As a member of the rubber and plastic products industry, AI Precision Industries, stock code 603580, specializes in R&D, production and sales of lightweight conveyor belts. Lightweight conveyor belts play a key role in automated production and conveying equipment, and are used in a wide range of industries, including aluminum profile processing, textiles, food processing, etc. Recently, AI Seiko released its 2023 annual financial report. The following is a detailed interpretation of this financial data.
First, judging from the balance and liability data, Ai Seiko's total assets at the end of the period were 528 million yuan, a slight decrease of 0.29% from the beginning of the period. This was mainly affected by various factors, including a 33.30% reduction in monetary capital, mainly due to current operating expenses and an increase in the investment of the subsidiary Xi'an AI in construction. Accounts receivable decreased by 30.86%, reflecting that the company has increased its collection efforts and cleaned up long-standing accounts receivable, while reducing logistics belt sales with low gross margin and slow payback. Furthermore, the number of projects under construction increased by 44.46%, indicating that the subsidiary Xi'an Aiai Industrial Belt Project is progressing in an orderly manner according to the completion schedule.
Second, after analyzing profit data, the company achieved revenue of 155 million yuan in 2023, a year-on-year decrease of 12.41%. Despite the decline in revenue, net profit changed from loss in the same period last year to profit, thanks to which the reduction in operating costs was greater than the decrease in revenue. Specifically, operating costs fell by 17.72%, mainly due to reduced sales of low-margin products and lower unit prices of raw materials. At the same time, sales expenses decreased by 13.28%, while management expenses increased by 26.18% due to a sharp increase in personnel and expenses of the company's German INO and Polish INO. Changes in financial expenses are mainly affected by exchange gains.
Looking at cash flow data, net cash flow from operating activities was 30.24 million yuan, a slight decrease over the previous year, but remained stable. Net cash flow from investing activities improved, mainly due to a decrease in cash outflows from the purchase and construction of fixed assets. Net cash flow from fund-raising activities also improved as a result of non-dividend distribution expenses. These changes in cash flow reflect the company's sound strategy in managing and using funds.
In summary, Ai Seiko's 2023 annual report shows that the company has maintained a steady business trend in a complex and changing market environment. Despite facing the challenge of declining revenue, we successfully turned net profit into profit through measures such as optimizing the product structure and reducing costs and expenses. At the same time, the company also excelled in asset liability management and cash flow control, laying a solid foundation for future continuous development. Looking forward to the future, AI Precision will continue to make full use of its professional advantages in the field of lightweight conveyor belts, respond positively to market changes, and strive to further improve performance.