23Q1：实现收入9.8 亿元，YOY+2%，QOQ-28%，归母净利润0.37亿元，YOY-79%，QOQ-56%，扣非净利润0.35 亿元，YOY-79%，QOQ-58%，综合毛利率10.8%，YOY-19.4pct，环比持平，净利率3.7%，YOY-14.3pct ，QOQ-2.3pct ， 经营活动现金净流量0.55 亿元，YOY+72%，QOQ-121%。The company's operating financial data for 2022 and 23Q1 is as follows:
2022: Achieved revenue of 4.6 billion yuan, YOY +66%, net profit of 502 million yuan, YOY -5%, net profit of 502 million yuan, YOY +4%, consolidated gross profit margin of 20%, a year-on-year decrease of 10 pct, net interest rate of 11%, a year-on-year decrease of 8 pct, net operating cash flow of -540 million yuan, and YOY -269%.
2022Q4: Achieved revenue of 1.36 billion yuan, YOY +66%, QOQ +1%, net profit of 80 million yuan, YOY -47%, QOQ -45%, net non-net profit of 85 million yuan, YOY -35%, QOQ -35%, comprehensive gross profit margin 11%, a year-on-year decrease of 18 pct, a year-on-month decrease of 7 pct, a net interest rate of 6%, a year-on-year decrease of 13pct, a year-on-month decrease of 5 pct, net operating cash flow of -2.6 billion yuan, YOY -266%, QOQ -242%.
23Q1: Achieved revenue of 980 million yuan, YOY +2%, QOQ -28%, net profit of 37 million yuan, YOY -79%, QOQ -56%, net non-net profit of 35 million yuan, YOY -79%, QOQ -58%, consolidated gross margin of 10.8%, YOY-19.4pct, flat month-on-month, net interest rate 3.7%, YOY-14.3pct, QOQ-2.3pct, net operating cash flow of 55 million yuan, YOY +72%, QOQ -121%.
The company's copper foil gross margin declined in 2022. In '22, lithium battery copper foil revenue was 4.5 billion yuan, YOY +77%, gross profit margin was 20%, down 9.8pct from the previous year, standard copper foil revenue was 170 million yuan, and gross profit margin was 5.4%, down 22.8pct from the previous year. Copper foil shipped 49,000 tons, YOY +76%. We calculated net profit of 11,000 yuan after deducting non-ton profit (after non-net profit/sales), YOY -41%.
The significant decline in R&D expenses in 22Q4 and 23Q1 was due to the company's implementation of new accounting standards. We found that the company's R&D expenses dropped significantly, to 0.5 billion yuan in 2022, YOY -64%, and -66 million yuan in 22Q4. According to the company's annual report, in '22, the company stepped up R&D efforts and increased research and development of new products. The total R&D investment was 229 million yuan, an increase of 56% over the same period last year; of this, the amount resulting in R&D expenses was 53,035,500 yuan. The reason was that the company implemented “Interpretation of Enterprise Accounting Standards No. 15” on January 1, 2022, and the confirmation that the relevant products or by-products produced during the R&D process complied with the requirements was due to inventory deducting R&D expenses.
The company's gross margin continued to decline in 2023Q1. We believe the reason is mainly due to lower processing fees. Furthermore, amortization of equity incentive expenses (13.55 million yuan) further exacerbated the year-on-year decline in net profit.
Considering the intensification of competition in the industry, the company's gross margin declined markedly in '22 and 23Q1. We lowered the company's net profit to the mother in 23-24 to 38560 million yuan (the previous forecast was 1,57,2.09 billion yuan). We expect to achieve net profit of 780 million yuan to the mother in '25, which was downgraded to an “increase in holdings” rating.
Risk warning: Electric vehicle sales fall short of expectations, industry price wars exceed expectations, risk of fluctuations in raw material prices, risk of profit decline due to depreciation of fixed assets