① The company's revenue in 2023 decreased by 8.90% year on year (after adjustment); net profit to mother increased by 1.08% year on year (after adjustment). ② The gross margin of the company's two main businesses was clearly divided. The gross margin of the superhard materials business decreased by 15.3% year on year; the gross margin of the special equipment business increased by 17.4% year on year. ③ In 2024, the company expects to achieve operating revenue of 7 billion yuan.
Financial Services Association, April 20 (Reporter Huang Lu) The drop in the price of cultivating diamonds has dragged down the company's gross profit margin of the superhard materials business, but benefiting from the increase in the gross margin of the company's special equipment business, Zhongbing Red Arrow (000519.SZ)'s revenue last year fell by a single digit year on year, and net profit was basically the same as last year.
Last night, Zhongbing Hongjian released its 2023 annual report, showing that the company achieved operating revenue of 6.116 billion yuan for the full year of 2023, a year-on-year decrease of 8.90% (after adjustment); net profit attributable to the parent company was 828 million yuan, an increase of 1.08% over the previous year (after adjustment).
Financial reports show that the company's revenue and net profit fluctuated greatly in each quarter. In particular, the fourth quarter's revenue and net profit both increased sharply. Among them, Q1-Q4's net profit for each quarter was -34.28 million yuan, 140 million yuan, 100 million yuan, and 623 million yuan, respectively.
Zhongbing Red Arrow's main business includes three major business segments: special equipment, superhard materials, special vehicles, and auto parts. Among them, the superhard materials business mainly includes products such as synthetic diamonds, cultured diamonds, and cubic boron nitride.
By product, the company's superhard materials business revenue decreased by 14.28% year on year, while operating costs increased by 12.45% year on year. The gross margin of this business fell 15.3 percentage points year on year. The company's annual report revealed that cultivating diamonds has been severely impacted by foreign markets, and prices have dropped significantly.
In addition to Zhongbing Red Arrow, one of the main businesses is Power Diamond (301071.SZ) and Yellow River Cyclone (600172.SH), which cultivate diamonds, and many other companies were impacted by a sharp drop in cultured diamond prices last year. The Yellow River Cyclone expects the company to lose about 645 million yuan in 2023; Power Diamond's revenue and net profit for the first three quarters of 2023 decreased by 16.73% and 24.86%, respectively.
However, thanks to the profits generated by China Bing Red Rocket's other main business, special equipment products, the gross margin of this business increased 17.4% in 2023 compared to the previous year. In 2023, the company's subsidiary Beifang Hongyang achieved operating income of about 1.57 billion yuan, an increase of 242.44% over the same period of the previous year, and realized net profit of about 335 million yuan, an increase of 484 million yuan over the same period last year. Mainly, orders for Beifang Hongyang special equipment products increased significantly compared to the same period last year.
Notably, the company's operating cash flow decreased by 38.61% year-on-year last year. The explanation given by the company is “mainly due to the year-on-year decline in sales business payments.” Furthermore, as of the end of 2023, the company's accounts receivable were 1.52 billion yuan, accounting for 9.75% of the company's total assets from 3.77% at the beginning of last year.