Company Overview - Horizon Construction Development Limited reported its annual performance for the year ending December 31, 2024, in compliance with the Hong Kong Stock Exchange regulations[2]. - As of the listing date on May 25, 2023, the company is directly controlled by Far East Horizon Limited, which is also listed on the Hong Kong Stock Exchange[7]. - The board consists of eleven members, including two executive directors, five non-executive directors, and four independent non-executive directors[200]. - The board is responsible for leading and controlling the company, ensuring decisions are made in the best interest of the company[198]. - The company has adopted the standard code of conduct for securities trading as per the listing rules[196]. - All directors confirmed compliance with the standard code of conduct for the fiscal year ending December 31, 2024[197]. Market Position and Strategy - The company has established itself as a leading equipment operation service provider in China, ranking first in the number of service outlets among domestic providers[7]. - Horizon Construction Development Limited has expanded its global service capabilities with deployments in multiple overseas regions, including Malaysia, Indonesia, Saudi Arabia, UAE, Turkey, Thailand, and Vietnam[10]. - The company aims to provide a comprehensive "product + service" solution for the construction and industrial sectors, enhancing its service capabilities through continuous innovation and digital operations[7]. - The company is committed to enhancing its research and development capabilities to drive innovation in its service offerings[7]. - The company is actively exploring new industries and products, expanding its service coverage to mining, marine engineering, and chemical industries[14]. - The company is committed to its "Three + Three + Three" overseas development strategy, focusing on enhancing its service capabilities in international markets[15]. - The company aims to enhance its core competitiveness through strategic upgrades and system reforms, focusing on efficiency, service, and asset operation capabilities[24]. - The company is focused on establishing a mature operational model domestically to support overseas growth, aiming for overseas operations to become a second growth curve[187]. Financial Performance - The company achieved a total revenue of approximately RMB 11.58 billion in 2024, representing a year-on-year growth of about 21%[15]. - In 2024, the company's net profit reached approximately RMB 900 million, with total assets growing by 16.6% to about RMB 36.43 billion compared to the previous year[23]. - The basic earnings per share for 2024 was RMB 0.282, a decrease from RMB 0.316 in 2023[25]. - The gross profit margin for 2024 was 32.6%, down from 39.1% in 2023, indicating a shift in profitability dynamics[25]. - The company maintained a debt-to-asset ratio of 68.6% in 2024, compared to 65.5% in 2023, reflecting a slight increase in leverage[26]. - The average return on total assets and average return on equity were 2.6% and 8.1%, respectively[15]. - The company's net profit for the year was RMB 896,322 thousand, a decrease of 6.9% from RMB 962,407 thousand in the previous year[105]. - The average return on equity for 2024 was 8.1%, a decrease of 2.9% from the previous year, primarily due to a decline in net profit and an increase in average equity[164]. - The average total asset return for 2024 was 2.6%, down 0.5% from the previous year, mainly due to a decrease in net profit and an increase in average total assets[165]. Revenue Breakdown - Revenue from operating leasing services reached approximately RMB 4.62 billion, accounting for 39.9% of total revenue[21]. - Engineering technical services generated revenue of about RMB 3.75 billion, with a revenue share of 32.4%, an increase of 1.6 percentage points compared to the previous year[21]. - Asset management and other services achieved revenue of approximately RMB 3.21 billion, with a revenue share of 27.7%, up by 12.0 percentage points year-on-year[22]. - The company achieved an EBITDA of RMB 4,628,654 thousand, reflecting a 3.3% increase from RMB 4,480,251 thousand in the previous year[59]. - The company reported asset management and other services revenue of RMB 3,208,712 thousand, an increase of 113.0% from RMB 1,506,715 thousand last year[73]. - The company sold 1,523 units of equipment and 455,768 tons of materials in 2024, optimizing its asset structure[75]. Customer Base and Market Expansion - The company has a diverse and high-quality customer base, supported by synergistic effects across its various product lines and service categories[7]. - The number of customers served increased from approximately 232,000 at the end of 2023 to about 325,000 by the end of 2024[20]. - The company has established 581 service points globally by the end of 2024, enhancing its market coverage[50]. - The company aims to expand its international market presence, particularly in Southeast Asia and the Middle East, with 53 overseas service points established by the end of 2024[53]. Operational Efficiency - The company has developed a digital management platform that has nearly 100% online business process rate, improving operational efficiency[53]. - The company has established a comprehensive asset maintenance lifecycle management system to enhance operational efficiency[119]. - The company has implemented a systematic risk management assessment policy to evaluate customer creditworthiness and performance, enhancing the assessment of small and medium-sized clients[126]. Cost Management - Total sales costs for 2024 amounted to RMB 7,806,466 thousand, a 33.5% increase from RMB 5,849,180 thousand in the previous year, while selling and administrative expenses rose by 21.1% to RMB 1,866,205 thousand[89]. - Employee and subcontracting costs surged by 48.0% to RMB 2,349,804 thousand, representing 20.3% of total revenue[90]. - Trade and leasing costs skyrocketed by 139.4% to RMB 1,960,256 thousand, making up 16.9% of total revenue[90]. - Depreciation and amortization costs were RMB 2,573,978 thousand, accounting for 22.2% of revenue, an increase of 8.4% from the previous year[90]. Future Outlook - The company plans to fund future capital expenditures through cash flows from operations and bank borrowings[167]. - The company has established an equity incentive plan to attract and retain talented management, ensuring long-term stable development[180]. - The company is committed to digital upgrades, utilizing RMB 117,345 thousand, which is 8% of the net proceeds[183]. - The company aims to enhance its core competitiveness and expand its business footprint while continuously exploring new products and customer needs[187]. Economic Context - In 2024, China's GDP is projected to reach RMB 134.9 trillion, with a year-on-year growth of 5.0% and a fourth-quarter growth rate of 5.4%[34]. - The construction industry in China is expected to achieve a total output value of RMB 32.65 trillion in 2024, reflecting a year-on-year increase of 3.9%[36]. - The investment in manufacturing in China is anticipated to grow by 9.2% year-on-year in 2024, which is an increase of 2.7 percentage points compared to 2023[34]. - Infrastructure investment in China is projected to grow by 4.4% in 2024, although this represents a decline of 1.5 percentage points from 2023[34].
宏信建发(09930) - 2024 - 年度业绩