy of "price for quantity" for oily products, keep the existing market and expand market share, innovate intelligent coating application technology, create an integrated intelligent experience platform for paint coating, provide users with high-quality coating services, and undertake coating business.
2. Adhere to innovation-driven and enhance development momentum. We will make every effort to develop new products, form new breakthroughs, and achieve mass production as soon as possible. Expand foreign cooperation, enhance innovation capabilities, and carry out research and development with universities, research institutes and upstream and downstream enterprises. Continue to promote project construction and digital transformation in line with the company's high-quality development, implement 15 digital construction lists, and focus on promoting the implementation process of the comprehensive building and control room in the production area, the integration of painting, digital marketing, and the transformation and upgrading of the resin workshop.
3. Focus on reducing costs and creating efficiency, and expanding profit margins. We will continue to innovate technology, adjust processes and replace new materials, continuously optimize product structure and formula system, and deeply tap the cost potential. Broaden procurement channels, do a good job in off-peak procurement and low-cost bulk raw material reserves, and strive to reduce procurement costs. Strengthen cost analysis and control, and strictly control manufacturing costs and expenses.
4. Deepen the reform of the three systems and stimulate endogenous power. Optimize the market-oriented salary performance system, pilot reform of the workshop distribution system, and improve the cost awareness and market awareness of the workshop. Improve the performance appraisal mechanism, adjust the post coefficient, improve the distribution standards, open up the gap in employee income distribution, and use the performance appraisal results as the optimization means and basis for the employee evaluation, promotion and incompetent elimination mechanism. At the same time, we will adhere to green safety and build a solid foundation for development. Strengthen party building and lead the development of enterprises.
Chongqing Three Gorges A 2024 first quarter report data
The revenue of Chongqing Three Gorges A in the first quarter decreased by 39.31% year-on-year to 68.657 million yuan, and the net profit was 11.2089 million yuan, a year-on-year turnaround. The decrease in revenue was mainly due to the year-on-year decrease in the sales volume of main paints in the reporting period. Chongqing Three Gorges A said that in the first quarter of this year, in response to the changes in the national consumption tax collection policy, Xinhuixia Company significantly adjusted the sales price of products, and the operating conditions and profitability were improved, resulting in the company confirming investment income of 20.1546 million yuan, an increase of 38.3597 million yuan from -18.2051 million yuan in the same period last year.