① As for the reason for the change in performance, the company reduced impairment losses, financial expenses, etc. to a marked decrease compared to the same period last year; ② behind Zhonghe Technology's profits, it was inseparable from the increase in the number of new orders in the smart transportation business; ③ In order to supplement liquidity and optimize the capital structure, Zhonghe Technology issued a fixed increase plan in November last year.
Finance Association, January 22 (Reporter Wang Bin) With its impressive Q4 performance, Zhonghe Technology (000925.SZ), a computing power concept, reversed performance losses in the first three quarters of last year and achieved profits throughout the year.
Tonight, Zhonghe Technology released a performance forecast stating that the company's net profit is expected to be 57 million yuan to 74.1 million yuan in 2023, an increase of 1%-31% over the previous year. The performance forecast also mentioned that the company's operating income declined slightly during the reporting period.
As for the reason for the change in performance, the company attributed impairment losses, financial expenses, etc. to a significant decrease compared to the same period last year. Zhonghe Technology said that in the face of a slight decline in operating income, the company strengthened accounts receivable and inventory management, and carried out cost control, etc.
In response to the reason for the decline in revenue, Zhonghe Technology previously stated that in addition to rail transit, the semiconductor industry is mainly affected by the weak domestic economy. Demand for terminals is not strong, and transmission to the materials side has led to a decline in sales and prices of some of the company's products.
According to financial data, Zhonghe Technology achieved revenue of 1,351 billion yuan in the first three quarters of last year, down 17.16% year on year; net profit loss to mother was 274.409 million yuan, changing from profit to loss year on year. Based on this calculation, the company's net profit for Q4 in 2023 is expected to be 84.44,900 yuan to 102 million yuan, an increase of 600.71%-742.64% over the previous year.
The turning point in Zhonghe Technology's 2023 results occurred in Q3. The company's net profit for the first three quarters was -26.99 million yuan, -12.15 million yuan, and 11.7 million yuan respectively.
It is worth mentioning that the market has long anticipated Zhonghe Technology to achieve profits in 2023. According to a survey report circulating in November of last year, Zhonghe Technology's management said when analyzing the reasons for last year's Q3 profit, “It is expected that profits can be achieved throughout the year.”
Behind Zhonghe Technology's profits, it is inseparable from the increase in the number of new orders for the smart transportation business. According to the investor research records disclosed by Zhonghe Technology in December last year, up to that time, the company added a total of 2,466 billion yuan in winning bid orders last year, including 980 million yuan for the Chongqing Line 15 project, 600 million yuan for the Chongqing Line 27 project, and 430 million yuan for the Ningbo Line 6 project; in addition, there were also winning projects in places such as Chengdu, Hangzhou, Wenzhou and Foshan.
It should be pointed out that in the first three quarters of 2023, Zhonghe Technology calculated credit impairment losses of 16.66,800 yuan, calculated asset impairment losses of 3.264,900 yuan, and reduced net profit by 16.117 million yuan.
As of the end of September last year, Zhonghe Technology's receivables were 1,213 million yuan and inventory was 401 million yuan, mainly due to an increase in equipment and materials purchased for the project. Furthermore, the net cash flow from the company's operating activities was -503 million yuan.
In the same period, Zhonghe Technology had short-term loans of 367 million yuan, non-current liabilities maturing within a year of 232 million yuan, and long-term loans of 1,427 million yuan. The balance ratio climbed to 59.05%.
In order to supplement working capital and optimize the capital structure, Zhonghe Technology issued a fixed increase plan in November last year. According to the fixed increase plan, the company plans to raise no more than 1,246 billion yuan in capital by issuing shares to unspecified targets, mainly for digital twin industrial control platform R&D and industrialization projects based on self-developed chips, R&D and industrialization projects for key digital technologies in the field of transportation, unmanned sensing technology research and development projects, and supplementary working capital.