CIMC ENRIC(03899)2025-03-25 13:11Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 24,755,737 thousand, representing a 4.8% increase from RMB 23,626,279 thousand in 2023[3] - Net profit for the year decreased by 1.7% to RMB 1,143,835 thousand compared to RMB 1,163,561 thousand in 2023[3] - Core profit increased by 4.2% to RMB 1,335,782 thousand from RMB 1,281,381 thousand in the previous year[3] - Basic earnings per share decreased by 2.2% to RMB 0.542 from RMB 0.554 in 2023[3] - Gross profit margin decreased by 1.3 percentage points to 14.4% from 15.7% in 2023[3] - The company reported a total comprehensive income of RMB 1,017,889 thousand for the year, down from RMB 1,164,305 thousand in 2023[6] - The company reported a profit of RMB 1,113,972 thousand for the year, contributing to a total comprehensive income of RMB 1,114,729 thousand[10] - The company reported a pre-tax profit of RMB 1,443,922 thousand for 2024, slightly down from RMB 1,457,288 thousand in 2023, indicating a decrease of about 0.9%[28] Assets and Liabilities - Total assets increased to RMB 29,381,665 thousand in 2024 from RMB 27,587,424 thousand in 2023[7] - Total liabilities increased significantly, with non-current liabilities rising to RMB 3,078,109 thousand from RMB 1,196,519 thousand in 2023[7] - Total current liabilities decreased from RMB 14,017,261 thousand in 2023 to RMB 13,198,518 thousand in 2024, a reduction of approximately 5.8%[8] - Total liabilities increased from RMB 15,213,780 thousand in 2023 to RMB 16,276,627 thousand in 2024, an increase of approximately 7%[8] - Net assets rose from RMB 12,373,644 thousand in 2023 to RMB 13,105,038 thousand in 2024, reflecting an increase of about 5.9%[8] - The company's equity attributable to shareholders increased from RMB 11,232,252 thousand in 2023 to RMB 11,499,074 thousand in 2024, a growth of approximately 2.4%[8] Cash Flow and Financing - Cash and cash equivalents increased to RMB 7,264,358 thousand from RMB 6,998,191 thousand in 2023[7] - The company’s cash reserves increased significantly, with bank loans rising from RMB 93,500 thousand in 2023 to RMB 234,500 thousand in 2024[8] - The net cash balance decreased to RMB 4,278,497,000 in 2024 from RMB 4,371,256,000 in 2023, primarily due to cash outflows from investments and financing[59] - The net cash generated from operating activities was RMB 2,486,370,000, an increase of 39.6% compared to RMB 1,780,476,000 in 2023[60] - The net cash used in investing activities was RMB 1,897,544,000, a decrease of 8.8% from RMB 2,081,077,000 in 2023, primarily due to acquisitions and capital expenditures totaling RMB 2,644,669,000[60] - The net cash used in financing activities was RMB 375,425,000, a significant decrease from a net inflow of RMB 1,979,683,000 in 2023, mainly due to the repayment of convertible bonds and related party loans[61] Segment Performance - Clean Energy segment revenue increased to RMB 17,183,412 thousand in 2024 from RMB 14,907,121 thousand in 2023, representing a growth of 15.2%[35] - Chemical Environment segment revenue decreased to RMB 3,116,028 thousand in 2024 from RMB 4,414,336 thousand in 2023, a decline of 29.4%[35] - Liquid Food segment revenue increased to RMB 4,451,333 thousand in 2024 from RMB 4,292,702 thousand in 2023, showing a growth of 3.7%[35] - Total reportable segment revenue reached RMB 24,791,830 thousand in 2024, up from RMB 23,658,650 thousand in 2023, an increase of 4.8%[36] - Adjusted operating profit for reportable segments was RMB 1,667,051 thousand in 2024, slightly down from RMB 1,710,180 thousand in 2023, a decrease of 2.5%[36] Employee and Operational Metrics - The total number of employees increased to approximately 12,000 in 2024 from about 11,000 in 2023, with total employee costs reaching RMB 2,619,654,000, up from RMB 2,168,545,000[69] - Employee costs rose to RMB 2,619.654 million, up from RMB 2,168.545 million, reflecting an increase of 20.77%[22] Research and Development - Research and development expenses were RMB 734.519 million, compared to RMB 690.440 million in 2023, showing an increase of 6.38%[23] - Research and development expenses exceeded deductions by RMB 57,959 thousand in 2024, compared to RMB 55,848 thousand in 2023[28] Dividends and Shareholder Information - The proposed final dividend per share remains unchanged at HKD 0.30, equivalent to approximately RMB 0.27[3] - The board recommends maintaining a dividend payout ratio of approximately 50% for the fiscal year ending December 31, 2024, with a proposed final dividend of HKD 0.30 per share, equivalent to approximately RMB 0.27[107] - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders according to Chinese tax regulations[110] - The company will not withhold individual income tax on dividends for individual shareholders listed on the company's register as of the record date[111] Strategic Initiatives and Market Position - The group is expanding its low-carbon integrated energy solutions, focusing on industrial, building, agricultural energy efficiency, and mobile energy supply, with strategic partnerships to create "zero-carbon factories"[76] - The group plans to produce 50,000 tons of green methanol by 2025 as part of its clean fuel strategy, establishing an industry benchmark[99] - The group aims to expand its overseas market presence, particularly in the Asia-Pacific, Africa, Middle East, and Europe, to capture global market opportunities[100] - The group is committed to transitioning from a clean energy equipment and engineering service provider to a comprehensive service provider, integrating renewable energy solutions[98] Compliance and Governance - The company adhered to all code provisions listed in Appendix C1, Part 2 of the Listing Rules of the Hong Kong Stock Exchange for the year ending December 31, 2024[115] - The Audit Committee reviewed the group's annual performance and consolidated financial statements for the year ending December 31, 2024[116] - The independent auditor confirmed that the figures in the performance announcement for the year ending December 31, 2024, were consistent with the audited consolidated financial statements[118] Market Trends and Future Outlook - Global natural gas consumption is expected to reach a record high in 2024, with an increase of approximately 100 billion cubic meters predicted for 2025[95] - The demand for LNG is projected to surge, with its market share in global natural gas demand expected to rise from around 14% in 2024 to approximately 25% by 2050[95] - Over 50 countries have released hydrogen energy strategies, with global hydrogen demand expected to reach 520 million tons per year by 2050, accounting for 13% of total energy use[96] - China has introduced over 20 top-level policies to support the accelerated development of hydrogen energy, integrating it into the national energy law[96]