Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 14,509,866,000, a decrease of 19.9% compared to RMB 18,116,387,000 in 2023[4] - The operating profit for 2024 was approximately RMB 182,404,000, a significant recovery from an operating loss of RMB 646,555,000 in 2023[4] - The net loss attributable to shareholders for 2024 was approximately RMB 140,608,000, compared to a net loss of RMB 883,959,000 in 2023[4] - Basic loss per share for 2024 was RMB 0.03, improving from a basic loss per share of RMB 0.20 in 2023[4] - Gross profit for 2024 was RMB 2,093,842,000, an increase from RMB 1,912,607,000 in 2023[5] - The company reported a total of RMB 111.474 million in government grants for 2024, compared to RMB 161.097 million in 2023, reflecting a decline in financial support[35] - The net loss for the year was RMB 189,041,000, a significant improvement from a net loss of RMB 1,050,106,000 in 2023, representing a reduction of 82.0%[101] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 20,969,057,000, compared to RMB 20,037,834,000 in 2023[9] - The company’s total liabilities decreased from RMB 10,735,580,000 in 2023 to RMB 9,253,262,000 in 2024[9] - The company’s cash and cash equivalents decreased from RMB 2,254,037,000 in 2023 to RMB 2,179,627,000 in 2024[9] - Non-current liabilities increased to RMB 2,776,851 thousand in 2024 from RMB 1,634,470 thousand in 2023, representing a growth of approximately 70%[10] - Net assets decreased to RMB 18,192,206 thousand in 2024 from RMB 18,403,364 thousand in 2023, a decline of about 1.14%[10] - Total equity attributable to shareholders decreased to RMB 18,175,647 thousand in 2024 from RMB 18,329,334 thousand in 2023, reflecting a decrease of approximately 0.84%[10] - The total interest-bearing bank loans as of December 31, 2024, were RMB 5,365,460,000, of which RMB 3,797,750,000 is due within 12 months from the reporting date[21] Revenue Breakdown - The group's revenue from cement sales decreased to RMB 11,773,070,000 in 2024 from RMB 14,208,432,000 in 2023, representing a decline of approximately 17.1%[27] - Revenue from clinker sales also fell to RMB 1,501,593,000 in 2024, down from RMB 2,238,501,000 in 2023, a decrease of about 32.9%[27] - Cement sales accounted for 81.1% of total sales in 2024, down from 78.4% in 2023, with a sales amount of RMB 11,773,070,000, reflecting a year-on-year decline of 17.1%[95] - The company's cement and clinker sales amounted to 51,783,000 tons, a decrease of 17.7% year-on-year, while ready-mixed concrete sales fell by 25.5% to 2,272,000 cubic meters[92] Cost Management - The cost of goods sold (COGS) dropped significantly from RMB 16,195,885 thousand in 2023 to RMB 12,397,879 thousand in 2024, representing a decrease of about 23.0%[46] - Gross profit for 2024 was RMB 2,093,842,000, with a gross margin of 14.4%, up from 10.6% in 2023, attributed to a significant decrease in raw material and fuel costs[96] - The group's cost of sales decreased to RMB 12,416,024,000 in 2024 from RMB 16,203,780,000 in 2023, primarily due to lower export volumes and unit production costs[96] Legal and Regulatory Matters - The company faces several lawsuits from suppliers claiming unpaid balances totaling RMB 40,412,000 as of December 31, 2024, down from RMB 54,781,000 in 2023[62] - The company is currently involved in a winding-up petition in the Cayman Islands initiated by a shareholder, Tianrui (International) Holdings Limited[63] - The company has received a summons from Tianrui Group regarding alleged loans totaling the amount claimed in the announcement made on July 18, 2023[71] - The company is actively contesting the claims made in the Cayman Islands and is represented by legal counsel[63] Market Conditions - In 2024, China's cement production reached 1.825 billion tons, a year-on-year decrease of 9.5%, marking the lowest output in 15 years[76] - Cement demand continued to decline by 10% year-on-year, primarily due to a significant drop in new real estate projects and insufficient funding for infrastructure[81] - The cement industry is expected to face a decline in demand of approximately 5%-7% in 2025 compared to 2024, despite a stabilization in the real estate market[120] - The company plans to consolidate ongoing litigation with a previous case from 2019, which may impact its legal strategy moving forward[72] Future Outlook - The group aims to enhance operational efficiency and management effectiveness as part of its "Efficiency Improvement Year" initiative in 2025[123] - The company will focus on cost management by optimizing production costs and enhancing procurement strategies[124] - The group will continue to strengthen its product development efforts to enhance value-added offerings and customer retention[124] - The company will integrate online and offline sales channels to improve service reach and precision in production and sales alignment[124]
山水水泥(00691) - 2024 - 年度业绩