Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately HKD 223,604,000, a decrease of about HKD 83,659,000 or 27.2% compared to HKD 307,263,000 for the year ended December 31, 2023[6] - The gross margin declined from approximately -1.5% for the year ended December 31, 2023, to about -6.2% in the reporting period[6] - The loss attributable to the company's owners increased from approximately HKD 36,525,000 for the year ended December 31, 2023, to about HKD 58,630,000 in the reporting period[6] - Operating loss for the reporting period was HKD 51,672,000, compared to HKD 39,339,000 for the previous year[7] - The total comprehensive loss for the year was HKD 89,791,000, compared to HKD 55,661,000 for the previous year[8] - The company reported a total comprehensive loss of HKD 76,056,000 for the year ended December 31, 2024, compared to a loss of HKD 52,358,000 in 2023, representing an increase of 45.2%[11] Assets and Liabilities - Non-current assets totaled HKD 430,227,000 as of December 31, 2024, an increase from HKD 370,899,000 in 2023[9] - Current assets decreased to HKD 612,008,000 from HKD 782,803,000 in the previous year[9] - Current liabilities increased to HKD 383,353,000 from HKD 337,310,000 in 2023[10] - The company's net assets decreased to HKD 476,845,000 from HKD 636,739,000 in the previous year[10] - The company’s total equity attributable to owners decreased to HKD 387,315,000 as of December 31, 2024, from HKD 534,855,000 at the beginning of the year, reflecting the impact of losses and currency translation adjustments[11] Cash Flow and Liquidity - The cash and cash equivalents increased by HKD 116,488,000 in 2024, compared to an increase of HKD 12,455,000 in 2023, indicating a significant improvement in liquidity[14] - The company incurred a net cash outflow from operating activities of HKD 71,565,000 in 2024, compared to HKD 112,295,000 in 2023, showing a reduction in cash burn[12] - The company’s cash flow from financing activities generated a net inflow of HKD 38,548,000 in 2024, compared to a net outflow of HKD 783,000 in 2023, indicating improved financing conditions[13] - The company’s cash and cash equivalents at the end of 2024 stood at HKD 135,525,000, a substantial increase from HKD 21,895,000 at the end of 2023, reflecting enhanced liquidity management[14] Revenue Segmentation - Total revenue for the year ended December 31, 2024, was HKD 223.6 million, with segment revenues from cement production and sales at HKD 184.8 million, magnetic materials at HKD 38.8 million, and biotechnology research and development at HKD 58,000[26] - The cement production and sales segment generated revenue of HKD 266,129,000, while the magnetic materials and other applications segment contributed HKD 10,823,000[29] - The company reported a total loss of HKD 69.1 million for the year, with unallocated expenses amounting to HKD 8.7 million and a tax credit of HKD 3.1 million[26] Operational Efficiency - The company reported a decrease in trade and other payables by HKD 48,621,000 in 2024, compared to a decrease of HKD 100,949,000 in 2023, reflecting changes in operational efficiency[12] - The company reported a cost of goods sold of HKD 234,841,000 for the year ended December 31, 2024[35] - The company plans to continue expanding its market presence and developing new products in the cement and magnetic materials sectors[29] Discontinued Operations - For the year ending December 31, 2024, the group reported a net loss from discontinued operations of approximately HKD 16,814,000, compared to HKD 4,652,000 in 2023, representing a year-over-year increase of 261%[37] - The basic and diluted loss per share from discontinued operations was approximately HKD 0.028 for 2024, compared to HKD 0.005 for 2023, indicating a significant increase in losses per share[40] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring accountability and transparency[119] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards[122] - The company has complied with all applicable provisions of the corporate governance code during the reporting period[120] Market Conditions - The average national cement market price was HKD 384 per ton in 2024, a decrease of 2.6% compared to the previous year[73] - The total cement production in China for 2024 was 1.825 billion tons, a decline of 9.5% year-on-year, marking the lowest production in fifteen years[72] - The company's management reported a significant decline in cement demand due to ongoing adjustments in the real estate sector, leading to intensified price competition[71] Future Outlook - The company anticipates improvements in cement demand due to government policies aimed at stabilizing the real estate market, despite ongoing declines in national real estate development investment and new construction area[113] - The rare earth sector is expected to grow, driven by policies promoting equipment upgrades and recycling, with a focus on energy-saving and green materials[114] - The company aims to enhance product innovation and quality in the rare earth sector, responding to increasing customer expectations and market demands[115]
东吴水泥(00695) - 2024 - 年度业绩