Financial Performance - For the fiscal year ending June 30, 2024, the company reported revenue of RMB 59,496.4 million, an increase of 4.9% compared to RMB 56,739.4 million in the previous year[5]. - Gross profit surged to RMB 5,711.5 million, reflecting a significant increase of 273.2% from RMB 1,530.2 million in the prior year[5]. - Operating profit turned positive at RMB 2,645.1 million, compared to an operating loss of RMB 1,595.2 million in the previous year[5]. - The company achieved a net profit attributable to equity holders of RMB 750.7 million, a turnaround from a loss of RMB 2,383.4 million in the previous year[5]. - Total assets increased by 14.7% to RMB 138,371.5 million from RMB 120,651.0 million year-on-year[5]. - Total equity rose by 7.4% to RMB 48,484.5 million compared to RMB 45,136.4 million in the previous year[5]. - The gross margin improved to 9.6%, up by 6.9 percentage points from 2.7% in the previous year[5]. - In the fiscal year 2024, the group achieved a significant sales volume increase of 18.3% and a revenue growth of 4.9%, reaching RMB 59,496.4 million[27]. - The gross profit surged by 273.2% year-on-year, with the gross profit margin increasing by 6.9 percentage points, successfully turning a profit[27]. - The net profit for the fiscal year 2024 was RMB 793.9 million, a turnaround from a net loss of RMB 2,370.8 million in 2023[48]. Operational Efficiency - The company is enhancing its operational efficiency through comprehensive cost reduction measures and optimizing inventory management[24]. - The company is focused on high-value product development to enhance product competitiveness and market share[24]. - The company plans to enhance its market share and solidify its industry leadership through a focus on integrated pulp and paper strategies[47]. - The company is actively monitoring raw material supply and prices to improve resource utilization efficiency[27]. - The company is committed to sustainable development by implementing a comprehensive management system and promoting green low-carbon practices[24]. Product Offerings - The company offers a range of products including high-strength corrugated core paper with a basis weight range of 45-180 g/m², which helps reduce packaging weight and shipping costs[12]. - Coated white cardboard is produced with a basis weight range of 180-550 g/m², designed for high-quality printing applications such as packaging for consumer goods[12]. - The company provides food-grade white cardboard with a grammage range of 150-320 g/m², suitable for making various types of paper cups and food packaging[10]. - The environmentally friendly kraft paper is made from 100% recycled paper, catering to customers' cost-effective and eco-friendly requirements[10]. - The company has developed a range of new products to meet diverse customer needs, including lightweight and high-strength packaging solutions[19]. Capital Expenditures and Investments - Capital expenditures decreased by 27.6% to RMB 12,818.9 million from RMB 17,697.6 million in the previous year[5]. - The company plans to increase wood pulp production capacity by 3.05 million tons by 2025, with projects in Guangxi and Hubei provinces[29]. - The group plans to add a total annual production capacity of 3.70 million tons through expansion projects, expected to be completed between Q3 2024 and Q2 2025[30]. - The company has increased its capital expenditure for expanding production capacity of wood pulp, recycled pulp, and wood fiber, leading to a higher financial risk due to rising loan interest rates amid global inflation[64]. Environmental Sustainability - The company continues to focus on environmental sustainability by using recyclable waste paper as a primary raw material in its production processes[50]. - The company has implemented a waste water recycling rate of over 97.2% in the fiscal year 2024, maintaining a target of over 97.5%[72]. - The company has achieved a greenhouse gas density of 9,048 tons of CO2 equivalent per 10,000 tons of paper in the fiscal year 2024, down from 9,330 tons of CO2 equivalent in the fiscal year 2020[67]. - The company aims to reduce sulfur dioxide density to below 0.84 tons per 10,000 tons of paper by the fiscal year 2025, down from 0.94 tons in the fiscal year 2020[68]. - The company has recycled over 14 million tons of waste paper in both the fiscal year 2020 and the fiscal year 2024, with a target of over 16 million tons by the fiscal year 2030[73]. Risk Management and Governance - The company has established a comprehensive governance framework to address climate change risks and comply with stricter environmental standards[65]. - The board regularly reviews the company's overall strategy, risk management, and sustainable development issues, ensuring alignment with environmental, social, and governance (ESG) goals[54]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the fiscal year[179]. - The board of directors consists of 13 members, including 8 executive directors and 5 independent non-executive directors[180]. - The company has maintained a high level of attendance at board meetings, with the chairman attending all 5 board meetings[183]. Employee Welfare and Training - The company provides a variety of health and wellness facilities for employees, including gyms and sports fields, to promote work-life balance[130]. - The average training hours per employee increased to 18.0 hours in the fiscal year 2024, up from 17.1 hours in fiscal year 2023[141]. - Total training hours conducted by the company reached 457,380 hours in fiscal year 2024, compared to 375,649 hours in fiscal year 2023, representing a 21.7% increase[142]. - The company emphasizes the importance of employee morale and development through various training programs and career advancement opportunities[141]. - The employee turnover rate was 55% in the United States, 14% in China, 17% in Vietnam, and 22% in Malaysia[133]. Community Engagement and Social Responsibility - The company donated over RMB 16 million to various charitable activities during the fiscal year[159]. - In the 2023 "6.30" event, the company contributed RMB 12 million to support rural revitalization efforts, including education and infrastructure improvements[160]. - The company has cumulatively donated over RMB 310 million to rural revitalization projects over the years, receiving the "Guangdong Poverty Alleviation Red Cotton Cup" for thirteen consecutive years[160]. - The company actively engages in community investment and focuses on understanding community needs[173]. Compliance and Quality Control - The company has implemented strict procurement principles to avoid materials that negatively impact the environment and climate change[149]. - The company has a 100% response rate for customer complaints, with a commitment to resolve issues within three working days for local complaints and five working days for remote or out-of-province complaints[152]. - The company emphasizes quality control through ISO 9000 and ISO 14000 certifications, ensuring no harmful substances are added during production[150]. - The company has not reported any incidents of customer personal data leakage during the year[154].
玖龙纸业(02689) - 2024 - 年度财报