Revenue and Profit - Revenue remained flat at HKD 3.951 billion[4] - Total revenue for the year ended December 31, 2024, was HKD 3,950,833, a decrease of 2.5% from HKD 4,050,581 in 2023[16] - The group reported a pre-tax profit of HKD 596,198 for 2024, compared to HKD 493,898 in 2023, representing an increase of 20.8%[22] - Profit increased by 20.4% to HKD 482.3 million, benefiting from lower raw material and energy costs[4] - Net profit for the year was HKD 482.3 million, up from HKD 400.7 million[5] - The net profit attributable to shareholders for 2024 was 482,284,000 HKD, up from 400,665,000 HKD in 2023, representing a growth of 20.3%[33] Dividends - Proposed final dividend of HKD 0.15 per share, totaling HKD 0.29 for 2024 compared to HKD 0.19 in 2023[4] - Total dividend declared for 2024 was 231,000,000 HKD, an increase of 27.3% from 181,500,000 HKD in 2023[35] - The board proposed a final dividend of HKD 0.15 per share for the year ended December 31, 2024, subject to shareholder approval at the upcoming annual general meeting[44] Costs and Expenses - Total sales cost decreased to HKD 2.787 billion from HKD 2.988 billion[5] - Research and development costs increased to HKD 135.8 million from HKD 120.8 million[5] - Administrative expenses increased to approximately HKD 275 million, up about HKD 16 million from the previous year, accounting for 7.0% of total revenue compared to 6.4% last year[60] - Interest expenses decreased to approximately HKD 22 million from HKD 39 million in the previous year, primarily due to the repayment of bank loans[62] - The company's total employee costs for 2024 were 388,774,000 HKD, up from 365,027,000 HKD in 2023, indicating a rise of 6.5%[32] Assets and Liabilities - Non-current assets increased from HKD 5,515,991 thousand in 2023 to HKD 5,809,033 thousand in 2024, representing a growth of 5.3%[6] - Current assets decreased from HKD 1,512,976 thousand in 2023 to HKD 1,387,410 thousand in 2024, a decline of 8.3%[6] - Total assets less current liabilities rose to HKD 6,050,267 thousand in 2024, up from HKD 5,857,151 thousand in 2023, indicating an increase of 3.3%[7] - The company's total equity increased from HKD 5,799,755 thousand in 2023 to HKD 5,935,970 thousand in 2024, a growth of 2.3%[7] - The company's total liabilities increased from HKD 1,171,816 thousand in 2023 to HKD 1,146,176 thousand in 2024, a decrease of 2.2%[7] Inventory and Receivables - Inventory decreased to 600,940,000 HKD in 2024 from 787,749,000 HKD in 2023, a reduction of 23.7%[37] - Trade receivables as of December 31, 2024, amounted to 209,621,000 HKD, an increase from 189,853,000 HKD in 2023[39] - Overdue trade receivables reached 77,274,000 HKD in 2024, significantly higher than 29,981,000 HKD in 2023[40] Segment Performance - Total income from chemical segment was HKD 3.922 billion, while the property segment contributed HKD 28.6 million[5] - Chemical segment revenue was HKD 3,922,260, down from HKD 3,980,919 in the previous year, reflecting a decline of 1.5%[22] - Property segment revenue decreased significantly to HKD 28,573 from HKD 69,662, a drop of 59.0%[22] Financial Position - The company's cash and bank balances decreased from HKD 263,666 thousand in 2023 to HKD 222,781 thousand in 2024, a reduction of 15.5%[6] - Trade and other payables increased from HKD 383,345 thousand in 2023 to HKD 493,417 thousand in 2024, marking a rise of 28.8%[6] - Bank borrowings increased from HKD 587,937 thousand in 2023 to HKD 671,767 thousand in 2024, an increase of 14.2%[6] - The group maintained a strong financial position with cash and bank deposits of approximately HKD 291 million, an increase from HKD 264 million in the previous year[66] Operational Developments - The group plans to continue investing in the automation of three factories to enhance cost efficiency and production effectiveness amid a challenging economic environment[49] - The construction of the vinyl acetate production line at the Changshu factory and the optimization of production capacity at the Zhuhai factory were completed by the end of 2024, with trial production and sales expected to commence within the year[50] - The group aims to develop a high-end fluoropolymer production line in Jiangxi and expand overseas sales channels to support future sales growth[50] Market and Pricing - The average selling prices for key products such as dichloromethane and trichloromethane increased by approximately 4% and 7% respectively, while the price for hydrogen peroxide decreased by about 16%[54] - The majority of the group's revenue is derived from external customers located in China, with significant non-current assets also situated in China[24] Other Financial Metrics - The gross profit margin for the chemical business improved by 3.4 percentage points to 29.4%, and the net profit margin rose by 2.3 percentage points to 12.2%[48] - The group's gross profit for the year was approximately HKD 1.164 billion, an increase of HKD 102 million compared to the previous year, attributed to a decline in raw material prices and energy costs[58] - The sales and distribution costs were approximately HKD 203 million, representing about 5.1% of total revenue, a slight decrease from 5.2% in the previous year[59] - Research and development costs were approximately HKD 136 million, constituting about 3.4% of total revenue, focusing on optimizing product craftsmanship and enhancing market competitiveness[61]
理文化工(00746) - 2024 - 年度业绩