① Jiangsu Guoxin released a quick performance report. Revenue in 2023 was 34.572 billion yuan, up 6.38% year on year; net profit was 1,871 billion yuan, up 3014.74% year on year; ② Jiangsu Guoxin said that coal market prices fell and marginal revenue from the coal and power business increased. At the same time, the financial sector's operating development was stable, and revenue continued to grow, which also contributed to a certain amount of profit.
Financial Services Association, March 11 (Reporter Zhao Zixiang) After experiencing the test of “increasing revenue without increasing profit” in the previous two years, Jiangsu Guoxin (002608.SZ) finally fought a “turnaround battle” in performance in 2023: while the scale of revenue reached a new high, profit also returned to a level close to 2020.
This evening, the company released a performance report showing that in 2023, revenue was 34.572 billion yuan, up 6.38% year on year; net profit was 1,871 billion yuan, up 3014.74% year on year.
As a comparison, between 2019 and 2022, Jiangsu Guoxin achieved revenue of 21.09 billion yuan, 21.69 billion yuan, 28.94 billion yuan, and 32.44 billion yuan, respectively, and realized net profit of 2,404 billion yuan, 2,274 billion yuan, -333 million yuan, and 68 billion yuan respectively.
Jiangsu Guoxin has two major business segments. One of the energy segments is mainly engaged in electricity, heat production, related power services, coal sales business and electricity sales business, and invests in the development, construction and operation of new energy projects through equity participation.
Second, the financial sector is dominated by Jiangsu Trust. The business is divided into inherent business and trust business. Intrinsic business refers to the business carried out by a trust company using its own capital, which mainly includes but is not limited to leasing, investment, mutual storage, and division of the same business.
Regarding the sharp year-on-year increase in performance data during the reporting period, Jiangsu Guoxin said that there are two main reasons: falling prices in the coal market and increasing marginal revenue from the coal power business; at the same time, the energy sector strictly controlled costs and expenses and continued to improve quality and efficiency.
Looking back at 2023, the trend of falling prices in the coal market is quite obvious. According to the China Coal Market Network, in 2023, supply in the coal market was relatively relaxed. Factors such as high supply, high imports and high inventories effectively buffered market supply and demand fluctuations, and overall domestic coal prices showed a volatile downward trend.
In fact, in Jiangsu Guoxin's semi-annual report last year, this favorable sign on the cost side was mentioned. The company said, “Follow the trend, seize the opportunities brought by the overall decline in energy prices, strengthen the expansion of electricity sales, heating, and power ancillary products while safeguarding local energy security and fulfilling social responsibilities, consolidate and broaden procurement and supply channels for coal and gas, strengthen fuel cost control, and effectively improve the company's profit level.”
In addition to the electricity business, Jiangsu Guoxin said that the financial sector's operations are developing steadily, earnings continue to grow, and have contributed to a certain amount of profit.
According to reports, investment income is the core source of profit for the company's financial sector. In the past year, as one of its main assets, Jiangsu Trust, which Jiangsu Guoxin announced its participation, achieved investment income of 2,091 billion yuan, an increase of 662 million yuan over the previous year, an increase of 46.3%. The latter is the largest shareholder of Bank of Jiangsu, the largest corporate bank in Jiangsu Province, and the largest shareholder of Lian Life Insurance, a national personal insurance company.
Support from the above two major sectors has jointly contributed to the rebound in Jiangsu Guoxin's performance. In the 2023 semi-annual report, Jiangsu Guoxin said that the company's main performance drivers include but are not limited to electricity sales, electricity prices, fuel prices, carbon trading prices, local financing needs, standard product investment, and equity investment. At the same time, changes in the electricity price system, national carbon emission policies, power system reforms and new asset management regulations, and trust business innovation will affect the company's performance and development potential for a longer period of time.