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    Openness, Perseverance,Advancing with the times

Huayou Cobalt's 2023 and 2024 First Quarter Performance Presentation

  • 2024-04-24

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In 2023, the Company grasped the characteristics of the stage, seized the development opportunities, firmly implemented the business ideas of comprehensive management, strengthened protection, optimised structure and risk control, strengthened the management of production, supply and market, and optimised the matching of resources, production capacity and demand, and realised an operating revenue of CNY 66.304 billion, an increase of 5.19% year-on-year; a net profit attributable to the mother of all of them of CNY 3.351 billion; net cash flow generated by the operation activities of Net cash flow of 3.486 billion yuan, an increase of 19.63% year-on-year; total assets of 125.520 billion yuan, an increase of 13.5% year-on-year; net assets attributable to the mother of 34.278 billion yuan, an increase of 32.4% year-on-year; return on net assets of 11.14% for four consecutive years of more than 10%; in fiscal year 2023, it is proposed to pay cash dividends of 10 yuan per 10 shares (tax included). The amount of cash dividend is about CNY 1.688 billion, which is a positive response to the SSE's special action of "Improving Quality, Increasing Efficiency and Focusing on Returns".

On April 22nd, Huayou Cobalt's 2023 and 2024 First Quarterly Performance Presentation was broadcasted live on video to global investors through SSE Roadshow Centre, aiming to communicate with investors more directly and effectively through the online platform, and to keep abreast of the opinions and suggestions of investors and all sectors of the society on Huayou's operation and development. Chen Xuehua, Chairman of the Group, Chen Hongliang, President of the Group, Qian Berlin, Independent Director of the Group, and Wang Jun, Senior Vice President and Chief Financial Officer of the Group, attended the meeting. The briefing was hosted by Li Rui, Secretary of the Board of Directors of the Group.

On behalf of the Company, Chairman Chen expressed his gratitude to investors and friends from all walks of life for their concern, trust and support. He said that in the past 2023, under the situation of reversal of industry supply and demand relationship and obvious increase of difficulties and challenges, the Company has made every effort to push forward the "two leading" competition strategy and the "Be the best" business strategy, and achieved the growth of production and sales volume of the Company's main products against the trend. The Company's main products' production and sales volume grew against the trend, customer structure continued to be optimised, innovation capability was significantly enhanced, key projects made substantial breakthroughs, management quality was continuously improved, the global layout of industrial integration continued to deepen, the competitive advantages of industrial integration were comprehensively enhanced, and the Company made a historic leap from being one of the top 500 private enterprises in China to being one of the top 500 Chinese enterprises.

"We endeavour to create good performance to reward all shareholders and all related parties, and contribute to the development of China's and the global new energy automobile industry with the power of Huayou." Chen said that in 2024, in the wave of internationalisation under the new situation, the company will always adhere to the development of new energy lithium materials industry as the core, implement the work requirements of "seeking progress in stability, seeking victory in progress", and adhere to the “Trinity” transformation strategy of "Controlling the Resources Upstream, Developing the Markets Downstream, Enhancing the Capability from Within". We adhere to the "customer central, creating value for customer" business idea, enhance the "quality, cost, efficiency" three elements, expand the market, increase the orders, and improve the load, strengthen technological innovation. We will promote management change, improve total factor productivity, endeavour to develop new quality productivity of new energy lithium materials, and go all out to promote the company's high-quality development.

Chen Hongliang, President of the Group, on behalf of the company, reported to the shareholders on the operation of the 2023 and the first quarter of 2024, Chen introduced from six aspects: the main products against the trend of growth, the advantages of industrial integration gradually appeared; technological progress has been effective, industrial integration of technical support further enhanced; open cooperation to a new high, industrial integration of global layout continues to deepen; key projects substantial breakthroughs, industrial integration synergies further strengthened; green and low-carbon leading the industry, the sustainable development ability of industrial integration has been further enhanced; the quality of management has been steadily improved, and the control ability of industrial integration has been further consolidated, etc. At the same time, he expressed his gratitude to the friends who cared about, trusted and supported the company.

Mr. Chen said in the report that looking back to 2023 and the first quarter of 2024, the Company firmly implemented the business ideas of comprehensive integration, strengthening protection, optimising structure and controlling risks, strengthened the integration of production, supply and market, and optimised the matching of resources, production capacity and demand, and achieved better business results and maintained a good development trend.

In 2024, the company will continue to carry forward the Huayou spirit of “Constantly Strive to Become Stronger and Pursue Excellence”, act as the "front-runner" in the development of new-quality productivity, continue to shape new advantages for development, go out to promote the company's high-quality development, and endeavour to return to the majority of investors with excellent performance.

At the meeting, the company answered questions collected before the meeting and conducted online interactive exchanges with investors, who asked questions around the company's production and operation, strategic development, core competitiveness and other matters, involving the company's layout of nickel resources in Indonesia, overseas layout planning, lithium materials integration transformation process, production and marketing planning for the main products, cost-cutting and cost-control measures, etc. Concerned about the issues of concern, Chairman Chen and the other leaders in the meeting answered the questions for the investors one by one.