Chaozhuo Aviation Technology (stock code: 688237) is a high-tech enterprise focusing on cold-spray solid state additive manufacturing technology. In 2023, the company overcame complex and changing environmental and economic pressures at home and abroad, actively expanded the application of cold spraying technology in the civilian field, laid out various industries and products, and continued to strengthen talent team building and R&D efforts to enhance core competitiveness. During the reporting period, the company achieved revenue of 270 million yuan, an increase of 93.38% over the previous year.

At the end of 2023, Chaozhuo Aviation Technology's total assets were 1,646 billion yuan, an increase of 13.70% over the previous year. Among them, goodwill increased by 232.65% from 35.94 million yuan at the beginning of the period to 120 million yuan at the end of the period, mainly due to the addition of new holding subsidiaries. Total liabilities increased by 140.18% from $157 million at the beginning of the period to $377 million at the end of the maturity period. The balance ratio rose from 10.84% at the beginning of the period to 22.9% at the end of the maturity period, indicating that the company's debt level has increased in the process of expanding its business, but it is still within a manageable range.

In terms of profit, despite a sharp increase in operating income, the company's net profit declined sharply. Net profit attributable to shareholders of listed companies in 2023 was -35 million yuan, a year-on-year decrease of 159.64%. The main reasons include: the company increased scientific research investment in new civil projects such as the preparation of next-generation thermal management system components for new energy vehicles and equipment related to polysilicon production, and R&D investment continued to increase; implementation of the 2022 restricted stock incentive plan, which saw a significant increase in share payments during the reporting period compared to the same period last year; a year-on-year reduction in government subsidies by about 16.62 million yuan; and the overall average gross margin level declined due to factors such as unstable raw material prices. The gross margin fell from 53.24% in the same period last year to 32.04% in the reporting period, and the net margin fell from 42.01% in the same period last year to -12.96% in the reporting period.

In terms of cash flow, net cash flow from operating activities was -65.82 million yuan, a year-on-year decrease of 234.24%. This is mainly due to the company's layout in various industries and an increase in various operating investments, as well as the transfer of 59.95 million yuan of capital. The total cash inflow from operating activities was 241 million yuan, an increase of 32.06% over the previous year; the cash outflow from operating activities was 307 million yuan, an increase of 129.85% over the previous year. The net cash flow from investment activities was -53.46 million yuan, an increase over the previous year, mainly due to the company's increased investment in new business lines. Net cash flow from fund-raising activities was $51.02 million, a year-on-year decrease of 93.65%.

Overall, despite facing many challenges in 2023, Chaozhuo Aviation Technology achieved a significant increase in revenue through active expansion of new business lines and increased investment in R&D. However, net profit declined sharply due to increased R&D investment and equity incentive costs, as well as factors such as reduced government subsidies and fluctuations in raw material prices. With the company's continuous expansion in the application field of cold spraying technology and the commissioning of new production lines, it is expected that the future will usher in more new opportunities in the military market and civilian fields.