Revenue Performance - Revenue for the fiscal year 2024 decreased to approximately $57.0 million from about $72.3 million in fiscal year 2023, representing a decline of approximately 21.2%[4] - Total revenue from graphite electrode sales decreased to $56.951 million in 2024 from $72.292 million in 2023, representing a decline of approximately 21.1%[43] - Revenue from the Americas region was $13.368 million in 2024, down from $19.326 million in 2023, a decrease of about 30.4%[39] - Revenue from EMEA (Europe, Middle East, and Africa) was $32.941 million in 2024, down from $38.319 million in 2023, a decline of approximately 14.0%[39] - Revenue from major customers included $11.479 million from Customer A in 2024, down from $12.599 million in 2023, a decrease of about 8.9%[41] Profitability and Losses - The gross loss for fiscal year 2024 was approximately $17.3 million, compared to a gross profit of about $0.8 million in fiscal year 2023, resulting in a gross margin decrease from approximately 1.2% to a gross loss margin of about 30.3%[12] - The company reported a net loss attributable to shareholders of approximately $40.98 million for fiscal year 2024, compared to a loss of about $15.48 million in fiscal year 2023[4] - The net loss attributable to the company's owners for the year was $40,984 thousand, up from a loss of $15,476 thousand in 2023, representing a 164.5% increase in losses[28] - The group reported a pre-tax loss of $69,965,000 for 2024, compared to $68,160,000 in 2023, reflecting an increase in cost of goods sold[47] Cost Management - The average selling price of graphite electrodes fell by 26.1%, from approximately $4,249 per ton in fiscal year 2023 to about $3,139 per ton in fiscal year 2024[10] - The average unit sales cost decreased by 2.6% from fiscal year 2023, primarily due to production cost control measures[5] - Administrative expenses for the fiscal year 2024 totaled approximately $14.8 million, an increase of about 23.0% compared to fiscal year 2023, primarily due to increased employee and professional fees[13] - Financial costs decreased from approximately $3.7 million in fiscal year 2023 to about $2.9 million in fiscal year 2024, mainly due to the repayment of several loans[14] - The company aims to improve gross margins and profitability through strategic business plans, focusing on key customer segments and cost control measures[8] Assets and Liabilities - Total assets decreased to $174,969 thousand in 2024 from $226,054 thousand in 2023, reflecting a decline of 22.6%[29] - Current liabilities decreased to $55,584 thousand in 2024 from $62,571 thousand in 2023, a reduction of 11.1%[29] - The company's equity decreased to $105,751 thousand in 2024 from $148,493 thousand in 2023, a decline of 28.7%[30] - Trade receivables amounted to $10,227,000 in 2024, a decrease from $12,950,000 in 2023, with overdue receivables accounting for 32% from the largest customer[59][60] - Trade payables and notes payable totaled $7,609,000 in 2024, compared to $7,200,000 in 2023, with a notable increase in payables overdue by 1 to 3 months[61] Cash Flow - Cash used in operating activities was $3.1 million in fiscal year 2024, down from $6.1 million in fiscal year 2023[17] - As of December 31, 2024, the group had cash and cash equivalents of approximately $16.4 million, down from $29.6 million as of December 31, 2023[18] - Cash and cash equivalents dropped significantly to $10,937 thousand in 2024 from $29,620 thousand in 2023, a decrease of 63.0%[29] Future Outlook - The company anticipates a gradual recovery in demand for graphite electrodes in 2025, supported by a projected 1.9% growth in steel demand in developed countries[8] - The company remains optimistic about long-term growth driven by global carbon neutrality initiatives, despite current market challenges[9] Corporate Governance - The company has complied with the corporate governance code as per the listing rules for the fiscal year 2024[67] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[69] Capital Expenditures and Investments - Capital expenditures for fiscal year 2024 amounted to approximately $5.0 million, primarily for the acquisition of properties, plants, and equipment[21] - The acquisition of Tai Gu assets was completed in August 2023 for approximately RMB 80.5 million, with RMB 40 million already paid[24] - 44.4% of the net proceeds (HKD 83.0 million) is allocated for upgrading production systems in Italy and China, with HKD 38.3 million already utilized and HKD 44.7 million remaining, expected to be fully utilized by mid-2026[64] - 8.0% of the net proceeds (HKD 15.0 million) is designated for the development and expansion of graphite anode materials (GAM) business, with HKD 4.5 million already utilized and HKD 10.5 million remaining, expected to be fully utilized by the second half of 2025[64] Employee and Operational Metrics - Employee costs for the fiscal year 2024 are approximately USD 11.0 million, down from USD 14.4 million in 2023, with a total of 188 employees as of December 31, 2024[65] - The group’s total employee benefits expenses decreased to $7,861,000 in 2024 from $9,999,000 in 2023, reflecting a reduction in salaries and retirement contributions[47] - The depreciation expense for property, plant, and equipment was $4,538,000 in 2024, compared to $4,075,000 in 2023, indicating an increase in asset utilization[47] Dividends - The board does not recommend the declaration of a final dividend for the fiscal year 2024, compared to zero USD for the fiscal year 2023[66] - The group has not declared any dividends to shareholders for the years ending December 31, 2024, and 2023[53]
升能集团(02459) - 2024 - 年度业绩