Huafon Spandex(002064)2025-03-28 12:00Financial Performance - The company's operating revenue for 2024 was CNY 26.93 billion, an increase of 2.41% compared to CNY 26.30 billion in 2023[6]. - The net profit attributable to shareholders decreased by 10.43% to CNY 2.22 billion in 2024 from CNY 2.48 billion in 2023[6]. - The net cash flow from operating activities increased by 22.53% to CNY 3.02 billion in 2024 compared to CNY 2.47 billion in 2023[6]. - The basic earnings per share decreased by 10.00% to CNY 0.45 in 2024 from CNY 0.50 in 2023[6]. - Total assets at the end of 2024 were CNY 35.97 billion, a 1.29% increase from CNY 35.51 billion at the end of 2023[6]. - The company reported a total revenue of 2,400 million for the year 2021, maintaining the same figure for 2027[147]. Dividend Distribution - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares to all shareholders, based on a total of 4,962,543,897.00 RMB[5]. - The company reported a cash dividend of 1.5 CNY per share, totaling 744,381,584.55 CNY, which represents 100% of the total profit distribution[177]. - The total distributable profit for the period was 1,519,453,394.13 CNY[177]. Business Expansion and Diversification - The company has expanded its main business from solely manufacturing spandex products to include research, production, and sales of spandex fibers, polyurethane raw materials, and other polyurethane products[21]. - The company anticipates future growth opportunities in spandex applications in sectors like healthcare and automotive interiors, which currently have low penetration rates[37]. - The company is the largest producer of polyurethane raw materials in China, with a significant market share in both domestic and international markets[44]. - The company’s polyurethane raw materials are sold in over 20 countries, including major brands like Adidas and Lululemon[47]. - The company has developed new products such as Serefon bio-based materials and Linxfon transparent soles, indicating ongoing innovation in product development[46]. Production and Capacity - The domestic spandex production capacity reached 1.35 million tons in 2024, with a year-on-year growth of 9.3%[35]. - The domestic spandex output increased by 11.3% to 1.045 million tons in 2024, while the export volume rose by 13.2% to 69,600 tons[35]. - The production capacity for spandex is 325,000 tons with a utilization rate of 109.98%, while the capacity for adipic acid is 1,355,000 tons with a utilization rate of 94.96%[67]. - The company is currently constructing an additional 150,000 tons of spandex production capacity, expected to enhance overall output[67]. Research and Development - The company has established a strong R&D framework, holding 158 effective patents in spandex technology and receiving multiple provincial and national awards for technological advancements[66]. - The company holds 297 valid patents, including 230 invention patents, and has participated in drafting 72 national and industry standards, showcasing its strong R&D capabilities[71]. - The company is developing a bio-based spandex to meet the demand in the mid-to-high-end market, which is expected to enhance market share and brand influence[96]. - The company is innovating in the field of polyurethane materials, focusing on high abrasion resistance and aesthetic quality for sports shoe soles[97]. Market Challenges - The spandex industry is facing challenges with prices continuing to decline, leading to a competitive environment where many companies are experiencing losses[37]. - The company has faced challenges such as insufficient demand and raw material price fluctuations, impacting product pricing and profitability[115]. - The company faces risks related to fluctuations in raw material prices, which could significantly impact profitability if not managed properly[124]. Corporate Governance and Management - The company has established an independent financial accounting department with its own accounting system and financial management policies[142]. - The company emphasizes a corporate culture of "common goals, common entrepreneurship, common interests, and common development" to enhance stakeholder relationships[140]. - The company has a robust internal governance structure that aligns with the requirements of the China Securities Regulatory Commission[141]. - The management team possesses extensive industry experience and has established a robust quality control system to ensure product stability and brand reputation[75]. Environmental Compliance - The company adheres to various environmental protection laws and standards, indicating compliance with regulatory requirements[187]. - No major environmental issues were reported, and the company is not listed as a key pollutant discharge unit by environmental authorities[187]. - The company employs multi-stage spraying for process waste gas and utilizes SCR combined denitrification and comprehensive desulfurization for boiler exhaust treatment, with online monitoring equipment installed[199]. Employee Management - The total number of employees at the end of the reporting period was 8,780, with 1,469 in the parent company and 7,311 in major subsidiaries[170]. - The employee composition includes 6,674 production personnel, 277 sales personnel, and 1,266 technical personnel[170]. - The company has established a training program that includes on-the-job learning and centralized training for employees[174]. Financial Management - The company reported a net cash outflow from financing activities of ¥1.89 billion, a 99.62% increase in outflow compared to ¥945.44 million in 2023[100]. - The total amount of raised funds utilized by the company reached ¥1.73 billion, with a usage ratio of 62.42%[111]. - The company has unused raised funds amounting to CNY 120,848,037.99 stored in a special account as of December 31, 2024[116].