Gelonghui, January 30, 丨 Huahong Technology (002645.SZ) announced its 2023 annual results forecast. Net profit loss attributable to shareholders of listed companies during the reporting period was 120 million yuan to 160 million yuan, profit of 40,656,999 million yuan for the same period last year; net profit loss after deducting non-recurring profit and loss of 235 million yuan to 275 million yuan, profit of 32,77615 million yuan for the same period last year; basic earnings loss per share was 0.21 yuan/share — 0.28 yuan/share.
In 2023, the overall market price of domestic rare earth products showed a volatile downward trend. Looking at the whole year, the market price of praseodymium oxide dropped by about 40%. Affected by large fluctuations in product prices, the company's revenue from the comprehensive utilization of rare earth resources business fell sharply compared to the same period last year. The gross margin of major products declined significantly, and profitability weakened, leading to a sharp decline in the company's overall operating performance and loss in net profit. To this end, the company's management deepens and improves internal business process reforms to improve the level of enterprise management; externally, according to changes in the market situation, actively adjusts business development strategies to promote the stable and healthy development of the company.
In 2023, the company's renewable resources equipment and operation business were affected by factors such as market demand, and profitability weakened. In order to optimize the business model, during the year, the company reached a strategic cooperation with the Internet technology company Beijing Che Brothers Technology Development Co., Ltd., to actively lay out areas such as recycling network construction, information platform construction, and accessory product sales in an effort to improve the operational efficiency and economic efficiency of the company's renewable resources operation business.
In 2023, the company vigorously laid out the recycling and dismantling of end-of-life vehicles and rare earth permanent magnets. Investment projects were completed and put into operation one after another during the year, leading to an increase in the company's operating costs and depreciation expenses. However, the related business was in the process of climbing production capacity during the year, and the sales scale and profit level did not reach the target in 2023.
Government subsidies related to the company's renewable resource recycling business were not refunded in a timely and full amount during the year, which had a certain impact on the company's current net profit.