ZHEJIANG YONGTAI TECHNOLOGY
CO., LTD.
(GDR under the symbol:
"YTT")
(a joint stock company
established under the laws of the People's Republic of China with
limited liability)
Estimated Results For The
Year 2023
I.
Results estimation for the period
1. Reporting period of the estimated
results: 1 January 2023 to 31 December 2023;
2. Estimated results:
√ Loss □ From
loss to profit □ Increase □ Decrease
|
Item
|
Current reporting
period
|
Corresponding period of the
previous year
|
|
Net profit attributable to
the shareholders of the listed company
|
Loss:
RMB450 million-RMB650 million
|
Profit:
RMB553.9283 million
|
|
Net profit after deducting
non-recurring gains or losses
|
Loss:
RMB500 million-RMB700 million
|
Profit:
RMB586.5591 million
|
|
Basic earnings per
share
|
Loss:
RMB0.50/share - RMB0.73/share
|
Profit:
RMB0.63/share
|
|
Operating
income
|
RMB3,500 million-RMB4,500 million
|
RMB6,336.2193 million
|
|
Operating income after
deducting
|
RMB3,500 million-RMB4,500 million
|
RMB6,336.2193 million
|
II.
Communication with certified public accountants
The financial data related to the
estimated results have not been preliminarily audited by the
certified public accountants. However, the Company has conducted
pre-communication with the certified public accountants on major
matters related to the estimated results, and there is no
disagreement between the Company and the certified public
accountants on the estimated results.
III. Reasons for changes in results
The Company's performance in the
year 2023 has decreased significantly year on year, mainly due
to:
1．Significant decrease in the main
business revenue and product gross profit margin. (1) In the
lithium battery materials sector, the sales volume of lithium
hexafluorophosphate, the main product of the Company, increased by
approximately 10% year on year during the reporting period.
However, due to a significant decrease in product market prices
during the reporting period, sales revenue and gross profit margin
decreased substantially. Although the average market price of
lithium carbonate, the main raw material, has decreased
significantly in current period compared to the same period last
year, the gross profit of lithium battery material products
incurred a loss during the reporting period given that the
inventory of high priced raw materials was relatively high at the
beginning of the year while raw materials were purchased in advance
in daily operations that involved production cycles, and at the
same time the price of lithium carbonate continued to decline and
the products were priced based on the latest lithium carbonate
prices during the reporting period. (2) In the pharmaceutical
sectors and crop science sectors, the disappointing
downstream market demand and fierce competition in domestic and
international markets during the reporting period led to a decrease
in product sales prices, resulting in a year-on-year decrease in
sales revenue and gross profit.
2．Compared to the temporary decrease in
sales revenue and gross profit due to external market factors, the
Company's daily operating costs and expenses have a certain
rigidity in the short term, such as depreciation and amortization
expenses, employee compensation, financing costs, etc. Among them,
financial expenses increased a lot year on year, mainly due to the
year-on-year increase of approximately RMB27.00 million in interest
expenses arising from increase in bank financing, and the
year-on-year decrease of approximately RMB66.60 million in exchange
earnings arising from exchange rate fluctuation between the USD to
RMB.
3．Asset impairment loss during the
reporting period increased a lot year on year, which was mainly due
to the decrease in market prices of products and raw materials,
resulting in a year-on-year increase of approximately RMB91.00
million in the provision for inventory depreciation in the
reporting period.
Looking forward, the Company will
continue to focus on its core business, continuously innovate
technologies and products, promote improvement in process
technology on an ongoing basis, reduce production costs
consistently, increase product market share, further optimize
industrial chain layout, fully leverage the advantages of vertical
integrated industrial chain, and enhance the Company's
profitability and comprehensive competitiveness.
IV.
Other relevant information
The estimated results set out herein
are results of the preliminary estimation conducted by the finance
department of the Company and the actual financial information of
the Company is subject to the 2023 annual report to be disclosed by
the Company. Investors are advised to exercise caution while making
decision and pay attention to investment risks.
The Board
of Directors
Zhejiang
Yongtai Technology Co., Ltd.
29 January
2024