Anchun International Holdings (BTX) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 27% YoY to RMB133.7m as lower CSC and Engineering Services revenue outweighed Catalyst growth; profit attributable to owners declined to RMB2.4m from RMB30.2m.

• Order book rose 28% to RMB175.1m at year-end, while cash and short-term deposits increased 1.9% to RMB179.0m.

• Priorities include R&D, technological innovation, non-fertiliser markets and overseas expansion; outlook remains cautious amid persistent volatility and competition.

Financial highlights

• Revenue was RMB133.622m versus RMB182.766m in FY2022; gross profit was RMB30.732m versus RMB53.477m.

• Profit before tax was RMB2.195m versus RMB30.470m; net profit attributable to owners was RMB2.387m versus RMB30.247m.

• Finance and other income declined 21% to RMB8.5m, mainly on lower interest income, government grants and scrap sales; FY2023 income tax credit was RMB0.192m.

• Profit included write-backs of impairment losses of RMB0.135m on receivables and RMB0.117m on contract assets; FY2022 included a RMB1.688m contract-asset impairment loss.

Outlook and guidance

• Year-end order book reached RMB175.1m versus RMB136.3m; RMB139.957m of remaining performance obligations is expected to be recognised in FY2024 and RMB35.170m in FY2025.

• Management expects challenging market conditions to persist, but sees innovation, sustainability and adaptability as supports for capturing opportunities.

• FY2024 priorities include R&D, technology innovation, geographical expansion and applications for green ammonia, green methanol and green hydrogen technologies.

• FY2024 sustainability targets include electricity use below 7.50m kWh and maintaining GHG emissions intensity at the FY2023 level.