Newsletter summary

Revenue of Shouhua Gas fell by 33% in 2023.Bestroicryptogames.8%, net profit loss of 246 million yuan, natural gas sales volume and price fell, goodwill impairment loss of 217 million yuan.

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The performance of Shouhua Gas declined in 2023, and its net profit decreased nearly 7 times compared with the same period last year (Shouhua Gas's operating income decreased by 33.80% year-on-year and net profit decreased by 697.95%). The company's operating income in 2023 was 1.3538599 billion yuan, down 33.8% from the previous year. Of this total, the operating income of the natural gas business decreased by 36.49% to 1.1402569 billion yuan, and the operating income of the horticultural supplies business decreased by 16.78% to 203.6654 million yuan. Affected by the decline in natural gas sales volume and price, the company's net profit changed from positive to negative, with a loss of 246.0118 million yuan, a decrease of 697.95% compared with the same period last year. The gross profit margin decreased, and the development effect of the holding subsidiary fell short of the expected gross profit margin of the company's natural gas sales business, resulting in a decrease in gross profit margin. In addition, the development effect of Zhongwobang, a subsidiary of the company, fell short of expectations, resulting in a loss of 217 million yuan in goodwill impairment. Natural gas prices and sales declined, export orders decreased, natural gas business sales declined, mainly due to a 10.96% drop in the average tax-included sales price of natural gas. At the same time, affected by the decline in natural gas sales, operating revenue decreased by 36.49% compared with the same period last year. In the horticultural supplies business, due to the decline in export orders, business income decreased by 16.78% compared with the same period last year. The future profitability needs to be verified due to the sharp decline in the company's performance, the future profitability has attracted much attention from the market. How the company will respond to market changes and restore profitability has become the concern of investors.BestroicryptogamesThe focus. Investors need to pay attention to the company's future business strategy in the face of the current performance pressure, the adjustment of Shouhua Gas's future business strategy and profit model will become the key factors affecting the trend of its stock price. Investors need to pay close attention to the future business trend of the company and carefully evaluate its investment value.